All Forum Posts by: Adrian Stamer

I’d say about $20k monthly net after tax cash flows from real estate investments, but since these would be leveraged some still to optimize returns I would be looking at most likely $40k+ net profit from real estate. But I’m not one to rely on one source of income and require diversification so then there would be a required large bundle in index funds... prob still some semi active small business earnings to have a third income/wealth stream. High risk, high returns shoot the moon type of business but not required to succeed. I just enjoy starting new business projects 

But as someone who has been more or less self employed their entire life, let’s face it, been financially free for a long time. My idea of sitting still is sitting on a beach or mountain or bar somewhere exotic, then picking up my backpack and off to the next destination. With phone and laptop of course... but just in case. I take extra enjoyment writing real estate contracts on a beach somewhere in the Mediterranean 

 50% is just a rule of thumb, if you find a property that is close then you actually go spreadsheet the numbers and see where they come out. If you used 30% the same way you would end up with a lot more properties to look at but my guess once you plug those matching properties numbers in you would have a lot of duds

 This is good advice, though you will have to educate and understand what a good deal is first. 

Also Matt, I think you misunderstand how cap rates work. I believe the term you are looking for is cash on cash. Cap rate is a function of market risk and rarely will change on individual properties. 

If you are attempting to keep some liquidity to continue to invest, do not use your HELOC to pay down your mortgage. You will just end up with trapped equity in the mortgage. You are much better off leaving your mortgage as is and using the rental cash flow to pay down the heloc balance and then using the heloc to invest again. Then just keep repeating this process over and over... your heloc is your flexible line of credit to invest with

Your portfolio appears to pretty much be all residential SFH which would be best targeted at end user owner occupants. Trying to sell this just to investors will cost you much more then any of the other costs

 Of course though much easier to diversify in the stock market to avoid this too. Real estate is geographically locked and can easily face economic obsolescence overtime.... and also much more expensive and harder to diversify

I am heavily invested in real estate but the 100 year historical data available for the stock market is a lot more reassuring for its long term stability then any sort of data available for real estate.  When investing long term while real estate throws off larger returns which I enjoy, if you need it for 30,40,60 etc years then who knows if your market will Detroit itself. 

 Crypto a bit further down then the stock market this year it seems... 

Don’t lose till you sell

 Welcome and good luck. Lots of Richmond BPers on here

 Deals are scarce these days, a lot more money floating around then deals