All Forum Posts by: Michael P.

I do not understand doing rehab value adds in cheap markets.  I just completed a rehab that adding half a bathroom added ~$50k in value.  Was adding this half bathroom way more work or way more costly than adding it in a cheap Market where it adds $10k?

Something to ponder as you ask for input on the BRRRR.

Good luck

 Course, I'm neither. Just a family guy in law enforcement trying to leave my kids more than i Had. I'd love to see what props and locations you have and talk though!

Fantastic job! This is a fun one.

Aside from “invest in Cleveland, Columbus, Toledo, or Akron”, here are some ideas:

First map out annual savings potential and multiply by the next 13 years. Bet with your income and LCOL you generate $2M+ on that alone.

From there think about how you want your wealth to look at that time. With $1M today, and $2M accumulated and invested over 13 more years, I think you are looking at an end state NW of ~$5M.

Personally, I’d love an end state $5M portfolio that looked something like this:

$750K paid off home

$250K cash

$2M stock portfolio (as much as possible in tax advantaged accounts likely 401(k), HSA, and less in the Roth in this situation). Mostly in index funds.

$2M in, at this future time, lightly levered RE.

Supposing this is close to what you’d love, one could spit out a financial plan that looked something like the following:

- Max HSA

- Max 401(k)

Use leftovers to go on a shopping spree buying RE at relatively low leverage, potentially on 15 year mortgages, in local LCOL area (which probably also means a relatively reasonable cash flow market)

Obviously I’m making a ton of assumptions here and will be wrong in ten places. But this is how I approach planning at the highest level.