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Offer owner financing..

I would be curious to see a poll of what percent of your retirement spend level are you anticipating your rental portfolio will replace.? This is what I keep calculating....and running through my calculators. As our rental portfolio increases the $ portfolio amount that i need to save decreases.

Yeah.. the risk is what he is asking about. I see several areas of risk: Neighborhood shift. There could be a significant shift in the class of the neighborhood over the years. I have seen this occur and it can affect your tenant class, rents you can pull, vacancy rates, property condition...

FIGuy, Wife and I are using rentals to retire early as well. We self manage currently, but also both hold Full time corp jobs. So far this arrangement is going fine (in year 6) with 8 properties now. The rentals are a big part of our ER strategy, but we also max out retirement accounts and...

So here is a question the DW and I keep pondering: We plan to downsize from our larger home to one of our former homes (currently a rental). The wife has always loved this home and its the perfect size for a couple. We might have to kick out a good tenant, but this would not be a major...

RedHawk, Great job - You are on the right track. My one piece of advice would be to never sell that first home. Keep it and rent it out. Start now and you will be surprised how quickly you can build a portfolio of rentals. That 3.35% mortgage is sub 3 after interest deductions. This is close...

Also a landlord with 8 properties and I must agree with the previous poster. Here in Dallas area inventory is certainly down and prices are creeping up - and inflation has not even started. Despite picking up 2 last year, I dont see us buying this year. The 2 we did buy were much harder to...

Congrats on the early payoff. Given your age and situation..its tempting to keep going full tilt and save a large portion of cash. I am a few years behind you, but the problem I see if you retire very early is your money is locked up in various retirement accounts, pensions, social security...

Oh..its turned into an exit strategy post. I am always pondering exit strategies. I think there are several options and i will probably do a combination of several of these depending on what the market is doing at the time of exit. You could: Use a property manager and continue to hold your...

jags, Your strategy is similar to mine. We are happy landlords with 8 properties. While we can't retire strictly on the rental income, it will certainly be a major part of ER strategy. We are currently 40,43 and want to see how these next 5 years turn out. We should have all but one investment...

Wife and I want to remodel our Master bath. We have one of those large traingle shaped jacuzzi tubs in there. We never use it. It takes up most of the bathroom. We would like to make the shower bigger and just leave more open space in the bath. We plan on staying in the home, but our final...

The wife and I have several SFR - No multi-family experience. We have thought about it, but the problem is what about when I want to sell? I can only sell to other investors. I always think about a backup plan and my exit strategy for every property we buy. I just don't like the options with...

Thanks all for the responses. It's not that I have grown to hate my job, but I have stayed in the current position too long. It doesn't help that the company I work for is going through an extreme rough patch. If we recover from this it will be a story similar to IBM or Apple's comeback. My...

At this point, my wife and I can really see the light at the end of the tunnel. We have both been maxing out 401k and ROTH IRAs for many years. We have also accumulated rental properties and self manage these in addition to our full time day jobs. We are on target for an early semi-retirement...

You needed to charge late fees from the beginning and really set the tone. It will be tough to change them now since it sounds like they are chronic late payers. Ideally when you owner finance a place you should put clauses in there that deal with late pays. If you are not able to collect the...

Thanks all... I will start on the non-retirement taxable savings account in earnest as I get close. My thought was those first few years of retirement when my earned income will be almost nill, I could use this time to convert funds from my 401k IRA money to a ROTH enough to fill up the lower...

Wow.. age 45 congrats! Can I ask what investments you went with in your non-retirement accounts? I like this approach. We are doing some of this with DRIP programs and some company stock - but this is more of our emergency fund at this point.

So I feel we are on target for an ER at around age 55. Current ages are 40(me) and 43 for wife. We both work full time in mega corp jobs. We have been maxing out 401ks and ROTH’s each year(using the conversion loophole on the ROTH’s) . We have accumulated around $500k in our 401ks and ROTHs. Our...

I think owner financing is a great exit strategy for rentals. Glad to hear it worked out so well for you as this is my eventual exit plan as well. Congrats.

Jules, I am a landlord myself. The answer to your question depends. If you are actively acquiring properties and your goal is to go from 4 to 12, then you should refi, pull out money, and buy more. However, if you are planning to get these paid off as soon as possible and live on the rental...