@Dennis Silver great question here! First, congrats on your success to achieve the level of income you have! Real estate investing can be a great way to build additional streams of income (that may eventually surpass your active income) when coupled with maximizing tax benefits REI provides, using leverage strategically, investing in good locations that appreciate well and staying consistent to continually build your portfolio for many years. That is exactly how my wife & I replaced our active 6 figure incomes, both as Optometrists. It took many years and dedication to get there, but it's a predictable path to wealth.
I am the founder and CEO of Rent To Retirement. Thank you for your interest in my company. I personally own many investment properties across the country including turnkey SFR/MF, commercial retail centers, midsized MF and high end STRs. As many others have mentioned, if time is a limitation for you, it may be best suited to focus on something like a turnkey asset over a more involved property, like STRs. In my own experience, STRs take that most amount of time and have significant variance in performance with seasonality and YOY performance. Not to mention that regulations are always changing and new taxes on STRs are always being implemented. I like my STRs, but they are certainly not passive and I do believe there is a good level of risk over time due to policy or economic changes market to market. Most newer investors getting into STRs are not aware of those items that can have significant impacts on the future performance of their assets.
If you do go the turnkey route, just keep in mind that nothing is 100% passive. Turnkey would be a more passive way to invest in REI though. I highly recommend focusing on new construction properties in good neighborhood locations that have strong population/economic growth that will lead to YOY appreciation in home values and rents. I would avoid the C or D class, cheaper properties that tend to vary significantly in performance and appreciate less. Specifically at Rent To Retirement, we operate a turnkey marketplace that focuses about 90% on A class, new construction properties located in growth markets. We also have many unique buyer incentives where an investor can get up to a 10% price reduction to come into immediate equity, or get that 10% as a cash back at closing to reduce your down payment and increase your ROI, or buy rates down into the low 4s on 30yr loans to maximize cash flow. We also have investor loans that only require 5% down on new construction investment properties. Those are some of the unique things we offer in addition to helping each investor build a strategic investment plan & roadmap to achieve your specific goals. We are certainly available to answer all your questions and assist in any way we can regardless of what direction you decide to embark on with your investing journey.
One thing to maybe think about as well is the STR tax loophole that can allow you to take accelerated (bonus) depreciation against your active income since you are in the highest tax bracket earning high income each year. That would not be passive as you would need to self manage for the 1st year, but we've helped many docs do this with new construction assets saving 6 figures+ each year in taxes. I'm happy to discuss further if you would like.
Sounds like you've already investigated our company, but just to share some additional resources on BP about RTR that might be beneficial. We've been around BP for over a decade now and have hundreds of 5 star reviews on BP, BBB, etc.
Here are some forum posts of people discussing turnkey investing and RTR:
https://www.biggerpockets.com/business/page/3497
https://www.biggerpockets.com/users/ZacharyCole/references
https://www.biggerpockets.com/forums/92/topics/765347-rent-to-retirement-review
https://www.biggerpockets.com/forums/850/topics/895660-my-first-investment-property-an-out-of-state-deal
https://www.biggerpockets.com/forums/12/topics/1122318-quality-turnkey-companies?highlight_post=6413855&page=1
Here are my interviews on the BP podcast:
Podcast Episode #847 https://www.biggerpockets.com/blog/real-estate-847
Podcast Episode #994 https://www.biggerpockets.com/blog/real-estate-994
Podcast Episode #626 https://www.biggerpockets.com/blog/real-estate-626
I'll be happy to answer any additional questions you have so reach out at any point in time.
-Zach
