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So how do you buy houses in retirement? I’ll have huge amounts in accounts but SS income is puny....

Thinking of whether I’ll be able to buy more rentals
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You don't specify, but I assume you're in search of reliable income in retirement without consuming your principal? Are these 'accounts' IRAs or other retirement plans or are they taxable?

Why are you focused on RE rentals? The advantage of RE is it is a great inflation hedge and a form of forced savings as principal is paid down. Mortgage payments stay relatively level while rent prices increase at a much faster rate. But the key here is time.....what once seemed like a large PITI payment 20 years later seems cheap. Its this reason that makes this not a very good way to invest dollars as one begins their retirement.

If you wish exposure to RE income, consider exchange traded REITs.

BruceM
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"Thinking of whether I’ll be able to buy more rentals"

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

Sounds suspiciously like work.

Howie52
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Howie on rentals, "Sounds suspiciously like work."


Exactly, and why I would never buy rental property. My friend John said to me one time, "Art, responsibility rolls off you like water off a duck's back."

I've tried to live my life like a Taoist, even before I knew anything about Taoism. Like water going downhill, avoiding obstacles by going around them instead of crashing head on into them. Or like a tree that bends in the wind so that it can spring back up after the storm is over. The tree that stands straight up will snap off in a hurricane but the tree that bends will spring back up.

Art
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I already have stocks and REITs and such. Rentals have become my side hustle hobby. I’ve got two but want a few more so I won’t get bored post retirement. I’ve got a crew that handle most of the dirty work. That’s the secret. People you trust. I’m looking at diversification. And it’s fun buying houses.

Maybe I’m just crazy.
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If you are asking about buying rental property, I suggest you think through to the end game.

Will you sell your property when you can't manage it? Will it be sold by your executor upon death? Would it bother you if you died in a seriously down market?

Who is going to screen tenants and deal with water damage from frozen water pipes or rusted out water heaters in 10 years or 15 years or 20 years?

Sure you can find an agent who will do that for say 15% to 20% plus expenses. How much return are you going to get.

My approach to retirement investing (we have no pensions) is mutual funds (or ETFs). A large portion of money in & S&P500 fund - there is almost zero capital gains and dividends are in the range of two to maybe a bit over three percent.

I judge all investment options against Vanguard's Wellington Fund.

Later in retirement we may spend down capital.
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I already have stocks and REITs and such. Rentals have become my side hustle hobby. I’ve got two but want a few more so I won’t get bored post retirement. I’ve got a crew that handle most of the dirty work. That’s the secret. People you trust. I’m looking at diversification. And it’s fun buying houses.

Maybe I’m just crazy.

nope you are not or we are a match made in heaven...i have been looking in my neck of the woods...

i bought my 1st at 25 a 3bdrm 1 bath 2 car garage...i sold everything but the duplex i live in at 50

i didn't want to be tied to it...i don't need to build wealth anymore so i am looking a bargain.
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I’m 53 and in good health. My “end game” is hopefully about 30 years away.

In 20 years? You don’t think real estate can be sold? A very odd point of view to worry about owning a house in 20 years from now.

It won’t bother me if the market is down when I die ...because I’ll be dead. Stock markets also rise and fall, as I’ve lived through at least three major crashes. Will it bother you if the stock market is down when you die? Again very odd.

The world is full of property managers who would be overjoyed to take on that task for 10% of the rent should I tire of it. Not 30%. Ditto realtors. My current realtor is actually also a property manager. She finds and vets my tenants for a flat $300 fee. Credit, criminal, background check, advertisement and showings. My units rent in less than a month. Very clean.

I have a plumber should pipes freeze, on speed dial, his name is Robbie. Also an electrician, a handyman, two HVAC guys, a tree guy, and a lawn guy. Property values are not a bubble here - you can buy a 4 bedroom house for $200K with $500 a year property taxes. You think that could drop by...how much? Seriously? We have 2% unemployment with new companies coming in constantly.

I have owned rentals for 15 years. My mom owned rentals throughout my childhood. Over 50 years. You seem to think I am new to this. I am not. The ROI is higher than REITs or stocks. I have stocks, bonds, tax free municipal bonds, real estate, over a years worth of cash.

As to the original question I found actual helpful input on the landlords board about asset based mortgages for post retirement borrowing.
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a clean cozy place that is well maintained rents quickly...i was always slightly under

market price...
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<<I already have stocks and REITs and such. Rentals have become my side hustle hobby. I’ve got two but want a few more so I won’t get bored post retirement.>>


I bought my own home in 1985, at age 35, and rental houses in 1986 and 1987.

I still have the home I bought and one rental thirty off years later at age 68.

Keeping one house in retirement (I've been retired eleven years now) has worked well for me.

However one is enough for me.


Buit you have your own system and plenty of experience. What you will get here are people who don't like your choices and don;t have your skills. Of course they wouldn't make your choices!

It's a mistake to ask, I'm afraid.

Sounds to me like you are doing very well.



Seattle Pioneer
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Buit you have your own system and plenty of experience. What you will get here are people who don't like your choices and don;t have your skills. Of course they wouldn't make your choices!

It's a mistake to ask, I'm afraid.


My first time posting to this board. I’ve been reading it awhile.

The secret is thoroughly screened tenants. Say NO to the ones with 5 rescue dogs and no security deposit who want to move 6 people into a 1300 sq foot house and get all weird about agreeing to a background check and then offer cash only in advance if you’ll skip the check....just say no.

It’s easy. Just say no.

The normal people with a normal job will come. Be patient.

I never thought I’d do rentals. It’s weird. But with the right crew it’s been...fun. The money that rolls in on the first is more fun than my job salary because it’s my business, not controlled by a boss. I’ve got a huge 401k but diversification is a very good thing. Never know when some elected nut bag could crash the economy or start WW III. People always need a place to live.
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So how do you buy houses in retirement? I’ll have huge amounts in accounts but SS income is puny....


I believe that was the original question, not should you do it.

Contact a few mortgage lenders and ask about asset depletion mortgages (I think ours was called an asset dissipation mortgage). Basically, they sum your liquid worth, divide by 360 and figure that is what you could "earn" monthly and do a mortgage from that. At least, that is what we did. Was prepared to pay full out, but having that extra cash to invest at only 3.25% cost has been pretty darn sweet.

Here's a quick reference: https://www.freeandclear.com/programs/asset-depletion-mortga...

Ours was for a home for us, so a rental property could easily have substantial twists to it. But ask. Not all lenders do it. Ours is through Wells Fargo.

Good luck,
LakeD
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<<The court investigates and brings to justice people responsible for genocide, crimes against humanity, and war crimes, intervening when national authorities cannot or will not prosecute.

Can’t allow that... the court in its small-mindedness cannot be trusted to grasp the brilliancy of US-led war crimes which are in an entirely different class compared to war crimes committed by ordinary nations and people.>>



Pay cash. Makes things REAL easy.



Seattle Pioneer
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