Retirement thoughts Past Present Future

[Oaktree]

I wish the 25 year olds would learn and practice this concept.

Every time I read one of these stories about "passive income" my BS detector goes off. Well, maybe not BS, but maybe the "there's more to this story than meets the eye" detector. It's like those people who supposedly make big bucks flipping houses...maybe some succeed but for every one who manages to do this, there are probably 150 who lose money on the deal. Most distressed properties are distressed for a reason.

 

[California]

Every time I read one of these stories about "passive income" my BS detector goes off. Well, maybe not BS, but maybe the "there's more to this story than meets the eye" detector. It's like those people who supposedly make big bucks flipping houses...maybe some succeed but for every one who manages to do this, there are probably 150 who lose money on the deal. Most distressed properties are distressed for a reason.

Some flippers do ok. Next door to my home in town, some lady who lives in Hawaii bought from an heir, renovated to current style, sold. She told me she was from here and comes back from time to time to buy and flip a house making about $100k each time. No reason to doubt her.

I think the skill she has that some lack, is an eye for decorating to take something commonplace and make it seem special.

But a later owner, subsequent to the folks she sold to, ripped out the kitchen and started over. They said cheap Ikea everywhere wasn't good enough for them. Whatever. Our kitchen from 1943 is still original, even the gas range.

 

[Gale Hawkins]

Distressed property is Always gor a reason!

Owning rental property has a very negative appeal but that is just me. However my 60 year old brother in law who is a contractor with about 10 houses that rent for around $600 month who is very happy.

In 1986 we gave $8000 cash for our house that was on 2 acres and a gravel road. In 2019 our son found 1.6 acres a very small house with a large 2 bay shop with in-ground lift for $26K cash on a state highway about 7 miles from KY Lake

Family in both cases provided free labor to hull out and go back with new plumbing, electric, insulation and drywall.

I do not recommend this to others but it is one way to get a roof over your head and not be paying big payments monthly. We have added 13 acres and a huge addition over the years slowly. It got a new 30 year roof from the decking 2 months ago.

Retirement goes better with housing needs met if possible. For some renting and no mowing or upkeep is best. To each his own.

 

[goeduck]

However my 60 year old brother in law who is a contractor with about 10 houses that rent for around $600 month who is very happy.

Wow! My 1000 sq ft houses rent for $2,200 a month to military enlisted with BAH allowances. Usually newlyweds on 3 year stints. I keep the houses in tip top shape and I am happy to be a responsible landlord. Win-win.

 

[ultrarunner]

Most first time buyers only put 3.5-5% down, this is normal, this is for a owner occupied house. Then they have to pay PMI for the added risk to the loan servicer. Any type of investment property in todays world, requires 20% down.

Seller Carry 30 due in 5 or 3 worked for me in East Oakland California... once with only closing costs paid and other times with 5-10% down...

 

[buckeyefarmer]

Seller Carry 30 due in 5 or 3 worked for me in East Oakland California...

Welcome back.

 

[California]

...Family in both cases provided free labor to hull out and go back with new plumbing, electric, insulation and drywall.

I do not recommend this to others but it is one way to get a roof over your head and not be paying big payments monthly.

Ha. I was the Family providing free labor like that, on this old tiny ranch house starting from about 5th grade. The place was in poor condition when Dad inherited it. We put a lot of work into it. Now I'm the old fart looking at stuff I did when I didn't know any better, like painting over a thumbtack (that might have been teen defiance ).

 

[ultrarunner]

Welcome back.

Just passing through... last few months mom on home hospice..

 

[civilian]

Just passing through... last few months mom on home hospice..

Sorry to hear about your mom. Prayers to you both. Jon

 

[goeduck]

Yes, prayers for ulrarunner's mom and good son.