Go all in with Real Estate??

[John Mastro]

Hi Everyone.

Just want to get some opinions from you all.

What do you guys think of withdrawing money from other forms of investment and adding more rentals at this time?

Have any of you done anything like this?
Would this be a really dumb move?
Is diversification still the best strategy?

I just don't think the markets are going anywhere anytime soon and it frankly scares the hell of me so I'm contemplating getting out for good.

Please weigh in and thanks,

John

[Account Closed]

Hi John,

I'm all in RE at the moment although I stay relatively liquid with my strategy. I try to buy low, let them season for 1-year, then do a cash out refinance after a year. Most of the time, I can pull most of my cash out of each deal. This strategy has served me well, but that's how I stay liquid. The net positive cash flow from the rentals are about an annual salary of a newly graduated engineer now.

There were moments that I was even considering cashing out our IRAs, take the penalty hit, and plow all of that money in RE. At the end of the day, I decided to leave them alone. It's a couple hundred. To some, it's a lot of money, but to others it's not much.

Well, now you know my RE position. To me, it's an opportunity once in a life time. The key is to stay liquid to weather through potential storms along the way. It has been an interesting ride for us.

Best of luck with your adventure.