Search found 101 matches

by tomtoms
Sat Jun 15, 2019 7:26 pm
Forum: Personal Finance (Not Investing)
Topic: Why are you NOT buying rental properties?
Replies: 299
Views: 28795

Re: Why are you NOT buying rental properties?

(5) Buy below market value. I don't think that's been possible for at least a couple of years in our area. Houses are on the market for days, sometimes hours, and are regularly bought with cash and no contingencies, not even an inspection. Rents are increasing but certainly not at the same pace as ...
by tomtoms
Sat Jun 15, 2019 6:48 pm
Forum: Personal Finance (Not Investing)
Topic: Why are you NOT buying rental properties?
Replies: 299
Views: 28795

Re: Why are you NOT buying rental properties?

(5) Buy below market value. I don't think that's been possible for at least a couple of years in our area. Houses are on the market for days, sometimes hours, and are regularly bought with cash and no contingencies, not even an inspection. Rents are increasing but certainly not at the same pace as ...
by tomtoms
Sat Jun 15, 2019 6:25 pm
Forum: Personal Finance (Not Investing)
Topic: Why are you NOT buying rental properties?
Replies: 299
Views: 28795

Re: Why are you NOT buying rental properties?

I like passive investing and spending time with the family much more. If you like to spend time with the family then you should own rental properties. Several of my relatives are working just 3 or 4 days a week. They have enough money to take it easy. Look, I am not saying everyone should own renta...
by tomtoms
Thu May 16, 2019 5:03 pm
Forum: Personal Investments
Topic: If you are already wealthy, what keeps you motivated?
Replies: 95
Views: 9623

Re: If you are already wealthy, what keeps you motivated?

:D So you have $1.5 Million of invested assets in your late 30s with 300k per year income? I would double that figure prior to being worried about what the wealthy are doing. LBYM and investing can be boring, but it takes time to see serious, life altering gains. Late 40s maintaining your current pa...
by tomtoms
Thu May 16, 2019 9:43 am
Forum: Personal Investments
Topic: If you are already wealthy, what keeps you motivated?
Replies: 95
Views: 9623

Re: If you are already wealthy, what keeps you motivated?

I am in my late 30s. Here are my stats: - Own $2M in rental properties. Mortgage/property tax/insurance is $9,500/month. Rent is $12,500/month. Have a property manager. I'm not sure why many are ripping the ROE. He is making $36K/year before misc expenses. Even if it's down to say $20K to be conser...
by tomtoms
Thu May 16, 2019 7:52 am
Forum: Personal Investments
Topic: If you are already wealthy, what keeps you motivated?
Replies: 95
Views: 9623

Re: If you are already wealthy, what keeps you motivated?

I am in my late 30s. Here are my stats: - Own $2M in rental properties. - Have $500 k in stocks - Have $450 k in cash I have yet to find where you answered the repeated questions regarding your debt load. You have somewhere between 950k and 3 Million. Assuming you are asking the question because yo...
by tomtoms
Wed May 15, 2019 3:01 pm
Forum: Personal Investments
Topic: If you are already wealthy, what keeps you motivated?
Replies: 95
Views: 9623

Re: If you are already wealthy, what keeps you motivated?

If you spend 1-2 days of a weekend doing rehab on your rentals and don't enjoy doing that (understandable), then how about selling the rentals and putting the money into index funds. The rental cash flow is transformed into gains and dividends and the only loss is that time you have to spend doing ...
by tomtoms
Wed May 15, 2019 12:49 pm
Forum: Personal Investments
Topic: If you are already wealthy, what keeps you motivated?
Replies: 95
Views: 9623

Re: If you are already wealthy, what keeps you motivated?

bloom2708 wrote:
Wed May 15, 2019 12:28 pm
Is your business the rental properties or do you have a side business that makes $150k+, a 9-5 job and the rental property business? I can't tell from the way it is worded.
My business is separate from my rental properties.
by tomtoms
Wed May 15, 2019 12:34 pm
Forum: Personal Investments
Topic: If you are already wealthy, what keeps you motivated?
Replies: 95
Views: 9623

Re: If you are already wealthy, what keeps you motivated?

I am in my late 30s. Here are my stats: - Own $2M in rental properties. Mortgage/property tax/insurance is $9,500/month. Rent is $12,500/month. Have a property manager. $3000 a month ($36,000 a year) is only 1.8% return on $2 million. (But you are building up equity too). How much does the property...
by tomtoms
Wed May 15, 2019 12:08 pm
Forum: Personal Investments
Topic: If you are already wealthy, what keeps you motivated?
Replies: 95
Views: 9623

Re: If you are already wealthy, what keeps you motivated?

Jack FFR1846 wrote:
Wed May 15, 2019 12:05 pm
Define "wealthy".

I'd think:

On Reddit/pf, that would be $50k in assets.
MMM, probably $800k.
Bogleheads: from Dances with Wolves: "more than the stars"
More than $3M in NW
by tomtoms
Wed May 15, 2019 11:57 am
Forum: Personal Investments
Topic: If you are already wealthy, what keeps you motivated?
Replies: 95
Views: 9623

If you are already wealthy, what keeps you motivated?

I am in my late 30s. Here are my stats: - Own $2M in rental properties. Mortgage/property tax/insurance is $9,500/month. Rent is $12,500/month. Have a property manager. - Have $500 k in stocks - Have $450 k in cash - Have no debt (besides my rental properties) - Own a business/also 9-5 job = $275-30...
by tomtoms
Sun May 12, 2019 6:12 pm
Forum: Personal Investments
Topic: When will mortgage lender count my rental income?
Replies: 13
Views: 1095

Re: When will mortgage lender count my rental income?

Thesaints wrote:
Sat May 11, 2019 10:22 pm
"Systemic risk" is the answer: The more your mortgage payments are supported by rental income, the less rental income is counted.
Mortgage payment stays the same (30 years) while rent keeps on going up.
by tomtoms
Sat May 11, 2019 10:29 pm
Forum: Personal Investments
Topic: When will mortgage lender count my rental income?
Replies: 13
Views: 1095

Re: When will mortgage lender count my rental income?

OP here. It is under my name. Any inputs from anybody else? Much appreciated! You need to provide more info if you want any more inputs. What is your Debt to Income ratio that includes the rental mortgages and also the rents that come along with your own income? Mortgage/property tax/insurance is $...
by tomtoms
Sat May 11, 2019 9:44 pm
Forum: Personal Investments
Topic: When will mortgage lender count my rental income?
Replies: 13
Views: 1095

Re: When will mortgage lender count my rental income?

Do you own these rentals under a company (mortgages, tax returns etc) or under your Name (loans on your name). If under a company(or companies) - Loans should be under that name and rental income should be coming under that name. That way, what shows up in your personal tax return is just a K1. If ...
by tomtoms
Thu May 09, 2019 8:58 am
Forum: Personal Investments
Topic: When will mortgage lender count my rental income?
Replies: 13
Views: 1095

When will mortgage lender count my rental income?

Hello! I own more than $2M in rental properties. They are generating more than $150,000/year in rental income (before expenses). I am planning to buy a primary residence in a year. However, I have maxed out my ability to get another mortgage (due to debt to income ratio) without my lender counting m...
by tomtoms
Fri Jan 25, 2019 1:57 am
Forum: Investing - Theory, News & General
Topic: 1st year with a rental property - hitting singles
Replies: 37
Views: 4034

Re: 1st year with a rental property - hitting singles

You have to realize that most people on this forum don't have any rental property experience so don't take their opinion at face value (no disrespect). Some of them inherit a property or decide to rent out their vacation home. That is not what you are doing. You are buying a property just for the so...
by tomtoms
Fri Jan 18, 2019 12:45 am
Forum: Personal Finance (Not Investing)
Topic: Should I buy a house in the Bay area or give up?
Replies: 94
Views: 7821

Re: Should I buy a house in the Bay area or give up?

How much house can I afford in the Bay area given my stats below? I live in a very HCOL area (Bay area) so purchase prices are 800k minimum. Should I just give up on buying a place here? On the other hand, I'm scared that house prices in the Bay area will keep rising and be out of my reach forever....
by tomtoms
Thu Jan 17, 2019 10:34 am
Forum: Personal Finance (Not Investing)
Topic: Why are you NOT buying rental properties?
Replies: 299
Views: 28795

Re: Why are you NOT buying rental properties?

Obviously, real estate investment is not for everyone. If it was then the return wouldn’t be so good.

I dont want to hear from second hand. I want to hear from those who have actually tried but failed. What went wrong?
by tomtoms
Thu Jan 17, 2019 10:27 am
Forum: Personal Finance (Not Investing)
Topic: Why are you NOT buying rental properties?
Replies: 299
Views: 28795

Re: Why are you NOT buying rental properties?

28 year old here about to chime in. Naive perhaps, but I do want to own at least 2-3 rentals by the time I am 35. I already have one now, so far going smooth. It is a 3 bed 2 bathroom single family home. I live in 1 room and I have the other 2 rooms filled with friends. Mortgage is 1200, they pay 6...
by tomtoms
Thu Jan 17, 2019 10:22 am
Forum: Personal Finance (Not Investing)
Topic: Why are you NOT buying rental properties?
Replies: 299
Views: 28795

Re: Why are your NOT buying rental properties?

Just recently my coworker told me he made $40 k in overtime last year. I made that much from just one property last year and I don’t have to pay 50% tax! I made it to the bottom of the first page and can’t believe no one addressed this. To me this is more eye-opening the fact that someone believes ...
by tomtoms
Thu Jan 17, 2019 8:44 am
Forum: Personal Finance (Not Investing)
Topic: Why are you NOT buying rental properties?
Replies: 299
Views: 28795

Re: Why are your NOT buying rental properties?

Just recently my coworker told me he made $40 k in overtime last year. I made that much from just one property last year and I don’t have to pay 50% tax! I made it to the bottom of the first page and can’t believe no one addressed this. To me this is more eye-opening the fact that someone believes ...
by tomtoms
Thu Jan 17, 2019 12:00 am
Forum: Personal Finance (Not Investing)
Topic: Why are you NOT buying rental properties?
Replies: 299
Views: 28795

Re: Why are you NOT buying rental properties?

Where do you guys get all of these loser tenants? I know people need a place to live but didn't you do a credit check? eviction history? salary? :oops:
by tomtoms
Wed Jan 16, 2019 11:48 pm
Forum: Personal Finance (Not Investing)
Topic: Why are you NOT buying rental properties?
Replies: 299
Views: 28795

Re: Why are you NOT buying rental properties?

My relatives have been buying rental properties for the last 40 years and they are some of the happiest people I know! Live off the cash flow, travel and enjoying life. Wait... you started this thread with statement... I am only starting this thread because I was turned off to buying rental propert...
by tomtoms
Wed Jan 16, 2019 10:49 pm
Forum: Personal Finance (Not Investing)
Topic: Why are you NOT buying rental properties?
Replies: 299
Views: 28795

Re: Why are you NOT buying rental properties?

Keep them coming! :sharebeer I love reading different perspectives. I keep on reading about how a coworker, a good friend, a relative who failed or is miserable. Fair enough but how about those who actually tried and failed? I want to hear your perspectives too! My relatives have been buying rental ...
by tomtoms
Wed Jan 16, 2019 10:47 pm
Forum: Investing - Theory, News & General
Topic: John Bogle has died at age 89
Replies: 856
Views: 51497

Re: John Bogle has died at age 89

I got interested in investing because of his man. May he rest in peace.
by tomtoms
Wed Jan 16, 2019 4:57 pm
Forum: Personal Finance (Not Investing)
Topic: Why are you NOT buying rental properties?
Replies: 299
Views: 28795

Re: Why are your NOT buying rental properties?

I get it. I have been there. But now, those “reasons” sound more like excuses to me (no disrespect). Here are my answers: Trashy tenants: Buy in a good neighborhood. Trashy people can’t afford to live in a good neighborhood. A good property manager should be able to screen them out (credit history, ...
by tomtoms
Wed Jan 16, 2019 2:38 pm
Forum: Personal Finance (Not Investing)
Topic: Why are you NOT buying rental properties?
Replies: 299
Views: 28795

Re: Why are your NOT buying rental properties?

So, I have to ask..if you are willing to hustle and you have the money, why are you not buying rental properties? I would say I'm not interested in hustling. I love the BH philosophy because it encourages apathy towards investing ($$ goes into 3-funds, then don't do anything else). I have no desire...
by tomtoms
Wed Jan 16, 2019 2:28 pm
Forum: Personal Finance (Not Investing)
Topic: Why are you NOT buying rental properties?
Replies: 299
Views: 28795

Why are you NOT buying rental properties?

I am only starting this thread because I was turned off to buying rental properties when I first started to read this forum. I now own several rental properties. Not only it is easier than I had expected, but I am also making a lot more money. I have a property manager who has been taking good care ...
by tomtoms
Mon Jan 14, 2019 11:53 am
Forum: Personal Investments
Topic: Real estate as part of overall investment plan
Replies: 37
Views: 2703

Re: Real estate as part of overall investment plan

Although my wife owns a rental property (and is successful with it), I don't believe the average person should own individual pieces of real estate as a part of their portfolio. I have a real estate fund in my 401K. I also own the Vanguard ETF real estate fund, thereby giving me global real estate ...
by tomtoms
Sun Jan 13, 2019 5:11 pm
Forum: Personal Investments
Topic: Real estate as part of overall investment plan
Replies: 37
Views: 2703

Re: Real estate as part of overall investment plan

^^ Hiring a good property manager is like dating. You need to find the right one. This is how and why I would rather have one: - reduce liability (I don’t know all the laws) - find better tenants (they have more experience with screening tenants) - tenants would rather work with a property manager t...
by tomtoms
Sun Jan 13, 2019 3:40 pm
Forum: Personal Investments
Topic: Real estate as part of overall investment plan
Replies: 37
Views: 2703

Re: Real estate as part of overall investment plan

You have to take things you read on this forum with a grain of salt when it comes to real estate investing (no disrespect). I say this because most people here (1) are older and too conservative, (2) don't have the money, (3) don't have the skills (and balls). Buying a good property takes some skill...
by tomtoms
Sat Jan 12, 2019 9:50 am
Forum: Personal Finance (Not Investing)
Topic: Millionaire by 40 and How you Did it?
Replies: 162
Views: 22553

Re: Millionaire by 40 and How you Did it?

It is not as hard as you think. My family and I immigrated to the U.S when I was 8 years old. Both my brother and I became a millionaire before 40. Here is my story: - graduated from grad school in my late 20s during the Great Recession - had about 150 k in student loan debt - found a good paying ca...
by tomtoms
Mon Jul 09, 2018 10:42 pm
Forum: Personal Consumer Issues
Topic: Cost of adding AC and change pipes to old house
Replies: 12
Views: 1138

Re: Cost of adding AC and change pipes to old house

$10K-15K to re-wire a house. $10K to re-plumb with copper, $6K with PEX. $3-8K for the AC unit. $35-55 per linear foot for new ductwork. That earlier guess of $10K-40K was fairly accurate, I think, except I think the low number will be $20K, not $10K (you're in LA after all). How long did it take t...
by tomtoms
Mon Jul 09, 2018 3:01 pm
Forum: Personal Consumer Issues
Topic: Cost of adding AC and change pipes to old house
Replies: 12
Views: 1138

Re: Cost of adding AC and change pipes to old house

Get some quotes from a reputable HVAC contractor. They should be able to tell you if you need a new electrical panel to support central AC and if the ductwork is sufficient or not. My wild guess would be 10-20k. But that's assuming the ductwork is good enough. Yeah I will do get quotes from a contr...
by tomtoms
Mon Jul 09, 2018 1:14 pm
Forum: Personal Consumer Issues
Topic: Cost of adding AC and change pipes to old house
Replies: 12
Views: 1138

Re: Cost of adding AC and change pipes to old house

We need a lot more information before we could even guess the costs. Is there a basement? Is there an attic to provide access to the ceilings on the second floor? What size (how many amps) electric service do you have? Does your present furnace have duct work or is it radiant heating of some kind? ...
by tomtoms
Mon Jul 09, 2018 11:50 am
Forum: Personal Consumer Issues
Topic: Cost of adding AC and change pipes to old house
Replies: 12
Views: 1138

Cost of adding AC and change pipes to old house

I have a 100 year old, two story Spanish house (2000 sq feet) in LA. It has an old furnish at ground level but no AC. How much would it cost to add AC? Would I need to also change the electrical? Any other factors I should consider? The old pipes/plumbing also need to be replaced. What is the estima...
by tomtoms
Sun Oct 29, 2017 12:28 pm
Forum: Personal Investments
Topic: Early-retired 35 year old with $1 million
Replies: 198
Views: 23854

Re: Early-retired 35 year old with $1 million

I don’t think the OP is going to “retire” and do nothing. That is what you do when you are 70, not when you are 35. There are incredible opportunities nowadays to make $20-30 k a year...not exactly a lot of money but good enough if you also have income coming from your $1M investment. I spent about ...
by tomtoms
Sat Oct 28, 2017 7:11 pm
Forum: Personal Investments
Topic: Early-retired 35 year old with $1 million
Replies: 198
Views: 23854

Re: Early-retired 35 year old with $1 million

I am in my 30s and financially, we are very similar. I have also thought about early retirement many times. You are not going to get much support on this forum (or anywhere) and that is fine. Most people are risk adverse but then most people are also consumers so they will need to keep on working. T...
by tomtoms
Sun Oct 22, 2017 5:54 pm
Forum: Personal Finance (Not Investing)
Topic: Buy a rental property before primary home?
Replies: 20
Views: 2393

Re: Buy a rental property before primary home?

Should I buy a rental property before my primary home (not planning to buy a duplex)? $600 k cash $400 k stocks $300 k yearly income (work plus business) 800s credit score No debt/in my 30s I am thinking about buying a house near my work ($400 k). However, I am not exactly sure if I see myself livi...
by tomtoms
Tue Oct 17, 2017 3:20 pm
Forum: Personal Finance (Not Investing)
Topic: Buy a rental property before primary home?
Replies: 20
Views: 2393

Re: Buy a rental property before primary home?

If you don't see yourself living in the area long-term, why would you be comfortable with a rental but not a primary home? Would you be willing to commute and do all the work and upkeep for a distant rental home or hire a property manager to do it for you? If you have $300k in annual income, how mu...
by tomtoms
Tue Oct 17, 2017 10:47 am
Forum: Personal Finance (Not Investing)
Topic: Buy a rental property before primary home?
Replies: 20
Views: 2393

Re: Buy a rental property before primary home?

Tomtom, this looks like an annual post from you, there were ones in 2016, 2015, 2014. Can you update us on what has changed in your situation so we can help you out! :beer No major changes really...I have made some offers on $1M+ house before unfortunately, I got outbid. Buying an expensive house m...
by tomtoms
Tue Oct 17, 2017 10:07 am
Forum: Personal Finance (Not Investing)
Topic: Buy a rental property before primary home?
Replies: 20
Views: 2393

Buy a rental property before primary home?

Should I buy a rental property before my primary home (not planning to buy a duplex)? $600 k cash $400 k stocks $300 k yearly income (work plus business) 800s credit score No debt/in my 30s I am thinking about buying a house near my work ($400 k). However, I am not exactly sure if I see myself livin...
by tomtoms
Sun Jun 11, 2017 11:42 am
Forum: Personal Finance (Not Investing)
Topic: Buying property for my business/rent out the rest
Replies: 6
Views: 1103

Re: Buying property for my business/rent out the rest

OP here. What if I buy the property (not my business LLC) and I rent out the space to my business and a friend's business. How will I set the rent? Is it based on my monthly mortgage payment?
by tomtoms
Fri Jun 09, 2017 2:38 pm
Forum: Personal Finance (Not Investing)
Topic: Buying property for my business/rent out the rest
Replies: 6
Views: 1103

Re: Buying property for my business/rent out the rest

Yes..for my business and another person's business.
by tomtoms
Fri Jun 09, 2017 12:12 pm
Forum: Personal Finance (Not Investing)
Topic: Buying property for my business/rent out the rest
Replies: 6
Views: 1103

Buying property for my business/rent out the rest

I want to buy a property for my business and rent out the rest of the space to another business. - What is the best approach (tax, liability) to this? - Should I form a real estate LLC or should I not form a LLC and buy the place and then rent it out to my business and another business? - When I sel...
by tomtoms
Sun Feb 19, 2017 2:52 pm
Forum: Personal Finance (Not Investing)
Topic: Retire in my 30s?!
Replies: 34
Views: 6792

Re: Retire in my 30s?!

OP here! Thank you for your replies. Please keep them coming! I would like to point out: (1) My business is not tech related. (2) Yes, I am working 8 hours a week on my business but I spent countless hours creating the first product while I was in graduate school. (3) I don't consider my business as...
by tomtoms
Wed Feb 15, 2017 9:46 am
Forum: Personal Finance (Not Investing)
Topic: Retire in my 30s?!
Replies: 34
Views: 6792

Retire in my 30s?!

I have been thinking more and more about quitting my job. I am in my mid 30s single and healthy. I don't hate my job but I don't find anything stimulating about it. The commute is also starting to bother me (almost 2 hours). It is a relatively "easy" job and I would have a hard time finding a simila...
by tomtoms
Wed Aug 10, 2016 6:42 pm
Forum: Personal Finance (Not Investing)
Topic: LA area: where to find a home inspector/leak specialist?
Replies: 2
Views: 378

LA area: where to find a home inspector/leak specialist?

The house I am buying had a roof leaking problem. Supposedly the leak has been fixed. Inspection contingency is 17 days. I don't want to use my agent's inspectors (conflict of interest). (1) So where do I find a good one? How do I search for one (website, etc)? I would like to hire a separate leak s...
by tomtoms
Mon Jul 04, 2016 8:57 pm
Forum: Personal Finance (Not Investing)
Topic: Can I afford a million dollar house?
Replies: 85
Views: 12785

Re: Can I afford a million dollar house?

^ Leemiller- I don't think your post is fair or necessary.