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re: Advice needed for situation....
Posted on 12/29/14 at 6:58 pm to dallaslsufan
Posted on 12/29/14 at 6:58 pm to dallaslsufan
Oh yeah...One other thing...I've thought about rental property, but I am really not a Mr. Fix it kind of guy. I have a masters degree in computer science believe it or not and I am not very good and the handyman stuff...Funny enough I do own a construction company, but it is very focused piece of the industry. I would say it, but I think I let a little too much personal information out already. ;)
I still go back and forth on it. My parents own a trailer park and have done exceptionally well over the years...My dad can fix anything and handles all of the maintenance now that he is retired. He just never really passed on that talent to me! Hahaha...
I still go back and forth on it. My parents own a trailer park and have done exceptionally well over the years...My dad can fix anything and handles all of the maintenance now that he is retired. He just never really passed on that talent to me! Hahaha...
1
Posted on 12/29/14 at 8:13 pm to dallaslsufan
I appreciate your response. Don't think for a second you have to be a handyman to own rental property. I am the furthest thing from a handyman and I own 3 rentals and I'm not 30 yet. I purchased some properties in good areas of Lafayette in good school zones and have excellent tenants. I screened the tenants like crazy and was able to get normal people that respect the property and make good money.
I collect my rent payments online so I never have to track anyone down or issue late fees; they are automatically calculated. My minimum cash flow for a A property is $400/house after all expenses. There has been a total of 2 repairs needed in the last 3 years on the rentals.
If you think rentals are the way to go start reading Biggerpockets.com and the book Landlording on Autopilot. Both will give you a road map for success.
I collect my rent payments online so I never have to track anyone down or issue late fees; they are automatically calculated. My minimum cash flow for a A property is $400/house after all expenses. There has been a total of 2 repairs needed in the last 3 years on the rentals.
If you think rentals are the way to go start reading Biggerpockets.com and the book Landlording on Autopilot. Both will give you a road map for success.
Posted on 12/29/14 at 8:28 pm to dallaslsufan
I have absolutely no advice for you but wanted to give you a round of applause for what you've been able to accomplish. My wife and I are the same age as you and are nowhere close to what you have.
Posted on 12/29/14 at 9:32 pm to CHiPs25
If i were you, either find a Vanguard fund you like, or what I would personally do is put about 25k each in companies like Exxon,chevron, shell, Altria, wells fargo, at&t, visa, coke, and wal mart.
All companies that are recession proof and will be around another 100 years. Set up a drip with each and watch the dividends compound and keep putting a % in each month.
All companies that are recession proof and will be around another 100 years. Set up a drip with each and watch the dividends compound and keep putting a % in each month.
Posted on 12/29/14 at 9:47 pm to dallaslsufan
Nothing wrong at all with having that house paid for.
Watch your business debt and make sure that is ok in a turn down. $500 k may or may not be a lot of money. If you have notes on a couple of track hoes or bulldozers that won't go far.
If your business is debt free that is wonderful.
I would fund a 529 although you can use the Roths for education purposes.
Buy the disability insurance.
I like stock market investments better than rentals and I do both. Liquidity is nice and you have that with the stock market. I don't buy funds and buy very few stocks. I rarely have more than 3 or4 in my portfolio. I like value stocks mostly coupled with good performers with strong balance sheets. It really doesn't matter where the market is if you buy real value.
In both stock investments and Louisiana real estate investments I think people should really consider prolonged cheap oil. It may go up tomorrow but no one should forget the eighties.
Nothing is a better investment or worth more than peace of mind and you are in business and know that. If you are uncomfortable with an investment or a debt just don't do it. If you don't like stocks stay out of them.
In 15 years or so you will start wanting less things to be bothered with not more. You will want to get rid of stuff and concentrate just on the things you really like--travel, work, hobby or something like that.
Just my opinion.
Watch your business debt and make sure that is ok in a turn down. $500 k may or may not be a lot of money. If you have notes on a couple of track hoes or bulldozers that won't go far.
If your business is debt free that is wonderful.
I would fund a 529 although you can use the Roths for education purposes.
Buy the disability insurance.
I like stock market investments better than rentals and I do both. Liquidity is nice and you have that with the stock market. I don't buy funds and buy very few stocks. I rarely have more than 3 or4 in my portfolio. I like value stocks mostly coupled with good performers with strong balance sheets. It really doesn't matter where the market is if you buy real value.
In both stock investments and Louisiana real estate investments I think people should really consider prolonged cheap oil. It may go up tomorrow but no one should forget the eighties.
Nothing is a better investment or worth more than peace of mind and you are in business and know that. If you are uncomfortable with an investment or a debt just don't do it. If you don't like stocks stay out of them.
In 15 years or so you will start wanting less things to be bothered with not more. You will want to get rid of stuff and concentrate just on the things you really like--travel, work, hobby or something like that.
Just my opinion.
This post was edited on 12/29/14 at 9:50 pm
Posted on 12/30/14 at 11:51 am to I B Freeman
If the price of oil stays down and the market tanks then it would be a great time to buy a rental property and try it out to see if you enjoy being a landlord.
Posted on 12/31/14 at 12:17 pm to theoldwiseone33
quote:
If the price of oil stays down and the market tanks then it would be a great time to buy a rental property and try it out to see if you enjoy being a landlord.
correct
buying at a top like we seem to have now when the driver of the local economy--oil--is in the tank seems risky to me.
I got three down votes on my advice.
I am sure many here favor investments over paying off the house and feel the guy in the OP should reduce his cash by investing it. If it were me I would invest and be cash broke BUT he should do nothing he is uncomfortable with because no amount of money buys peace of mind. A paid off house gives a lot of piece of mind.
There is nothing wrong with having a pile of cash and a paid off house. It is just stupid to criticize someone in that situation.
One more thing I would say to the OP--and I am sure he knows this---just because your business is incorporated does not relieve you of personal guarantees you have signed for the business debt. If there is note for a piece of equipment in the business there is a pretty good chance you have agreed to personally guarantee the payment of that note should the business fail to pay. The half a million may not go far if things tanked badly in the business and those creditors of the business came calling personal guarantees.
This post was edited on 12/31/14 at 12:19 pm
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