Originally Posted by 97guns
the 4 properties are grossing me $3900/month which nets me around 3K. i throw all my reserve funds into pyhsical precious metals, gold and silver and have doubled up my net worthin 2 years through this application.
These two lines really concern me. But while most here would be more concerned with the latter, I am with the former.
As a real estate investor, I know you can't be netting 3k/mo off of 3900 gross. Especially since two of them are financed!
You are only counting gross rent - PITI to get your net, meaning you aren't calculating vacancy (one of them empty for a month? You lose 1K), repairs, leaving a reserve for capital expenditures, etc. You will net that 3k in the short run, but then a big repair will happen, a property will sit empty for a bit between renters, etc. and you'll be in a real tight spot. Over the long run you'll likely net about 1500/mo off those properties, plus a few hundred for your job as the property manager of them, so maybe 1800-2k/mo, not 3k.
Sounds like you may be able to weather any downturns with your scrappy spirit, but watch out on spending all that money you get from rent, and then being in a tough spot when something happens.