Net Worth increases AFTER RETIRE

[Clone]

I need to change my signature to a quote which reminds me stay a bit humble:

From a coworker who retired early in 1999- "Anybody can make 15% in the market!"

 

[brett]

I am very apply wit my result BUT they are partially pretax. My best estimate is that net after tax would bring the results down by 10 points. Then I compare to inflation and get the real rate of return. For the time being that tax liability will work for me instead of the Government. Most of our living expenses are covered by pensions so our draw down on equity is mostly to pay tax on the investment income.

 

[dixonge]

i retired a little over 2 years ago.
my ira is up over 250k since with zero new cash being deposited & zero withdrawals.
my rental properties combined equity is up about 1.2m during the same time.
my mortgage debt has reduced about 1m as well due to selling a couple mortgaged properties & then paying cash for a bunch more, along with my tenants paying down the principal for me as the rate of 4k+/mo.

Wait - you're a landlord - that's not retired! LOL

 

[knucklehead 61]

Wait - you're a landlord - that's not retired! LOL

i have a property manager who handles all the details for me, so all i do is wait for the monthly direct deposit to arrive.
i spend most of my time playing with antique Harley-Davidsons

 

[dixonge]

i have a property manager who handles all the details for me, so all i do is wait for the monthly direct deposit to arrive.
i spend most of my time playing with antique Harley-Davidsons

Well that's the way to do it.

I used to hang out with a bunch of real estate investor-types, coffee at least once a week. I was trying to get rich quick (of course) - most of them had been doing it awhile. This one guy would often tout his system of owning, repairing and renting out medium-sized homes. I think he had paid off all mortgages and used income to buy other homes. I often thought that maybe I was doing it wrong. In retrospect, I absolutely was. This guy is probably much better off now than most in that group.

 

[knucklehead 61]

Well that's the way to do it.

I used to hang out with a bunch of real estate investor-types, coffee at least once a week. I was trying to get rich quick (of course) - most of them had been doing it awhile. This one guy would often tout his system of owning, repairing and renting out medium-sized homes. I think he had paid off all mortgages and used income to buy other homes. I often thought that maybe I was doing it wrong. In retrospect, I absolutely was. This guy is probably much better off now than most in that group.

that's sort of what i did. i bought a lot of cheap houses that were not financeable, which prevented the average buyer from buying them. i would make low ball offers to the sellers, typically 20-40% under their listing price, and go all cash, as-is, no repairs, quick close.
i would then do any repairs needed, new roofs, bathrooms, paint, windows, doors, floor coverings, plumbing, electric, landscape, cleanup, whatever needed to get them rent ready in a hurry.
then repeat...frequently. i bought & remodeled 9 in one year, my busiest year.
after doing the repairs they are able to be conventionally financed (if i ever wanted to sell any) which raises the value quite a bit. my equity is up over 1m in the last 2 years due to sharp increases in home prices.
rents are also way up due to a housing shortage in our area.
vacancy is very low, 2-3%