Hello there. Three things that I forgot to mention in the podcast. One, from August 2011 to 2021, we averaged 90K/year of gross income (including rental income). Two, during the same time our net worth increased from zero to 1.2 million. If you deduct 7% (150K) in transaction fees to sell all the real estate, we would be left with 1.05 million. Three, my wife worked 46.5/hour weeks at her corporate job from August 2011 to May 2015. She has been working part-time (10 hours/week) for the past 6.5 years. Our son was born in May 2017. Thank you for the opportunity to share my story. I hope others can get some value from this interview.
@@richsamuel2922 I'm currently at 51% equity for my rentals and 38% equity for my primary. For my rentals, my comfort zone is 50% to 75% equity. In the future, I will probably have a few rentals paid off. However, I doubt I will ever be completely mortgage free.
@@moneytalkswithjonathanthom4150 Could you send me a message on bigger pockets? It's been very difficult to find a mortgage broker licensed in all 3 states (CO, FL and HI). Thank you.
This is the most I have ever related to a guest! I’m also a college professor and like my lifestyle so much that I don’t want to switch to a field that may make more money. I actually make quite a bit more than him in a small town in Ohio so my cost of living is good and I currently have rental income that pays some of my bills. I came out of a divorce in recent years so paying off the debt from that and plan to build my portfolio at 50 years old. Loved hearing his story!
So glad that you enjoyed my story and were able to connect. Colorado is 48th in funding for higher education. It's not a very good ratio of faculty salary to cost of living. I was a finalist for jobs in Arizona and Michigan, with a better ratio. However, I am much happier in Colorado with the mountains and being closer to my wife's family.
I always have been interested to visit United States of America I hope one day I can meet some one from there and get invited to meet that beautiful country, greetings from Mozambique!
Grad school salary and taking on debt . . . been there, done that. Such a late start on my financial journey. The next obstacle was working year-round for several years in a 9 month-a-year job scrambling to get tenure.
Wish I could tell folks this: NEVER sell a house you own. If I had kept my houses - even just the last two - I would be a millionaire. I would tell every young person to always keep your houses - unless the neighborhood is going down hill - but otherwise, keep your homes as rentals. By age 55 or 60 - you will be a millionaire.🤑
I want to do this so bad and I'm ready to purchase my first investment home, I live in the midwest and I have no idea where is a good market around here. I'm in Iowa but should I look for good neighborhoods in a big city? Or areas in up-and-coming cities/towns?
I agree 100%. I'm not selling any of my rentals unless they go directly into another asset. I don't want to pull my money out of a leveraged real estate deal and have it sit in the bank, even if it's making 5%.
I love Bigger pocket and it’s content. However, these videos are getting too ridiculously long. I watch the Regular BP and the Rookies BP and tend to skip this one because of its length.
My mother and father earned a combined 3.1 million in their careers. My mother was an entrepreneur and had a business typing college papers and copy service before Kinko's came into existence. My father was a Civil Engineer and he earned two pensions. They both saved and invested a smaller percentage of 5 to 10%. I have worked and earned 80k to 180k per year for 25 years so far in my job as a critical care nurse and I save and invest 10 to 25%. Adding together what I inherited and invested my net worth at the age of 54 is 2.7M. There is a history of my parents and I working a lot of overtime. In hindsight I think there are ways we could have been smarter but I see that my parents did a decent job as they had comfortable retirements with half left over to pass on. I love my job as a critical care nurse so I will keep working but reduce hours gradually until I want to retire.
Yes, reduce the hours to increase your quality of life and extend your time on this earth. Don't stop doing what you love. Just do it on a more balanced schedule as you age.
Great question. I put 20% down on a 603K house. My PITI was $2675/month. To qualify your debt to income needs to be less than 45%. You need $71,400/year of income to qualify for a $2675/month mortgage. Some lenders let you go up to 49.9% if you have large balances in retirement accounts.
I don't think lenders can count the basement rental income to qualify for the mortgage because the house isn't an official duplex. Renting out the basement is like taking on a roommate. Maybe they can count the income if you already have a signed lease? The basement needed to be remodeled, so getting a signed lease before closing wasn't really possible. We did a 6 month remodel and got a couple living in the basement unit immediately after the remodel was complete. @@cherylbisera5039
Yes, insurance costs are going up. Over the past 3 years my home insurance increased from $950/year to $1450/year to $2166/year and now $3250/year post hurricane Ian. However, during the same time the rent increased from $1850 to $2550, so the cash flow is still better in 2023 than 2020.
I see many red flags based on his content. To anyone following his advice, I would use extreme caution. There are many different paths, so it's possible his advice could work for some. However, his path is not for me.
Yep. It's mostly genetic. Environment has less influence. If personality was more environmental, we would have very similar personalities as our siblings because we share a home. For many people, that is not the case. For further interest, read any textbook in Psychology of Personality or read through the peer-reviewed research within Psychology of Personality.
@@Mysticaltyger We are about 15 months post hurricane Ian and in my opinion, market rents have stabilized due to homes being fixed. I would estimate current market rent for my Florida rental to be $2650/month. I'm currently getting $2550/month.
I took the lowest paying job available because it was in Florida during the biggest housing market crash in the last 50 years. The job also had 20 weeks of vacation. I had the option to make 100K/year in a corporate job working 50-60 hours/week with 2 weeks of vacation. I chose the first option.
Anyone buying rentals in a place you don’t live is just not capable of planning properly. You gonna fly to hawaii to do yard work. Ridiculous- hire somebody. I would never take financial tips from this person. It’s awful.
I'm going to Kauai for spring break for 10 days and staying at my rental because I'm in between long-term tenants. I have about 10 hours of landscaping to do. It should be a pretty fun trip.
