Jafari RastaMan
Well-Known Member
How much would you invest in real estate as a young professional with no wife or child?
Then 6 months in a money market where you can write a check and have access quickly.
I would not buy a condo, they are notorious for poor return on investment. I'd buy a decent duplex. Learn how to screen quality renters and you can have someone else paying your mortgage and/or giving you a stream of cash flow every month. Later if you get married with kids and want something more private, you can rent both sides and have double the cash flow and they will pay for the mortgage on your new house.
Usually when I hear that kind of advice they are talking about a reserve to cover a number of months of expenses, not income. For some of us there is a substantial difference in those two numbers.
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By the end of May I hope to have my brokers license so I can get on some of this real estate action.
Ugh ,that makes me sick. I think living in Hawai'i shaped my wife and I for the better. We realized how few material things and space we needed to live in.Sadly, I don't know too many people who would have a different number for each, Steve.
My grandmother-in-law has her own firm and even paid for my online class. I would be stupid not to take the opportunity. I've observed a few of the processes and so far I would've been $10k higher with the two little properties that sold! I can't get through the required 90 hours of study time fast enough.Smart man! FYI, the man pictured in my avatar has purchased real estate brokerages all over the country over the past year, now holding enough brokerages in Berkshire Hathaway to account for 75,000 real estate agents nation-wide. He's also gobbled up companies and equities in industries that benefit from housing construction. When Warren Buffett goes into real estate in a big way, when he's never really touched it before in his career, people should take notice.
Ugh ,that makes me sick. I think living in Hawai'i shaped my wife and I for the better. We realized how few material things and space we needed to live in.
Also is this a fee simple or a leasehold?
I've never really understood why people recommend this so often. Having six months of income sitting practically idle all the time is just heresy to me. For someone making $100k per year, that $50k in cash sitting in a money market basically represents half a million dollars after 30 years of investment in a moderately conservative portfolio of equities and bonds.
I'm not talking about taking out a mortgage but they see a condo listed and sometime it's a leasehold property for that price.How do you take out a mortgage on a lease? Or even if you could, why would you?
Or were you asking if it was a mortgage or an installment land sales contract?
rframe said:Perhaps I wasn't clear. An emergency fund is not 6 months of income, it's 6 months of essential expenses: things like mortgage payments or rent, utilities, insurance dues, food, auto expenses. Admittedly, 6 months is arbitrary, but its a pretty reasonable buffer for most people.
I still disagree.
It sounds like you two actually agree. It sounds like ATN has an e-fund available, just not in a cash savings account. Actually, he said he has a "couple of months" in cash, and the some in very low-yield, but low risk, treasuries.