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About to buy and move into my 3rd apt. Rent out other 2. Set for retirement.
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Date: April 20th, 2018 4:13 PM Author: Heady Hairless Useless Brakes Bought first apartment in 2012 in my mid 20s near bottom of market. Bought a second in 2015 and rented out first. About to buy a third. Will also rent out second.
Best part is I had GF(s) paying me rent on all of these. She pays 50% of carrying costs, not taking into account the mortgage interest deductions, so I actually pay for less than half. With new place, she will be paying less than half though since it's more expensive.
First is ~$500 / month cash flow positive. Second will be basically cash flow break even for first year I'm renting it out.
Even if I live in my new 3rd spot for the rest of my life, I will have paid off all three apartments by early 60s and, assuming similar inflation & rental price increases, will pull in ~$120,000 per year in today's dollars renting out the first two apartments.
So, I'm basically set for retirement already in my early 30s, even ignoring my 401k, normal stock investments, crypto, liquid assets, etc. Probably won't matter since I'll be inheriting low 8 figures barring some crazy series of events, but I prefer to prepare for the worst.
I also plan to buy a new place once I save up another 20% down payment.
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Date: April 20th, 2018 4:27 PM Author: Ungodly point "will pull in ~$120,000 per year in today's dollars renting out the first two apartments."
That's about $5,000 per month per apartment, which suggests a value in the neighborhood of $1 million each.
I'm having a hard time believing that. |
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Date: April 20th, 2018 4:43 PM Author: Heady Hairless Useless Brakes Yes. They combined are in the neighborhood of $2mil.
First has increased in value very significantly.
Second has increased in value a good deal.
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Date: April 20th, 2018 4:20 PM Author: slate theatre haunted graveyard im jealous
where'd the money come from for the payments on the other units? you make a high salary? |
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Date: April 20th, 2018 4:23 PM Author: Ebony cerebral skinny woman kitchen *acp grinding his teeth in anticipation of "well actually I got a good amount of money from an inheritance in my mid 20s..."* (http://www.autoadmit.com/thread.php?thread_id=3955040&forum_id=2#35883486) |
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Date: April 20th, 2018 4:24 PM Author: slate theatre haunted graveyard *copy and paste screed about urban elites ready and locked on* (http://www.autoadmit.com/thread.php?thread_id=3955040&forum_id=2#35883490) |
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Date: April 20th, 2018 4:35 PM Author: Hyperventilating space (http://www.autoadmit.com/thread.php?thread_id=3955040&forum_id=2#35883587) |
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Date: April 20th, 2018 4:24 PM Author: Heady Hairless Useless Brakes I graduated law school at 24 and was making like $155k a year all in right afterwards living like I was making $45k a year. Cheap fratty apt with 3 roomates in an expensive city. Always pregames with vodka before going out. Would spend like $20 on average night out. Saved up a down-payment quick.
What pisses me off is that EVERYONE I know not only assumes my parents helped me out, but they also often throw out snide comments insinuating so. Pisses me off. |
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Date: April 20th, 2018 4:28 PM Author: Heady Hairless Useless Brakes Same thing for second and third units, although my income dropped down when I left biglaw, and has since gone back above my biglaw days.
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Date: April 20th, 2018 4:21 PM Author: Heady Hairless Useless Brakes Best part is, these are all separate property once I get married.
Once married I will make sure I hire a property manager using my seperate money to manage them to make sure my future shrew-wife can't ever claim them. |
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Date: April 20th, 2018 4:24 PM Author: charismatic parlor seems risky. what if you get fired etc? you worried about vacancies? (http://www.autoadmit.com/thread.php?thread_id=3955040&forum_id=2#35883496) |
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Date: April 20th, 2018 4:34 PM Author: Misunderstood pungent dysfunction (nightmares of petey's airb&b business flashes before his eyes) (http://www.autoadmit.com/thread.php?thread_id=3955040&forum_id=2#35883580) |
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Date: April 20th, 2018 4:43 PM Author: charismatic parlor my places were almost full occupancy with the exception of jan and feb. its was amazing. sometimes id decline reservations because i was too lazy to go clean the place (http://www.autoadmit.com/thread.php?thread_id=3955040&forum_id=2#35883667) |
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Date: April 20th, 2018 4:45 PM Author: Misunderstood pungent dysfunction it lasted for like 3 months for you before the landlords found out and kicked you out (http://www.autoadmit.com/thread.php?thread_id=3955040&forum_id=2#35883683) |
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Date: April 20th, 2018 4:48 PM Author: charismatic parlor i ran a legit business. i had 7 places at my peak. the bullseye places were funished summer sublets (typically 3-4 months) that were rented to me furnished. i could pimp the place out and then just hand the keys back after 3 months. i had 4 properties for over 2 years, never got found out. had reporters from WaPo asking for interviews.
i had one LAWYER landlord at one of my places who clearly knew what i was doing, and made up some faggot excuse that he wanted to renovate the place - he paid me the EQUIVALENT 6 MONTHS in rent LUMP SUM just to get me out of there. went by a year later and there were no renovations :) |
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Date: April 20th, 2018 5:42 PM Author: Heady Hairless Useless Brakes Stop comparing your AirBnB scam to my legit Jewlording. (http://www.autoadmit.com/thread.php?thread_id=3955040&forum_id=2#35884066) |
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Date: April 20th, 2018 4:38 PM Author: Heady Hairless Useless Brakes How so?
I'm in a big city where it's easy as FUCK to get tenants in fast. I calculate 5% vacancy into my carrying costs.
My #1 rule when I buy an apt is that (1) I can freely rent it out per building rules, and (2) at the time I buy it I can rent it out above, or just barely below carrying costs.
I also don't put all my money into down-payments. I still have plenty of liquid assets. |
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Date: April 20th, 2018 4:44 PM Author: charismatic parlor your rule #1 is v important. youre doing it right. looking to do this shortly too. hope to have 3 condos - 2 rented out, the third my primary in the next 5 or so years.
you think property prices will fall soon? seems like we're near the end of a biz cycle |
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Date: April 20th, 2018 5:22 PM Author: Heady Hairless Useless Brakes Very possible.
Rent's tend to drop less the property value though luckily. |
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Date: April 20th, 2018 4:30 PM Author: soggy chestnut son of senegal With the inflation rate you are using, $120,000 when you are 60 won't be much...
Seems like you are only using inflation when it helps your analysis.
You can't comfortably live off just rental income from 2 apartments now. No reason to think you will be able to in 30 years.
Edit: I now see you said $120,000 in today's dollars. That doesn't sound right unless these are ultra high end apartments or you are using an absurd rent price increase rate. You are also forgetting the very real depreciation on your apartments which will eventual drop the relative rental rate |
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Date: April 20th, 2018 4:31 PM Author: Ungodly point He says the $120,000 is in present dollars. (http://www.autoadmit.com/thread.php?thread_id=3955040&forum_id=2#35883544) |
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Date: April 20th, 2018 4:33 PM Author: soggy chestnut son of senegal Edit added (http://www.autoadmit.com/thread.php?thread_id=3955040&forum_id=2#35883567) |
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Date: April 20th, 2018 4:34 PM Author: Ungodly point Yeah, it's horseshit. (http://www.autoadmit.com/thread.php?thread_id=3955040&forum_id=2#35883575) |
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Date: April 20th, 2018 4:40 PM Author: Heady Hairless Useless Brakes Exactly. As in, THIS YEAR they are pulling in that much. They are both multi-bedroom apartments in a large expensive city. (http://www.autoadmit.com/thread.php?thread_id=3955040&forum_id=2#35883641) |
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Date: April 20th, 2018 4:43 PM Author: soggy chestnut son of senegal BS. That's not how you wrote it at all. They'd be worth a combined $1.5 mililion or so.
Weird flame. |
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Date: April 20th, 2018 5:23 PM Author: Heady Hairless Useless Brakes You sir, are insane. (http://www.autoadmit.com/thread.php?thread_id=3955040&forum_id=2#35883942) |
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Date: April 20th, 2018 4:35 PM Author: Hyperventilating space congrats on owning assets free of liens by your early fucking 60s lol enjoy the bottles and models gramps (http://www.autoadmit.com/thread.php?thread_id=3955040&forum_id=2#35883585) |
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Date: April 20th, 2018 4:41 PM Author: Heady Hairless Useless Brakes I'm a non-jew Jew. I just like hording money. (http://www.autoadmit.com/thread.php?thread_id=3955040&forum_id=2#35883648) |
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Date: April 20th, 2018 4:47 PM Author: Ungodly point To use and to rent out. (http://www.autoadmit.com/thread.php?thread_id=3955040&forum_id=2#35883699) |