All Forum Posts by: Mark S.

@Michael Baradell

With 20% down, 30-year fixed interest rate mortgage, completely turnkey (rehab completed where the seller fully extracts the value-add), subtracting PITI, 8% vacancy, 10% PM, 5% maintenance, 5% cap-ex, absolute minimum would be $100/door, ideally getting $150/door or more. My worst is probably $120/month and best about $200/month after all the above. I could say it's rent - PITI like many do, but that's not a true number. I do zero work, zero rehab, zero dealings w tenants, etc. Completely passive. While those numbers may seem weak to many who are able/willing to do the rehab/value-add and/or tenant dealings themselves, I do none of that. For a completely rehabbed home that's completely passive, I'm okay with it.

@Quinton Bogle, I do not know the answer to your question (I'm sure the answer is yes, but I'm not familiar w details). Just curious: what do you feel is "wrong" with a quit claim deed? Or maybe a better way to ask is why are you asking this question? I'm genuinely curious. I always get a warranty deed in my personal name and then my title company completes a quitclaim to my LLC once the dust settles.

Disagree w the above.  Get both.  

@Account Closed

More information needed for complete answer.  What is the interest rate on the car loan?  

With that said, as many others have mentioned, I would:

1.) Pay off higher interest rate credit cards immediately

2.) Replenish, and add to, savings until you’re comfortable with reserves

3.) Re-evaluate your car purchase decision to see if that vehicle is really worth it

4.) Invest while slowly paying down (assumably) low interest car loan (if you decide to keep vehicle) and create some arbitrage

5.) Continue saving and promise yourself you’ll do everything possible to avoid going into CC debt again by having ample liquidity

Some good and some incorrect advice on here (Roth IRA CONTRIBUTIONS [and only contributions, NOT earnings] are accessible any time tax and penalty free (no 5 year "waiting period."

Great forum thread. I contribute up to the point of the company match, then stack cash to invest in new properties to meet my annual acquisition goal, then towards the end of the year, I'll bump my contributions to 50% to make sure I max out the employer-sponsored plan. for the year. Each year, I make a prior year non-deductible IRA contribution and then convert to a Roth IRA - i.e., backdoor Roth. Be careful here due to IRA aggregation rules. If you need to do a backdoor Roth IRA due to income limitations, be sure you understand, or your professional you're working with understands, the IRA aggregation rules as they relate to conversions. I also do some syndications, note funds, etc.

Short answer is that I like doing both.  Real estate for cash flow now (and big cash flow later) - phase 1 of my “early retirement” plan.  Retirement plans and stock market investments for phase 2 when I reach “traditional retirement age.”

As far as allocations, I remain all equities in my market-based investments because I view my real estate investments as the more “conservative” portion of my overall portfolio.  Kind of like bonds, but SO MUCH better with many more advantages.  

@Roger Hefner

That’s awesome, Roger. Where are you investing? Self-managing or property management?

Took forever to get one of my K-1s this year.  

They’re super slow to get K-1s out and there was no mention this year of being included on their aggregated state return.  Anyone else a little frustrated?

You generally cannot withdraw from a 457(b) while in service (i.e. working) at that employer sponsoring the plan.  

@William Hardie, great point and I often wonder the same.    FIRE, to me, is more like early retirement around 50.  I view it as a two-phased approach for me: phase one is to have passive income offset current expenses (primarily through rental real estate/syndications), which will allow me to focus on other things (that should generate income, but takes the pressure off of needing to make that monthly nut).  However, one of the differences for me (other than FIRE being later in life than some who want to become job optional in their 20s/30s/40s), is that I do not plan to draw down any retirement accounts during this time.  When I hit my 60s is when I will likely enter phase two of retirement, which is more “traditional” in nature, where those retirement accounts that have now been able to compound for decades will slowly be tapped.  Depending on my rental portfolio at the time, I will also likely add some annuities to my portfolio in those later years for income streams as well, even if I don’t necessarily “need” them as much.  We’ll see.  I will continue to evaluate my plan as time goes on and remain flexible, as many people advocate as being key.