We saw this coming. While we have very healthy 401K balances and had always saved the max, and still do, we bought single family homes at rock bottom and rent them out $1500 per month.
A 60K house off a short sale returns $13,000 in gross yearly revenue. That’s around 20% return on my money vs a quarter of a point in the bank? I’ve bought six of them. All in my neighborhood and one next door. If Ted Kennedy can have a compound, so can I.
“While we have very healthy 401K balances and had always saved the max, and still do, we bought single family homes at rock bottom and rent them out $1500 per month.
A 60K house off a short sale returns $13,000 in gross yearly revenue. That’s around 20% return on my money vs a quarter of a point in the bank? I’ve bought six of them. All in my neighborhood and one next door. If Ted Kennedy can have a compound, so can I.”
Having all of your eggs in one basket (at least in terms of property) is risky; here in NJ they’d get their pound of flesh from you in property taxes. There is only so much you can charge in rents (especially in a dying state), and you pay them regardless of whether or not you have a tenant. Section 8 tenants anywhere near your compound can make a $60K house into a $10K house fairly quickly (see Detroit).