Reply to 35- 40 year olds - what's your NW?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]$650K HHI, 30/28. Work in data/tech field. NW of $4M with $300K gifted from family and two rental properties about 50% equity in rentals.[/quote]

You know how I know it's made up, unless you inherited the rentals? Because I am also high NW - $6m at 47. Bought two rentals in DC at 26. Rentals are only profitable if highly leveraged and if improved (if you buy a key ready property all profits/cashflow remains with the seller). Most can't afford to build a good multi-unit even at $650K joint income,  and you probably were making about $300k upon graduating colleges. It took me about 10 years to fully pay off the rentals and make them the cash cows.

So if you started buying in early 20s, you would need at least $1m to start a rental business, and it would take you to early-mid 30s to build that 50% equity in the rentals.

Keep writing fairytales here[/quote]

They probably forgot they inherited the rentals. Sounds stupid but I replied earlier (not the PP you quoted) and forgot that we also inherited a duplex that gives us another $500K in NW and that we’ve got a 6 plex coming our way worth $2M (land value only) that we already technically own via being on the title but don’t collect any rent on (rent goes to my parents)[/quote]

Yes, they certainly forgot to mention the rentals were inherited. You can't build equity in RE that fast - takes 7-10 years and requires at least a million investment plus $1.5m borrowing capacity to build multiple units. Single family homes return under S&P. Multi-units and commercial are the best investment vehicles returning like QQQ but highty leveraged [/quote]

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