Reply to $7M vs $10M

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Reply to "$7M vs $10M"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]How do you make 7M?   My HHI is not much so I have invested and saved but still only at 2M

Should I invest that more aggressively for the next 15 years of working [/quote]

If you make an average of 7% over the next 15 years and don’t save another dime you’re at almost 6,000,000. Relax.[/quote]

5.5M and ignoring real inflation [/quote]

RE keeps up with inflation.  Rental RE can return profits that can outperform conservative "safe" guaranteed type of market investments.  I am surprised [b]none of you have rental RE in your portfolio[/b], is market really this much better? 
[/quote]
Not really. Actually majority of my NW is in RE. I'm trying to diversify into equity market.[/quote]

Early Retired Biglaw Partner here.  I also have a rental property as well as an English basement apartment that I rent out.  Combined they generate $6k a month. [/quote]

Have you all had anything major go wrong yet? Rental properties are great until.... they aren't, even if you go the property manager route. [/quote]

Personally don't have the guts to be a landlord.  Too much can go wrong and end up costing you.  Fact is tenants rarely take care of home as well as you would.  
We did rent our condo for 5 years, but it was to good friends.  So we knew they would take excellent care of it, and we also planned to gut it and renovate before we moved in at the end of the lease.  But no way do I want to rent to someone I don't know.  In our condo building, there was a renter who got pissed at multiple noise complaints and fines against them, so they turned on several faucets and closed the drains and left....they were on the 20th floor and caused major damages to at least 6 units.  This is in a luxury building, one of the top 5 buildings in our city--rent for that was over $5K, so typically you'd think someone paying that would be less likely to be destructive.  Oh and the tenant was a doctor, so someone that you would vet and never think twice about them going crazy and doing something as destructive as this.   Yet, the owner had to along with their insurance and the HOA insurance sue the tenant for the $100k's+++++ in damages---I think it was well over $600K in damages and that was 10 years ago.

I'd rather just invest in real estate passively[/quote]

Retired partner guy here.   I don’t disagree with this.  I have no interest in being a professional landlord.  The basement is easy and we’d be crazy not to rent it (rent more than covers the mortgage) and we bought the duplex to help out a family member so there’s a relationship there.

Having said that, we’ve had success with prior rentals as well.  We rented out a nice 1BR condo in Dupont for years and never had a problem.   Condos are easier because they require less upkeep than houses, and higher end one commanding higher rent tend to attract tenants who take care of the place.  [/quote]

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