Plan ahead youngsters !!

[Grant H.]

Just out of curiosity what kind of annual percentage gains is he averaging for you?


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Last year was 8.6%, which with my risk tolerance is pretty darn good.

I should probably have higher risk tolerance in my accounts right now, given my age, but that's just not how my mind works.

[Firehaus]

I only brought that up to point out that one can screw up any sort of investing/business/financial strategy. Just do as much research as you can handle before jumping in with both feet. Your Money Or Your Life, right?

Agreed. Research is key.

Not only on the property your looking at, but also the area, the city, and the future rental demographic trends and forecasts.


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[Firehaus]

Last year was 8.6%, which with my risk tolerance is pretty darn good.

I should probably have higher risk tolerance in my accounts right now, given my age, but that's just not how my mind works.

Thats not too bad for lower risk on stocks/funds. I like to have as minimal risk as well. I started with nothing and never want to have nothing again.






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[Ronin13]

20% if you want to work forever and like being a sucker.

Edit: Ronin, I'm just giving you a hard time. Most people can't even imagine saving that much.

At a minimum... that's what we strive for on top of my retirement plan through work- which is nice, but we won't live comfortably off of it in 30-40 years when/if we do retire.

[kidicarus13]

Every time I think that real estate sounds like a good idea, I meet someone who is renting properties and they are miserable and wish they never got involved. My neighbor has several properties and he seems like he's barely treading water on them . . . and the mental drain of dealing with idiots, people who trash the properties, contractors who screw him, etc really wears on him. I dunno . . . but I've met far more people who are landlords and hate it than the ones who are thriving with it.
.

I agree. I hear stories from people I know involved in real estate, not the exception, not just the worst case scenario.

[Irving]

I agree. I hear stories from people I know involved in real estate, not the exception, not just the worst case scenario.

Look at that through the lens of every one you know who is employed though. You don't talk about how wonderful your job is over drinks at happy hour, usually. People are always talking about some work bummer or another, but that's not talking most people out of a job altogether.

[Firehaus]

I agree. I hear stories from people I know involved in real estate, not the exception, not just the worst case scenario.

If you can find me an easier way to legally make 12-20% cash on cash annually while almost doubling, to more than doubling my initial cash investment on the sale of the property I'm interested.

This market isn't going to last forever, but the generational demographic trends are forecasting a strong rental market for the next 10-20 years. Not crazy like we've been seeing in regards to rent increases, but still decent to strong demand.

Nothing worth while is ever easy in my experience. Always some sacrifices to be made.


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[Dave_L]

Real estate can do a lot of good for you. You just have to be ready for what you're getting into, IMO. I did the landlord thing for 3 years. It's not my cup of tea for now. I wouldn't be opposed to it later on and I'd be sure to have a good chunk put aside for "emergencies" I.E. tenant damage, house maintenance, floating the mortgage between tenants, etc.

I think too many people jump into the landlord thing assuming it'll be cake and instant flow of fortune. Such is the case with many business's that people feel should be "easy money". But alas, there is no such thing (99% of the time).

[Irving]

In 2008 when single family home properties fell by up to 60%, I think that rental prices dropped by about 10%. Significant difference there.

[Ronin13]

Real estate can do a lot of good for you. You just have to be ready for what you're getting into, IMO. I did the landlord thing for 3 years. It's not my cup of tea for now. I wouldn't be opposed to it later on and I'd be sure to have a good chunk put aside for "emergencies" I.E. tenant damage, house maintenance, floating the mortgage between tenants, etc.

I think too many people jump into the landlord thing assuming it'll be cake and instant flow of fortune. Such is the case with many business's that people feel should be "easy money". But alas, there is no such thing (99% of the time).

I have friends who have been on both sides of the landlord coin. The ones that make good profit and do well with it have the perfect combination of good tenants, a good area, and the husband is a stay-at-home dad/property manager/superintendent- meaning he fixes the stuff that goes wrong with their rental houses. The others, sank tons of money into fixing issues, had bad tenants, and ended up having to go through court and lose even more money. It can go either way. We contemplated renting out our condo when we bought our house, but decided to sell instead of dealing with the headache that comes with being a landlord. That and the laws are heavily in favor of the tenant.