TL; DR - FIRE'd comfortably recently, should I buy more RE that will take some work and grow cash flow?
I recently FIRE'd . Currently, I have enough for my lifetime ("won the game"), but given my drive, I want to continue to pad what I have b/c it's actually interesting for me, though adds a little stress.
So current approx stats:
NW: 6.8M
Equities = 45%
RE = 45%
Cash/Liquid = 10%
Burn Rate around 70-80k
HCOL
I have a deal on the table for SFHs in the midwest for 480k which rents around $7500/mo. This is in Class C/C- neighborhoods in a pretty flat appreciation city, but a large metro area. Given these numbers, I should yield over 20% CoC return. I'm currently holding MFHs in the West Coast w/ similar renter types with much higher appreciation, so would not be that foreign to me, but it's a new market.
PROS
Great Cash Flow
Tax Benefits - Depreciation
Lowish Risk
CONS
Onboarding and management
Ramp up time til stability
Long term prospects of property
Not a ton of value add
OPTIONS
1. Buy the deal
2. Look for other deals, but given current debt rates, cash flows are limited in the RE space, though there are other options with higher value add.
3. Put the cash in a broad market index fund and call it a day.
I'm leaning towards #1, Numbers work, seems low-ish risk, and I like doing real estate type things.
I recently FIRE'd . Currently, I have enough for my lifetime ("won the game"), but given my drive, I want to continue to pad what I have b/c it's actually interesting for me, though adds a little stress.
So current approx stats:
NW: 6.8M
Equities = 45%
RE = 45%
Cash/Liquid = 10%
Burn Rate around 70-80k
HCOL
I have a deal on the table for SFHs in the midwest for 480k which rents around $7500/mo. This is in Class C/C- neighborhoods in a pretty flat appreciation city, but a large metro area. Given these numbers, I should yield over 20% CoC return. I'm currently holding MFHs in the West Coast w/ similar renter types with much higher appreciation, so would not be that foreign to me, but it's a new market.
PROS
Great Cash Flow
Tax Benefits - Depreciation
Lowish Risk
CONS
Onboarding and management
Ramp up time til stability
Long term prospects of property
Not a ton of value add
OPTIONS
1. Buy the deal
2. Look for other deals, but given current debt rates, cash flows are limited in the RE space, though there are other options with higher value add.
3. Put the cash in a broad market index fund and call it a day.
I'm leaning towards #1, Numbers work, seems low-ish risk, and I like doing real estate type things.