How much leverage are you comfortable with?
How much positive cash flow do you consider you need to have for a good rental property?
If your rental property was less then 50% occupied would itput yiu in a bind?
If you can pay off your house.right away, do it.....I don't buy into owing on properties even tho you can pay it off, makes no sense to be paying that interest when you could be investing that money in other things.
You can then buy older homes & flip them for a profit if you have the know how & time, & of course money.
Renting apts/homes can be a pain in the ass.......you get more headaches than you need renting.
Only thing worth renting are beach houses & commercial property, you can make a killing doing it.....
You can then buy older homes & flip them for a profit if you have the know how & time, & of course money.
Renting apts/homes can be a pain in the ass.......you get more headaches than you need renting.
Only thing worth renting are beach houses & commercial property, you can make a killing doing it.....
This is 100% wrong. For someone grinding out a living and trying to be able to retire someday, yes whole life insurance is not a good investment. But people with money buy whole life all the time, and it has amazing limitless tax advantages for people that have maxed their 401K and IRA. It's also like buying a piece of property that doesn't have property taxes. Universal life is not whole life insurance. But there are many whole life policies that let you invest in the market how you choose, and not just their whole life standard portfolio.
I really don't agree with this.
If you want to argue that it allows for more security and "forced savings" then I guess that is fine, but it is generally very, very -EV.
Fees, commissions, management costs, insurance protection. The insurance company isn't in business to make you rich. Anytime you are adding a middle man you better make sure it is worth it. The only reason it has any remote value is they can thank the gov't for allowing the savings to grow tax deferred (which you can do indexing anyway) Also, most of the time they pick garbage fee-heavy investments for you.
very very very few people will benefit from whole life policies.
if you have dependents your best course of action is to buy a term policy that will cover living expenses until they are 21 years old.
if you have a new born and a wife you'll want a term of 20 years
if your youngest child is 15 then you only need 5 years...
you are betting you die and if you win your dependents collect. you are hedging against your salary.
say you earn 5 grand a month, you pay 10 bucks of that towards a term policy in case you die tomorrow, cheap and easy
no need for it to gain or hold value, it's a bet you want to loose.
take the difference between a stupid whole life policy and term life and invest it on your own every month in an index fund and don't touch it. that money is always yours, no one has to die to get at it and no tax issues except cap gains.
if you have dependents your best course of action is to buy a term policy that will cover living expenses until they are 21 years old.
if you have a new born and a wife you'll want a term of 20 years
if your youngest child is 15 then you only need 5 years...
you are betting you die and if you win your dependents collect. you are hedging against your salary.
say you earn 5 grand a month, you pay 10 bucks of that towards a term policy in case you die tomorrow, cheap and easy
no need for it to gain or hold value, it's a bet you want to loose.
take the difference between a stupid whole life policy and term life and invest it on your own every month in an index fund and don't touch it. that money is always yours, no one has to die to get at it and no tax issues except cap gains.
yeah plus you have the added risk (although small) of the insurance co going under.
maybe if you had 20 or 30 million and were trying to avoid estate taxes or do some generation hopping inheritance trust fund shenanigans, but even then at that level you have many other options that would be better
maybe if you had 20 or 30 million and were trying to avoid estate taxes or do some generation hopping inheritance trust fund shenanigans, but even then at that level you have many other options that would be better
I would leverage it all for the right deal.
Anything plus is a win.
Not even close. I own beach homes and can make my payments(and there are many) with about 24% occupancy.
I hit 45/52 in N. Carolina and 50/52 in Mexico weeks rented the past 3 years. I'm not even able to use
my own place in Mexico this Winter but found a great place nearby for 1/2 what i'm charging
You use a management co. since you're so far away and need constant management with tenant rollover for something like a vacation property.
From what I understand, management co.'s have gotten a lot better in the last 10-15 years and this makes owning out of state property much easier. That's still a shitty commission to have to pay though if we're talking 7-10% of gross.
There is only one correct answer and I'm not sure if anyone got it right:
Stop working.
If you do that, you'll be able to retire
To retire with good financial standing also has only one correct answer:
Spend less than you earn.
If you can do that, you'll be ok financially. If not, you'll be screwed. Investments are awesome, but they are just another way of earning money.
Stop working.
If you do that, you'll be able to retire
To retire with good financial standing also has only one correct answer:
Spend less than you earn.
If you can do that, you'll be ok financially. If not, you'll be screwed. Investments are awesome, but they are just another way of earning money.
