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Old 10-20-2016, 07:09 AM
 
Location: new york
27 posts, read 11,990 times
Reputation: 14

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Hello! Have you ever asked yourself why wait until 55 to retire? I have. Every day. So i decided to expedite my retirement with some real estate investing.

What is "retirement"?
Simply put, retirement is leaving a job and not having to work for income because over an EXTENDED period of time you saved enough money to finish you life work free. Great idea right? I think it takes too long and traditional methods of retirement are obsolete.

For me, retirement is having enough residual or passive income to cover the cost of living.

Stay with me for a minute...

We all want to live comfortable right? A place to live, food, water, money, transportation, etc

I suggest Owner Occupying an investment property for a few reasons.
1:There are great financing programs for owner occupying. As little as 3% down.
2:Insurance will be cheaper because you are on site managing your investment.
3:Your cost of living will be exponentially less because the other tenant(s) pay all expenses/debt service. In some cases you can owner occupy AND cash flow!!
Now that you made the first step and are owner occupying now is the time to SAVE for the next investment. This one will warrant a much higher down payment. But its ok, because you are saving on living expenses and hopefully your normal pay check hasnt changed. After completing the save and purchase cycle a couple times you will begin to see how amazing this method is.

Here is a real scenario a good friend of mine is doing right now-

3 duplex properties Gross: $51,900
Expenses: $18,400
1 unit owner occupied Debt: $19,114
5 units rental income Cash Flow: $14,386 ($1,199/mo)
Rents:
775
750
750
950
1100

RECAP:
lives for free.
car payment is 400$/mo
insurance is 120$/mo
additional apartment expenses 300$ including food/internet **utilities expense accounted for in expenses**

Income: $1,200/mo
Expenses: $820/mo
EXTRA $$: $380

Purchasing his first at 22 he is RETIRED at age 23. He is continuing to work for a pay check. But only until his residual income is to a satisfactory number $5,000/mo maybe? Shouldnt take longer then a year or two if he continues at this rate.

I firmly believe this is the fastest and safest method to achieve "retirement".

Please discuss, i want to know what the community thinks.

 
Old 10-20-2016, 07:19 AM
 
Location: Tennessee
23,651 posts, read 17,632,423 times
Reputation: 27759
One of my coworkers told me a story similar to this. I think it happened near where we were in Indiana.

Guy bought a cheap duplex in one of the satellite cities (either Muncie or Kokomo). These are old Rust Belt cities with depressed economies, but are still commutable to Indianapolis. Lived in one half and rented the other, which covered most/all of his mortgage.

It wouldn't take long to pay that off if you were still working and otherwise debt free - he ended up buying more properties in Indiana and is a multi-millionaire in his early 30s.
 
Old 10-20-2016, 07:34 AM
 
Location: new york
27 posts, read 11,990 times
Reputation: 14
Quote:
Originally Posted by Serious Conversation View Post
One of my coworkers told me a story similar to this. I think it happened near where we were in Indiana.

Guy bought a cheap duplex in one of the satellite cities (either Muncie or Kokomo). These are old Rust Belt cities with depressed economies, but are still commutable to Indianapolis. Lived in one half and rented the other, which covered most/all of his mortgage.

It wouldn't take long to pay that off if you were still working and otherwise debt free - he ended up buying more properties in Indiana and is a multi-millionaire in his early 30s.
Bingo! That is the plan. I am 22 now and plan on purchasing a 4-plex within a couple months to start off. Hopefully everything goes as planned
 
Old 10-20-2016, 07:37 AM
 
3,351 posts, read 3,058,048 times
Reputation: 4885
Quote:
3 duplex properties Gross: $51,900
Who would want to live anywhere like this? No way.

And your entire post sounds like an advert.
 
Old 10-20-2016, 07:38 AM
 
Location: Sugarmill Woods , FL
6,235 posts, read 5,917,006 times
Reputation: 13647
Taxes, maintenance and repairs? Assuming all units are being rented all the time. One month with only 1 unit not rented, disaster!
 
Old 10-20-2016, 07:48 AM
 
Location: MMU->ABE->ATL->ASH
9,130 posts, read 17,171,427 times
Reputation: 9982
I noticed there is No Health Insurance (Guess it with his F/T job, or thru his parents? still?) $500/month + Deductible reserve fund of $2K?
If he is doing this F/T he now need to think about his Retirement, Disability, ~20% of Gross.

Vacant Fund: Where is the Replacement dollars for when the unit(s) are vacant and not generating income. I would assume 3-5% Each Unit vacant 1 month out of each 36months + Cost to remarket unit, Utilities for that month, New Paint, New Carpet.


Capital Replacement Funds: New Roofs? Heating Systems? Hot water Heaters? Appliances, 10/15 year Kitchen/Bathroom remodels?
 
Old 10-20-2016, 07:54 AM
 
Location: new york
27 posts, read 11,990 times
Reputation: 14
Quote:
Originally Posted by N.Cal View Post
Who would want to live anywhere like this? No way.

And your entire post sounds like an advert.
Who would want to live like what...?
An advertisement for what?
[mod cut]

Quote:
Originally Posted by froglipz View Post
Taxes, maintenance and repairs? Assuming all units are being rented all the time. One month with only 1 unit not rented, disaster!
Taxes, maintenance and repairs are all expenses, bud. 100% occupancy.

Last edited by volosong; 10-20-2016 at 08:56 AM.. Reason: personal attack
 
Old 10-20-2016, 07:55 AM
 
33,046 posts, read 22,099,000 times
Reputation: 8970
So there are some people working two jobs so that their landlords can work zero jobs. Whatever happened to the work ethic in this country?
 
Old 10-20-2016, 07:57 AM
 
Location: San Diego
1,085 posts, read 717,004 times
Reputation: 1351
Retired sure
 
Old 10-20-2016, 07:58 AM
 
33,046 posts, read 22,099,000 times
Reputation: 8970
Quote:
Originally Posted by flyonpa View Post
I noticed there is No Health Insurance (Guess it with his F/T job, or thru his parents? still?) $500/month + Deductible reserve fund of $2K?
If he is doing this F/T he now need to think about his Retirement, Disability, ~20% of Gross.

Vacant Fund: Where is the Replacement dollars for when the unit(s) are vacant and not generating income. I would assume 3-5% Each Unit vacant 1 month out of each 36months + Cost to remarket unit, Utilities for that month, New Paint, New Carpet.


Capital Replacement Funds: New Roofs? Heating Systems? Hot water Heaters? Appliances, 10/15 year Kitchen/Bathroom remodels?

Ah, Nancy Pelosi has the answer!

Under Obamacare + preferential tax rules for real estate investment, landlords can enjoy the tax benefits of owning rental property, report low taxable income, and qualify for huge Obamacare premium tax credits.

Is this a great country or what?
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