Transfer of Wealth for a Rookie

[Bryan Dockter]

Hey everyone, first post on BP. So ill try and make it as simple and quick as possible. Here are our details (Our= My Father, Wife, Me and 2 yr Daughter)

We live in the Bay Area (Hayward Ca)

House #1 - 2bd,1bath, primary residence for me/fam

paid off - cost 125k - Value $550-600k

House #2 - 3bd, 1bath, rented out with great tenants @$1700m paid off - cost 105k - Value $450k

House #3- 3bd, 1.5bath, dads primary res. (Single) paid 250k- owe 90k- value 650-700k

Our situation: Pops is retired and lead this empire very passively. We now started an online business and are growing but are not taking a large income yet. My wife commutes over an hour each way and works for the state health department. We are looking at a variety of strategies to grow the wealth and live a better life. Hate the direction CA is going and are open to renting or selling the properties. Areas of interest so far have been: Sacramento, boise ID, CO, Oregon...

Goals: id like to buy a Warehouse for the business (3-5000 sf) id like to really begin the journey to creating a rental empire so I can live on passive income. Want a good area to raise my family. The usual.

My question is what would you do? There are so many options im having a hard time nailing down a solid strategy. My most interesting ideas are : rent out the 3 houses and by fixer upper duplexes, or sell it all and buy a couple fourplexes, and a warehouse. Also open to buying a two home residency for pops n the fam. (He just live across the street now anyways). I can use any advice or ideas or experience. Thank you so much.

Bryan

[Dave Foster]

@Bryan Dockter, Don't work this thing like a hiring an uber and deny yourself the fun of treating it like a road trip with google maps and Spotify by your side !  

Buy a bottle of wine and sit around the living room with a pile of cut up paper representing 1.5 mil dollars laying on the floor.  And talk about how long that would last using your current budget as a guide - what's the deficit?  That's your starting income goal.

Then buy another bottle of wine and sit on the deck with a world map and talk about where you'd love to live (not whats the best investing climate - that's a moot point).  

Then buy another bottle of wine and move to the kitchen and break out the pencils and using your income goal and where you want to live start exploring that area for opportunities to live, work and invest and fill in the gap.  About this time your Amazon 2 hour wine delivery will arrive and you will find your financial prowess and accounting skills greatly enhanced and at least equal to the task of creating the lifestyle you'd like to be come accustomed to.

Point being with the kind of equity and situation you're describing you have every right to dream first.  And then find ways to fill in the dream .  The location of your real estate, the type of real estate, your residence, it's all up for grabs and you can do it very advantageously

You've got a delicious mix of ability to take money tax free and and defer the rest.   And when coupled with a young growing business and an established cash flow (rental and wife) the skies the limit for you.  Way To Go!