Hi All - I have been thinking long and hard about this but like a lot of people on here, I am very risk averse and still don't know if I should take the plunge. About 5 years ago, I started a home based real estate rental business which has really taken off in 2009. This business currently generates approximately $10K/month after all expenses including mortgage payments but before estimating for vacancies and repairs. By the end of this year, I am anticipating adding another $6,000 to that number (again before estimating for vacancies and repairs). With the downturn in the real estate market, I've been able to pick up quite a few rentals at low enough price to get a really good return. My husband does all the property maintenance except for major electrical, heating and plumbing. If a major repairs is required (like roof replacement), we'll hire someone for that. We've not had to replace any roofs so far.
I also have a full-time job with mega corp with great benefits and a six figure income. However, there's been some layoffs last year and I have been reassigned to a very demanding position. This is an accounting role which I am not too fond off, mainly because this brings on severe migraines which affects my thinking, memory and concentration (the migraines are caused by an old injury). However, I am reluctant leave because of my concern over the cost of health insurance (my SO takes medicine for higher cholesterol and high blood pressure). I am also concerned that I would not look as attractive on paper to continue to borrow money to expand my business. If the company were to lay me off or offer a package, I would have a significant severance, almost a year of pay. If I were able to focus on the business exclusively, I can see much opportunity ahead.
We are both in our 40s (very early 40s for me) and while we have not done as well as most people on this board, we've probably done fairly well for age. Most of our networth of almost $2MM is tied up in our business (many of the houses are owned free and clear). We recently sold our house and now rent a bigger house for a fraction of what it would cost to own. We have enough cash to buy an average middle class home in a good school district outright. Our current expenses of $7,000 are quite high due to a beach front home that was bought for investment, extracurricular for our two children, and expensive organic only foods.
Please give me your thoughts. I truely paralyzed by fear of the unknown.
I also have a full-time job with mega corp with great benefits and a six figure income. However, there's been some layoffs last year and I have been reassigned to a very demanding position. This is an accounting role which I am not too fond off, mainly because this brings on severe migraines which affects my thinking, memory and concentration (the migraines are caused by an old injury). However, I am reluctant leave because of my concern over the cost of health insurance (my SO takes medicine for higher cholesterol and high blood pressure). I am also concerned that I would not look as attractive on paper to continue to borrow money to expand my business. If the company were to lay me off or offer a package, I would have a significant severance, almost a year of pay. If I were able to focus on the business exclusively, I can see much opportunity ahead.
We are both in our 40s (very early 40s for me) and while we have not done as well as most people on this board, we've probably done fairly well for age. Most of our networth of almost $2MM is tied up in our business (many of the houses are owned free and clear). We recently sold our house and now rent a bigger house for a fraction of what it would cost to own. We have enough cash to buy an average middle class home in a good school district outright. Our current expenses of $7,000 are quite high due to a beach front home that was bought for investment, extracurricular for our two children, and expensive organic only foods.
Please give me your thoughts. I truely paralyzed by fear of the unknown.