All Forum Posts by: Jonathan Weinberger

Hey @Jonathan Weinberger, curious what your average cashflow is after all expenses on your portfolio if you don't mind sharing.

Edit: Didn't see you post a reply with that answer just a few responses above. Please disregard!

All that Section 8 income sounds ok . But the current administration has mentioned limiting the time frame on benefits . I dont know how , if or when it will occur .  But I wouldnt be putting all my eggs in that basket 

All that Section 8 income sounds ok . But the current administration has mentioned limiting the time frame on benefits . I dont know how , if or when it will occur .  But I wouldnt be putting all my eggs in that basket 

 Renting a private jet regularly(1-2x month) requires about $1million in net monthly cash to justify it for it's time benefits.  $100k/mo give or take $20-30k depending on where and how far is your base cost.

You could have a built a semi luxury 4-6 plane hangar in an area that accommodates a lot of air traffic. Just create & rent out the infrastructure. That would get you closer to owning a plane, ideally 2, one you rent out 100% of the time the other you rent out 50% of the time/use 50% of the time.

What told you a $2.4million investment in Detroit would create that for you?

A Lambo isn't really expensive, you could've bought one in cash with all this money. Not the best investment, but I get it. 

Thanks for the update on how this went. I remember commenting that your projections from a few years ago were optimistic IMO. Sorry it didn't work out the way you had hoped and much respect for the honest update. I think the biggest issue is that your rents aren't high enough to keep up with all the expenses associated with owning property over time. 

Hello @Jonathan Weinberger,

The bigger issue with investing in any city where rents don’t outpace inflation is that you can’t achieve lasting financial independence. To maintain lifelong financial independence, rental income must increase faster than inflation. This does not happen in cities without significant and sustained population growth.

Take Detroit as an example. Its population growth from 2020 to 2024 was only +0.19% (and those were the Covid migration boom years). Rents fell in Detroit last year by 2.7%. U.S. inflation averaged about 4.55% per year over the past five years.

Looking at the impact of inflation on current buying power. Suppose rents increase at 2%/Yr over the next 30 years, inflation averages 4%/Yr, and your current total rental income is $10,000/Mo, here’s what happens to that income in today’s dollars:

• In 10: years $8,235 (a 17.65% decrease in buying power)
• In 20. years: $6,782 (a 32.18% decrease)
• In 30 years: $5,585 (a 44.15% decrease)

So even though your rent increases to $12,190 ($10,000 x (1 + 2%)^10) after 10 years, inflation erodes its value to the equivalent of $8,235 today. This is why, no matter how many properties you own in cities where rent growth lags behind inflation, you can’t achieve long-term financial independence.

Now let’s compare this to Las Vegas. Since 2015, the single-family home segment rents have increased on average by 7%/Yr. Starting with the same $10,000 monthly income, here’s what that looks like in today’s dollars:

• Year 10: $13,289 (a 33% increase in buying power)
• Year 20: $17,660 (a 77% increase)
• Year 30: $23,470 (a 135% increase)

When rent growth consistently outpaces inflation, your buying power rises over time, allowing you to improve your standard of living.

Summary

The city where you invest determines long term income, not properties.

Have you thought about selling the entire portfolio all at once rather than one at a time? A small class B multifamily using a Starker exchange would be a lot less headache.