Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Just joined today!!
Old 09-11-2015, 09:16 AM   #1
Confused about dryer sheets
Join Date: Sep 2015
Location: Kokomo
Posts: 6
Just joined today!!

Hello Everyone,

My wife/I are both 51, plan to retire 4/1/18 after 30yrs as an hourly employee working in mfg. We have been married a couple years. Rental Property is going to be a pretty significant portion of our retirement.

I found this site about a week ago and have followed a little and decided to join. One of the thing(s) I noticed was that I didn't see anything on "Rental Property" as part of your portfolio. Just curious.

I see the FIREcalc seems to be a very common thing referred to here and we haven't looked at it yet.

Looking forward to learning and sharing with everyone.
THOMPMD is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 09-11-2015, 09:27 AM   #2
Recycles dryer sheets
Join Date: Aug 2015
Location: Bee Cave, TX
Posts: 198
welcome - I just joined a couple of weeks ago and have been pouring over old threads pretty much since then. There is a wealth of info on here - I can't help you with the rental question but I will subscribe to this thread in hopes someone else will as I am curious as well.
dirt_dobber is offline   Reply With Quote
Old 09-11-2015, 09:31 AM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jul 2006
Posts: 11,401
Welcome to both of you! There are quite a few members who own rental property (myself included) and if you use that term in the search engine you will find relevant threads.
Meadbh is offline   Reply With Quote
Old 09-11-2015, 10:19 AM   #4
Dryer sheet wannabe
Join Date: Sep 2015
Location: Pittsburgh
Posts: 10
Hello and Welcome!

Do you plan on managing your properties yourself in retirement? I feel I am overweight in property with just owning my house. I would like to diversify first before I would buy a rental :-). When you say significant, do you mean more than 50%?

Congrats on your ER date!
SHM is offline   Reply With Quote
Old 09-11-2015, 10:32 AM   #5
Dryer sheet aficionado
Join Date: Jun 2015
Posts: 42
Hello and welcome to the forum!
amyj05 is offline   Reply With Quote
Old 09-11-2015, 12:02 PM   #6
Full time employment: Posting here.
Join Date: Jul 2014
Posts: 815
Katiek is online now   Reply With Quote
Old 09-11-2015, 12:38 PM   #7
rodi's Avatar
Join Date: Apr 2012
Location: San Diego
Posts: 12,272
Hello and welcome.

In firecalc you can enter rents as pension income - after adjusting for expenses/costs/vacancies/etc... That's the way I handle my rental property.

There are several folks here who are heavily into rental income as part of their portfolio.
Retired June 2014. No longer an enginerd - now I'm just a nerd.
micro pensions 6%, rental income 20%
rodi is offline   Reply With Quote
Thanks Everyone
Old 09-11-2015, 12:47 PM   #8
Confused about dryer sheets
Join Date: Sep 2015
Location: Kokomo
Posts: 6
Thanks Everyone

Yes, at least for the next several years we plan to manage and do as much of the mtce as well...that will be our "job" in retirement. We also have a couple ppl that helps us as well. If we need more help we will supplement as necessary. I don't have the numbers in front of me but it will be a significant portion of our retirement. I work for a mega-corp.

We are fortunate that housing cost(s) vs Rent(s) are very good IMO. The potential downside long term is that we don't have much appreciation so if we would sell it would effect us. We have both been in the Rental business for a long time(25yrs) so its nothing new. I bought my first when I was 26.

We are very excited to move into ER phase of our life.
THOMPMD is offline   Reply With Quote
Old 09-11-2015, 01:32 PM   #9
Thinks s/he gets paid by the post
Senator's Avatar
Join Date: Feb 2014
Location: Williston, FL
Posts: 3,925
I will be using rental property exclusively myself for a few years. I also do my own maintenance.

Start with the gross rents, and subtract the fixed known expenses. Then, subtract at least 5% for vacancy, 10% for maintenance and 10% for property management. Then, subtract the mortgage payment. I actually then only take ~60% of what is left to even account for more contingencies. Higher taxes, licenses, lower rents, bad tenants, etc. can all kill the profit.

Even if you manage the properties yourself, you should have a contingency for that, use the 10% number.

With Firecalc, use it like a pension. Fidelity's RIP accounts for it better.

In reality, much of the rental income is sheltered by depreciation, so you could actually have two categories, one like a Roth, one like a pension. In my case, I have ~$60K of depreciation, plus many business expenses that help with taxes.

There really is not a good method for rental property, in any planning tool. Even your asset allocation, if you have paid off properties, becomes a bit difficult. I figure my equity is like a bond allocation, so I have a higher percentage of equities in my investment account.
FIRE no later than 7/5/2016 at 56 (done), securing '16 401K match (done), getting '15 401K match (done), LTI Bonus (done), Perf bonus (done), maxing out 401K (done), picking up 1,000 hours to get another year of pension (done), July 1st benefits (vacation day, healthcare) (done), July 4th holiday. 0 days left. (done) OFFICIALLY RETIRED 7/5/2016!!
Senator is offline   Reply With Quote
Old 09-11-2015, 01:36 PM   #10
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Car-Guy's Avatar
Join Date: Aug 2013
Location: Citizen of Texas
Posts: 6,328
Welcome to the board.
Car-Guy is offline   Reply With Quote
Old 09-11-2015, 05:17 PM   #11
Recycles dryer sheets
Join Date: Aug 2015
Posts: 459
Welcome to the Forum. Rental Property, divided stocks, CDs could add to your retirement income.
VFK57 is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Just joined...looking to retire in 1 year Blue Skies Hi, I am... 32 09-01-2016 03:15 PM
I joined Boglehead today - but will stay here also :-) obgyn65 Other topics 59 02-25-2013 07:44 PM
Just Joined Dog Hi, I am... 10 04-10-2006 04:00 AM
Just joined - looking for Accountants in the DC Area bearkeley Hi, I am... 10 09-17-2005 12:25 PM
Just joined the forum bhowell Hi, I am... 2 07-16-2005 02:45 PM

» Quick Links

All times are GMT -6. The time now is 10:33 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2021, vBulletin Solutions, Inc.