All Forum Posts by: Jules Aton

If you are able to max out your retirement accounts each year and have a bit of a cushion left over I think a home especially at $150,000 is a decent plan. Whether to do it now or wait is another question. Unless you are really itching to move out I would take my time and watch RE offerings while living at home. You will get a feel for what is a good deal and what are desirable neighborhoods. Other considerations include are you handy for repairs, improvements? And will you be away from home often with the new job? 

I know a lot of folks go this route but I wonder what ROI looks like after paying retail for a turn-key property and also having to pay a property manager. I always had to purchase places in need of reno to make the numbers work. It is also nice to know the date and quality of the updates.

I sold the REIT index fund fairly quickly when I realized it was stocks and not as comparable to RE as I thought, put all in TSM index fund for a few years then sold some and purchased a STR beach property. I have a property manager now so while still requires some babysitting it is considerably easier than self managing.

I don't know much about syndications except the horror stories and complaints of difficulties obtaining the end of year tax forms. Small and incomplete sample size for sure so I will keep that option on my radar. Appreciate the suggestion. 

Stock.
In 2021-2022 I was tired of being a landlord and sold several rental properties that had appreciated nicely. My thought was to invest in REIT Index fund as a truly passive way to keep a RE component in my asset allocation. It became apparent quickly that the REIT fund was mimicking the TSM fund which btw also contains REITs. I liquidated the REIT fund. My AA now is back to TSM, RE and a small % of cash for SORR protection because I'm getting close to retirement.

Hi and welcome! 

RE wasn't ever my bread and butter so I sat out several years during the housing bubble most specifically when homeowners were doing the interest only financing thing. About the time I thought people weren't ever going to regain their senses it happened so I bought a duplex in 2011. Prices went down a bit further but recouped nicely by the time I sold in 2021. It has been strange with both the stock market and RE since the pandemic. I have been waiting for the other shoe to drop which hasn't seemed to happen until now? IDK but as they say trees don't grow to the sky but they do continue to grow...as per history...

This is a shame because a $200,000 ish beach condo sounds relatively harmless on the surface. As I've gotten older I stopped believing renting is always throwing money away and appreciate the situations where renting is absolutely the best option. 

I'd consider: 

1. Circle back to condo association, maybe enlist neighbor support and see if they have any flexibility in the rent restrictions which of course may change in the future but would buy you some time if cash flowing when you did STR. Any chance you could do a MTR to snow birds and use it yourself at other times?

2. List for sale and take the bath now. Everything else is likely putting off the inevitable and as much as I struggle with letting go there is something to be said for the sunk cost fallacy.

Best wishes with whatever you decide.  

I'm sure this has been discussed ad nauseum but my search wasn't successful.  Any value in getting appliance service plan? I haven't gotten them in the past but then again I also never paid almost $600 for a dishwasher either. 

How much is it costing him a year to keep it? 
That might be something you could point out. Other than that unless he is holding on to pass along to heirs he should consider not letting the tax tail wag the dog. Find a gentle way to share that tidbit lol.