Search for passive income- through real estate?

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Foster
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Search for passive income- through real estate?

Post by Foster »

Hi guys,

My ideal life involves living in the middle of nowhere with a family and be comfortable financially, and I don't want to wait till I'm 65 to do it. I absolutely cannot work in a desk until I retire. Therefore, I'm in search of passive income that will be able to support me in 15-20 years.

I've been researching buying investment properties to achieve this goal. I understand that a fundamental value of this forum is diversification, so I want to be clear that I'm talking about a buy and hold conservative approach. Buy a single family unit, pay off, buy a 1-4 unit, pay off, etc. Repeat until enough money comes in through rent that I can quit my day job. Begin this only when all debt has been paid off and retirement accounts have been maxed for the year.

I currently am 23 and make about $140,000 gross, which should increase and allow me to save money to put down for a property in a year or two. I'm hoping to get your opinion on:

1. Is investment property a valid way to achieve this goal? Are there other ways that may be easier?
2.If yes, does anyone with experience have any resources (books) they can point me to in order to learn more?

Thanks so much for any insight you may have.
KyleAAA
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Re: Search for passive income- through real estate?

Post by KyleAAA »

Well, real estate isn't really passive income. You still have to do some work, even if you use a management company to take care of the day-to-day.

1.) But yeah, plenty of people build wealth using real estate. I would definitely recommend a little diversification, though. I certainly wouldn't want 90+% of my net worth tied up in real estate. Even 50% feels too high to me.
2.) I'm assuming you've gone to the library and read all the basic investing in real estate books? Biggerpockets.com is a pretty good community for real estate investors.

You might also change your mind about not wanting to work at a desk until age 65. I thought as you do when I was 23. Now, I enjoy my job and have no plans to retire early at this point. Perhaps the problem isn't working at a desk but rather that your job just sucks.
nimo956
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Re: Search for passive income- through real estate?

Post by nimo956 »

Read the post by Lumpr here: http://www.bogleheads.org/forum/viewtop ... =2&t=68979 (you have to scroll down a bit)
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thedayisbrave
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Re: Search for passive income- through real estate?

Post by thedayisbrave »

I think we're totally on the same page. I don't want to be resigned to a desk job either. My goal is financial independence by 45 at the very latest. At that point, I want to have enough going on that I don't have to work full-time to support myself if I don't want to.

Real estate is good. It's not get-rick-quick, unless I guess if you wholesale but most people I know in RE don't. It's a good way to build wealth, but I also would not tie up a significant part of my net worth in it either (part of the whole don't have all your eggs in one basket philosophy).

Since what you're talking about sounds like you want to work with a property manager, you don't have to worry about landlording as much. But not all PMs are great. I first started with one, they got me horrible tenants who trashed the place and didn't have a security deposit - so I will not be using them again and will be serving on the HOA board to make sure they do their jobs right. Just know you have to give up some potential profit to get that peace of mind, and there will still be things coming up that YOU and ONLY you can deal with (HVAC needs replacing, etc.)

I'm 23 also and became a landlord when I was 21. I wouldn't take it back, but I've definitely learned a lot of tough lessons through it. It ain't all fun and games, trust me. But yes, if you can get a good deal that cash flows decently, it can be a boon in my book. I read the heck out of Bigger Pockets and also the blog Afford Anything.

If want to chat further, feel free to message me.
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Clearly_Irrational
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Re: Search for passive income- through real estate?

Post by Clearly_Irrational »

1) I like real estate but I still wouldn't recommend it for all of your assets, stocks and bonds are great too!
2) With Real Estate leverage is your friend, don't pay the places off right away or you're reducing your returns by lowering your risk.
3) You specified your income but not your expenses so we have no way to know how much you need for your lifestyle.

I'll take some wild guesses at your numbers:

Your net income might be ($140,000 * 0.67) = $93,800
Your frugal lifestyle spending might be $60,000
We'll assume a 50/50 split between real estate and a market portfolio and a 60/40 stock bond split for convenience.
To generate $30,000/yr in 2013 dollars after tax your real estate portfolio might look like four paid off duplexes. (three might do it, but with all the variables I rounded up) Total cost around $1M
To generate $30,000/yr in 2013 dolalrs after tax your market portfolio might be around $1.5M (3% withdrawal rate since it's a long retirement)
Historical estimates suggest your growth period combined cagr might be around 11% but I think that's optimistic given current projections so we'll use 8% for safety.
If we assume your pay increases by 50% over the next 20 years your average savings at your current gap is probably $42,250/yr.
At 8% for 20 years that's around $1.9M so you probably won't be able to retire yet.

That's a lot of guessing, feel free to re-run the numbers with different assumptions.
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Foster
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Re: Search for passive income- through real estate?

Post by Foster »

Thank you guys for taking the time to respond.
2.) I'm assuming you've gone to the library and read all the basic investing in real estate books? Biggerpockets.com is a pretty good community for real estate investors.

You might also change your mind about not wanting to work at a desk until age 65. I thought as you do when I was 23. Now, I enjoy my job and have no plans to retire early at this point. Perhaps the problem isn't working at a desk but rather that your job just sucks.
I haven't heard of biggerpockets.com, so I'll be sure to dig through that- thank you. And kudos to you with enjoying the job. For me, the job is asbsolutely fine, pays well, and isn't stressful, but at the end of the day I'm still reviewing financial transactions in a office chair. I can get enjoyment out of work, but to me it's not really living. Who knows how that plays out down the road.
Your net income might be ($140,000 * 0.67) = $93,800
Your frugal lifestyle spending might be $60,000
We'll assume a 50/50 split between real estate and a market portfolio and a 60/40 stock bond split for convenience.
To generate $30,000/yr in 2013 dollars after tax your real estate portfolio might look like four paid off duplexes. (three might do it, but with all the variables I rounded up) Total cost around $1M
To generate $30,000/yr in 2013 dolalrs after tax your market portfolio might be around $1.5M (3% withdrawal rate since it's a long retirement)
Historical estimates suggest your growth period combined cagr might be around 11% but I think that's optimistic given current projections so we'll use 8% for safety.
If we assume your pay increases by 50% over the next 20 years your average savings at your current gap is probably $42,250/yr.
At 8% for 20 years that's around $1.9M so you probably won't be able to retire yet.

That's a lot of guessing, feel free to re-run the numbers with different assumptions.
Thank you for working out the numbers, they certainly are interesting to see. Pay should increase by 50% within the next 5 years, so there's definitely some unknown variables in the equations.

Also, awesome post by Lumpr, that poster really consolidated a lot of good information. Again, thank you guys. I'm at the very initial stage and just trying to research and feel out everything, but if I ever do make a move I'll be sure to reach out to the forum per usual.
Calm Man
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Re: Search for passive income- through real estate?

Post by Calm Man »

OP, I would like to propose a change in orientation to your post. If I were 23 and concluded that I lived in the middle of nowhere (your words), rather than think of how to invest to escape the destiny, I would look to moving. Why live your whole life in the middle of nowhere?
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3CT_Paddler
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Re: Search for passive income- through real estate?

Post by 3CT_Paddler »

Clearly_Irrational wrote: We'll assume a 50/50 split between real estate and a market portfolio and a 60/40 stock bond split for convenience.
To generate $30,000/yr in 2013 dollars after tax your real estate portfolio might look like four paid off duplexes. (three might do it, but with all the variables I rounded up) Total cost around $1M
To generate $30,000/yr in 2013 dolalrs after tax your market portfolio might be around $1.5M (3% withdrawal rate since it's a long retirement)
Historical estimates suggest your growth period combined cagr might be around 11% but I think that's optimistic given current projections so we'll use 8% for safety.
If we assume your pay increases by 50% over the next 20 years your average savings at your current gap is probably $42,250/yr.
At 8% for 20 years that's around $1.9M so you probably won't be able to retire yet.


That's a lot of guessing, feel free to re-run the numbers with different assumptions.
I am no expert at real estate but I know a family member that generates around $60k/year on a commercial building that they bought 15 years ago at $200k which appraises around $450k today. I think your duplex numbers could be low on the yield side, but then again every area is different and it's only one data point.

IMO the time to buy real estate passed about 6 months to a year ago... At least that's the case around most parts of the Southeast.
travellight
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Re: Search for passive income- through real estate?

Post by travellight »

Real estate does involve some work, and risk, but can be financially very rewarding. It is very important to buy well.
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Clearly_Irrational
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Re: Search for passive income- through real estate?

Post by Clearly_Irrational »

3CT_Paddler wrote:I think your duplex numbers could be low on the yield side
I was trying to be conservative in my guessing since we're talking about early retirement. A much more detailed analysis would be appropriate.
denovo
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Re: Search for passive income- through real estate?

Post by denovo »

3CT_Paddler wrote:
Clearly_Irrational wrote: We'll assume a 50/50 split between real estate and a market portfolio and a 60/40 stock bond split for convenience.
To generate $30,000/yr in 2013 dollars after tax your real estate portfolio might look like four paid off duplexes. (three might do it, but with all the variables I rounded up) Total cost around $1M
To generate $30,000/yr in 2013 dolalrs after tax your market portfolio might be around $1.5M (3% withdrawal rate since it's a long retirement)
Historical estimates suggest your growth period combined cagr might be around 11% but I think that's optimistic given current projections so we'll use 8% for safety.
If we assume your pay increases by 50% over the next 20 years your average savings at your current gap is probably $42,250/yr.
At 8% for 20 years that's around $1.9M so you probably won't be able to retire yet.


That's a lot of guessing, feel free to re-run the numbers with different assumptions.
I am no expert at real estate but I know a family member that generates around $60k/year on a commercial building that they bought 15 years ago at $200k which appraises around $450k today. I think your duplex numbers could be low on the yield side, but then again every area is different and it's only one data point.

IMO the time to buy real estate passed about 6 months to a year ago... At least that's the case around most parts of the Southeast.
Is that gross yield, or net, after deducting property taxes, maintenance insurance, etc? 60k yield on 450k seems kind of high, but I am not familiar with the South.
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Lynxville
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Re: Search for passive income- through real estate?

Post by Lynxville »

There is money in the right real estate, depending on location. But most people don't have the stones for it. It can be very aggrevating and can take lots of your time. If you don't have the time it will take lots of your money to own. To run the property right you have to actively manage it. If you decide to buy, do so on a small scale and see how you like it.
YttriumNitrate
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Re: Search for passive income- through real estate?

Post by YttriumNitrate »

Calm Man wrote:OP, I would like to propose a change in orientation to your post. If I were 23 and concluded that I lived in the middle of nowhere (your words), rather than think of how to invest to escape the destiny, I would look to moving. Why live your whole life in the middle of nowhere?
Calm Man, maybe I'm misinterpreting the OP's post, but it seems like moving to "the middle of nowhere" is the goal. I can think of a bunch of reasons to live way out in the boonies.

That being said, if the OP is planning a major move, I wouldn't recommend buying a rental right now. Trying to manage properties when they are 2000 miles away is not a good way to maximize revenue.

With the income you have and the expected pay bumps, if you aggressively save you should be able sock away close to a million by your early to mid-30s even without real estate. Living in the middle of nowhere often is much less expensive than living in a city, and the ~$30,000 a year your investments would kick off would allow you to live pretty comfortably in a rural area. Certainly not extravagant, but definitely comfortable.
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3CT_Paddler
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Re: Search for passive income- through real estate?

Post by 3CT_Paddler »

denovo wrote:
3CT_Paddler wrote:
Clearly_Irrational wrote: We'll assume a 50/50 split between real estate and a market portfolio and a 60/40 stock bond split for convenience.
To generate $30,000/yr in 2013 dollars after tax your real estate portfolio might look like four paid off duplexes. (three might do it, but with all the variables I rounded up) Total cost around $1M
To generate $30,000/yr in 2013 dolalrs after tax your market portfolio might be around $1.5M (3% withdrawal rate since it's a long retirement)
Historical estimates suggest your growth period combined cagr might be around 11% but I think that's optimistic given current projections so we'll use 8% for safety.
If we assume your pay increases by 50% over the next 20 years your average savings at your current gap is probably $42,250/yr.
At 8% for 20 years that's around $1.9M so you probably won't be able to retire yet.


That's a lot of guessing, feel free to re-run the numbers with different assumptions.
I am no expert at real estate but I know a family member that generates around $60k/year on a commercial building that they bought 15 years ago at $200k which appraises around $450k today. I think your duplex numbers could be low on the yield side, but then again every area is different and it's only one data point.

IMO the time to buy real estate passed about 6 months to a year ago... At least that's the case around most parts of the Southeast.
Is that gross yield, or net, after deducting property taxes, maintenance insurance, etc? 60k yield on 450k seems kind of high, but I am not familiar with the South.
More specific numbers... purchased 12 years ago for $230k. Now assessed at $500k. Annual taxes around $7k. Not sure on insurance, but annual recurring maintenance costs would be less than $2k per year (although a large roof was replaced last year and cost in the neighborhood of $30k). Based on some numbers he quoted for renting one of the spaces, I would estimate gross rent of $65-75k. So maybe closer to $50k in net revenue. The mortgage was paid off two years ago. There is also the potential/space to put on another building on the property ($300-500k cost?) which I would estimate would bring in an additional $100k in annual revenues.

Some other details is that this space was purchased when yields on real estate were better, and it was a foreclosed property. The purchaser has his business housed in the property (as well as a couple other renters), so he has at least one good tenant. :) There is certainly a part time job aspect of dealing with renters/maintenance, and its not a diversified investment.

In today's low yield environment, these kind of properties are probably less common, and it helps if you are also going to be a tenant (like a doctor owning his property).
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Clearly_Irrational
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Re: Search for passive income- through real estate?

Post by Clearly_Irrational »

Just to give an example, if you purchased a duplex in my area cash it would probably cost you $250k and generate $17k a year in cash flow after operating costs. That doesn't count appreciation or tax advantages, but it also doesn't count infrequent large repairs or vacancies. As a rough guide I use 6% returns as my all cash return number, and on that basis $30k/yr would require $500k worth of property. That's reasonably reliable as long as you have other sources of income or lots of savings to ride out any temporary problems.
ems2013
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Re: Search for passive income- through real estate?

Post by ems2013 »

I bought a 3-unit building at 27 and it has worked out well for me. I have always had great tenants, but I've also put in a lot of work--more than I ever thought it would involve. That said, I am looking for another opportunity or two and have a much better idea of what I want in additional properties, though I'm not planning to live on rental income entirely, ever. If you decide to move ahead, do your research. I assume you'll do your due diligence on the property itself. You might also want to look into a local course for new landlords (an organization in my town offered this for free. If yours doesn't, get to know some successful landlords) and, if you're not handy, pick up some general construction skills. Doing much of the work yourself will make a huge difference in your profits.

It sounds to me like you are planning for early financial independence. I would recommend the blog Mr. Money Mustache (start at the beginning, not the most recent). The guy retired at 30 by saving most of his income and investing in a rental property and Vanguard funds. Good luck!
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Clearly_Irrational
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Re: Search for passive income- through real estate?

Post by Clearly_Irrational »

ems2013 wrote:Doing much of the work yourself will make a huge difference in your profits.
I agree, that can give you a boost but a word to the wise: If the unit is empty, every day it's not rented costs you money and sometimes hiring the work out is actually cheaper than doing it yourself just because it's often faster. I learned that lesson the hard way, did a huge amount of work and it ended up being $3000 more expensive than if I had just hired someone due to the extra time it took and lost rents.
suming
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Re: Search for passive income- through real estate?

Post by suming »

When your income is lower in retirement, you will be able to get a lot income tax benefit from the rental business. Currently I don't think you are qualified because of your high income level.
travellight
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Re: Search for passive income- through real estate?

Post by travellight »

That said, I am looking for another opportunity or two and have a much better idea of what I want in additional properties, though I'm not planning to live on rental income entirely, ever.
Even if it made you net 120-140k per year, ems?
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ems2013
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Re: Search for passive income- through real estate?

Post by ems2013 »

travellight wrote:
That said, I am looking for another opportunity or two and have a much better idea of what I want in additional properties, though I'm not planning to live on rental income entirely, ever.
Even if it made you net 120-140k per year, ems?
At this point I'm not planning to have rentals at that level of income. For my own peace of mind, I'd rather invest in both rental properties and regular old retirement/taxable accounts. I suppose that if rentals at that level were to fall into my lap, I would certainly consider it!
nayr8099
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Re: Search for passive income- through real estate?

Post by nayr8099 »

Thought I would chime in here since I have similar thoughts. I was 23 when I bought my rental duplex (I'm 25 now). I bought a newer one built in 1999 and yes at times it can be time consuming. This summer I spent a week painting one side after tenants had been there for 7 years. Every waking moment for that week was spent there and I even tried to sneak in quick fixes over lunch breaks (It also helps to have a SO that doesn't mind helping). However, is cashing $1770 worth of checks every month worth my troubles - you bet! I started living in one side of the duplex which made it extremely easy to manage. I updated my side and made it nicer than all of the comparison homes and it rents fast to high quality tenants. Once I finished updates, I purchased a foreclosure fixer upper and rented out my side. One thing I absolutely love about it is learning how to fix things, install flooring etc. These are things that will save you money in your own home over the years. I would also recommend finding a RE agent who has some knowledge of rentals (and maybe owns rentals themselves so they can provide contacts of when things need to be done) Bigger pockets is a great resource and if you do buy I recommend using strict (but legal) guidelines for prospective tenants and sticking to them (keep emotions out of it)

I'm also planning an early retirement and real estate is just one portion of my portfolio. I've considered purchasing more, but having one rental while still working full time is enough. I've since moved on to other side projects for passive income. Once you have a rental, it opens up even more potential for investing in other asset classes (my duplex covers both mortgage payments). There are great deals in my area (despite high taxes), but I would want to stick with the higher end tenants of my area which means a sizable down payment and more risk.

With your income, you could easily retire early (mrmoneymustasche and affordanything are good resources as others have mentioned). I currently am at about a 65% savings rate after tax and barring any major setbacks I should be able to be financially independent in 2026 at the latest. It will allow me to do something I love and not worry how much I make.
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Meg77
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Re: Search for passive income- through real estate?

Post by Meg77 »

I'm on the same path and pretty much in the same boat. I bought my first property (homestead) at 22 when I was making $50K right out of college. Then I bought my first rental duplex at 24. I've since bought four more rentals and just closed on a new homestead (my home will become a 6th rental property). I'm 30 now. Along the way my income more than doubled, and I started maxing out retirement accounts. I want real estate to be another bucket in my retirement plan, not the only bucket. Basically I'm doing what I'm "supposed" to by maxing retirement accounts, but on the off chance the stock market tanks right before I retire hopefully a bunch of paid off real estate will lessen the blow and provide an alternate income source.

The easy first step is to buy a home to live in that will make a decent rental down the road. My original plan was to buy a new homestead every 2-3 years and just never sell the previous one, accumulating rental properties over time (and with better financing options). But I got impatient and also was able to buy more rentals by going cheaper and accumulating some lower end stuff that I wouldn't personally want to live in.

It's definitely not always easy, but the tax breaks are great and it's fun to watch the equity accumulate each month now that the mortgages are all going down at a nice clip. I managed them myself for 4 years which was great learning experience, then finally hired a property manager and am SOOOO glad I did. Probably wouldn't have made it a lifeime in real estate otherwise. It's worth the 10% or so in gross rent they charge on average for me (they charge 8% but there are fees for new leases, etc too so it's actually more than that). But I'm not handy at all.

Overall I'd say it's a great diversification and inflation hedge. Especially if you're maxing out retirement and have money leftover you don't have a real use for. If you start in your 20s you have the benefit of a hugely long time horizen. Not to say there aren't some investments that are much better than others, but you can make money on pretty much anything if you buy and hold long enough.
"An investment in knowledge pays the best interest." - Benjamin Franklin
travellight
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Re: Search for passive income- through real estate?

Post by travellight »

Here is an example of what CAN be done, in real estate:

I bought a SFR for 205k and spent about 50k to expand it but finishing the attic. It went from a 2 br/1 ba to 4 br/2 ba. My net "purchase price" was then 255k.

I created a no money down, 15 year loan for this amount at 2.875% (which was the rate I got most recently on an investment property last January 2013). Monthly payment $1745. I rent it out for $2200/month.

My net money in, has been $4000 since spring of 2011 when I bought this house since tenants have paid all the mortgage payments for a 15 year loan. The property is now worth 376k. Current remaining loan is 218528. Net equity is 376k minus 219k = 157k. My 4k has translated to 157k in less than 3 years.

***********

Another property SFR, bought for 270k. Rents for $2150. Same no money down 15 year note is $1848. Property is now worth 505k. My net cost so far is $2500 since Dec 31 2010; tenants are covering all purchase cost on a 15 year loan. Loan amount is now at 224,882; net equity (505k - 225k = 280k) is 280k. 280k made on $2500 is pretty good over a 3 year period.

********

My worst property was bought in 2007 for 195k. Rents for $1275 per month. mortgage is $1334. Net cost since 2007 is almost 22k. Property is now worth about 215k, 75k of equity. 22k is now worth 75k but over a 6 year span.
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Foster
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Re: Search for passive income- through real estate?

Post by Foster »

With your income, you could easily retire early (mrmoneymustasche and affordanything are good resources as others have mentioned). I currently am at about a 65% savings rate after tax and barring any major setbacks I should be able to be financially independent in 2026 at the latest. It will allow me to do something I love and not worry how much I make.
I agree, I actually found this site through MMM. I love the concept of living frugally, unfortunately, I already know that I'll have a hard time enforcing my ways once I have a wife and kids. I'd like to ideally set MMM ways as a goal but also have other sources of income (real estate, indexed funds, day-time job) should my MMM lifestyle fall short.
nayr8099
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Re: Search for passive income- through real estate?

Post by nayr8099 »

I agree, I actually found this site through MMM. I love the concept of living frugally, unfortunately, I already know that I'll have a hard time enforcing my ways once I have a wife and kids. I'd like to ideally set MMM ways as a goal but also have other sources of income (real estate, indexed funds, day-time job) should my MMM lifestyle fall short.

So did I actually and this site has really helped me refocus and be smart about investing. Trying to not get too off topic...Honestly for me it has always been about many small steps and my SO and I are on the same page when it comes to finances. I cut things from my life and I realize that I don't miss them at all. My family all think I am extremely frugal and that I am starving myself (not literally) by not spending my money. What they don't understand is that I already feel like I live a luxurious lifestyle and it's already more comfortable than I could have ever imagined. I'm 25, own lake front property, live in a safe community, and spend money on my passions (like my wakeboard boat) and have 0 debt besides the two mortgages - what more could I ask for?

If you do go the real estate route one thing I recommend once you have an emergency fund is to max out your 401k at work to lower your taxable income. You don't want to get burned at the end of the year since the rent isn't taxed. Also, make sure you keep track of all of your expenses related to the property. It really is amazing the freedom a solid cash flowing property can do.
RobG
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Re: Search for passive income- through real estate?

Post by RobG »

suming wrote:When your income is lower in retirement, you will be able to get a lot income tax benefit from the rental business. Currently I don't think you are qualified because of your high income level.
I think this point needs to be re-emphasized... when you reach a certain income level you don't get to use any depreciation and expenses to offset your income, but if you decide you are sick of being a landlord and sell the place you will have to pay taxes on the recaptured depreciation you never got to deduct!

Instead of buying and paying off the loan you can always invest the money in stocks/munis/roth and then buy the four-plex of your dreams when you move out into the middle of nowhere... that is sort of what I did...
Stay thrifty my friends.
john94549
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Re: Search for passive income- through real estate?

Post by john94549 »

OP: Here's our experience, for whatever it might be worth. My wife and I really enjoyed our vacations in Hawaii. Especially Maui. so, after a pleasant stay or two at one particular resort on Maui, we thought of buying a unit there. We did. In 1990. Yup, you guessed it, we bought just before the market tanked. Well, to make a long story short, we had the funds available to cover the negative, and, after a decade or so, the property actually began to "pay for itself" in terms of rentals covering taxes and opportunity costs. Fast forward another ten years, the property actually began to throw off real positive cash flow. Ironically, by then, all those booked losses (actual and via depreciation) resulted in a major tax shelter. Booked losses (and they carry-over forever) are deductible against ordinary income when one's MAGI falls below $150K. This generally happens in retirement. As a plus, Social Security payments don't count towards MAGI. You can deduct all those booked losses against ordinary income on line 17, Form 1040, up to $25K/yr.

It's weird, but all those booked losses (including depreciation) just add up, like a bank account. So long as your MAGI is below $150K (which it might well be, in retirement), you can just deduct $25K/yr on your Form 1040, line 17, until it's all used up.

Stated another way, it's not just tax-free money (as to rentals), it's an income "adjustment" as to your otherwise-taxable AGI.

Wrap your arms (or your CPA's arms) around form 8582.

PS: Want to avoid re-capture, leave the condo to the kids. Step-up in basis and all that.
travellight
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Joined: Tue Aug 12, 2008 5:52 pm
Location: San Diego

Re: Search for passive income- through real estate?

Post by travellight »

PS: Want to avoid re-capture, leave the condo to the kids. Step-up in basis and all that.
Can you expound on this? So, you avoid paying capital gains tax but somehow your heirs also avoid it?
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