Reply to What a self made multiple millionaire would do in your shoes to increase your net worth.

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]Hmm.  Let's see:

Me & DW both government lawyers around 40 yo, making about 250K combined.  
$400K in retirement accounts (combination of 401K and TSP)
$70K in an inherited IRA
$85K in investments ($55K mutual funds, $30K CDs)
$70K in cash
$35K in 529 plans for two kids, 7 & 3.
$815K home (zillow), $600K mortgage at 4.125%
$150K rental property out of state, $100K mortgage, rented at $1600/month

Go.[/quote]

You are in good financial shape and a lot of "experts" would probably say keep up what you are doing.  I have no doubt that you will have a comfortable life and retirement.  However, to be wealthier, you need to take more risk.  You have too much liquid and earning insufficient return (you are in fact loosing money because of inflation).  Frankly you can afford the risk and by taking calculated risk it is actually more foolish not to take it.  The out of state property is interesting.  I have a limited knowledge area for real estate.  It holds me back.  I presume that you know something about this other area that you have a property.  You probably should try to duplicate this property.  To be certain I need more information on it.

Can you tell me:

1) property taxes
2) insurance
3) condo/ HOA fee
4) any other recurring fees (not maintenance- ie utilities, alarm, etc)
5) how long has it been a rental.  How many months in that time has it been vacant

Once I have that we will contrast it to something here (please provide the neighborhood here you would consider and why).[/quote]

The property was inherited and has only been a rental a short while.  It took less than a week to find a renter.  The property is in an area where the real estate market is in the dumps but the area is still desirable so rents are decent.  Taxes 1450, insurance 1200, Condo 500/mo; 10% realtor fee, but no other fees, thank goodness.

I'm not sure what you mean by what other area I'd consider and why.  The main thing holding me back in this area is the sky high prices I suppose, though I think I'd would be hesitant to buy in any place less gentrified than Mount Pleasant.  I'm fairly familiar with Northern Virginia, but not at all with Maryland, and I'm not at all familiar with the apartment or condo markets, since we've never looked at anything other than SFHs.  As you've recognized, we are risk averse.  We're just not sure how to calculate that risk you're talking about (although your helpful benchmark from a couple pages back makes me feel good about the rental property).[/quote]

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