What to Know Before Investing in Real Estate!

What to Know Before Investing in Real Estate!

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[genxretiree]

I have one commercial property with no mortgage and the tenant pays insurance, taxes, repairs and maintenance. That’s more than enough real estate investing for me.

[wingmank]

Lol feuding slip at 5:40 "some numb nut-" hahah

[brandon]

Questions:

Me : 37yo,
- single,
- renter,
- $150k salary,
- 6% 401k match
- 8% RSU
- DB pension
- retire at 55,
- new to USA in 2021,
- do not have unused contribution room in 401k or HSA.
- have been watching your content for a few years,

Net worth:
Cash: $80, 000 (emergency, travel, next car, etc)
Assets: $70, 000
Brokerage: $420, 000
HSA: $7, 000 (will continue to max annually)
IRA: don’t qualify
RSU: $25, 000
Trad 401k: $9, 000
Roth 401k: $38, 000 (will continue to max annually)
Foreign version of 401k: $50, 000

Currently have no bonds:
- Brokerage, HSA, foreign version 401k are vanguard low cost ETFs:
- 70% US total market,
- 30% ex-US total market
- 401k’s are in low cost target date 2060 (even though retirement year is 2040: longer equity exposure)
- Market fluctuations don’t bother me

I plan on only maxing out 401k and HSA going forward but not adding to brokerage.

Questions:
- Am I wrong to keep doing what I’m doing until 45yo when I’ll start adding bonds?
- Why buy a house when I don’t need one and investments compound at higher rate than a house? (Including the consideration of sunk costs for both renting vs home ownership)

[ddellwo]

What you should know about investing in real estate? That you will now spend your weekends fixing leaky plumbing and clogged gutters - unless, of course, your chasing deadbeat tenants for unpaid rent…..!!!!