All Forum Posts by: Matt Pippin

@Bradley Buxton

Thank you for your reply.

This is a good idea. I'll have to see if there are any options like this in my area. Best of both worlds.

@Trevor Schmitt Thank you for your reply.
"If you are interested in playing the long game with rental real estate, now is absolutely the time to get into it."
The long game is definitely how I want to play. Can you provide your opinion as to why now is the time to get in?

"if/when interest rates begin to come down that is just going to continue to make those prices go up and up and up..."
I think that too. I just think the Fed is going to stick with interest rates being high for a while. The economy is still too strong for them to lower rates anytime soon.

@Nicholas L.

Thank you for your reply.

It's pretty simple. Costs to purchase a home are above what the typical family can afford to buy. While interest rates are high compared to the recent past, they are in line with the historical norms. I purchased my first house in 2000 at an 8% mortgage rate and could afford it just fine. I now make more than double the income from that time but am unable to afford a house smaller in size at a 7% interest rate (what I can actually afford, not what the bank says). Housing prices have risen at double the rate of wages.

Since interest rates are in line with historical norms and wages are not likely to rise enough to offset the higher prices in housing, the only logical remaining option is that prices are inflated and need to come down. I don't mean the same as 2008 but in order to bring back some balance, prices must come down some.

I appreciate your thought on house hacking, however, this isn't an option for my family. 

Hello everyone,

Wondering if a few of you can help me work this through. I am new to real estate (zero properties, currently a renter myself). I am currently using the FIRE strategy to become financially independent. I am on pace to achieve that in six years and join the millionaire club two years after that. I would like to expand into real estate to further that objective but my primary motivation is that I'm bored with my W2 job and need a bigger challenge. I don't hate my job, it's just too easy for me after doing it for 20 years.

I have $50K in savings (separate from 401K / investments) that I could use to start but my wife's motivation is to purchase a house for our family. I'm not interested in paying inflated prices for a primary residence at the moment and would rather invest the money into a rental property that cashflows.

I know this is a weird question given the audience I'm asking. Is it worth getting into real estate to meet our financial independence objective even though we're going to make it in 6 years anyway without the headaches of dealing with tenants?

Appreciate your thoughts.