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Old 07-31-2015, 06:11 PM   #21
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+1 I have never had to get in the face of a fund manager.
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Old 07-31-2015, 07:19 PM   #22
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Quote:
Originally Posted by xmanz3 View Post
I'm 40 and my wife is 32. We have an annual income of $150,000 and this year we will be debt free not counting the home mortgage.

We currently own 3 rental homes and 3 pieces of land. Our goal is to acquire 3 more homes in the next 2-3 years. We are planning to pay off all homes in the next 15 years and be able to retire with approximately $9,000 on rental income along.

We are investing on ROTH IRA, mutual funds, 529 savings accounts, and we have Emergency Fund account and other savings accounts.

If there are any members out there that have invested in Real Estate as part of their retirement planning please share your story and provide me with some feedback regarding our current plan.
sounds good to me. we did rentals in Atl, for yrs and retired with just two.
If you can manage 3 rental homes 6 should be more prob. During the RE boom expenses went up a lot more than rent and we decided to cash in on
most of our rentals. I always managed the rentals myself and just make
a phone call when there is a prob. the only time we do actual work is when
the tenants leave. seems impossible to get someone to do a good job as we
do getting it ready for the next tenant. Both tenants have been there for
over 11 years so it is almost like having a annuity in that we basically
cash checks pay a handyman and make roughly 5K each per yr.
When the economy was real bad it just took a little longer to rent than when things are booming. At times it was real slow but a good tenant eventually
would show up.

You prob. know by now but you must run credit checks on your tenants and have a list of what they must have to be qualified. If they do not qualify
no matter how slow things are you will regret it.
good luck
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Old 07-31-2015, 08:01 PM   #23
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Anyone just use REITs to round out their income? I don't have the stomach to own individual real estate -- much like individual stocks -- but I am rounding the portfolio using REITs for RE. (For now they're buried in an IRA for tax efficiency.)

Anyone else doing the same?
Pros? Cons?
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Old 07-31-2015, 08:56 PM   #24
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I have 24 units, I manage and maintain them myself. I have not lost a day of rent in several years, and typically have all my rents deposited by the third of the month. I typically have to get ~10 tenants a year, most with zero vacancy expense. So far, I am about 2.5% vacancy.

The units are 5-four plexes and 2 duplexes.

It will be 100% of my retirement money from 56 to ~62. They generate 3-4x what my annual budget is. Considering most are paid off, it's a great gig. All the 4-plexes were foreclosures, purchased since 2008.
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Old 07-31-2015, 09:15 PM   #25
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Are you planning on managing all those properties yourself? If so, I don't see how you could consider yourself retired - that's more than a full time job!
no way, i have a property manager who handles it all.
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Old 07-31-2015, 09:18 PM   #26
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OK, that makes sense. For a while there I was thinking maybe you were one of those folks who confused retirement with a job change!
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Old 07-31-2015, 09:26 PM   #27
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OK, that makes sense. For a while there I was thinking maybe you were one of those folks who confused retirement with a job change!
nope!
but if i run low of mad money or get bored playing with my toys i can always do some of the maintenance repairs to save money as i am handy with just about all types of home construction & repair.
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Old 07-31-2015, 10:19 PM   #28
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Are you planning on managing all those properties yourself? If so, I don't see how you could consider yourself retired - that's more than a full time job!
I have 11 rentals - it maybe takes me 1-2 days/month at most to manage them myself. Not anywhere close to a full-time job even if I doubled the units to match knucklehead.
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Old 08-01-2015, 07:11 AM   #29
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I have 24 units, I manage and maintain them myself.
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I have 11 rentals - it maybe takes me 1-2 days/month at most to manage them myself. Not anywhere close to a full-time job even if I doubled the units to match knucklehead.
I concur.

My rentals are all within ~7 miles of my house, 20 of the 24 are within 4 miles. I spend less than 5 hours managing the properties per month, maybe less than 2 hours... That saves me ~7% or my rents or more, which is over $20K. Not to mention the increased efficiency I get over a property manager.

Apartment turns, maintenance, etc. mighty all add up to 20 hours on average a month. Those 20 hours add at least an additional $1,000 to my bottom line.

I could hire out the management (taking the calls), and the maintenance (by getting a handyman or ??), but it is not a bad task to check on the properties and turn a screwdriver once in a while.

I get a ton of tax deductions and it keeps me with a hobby that makes a lot of money. I used to make bird houses for free...

It ultimately gives me the equivalent of a very high retirement income, much better than 95% of working people, with minimal work. Almost double my current IT salary.
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