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Old 04-04-2017, 05:18 AM
 
Location: RVA
2,164 posts, read 1,264,598 times
Reputation: 4451

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Rates were lower and credit easier to get. As long ad you made payments they didn't fireclose. A lot more people rented back then than today. If rents made a good profit abve costs, it worked fine. You hired a live in for free Super with a small salary to handle everything, if the complex was big enough.
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Old 04-04-2017, 06:57 AM
 
Location: Forests of Maine
30,672 posts, read 49,423,020 times
Reputation: 19124
Quote:
Originally Posted by DaveinMtAiry View Post
I have no idea how a police officer could have the money to purchase an apartment complex at such a young age.
We bought our first Multi-Family-Residence in 1985 in California.

At that time, I was out of the Navy [having served 6 years]. I turned 26 that year. I was full-time enrolled at UC-Fresno, working full-time at Forestiere Gardens Forestiere Underground Gardens [digging tunnels and mortaring rough stone]. My wife was also a college student and she was working as a truck stop waitress.

The GI-bill paid for college and we had two Minimum-Wage incomes.

We bought a parcel that had three houses on it. Two houses are along the road, the third house is back behind the others. We lived in the back house and we rented out the front houses. We had a flexible rate mortgage at 10.5%

When we finished our degrees, I went back into the Navy and at our next duty station we bought a 5-plex building [a single building with 5 residential units]. Then at a later duty station we got a 3-plex, and then a 4-plex.
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Old 04-04-2017, 06:59 AM
 
4,194 posts, read 2,487,108 times
Reputation: 1935
Quote:
Originally Posted by Perryinva View Post
Rates were lower and credit easier to get. As long ad you made payments they didn't fireclose. A lot more people rented back then than today. If rents made a good profit abve costs, it worked fine. You hired a live in for free Super with a small salary to handle everything, if the complex was big enough.
Great information.. I had an Uncle that bought an apartment complex, and did the same thing. Made very good money, all section 8. Very little overhead after all is said and done.
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Old 04-04-2017, 08:31 AM
 
Location: Forests of Maine
30,672 posts, read 49,423,020 times
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Quote:
Originally Posted by Perryinva View Post
Rates were lower.
Rates are lower today.

What made it easy in the 1980s and 1990s was 'zero-down' first-time home-owner mortgages.

In California all I had to come up with was the escrow account closing costs.

Our third property was in Connecticut, and they said we qualified because it was our first-time in Connecticut.
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Old 04-04-2017, 06:21 PM
 
Location: RVA
2,164 posts, read 1,264,598 times
Reputation: 4451
He was talking about his dad so I assumed the 60s. These low rates only started about 8 years ago. I know rates were in the 9-10% in early 80s, and in '96 I had a 13% for a short while, before I traded for a much lower ARM. Regardless, it was MUCH easier to get loan on a rental complex. My dad has a 5th grade education and had rentals when in his 20s in the 60s, and made about $5000 as a carpenter.
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Old 04-04-2017, 07:18 PM
 
1,483 posts, read 413,636 times
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Company didn't need DH anymore. We were prepared, took the package and retired.
Best. Move. Ever.
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Old 04-04-2017, 09:16 PM
 
Location: Planet Woof
3,139 posts, read 3,505,046 times
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I had come to hate my role in health care and wanted out for years. Struggled with long-term unemployment and under employment for years. Was finding some joy in alternative work endeavors but I was never going to make the money that I did before the recession. I'd learned to live frugally and felt I could manage and realized years ago how time is way more important to me than money. I wanted time to enjoy after years of struggle. So I retired at 62. Waiting for my first check mid-April. So happy...
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Old 04-04-2017, 09:41 PM
 
Location: Los Angeles area
14,018 posts, read 17,726,438 times
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Quote:
Originally Posted by FeelinLow View Post
I had come to hate my role in health care and wanted out for years. Struggled with long-term unemployment and under employment for years. Was finding some joy in alternative work endeavors but I was never going to make the money that I did before the recession. I'd learned to live frugally and felt I could manage and realized years ago how time is way more important to me than money. I wanted time to enjoy after years of struggle. So I retired at 62. Waiting for my first check mid-April. So happy...
Ah, yes! That first retirement check is the primary milestone marking the beginning of one's retirement. Congratulations. The first check makes it seem real, perhaps more than the signing of the retirement papers and the staying home for the first day that one would normally go in to work.
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Old 04-10-2017, 05:27 PM
 
2,630 posts, read 1,933,187 times
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Quote:
Originally Posted by Perryinva View Post
Thank you for your response. Those are all sobering realities that one seldom sees spelled out. They are the types of things that I want to get a handle on, and one of the reasons I fear retiring too early.

Please do not misconstrue this as prying or judging. I just desire to grasp real world scenarios that educate. You do not need to answer, I am just extrapolating based on your excellent honest openness. So you retired around 2006, essentially before the $hit hit the fan, planned on perhaps selling real estate to then fund a lower COL domicile. You had investments that you assumed (for your calculations) would earn around 5%+/- in safe vehicles, and based future expenses on, what at the time seemed a reasonable inflation rated amount. The unforseeable economic downturns, which increased costs disproportionately to stated inflations, coupled with a lack of appreciation on fixed income and earnings on savings, quickly put you far further below your hoped for standard of living, to which you have dealt with (successfully?) by cutting back your expenses. At the approximately 10 year mark in to an expected 30(?) year retirement, you find that if you could alter, in retrospect, your retirement funds such that if you had had about $400k more saved ( or an increased income that $400k would generate, say $16k/yr perhaps??), you would then be in the position you had hoped for at this time in your life.

Well that sucks.

We read all too often on here that so many are doing just fine in retirement, many on just SS. Timing, which translates in to sequence of risk, is perhaps the uncontrollable spoiler that worries. Someone a few years younger or older, with the same plan, would be in better shape, simply due to timing.

If they were 10 years older, and retired in 1996, they could have benefited from higher earning rates and lower costs of housing, which appreciated (except for the tech bubble in 2000) and carried them to 65 where Medicare would have defrayed the medical expenses, and of course, by now, funding 10 years less retirement.

Or ten years younger, and just retiring in 2016, reaping benfits from an 8 year bull market and historically low mortgage rates, while having a better grasp of the insane increases in health care costs and thr chance to try to compensate for it.

Food for thought, thank you.

The 4.5 - 6% interest on CD's is what's missing in almost everybody's responses, and was a GIVEN between the early 1990's and 2009. That's a lot of money if you socked away enough. We're talking 20K a year with 400,000 socked away, which almost anybody could do between the late 1960's and the mid 2000's. Social security was beer money. You could live on 20K/yr back then. "never touch the principle!" Remember that?


But 0% interest on CD's, and food increased 40% in just 3 short years...because of $200 + per month of food stamps given to 37% of households...and the usual tinkering with utilities, and health insurance X4 if you bought your own... you can easily see, real estate not even considered, the COL has increased tremendously.


One thing you never do after you retire is leave needed money in the stock market. I have many neighbors here who are chewing on cardboard for lunch because they lost 100's of thousands of dollars in 2008. Go back into the market? Yeah. On what basis? I mean in, say, 2009? Hindsight is 20/20. That market can go back to 6400 at nothing more than a burp. Maybe it will...maybe it won't. Unless you are a gambler, you realize, what you got is what you got. Play money only gets put up for that poker game. If you're 38 years old - different story. When you're 65, you won't live to see it again if someone burps. Like they did in '87, the late 90's, and in 2008.


These days you must decide what kind of cash money will support your retirement lifestyle if it was today and then, multiply it X3 - not X2 (like you used to)...X3.
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Old 04-10-2017, 05:39 PM
 
Location: Western North Carolina
4,948 posts, read 7,873,797 times
Reputation: 10420
Quote:
Originally Posted by reneeh63 View Post
I guess there are (at least!) two career routes to take - it seems like most people who retired super-early (before age 60) just worked like heck and burned out/hated their jobs - I don't know if that's because they worked so hard or just in general.
I'm working until 62 - though I know I wouldn't mind retiring now, my job isn't killing me....it's not the kind of job where working overtime will get me overtime pay OR big promotions, so I don't. I make reasonable pay and will get a reasonable pension which I'll take at 62 and hold off on SS as long as possible (hopefully 70). So I'm retiring barely early and don't hate my job. Is hating your job required to retire early? I'm kind of half serious in wanting to know....!
I think for those retiring, or desiring to retire early, it's a combination of hating, or being just plain burnt out, on your job, feeling the age "creeping" on, seeing people you know die before those "perfectly planned" retirements, and just wanting to do things you never have time for because you're working all the time.

Ultimately, though, I believe having the financial means to do so, is obviously the ultimate determining factor.
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