Hi... age 40, $3M, should I retire?

[honobob]

Quote:

Originally Posted by samclem Come on, guys! You know what an INVESTOR is! Hes' a guy who fixes toilets, paints houses, exterminates roaches, evicts tenants, screens new tenants, repalces windows, patches drywall, replaces water heaters, etc. Clearly, a guy who does this is an INVESTOR.

Well I do screen tenants but have never done any of the other. Can I still call myself an investor?

Samclem, what is your real estate experience?

[FinanceDude]

Quote:

Originally Posted by samclem Come on, guys! You know what an INVESTOR is! Hes' a guy who fixes toilets, paints houses, exterminates roaches, evicts tenants, screens new tenants, repalces windows, patches drywall, replaces water heaters, etc. Clearly, a guy who does this is an INVESTOR.

Or owns a handyman service..........

[honobob]

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Originally Posted by FinanceDude Or owns a handyman service..........

Business owner AND investor. Akamai!

[samclem]

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Originally Posted by honobob Samclem, what is your real estate experience?

Bad.
I'm not sure if it is germane to the discussion, and I'm not sure one needs to own real estate to know what it entails. And, I'm sure I just don't have the "right kind" of experience (or the wrong disposition, or whatever). I owned a duplex in SoCal (Ventura) for several years, I sold a house in Las Vegas using seller financing, I have been a tenant several times, and I have bought /sold several single-family homes over the last 25 years.

It is very possible to make money in RE, people do it all the time. But I wouldn't tell anyone it is a sure thing, that it requires little work, that it can be done in any market at any time, or that it is a diversified investment. I'm sure you wouldn't either.

[ERD50]

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Originally Posted by honobob Maybe if you actually read the post you'd get it!!IMHO I never suggested that Kabekew become a landlord in Honolulu from the East Coast. My suggestion was to INVEST in 4 properties. Some people seem to only see what they want to see. That could be a problem.

Well, since you got so excited, I went back and re-read it.

I never gave nor got the impression you were suggesting anyone become a long-distance landlord. But, your 'investment' requires one to be a landlord. That is different than what most people call 'investing'. Most people call that 'work'. Doesn't mean that is isn't the right thing for some people, but it is what it is. Not sure why you are getting so defensive about making the distinction.

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Also never unclogged a tenants toilet in over 25 years.

Then why did you bring it up?

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I discussed my YPYP policy in another thread.

Sorry, but I don't expect everyone to remember every word I've written in various threads. And I don't recall that one. Nothing about your attitude on this has me motivated to go search for YPYP at this point.

Chill. I'm not saying there is anything wrong with what you do, just call it what it is. It is not a passive investment.

-ERD50.

[calmloki]

hemm. Bob & i do different versions of the rental game. He does fewer units worth a bunch more that rent for far more. I do more units but less expensive. In my opinion, this is looking like a great time to be amassing rentals if that's what one wants to do. I don't consider owning our rentals to be leisure activity, though i do seem to be able to be web-surfing quite a lot. The gal & i are kid free and have enough to suit us, but i'm feeling trapped by the properties - no-one buying at the price i want to be selling. Nice thing is that while salability is down rents are not, so the money keeps coming in. Guess it's like if you had an asset, maybe a bond, that was dropping in value but the dividend check amounts remained the same. We are starting to consider hiring a really good 34YO kid with baby on the way and job evaporating to handle management. He's one of the few people i feel good helping, because he's honest about payback - if we call on him he's there. solid. Could be a win-win. We could incorporate, buy insurance (insurance through honey's GM car dealership job could go away if the dealership folds), act retired, let the rentals keep chunking along till demand comes back up. Sell then - maybe to the kid who has had a chance by then to see how they work...

[alwaysjammin]

Congrats and welcome! You are in the position I want to be at your age. you have definately found a valuable resource as i am continuing to learn a lot from this board2.95 million w/ a 5% yield should comfortably give you 80-90k after taxes. Now, of course, the way you have ur money allocated as far as investment vehicles is important. i believe you may be able to divert some of that yield if ur money is just sitting in non-retirement accounts into tax deductible, tax deferred accounts and lower ur fed/state income tax if u happen to have a little excess moola. also, looking into other places to live is one of the best ways to stretch ur dollar. I am actually moving to the midwest for a few years to complete training and continue saving. Keep posting and let everyone know how everything goes, and impart ur knowledge!

**Nothing in the above post is to be used as financial advice and is simply my opinion.

[putty]

With all due respect, some (NOT ALL but a rotten apple spoils the barrel) of the advice given on this board is crap and isn't just bad it's seriously dangerous. Please go to Bogleheads :: Index and get some better advice. And don't respond to anyone who PMs you offering to "help."

[landonew]

Seems to me that you are just on the fringe.

3% of $3,000,000 = $90,000 Gross....Figure $60-70k net (depending on location and tax-deductions).

While I am in no position to give you retirement/investing advise, have you considered putting in another 5-6 years and socking away another $1million or so?

Investing $3million @ 5% for 5 years = $3,850,000. Save another $250,000 or so and you are at $4M.

3% of $4M = $120,000 annual withdraw rate, or about a 30% SOL increase.

Sounds like a good deal to me, but then again I am not in your situation.

[landonew]

Quote:

Originally Posted by putty With all due respect, some (NOT ALL but a rotten apple spoils the barrel) of the advice given on this board is crap and isn't just bad it's seriously dangerous. Please go to Bogleheads :: Index and get some better advice. And don't respond to anyone who PMs you offering to "help."

I agree with this, but with that kind of money I would seek the advice of a PROFESSIONAL financial advisor (hourly/rate not %/return).

With all do respect, what makes the boards different? Anyone, and everyone, can join and post whatever they wish.