$150,000 W-2 and RE investing. An observation

[Account Closed]

RE isnt going to get you there.   Case in points.

1.   Dave Ramesy loves RE yet readily admits biggest wealth generator is a W-2 job.

2.   Notice how many SUCCESSFUL RE investors have joined  the BP payroll.  Im sure at healthy salaries.  Do the math on how much RE it takes to benerate $150k a year at todays price levels.     And remember HEALTH INSURANCE,  all of a suddent that $150,000 is $180,000.

3. It takes years to benefit from simple rentals.  And thats for those who arent recent buyers.   Do the math on $100 plus a month rentals.

4.  Those multis that everyone wants.  They not so great after immense  rate compression.

RE is just an investment.   The only way you end up in Mauis surfing like Phil Pusjestoski is to sell programs that tell others to do what he does..................................lol.

Otherwise its a long slow grind.

[John Warren]

@Account Closed after building a rental portfolio of 52 units in four years I agree, and I also disagree. The passive income from 52 units is very nice to have, and I make more than $100 per door per month on average. It is not yet enough for me to be on a beach either though. This rental journey ended up pushing me towards my current line of work as a realtor, which has ended up being fantastic. 

I also agree that those making $150,000 or more per year will probably be nonplussed by most small multifamily investment opportunities. In fact, I regularly mention this to some of my clients who have high earning W2 jobs. I still think real estate investing can make sense for them due to the incredible tax advantages and long term wealth building, but I think for higher income folks it makes more sense to be a passive investor or to partner with someone else who doesn't have the balance sheet and liquidity. 

Where investing shines is for those younger folks who are just starting out. A lot of my younger clients might be making 40-50k per year. For them, the difference between house hacking a three unit or renting is pretty incredible.