All Forum Posts by: Kevin S.

 That would depend on the market you're in and your AGE. If you're under 65 or so then you can lever up on the RE and let the tenants pay off the mortgage
1. Cap rates in most markets are pathetic and not much more than the 10 yr T-bond, future "appreciation" is baked in to the RE markets. Thus, to make a good return, and decrease the risk of a long-term flat market, you'll need to use leverage in RE (tenant pays off the mortgage), so you'll make money irregardless. If you can't leverage the RE and cash flow from day 1, then it's a hard pass
2. Important: you'll need to find a good property manager, this will make or break your RE investment. So you'll need to cash flow after PM fees, taxes, insurance, repairs, vacancy and the mortgage pymt
3. The best way, if you're dead set on owning RE rentals, is to find a property in a good neighborhood that will attract GOOD tenants... from a wholesaler. You can find them in Facebook real estate wholesaling groups. Have them add you to their list of cash buyers. When you find one well below market value that needs work, you can put some money into rehab, then rent it, and you'll have instant equity and a higher cash on cash return
4. For stocks, in this environment, I would only own large cap companies with a solid history of increasing dividends year after year, and reinvest the dividends which decreases your cost basis over time. Decreasing the cost basis protects principal
5. You could do a 50/50 mix of stocks and real estate (depending on the real estate market you're in). In CA, not likely, in OH, then yes very likely, for example

@Kevin S. I'm trying to assist you with a better understanding of your question!

How much work do you think 4 buildings are versus one?

So, how much do YOU want to work in retirement?

@Kevin S.

First, figure out your strategy, goals, level of involvement, etc.  I think further educate yourself.  Trying to compare the S&P to purchasing an individual rental property, which people keep doing is ludicrous.  

Hmm...  Why do licenced/fiducary advisers keep recommending a broad based etf?  Risk diversification, don't pick a sector, don't time the market, no leverage,  etc.

However, what is real estate investing?  Picking a particular sector... picking a particular market... in some ways timing the market, etc.

S&P etf isn't the only way to go.  if you want income vs growth, get any of the various income producing securities or funds that have been putting out dividends for years, if not decades.  Many are now doing 10% and even 12% yields.  Some are even tax free.  Its completely hands-off (other than monitoring your account), very liquid, no additional expenses (like a leaking toilet, new roof, new flooring, etc.), and not deferred tax liability (which automaticlaly happens with a rentla).

Oh, and you still get a step up in basis --- don't know why it keep being sold "as-if" real estate is the only asset that gets a step in basis on death...  And the transfer is really easy, no probate (just assign a beneficiary), and you don't even have to re-record a deed...

But back to your question about one property all cash or leverage?  Generally, if you leverage you'll have reduced cash flow.  So... go back to step one and figure out your end goal.  Are you really in dire need of cash/income to live on?  or trying to leave a legacy?

Hope this helps.  Happy to chat.  Good luck.

If you're looking to retire and then manage rental properties, then moving that $1mm into a few properties may be a good idea. If you want to be retired and have passive income, then investing into real estate syndications, debt funds, oil and gas companies, hard money lending, etc are good options. Either way takes a ton of education on the front end. 

Hey @Kevin S., 

The question you need to ask yourself first is: 

what is the purpose of this money? 

real estate, stocks, bonds, corporate debt, private credit, ATMs, etc are all great investments. But these investments are tools in a toolbelt. 

All of these people suggesting things are saying what they would do, and they are not you. What is your goal? Cashflow? Networth growth? Wealth preservation? Once you have the goal in mind, then you can choose the best asset for that. Take it from a guy who has blown 1M+ on assets that did not fit with my goals, because smart people told me they were "good investments"