Reply to Excited: I have 1.3 million in assets, not inc. real estate!

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]Besides being frugal and saving - how did you do it? What has your income been the last several years (i.e. how much have you needed to save of your income to achieve this)?  Very impressive.  Lots of property too!  Amazing.

Any advice?  What happens if you don't have renters for your properties?  How does it all work?[/quote]

I maxed out retirement every year since I was out of college:  401ks, iras, pension and profit sharing.  This never changed.

3 properties are vacation homes (no renters).  One (commercial) has been rented by the same company since before we bought the building.  We only own a sixth of the building.  The renters are a large(ish) solid company and just resigned another 10 year lease, the rent for which exceeds the mortgage.  Two properties (rentals) have rent that exceed the mortgage and all proceeds are used to pay down the mortgages (extra principal), after about a 5k cushion develops.  When vacant, the re rental us swift...but of course causes expenses.   The last rental was a great investment.  We owe 40k only and it rents for 2100/mo.  We pay off a ton monthly (double payments) early to pay this down.  All rentals as personally handled because a mgt company charges excessive fees.  With a 5k cushion for each property, we have plenty extra if one needs money over another one  (I didn't include these funds in my 1.3 million.  I think of them more as company funds since we created a bus entity for the rentals...but they are ours, so the do,last could have been included too I guess.

My income for the last few zeros was zero...I was home with kids.  Before then it was 200k, of which 45k went off the top to retirement.  My income now will be quite low this year...as my youngest was at ho e still until sept.

Please don't discount being  frugal.  I have not paid a dollar for student loans, credit card interest, late fees to a bank, etc.  that counts.  I figure by using hand me downs or thrift store purchases, we save 1,000/yr for kids' items x 7 years is a big deal.  That means if I am at a thrift store and a cute shirt is 5.99...I won't get it.  It would have to be a dollar AND we would need it before I'd buy it.  I buy the kids' Xmas presents all year round at thrift stores making sure games are complete...sour Xmas may cost 100 total for kids' gifts and others may spend 400.  Over a kids'childhood that is close to 6k.  So again, those things majorly add up.[/quote]

Are you including the retirement only money in the 1.3?  That is not liquid. Mtg on vacation properties?  [/quote]

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