Why Turning A Primary Residence Into A Rental Is A Bad Idea
If you’re thinking about or already have turned a primary residence into a rental, you might want to rethink that. Even if your property is allegedly in a “high appreciation” market, it still may not make financial sense to hold on to it. To understand why, it all comes down to a numbers game, especially taxes. In this post, I will share why I decided to sell my very 1st primary residence instead of turning it into a rental, how I determined that was the best financial decision, and the numbers to back up my decision.
With $8,200,000 In Debt, When Will I Be Debt Free?
In my previous post where I shared my $10 million FIRE goal by age 40, I mentioned that my investment allocation will be 30% in real estate. That’s $3M of my own cash invested in rental properties, and I fully intend to leverage that $3M as much as possible, leaving me with a whopping $7M of debt! That doesn’t even include my current $1.2M jumbo mortgage for my primary residence, which would have a remaining balance of around $900K by then. That leaves me asking myself, “After voluntarily acquiring $8.2M in debt, how long will it take before I become debt-free?”
Investing In My 1st Triple-Net Leaseback Rental Property
Most investors have never heard of the terms “triple-net” or “leaseback.” For me, my 1st time investing in this niche area of real estate yielded a 58% return on investment (ROI) in just 2 years! So what are they, and why did I invest in such a deal?
6 Reasons Why I Invest In Real Estate to Build Wealth
I know plenty of successful investors who invest entirely in the stock market and in no other asset classes, like real estate. On the other hand, I also know many successful investors (myself included) who have done even better putting their money to work in real estate. Consider the following 6 reasons why I include real estate in my portfolio and why you should consider it too.
Why I Decided to Invest in Out-of-State Real Estate
I live in San Jose, right in the heart of Silicon Valley, where median home prices exceed $1 million. Yes, $1 million. As a real estate investor, my primary focus is on cash flow. So if I were to buy a property in my local real estate market for a $1M price tag, I’d need to receive a hefty rent check from my tenant if I want to be at all profitable! Let’s dive into this conversation in more detail by using some rough numbers.