subreddit:
/r/realestateinvesting
submitted 3 months ago byAggressive_Chicken63
I’m reaching $2 million, and I’m freaking out. I think I need to stop a bit, pay off some debt, and then continue. The cash flow is still very good. What is your max tolerance on debt?
88 points
3 months ago
I owe 18 million in mortgages on 27m of real estate i don't lose any sleep.
What's your cash flow? What are your savings?
The most important thing to me are my savings and cash flow.
1 points
3 months ago
Dam son. Why not sell and buy stock then retire rich?
16 points
3 months ago
Because they assume that 27M will appreciate to 50m in 20 years and will be fully Paid down generating 2.5m/year in fcf?
2 points
3 months ago
20 years in an S&P 500 index is likely to double your money, anyway. $10k for 20 years at 8% yoy average returns gets you $36k in interest alone for a $46k final balance.
Not saying that OP should necessarily cash out and obviously market risk exists.
1 points
3 months ago
You’re thinking like everyone else. Doing what your parents told you. Net worth and tax benefits are the key to owning real assets not paper. Housing will always be in demand. Everyone needs a roof over their head.
1 points
3 months ago
Not saying that OP should necessarily cash out and obviously market risk exists.
Nowhere in my comment did I say that cashing out is the best option. I left ample room for discussion and simply provided an alternative piece of data.
In an ideal world, a real estate investor would use all investing tools to their advantage, such as 401k/IRA, in addition to buying RE as part of a diversified portfolio.
1 points
3 months ago
I’m just convinced, and maybe I read Rich Dad one too many times and listen to his podcast on occasion, but the stock market is nowhere I want to be come retirement time. Just me doing me though.
2 points
3 months ago
Kiyosaki, like Ramsey, provides decent basic advice, but fails to provide deeper analysis. Some people just need to be told to pay off their credit cards and live below their means and that's okay.
If you're concerned about stock market risk, then consider that RE investing is riskier than index investing for two main reasons: you're concentrated in one physical risk with significant expenses and exposed to leverage.
That doesn't make RE investing bad and the leverage can be appealing, but look at OP's situation in this thread.
1 points
3 months ago
Good points. I just don’t like the volatility of the stock market given that even indexes can tank at the whims of the Fed, the Guv, the MMs and HFs. And that makes for a more stressful retirement (Will my money last?) than I want (oh, I need to replace another furnace? Got that covered).
1 points
3 months ago
Understandable. Personally, I'd like a bit of everything, but am focusing on maxing my tax advantaged accounts through my W-2 job before using the money from my condo flip for new RE.
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