Home owner net worth
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Home owner net worth (by S i d [MO]) Nov 21, 2023 8:57 AM
       Home owner net worth (by Tony [NJ]) Nov 21, 2023 10:02 AM
       Home owner net worth (by Roy [AL]) Nov 21, 2023 10:16 AM
       Home owner net worth (by RB [TN]) Nov 21, 2023 10:37 AM
       Home owner net worth (by S i d [MO]) Nov 21, 2023 10:43 AM
       Home owner net worth (by 6x6 [TN]) Nov 21, 2023 11:16 AM
       Home owner net worth (by Roy [AL]) Nov 21, 2023 12:22 PM
       Home owner net worth (by Robert J [CA]) Nov 21, 2023 1:29 PM
       Home owner net worth (by Jim in O C [CA]) Nov 21, 2023 3:59 PM
       Home owner net worth (by Ray-N-Pa [PA]) Nov 21, 2023 7:56 PM
       Home owner net worth (by BRAD 20,000 [IN]) Nov 21, 2023 10:53 PM
       Home owner net worth (by Phil [OR]) Nov 22, 2023 5:34 AM
       Home owner net worth (by Ray-N-Pa [PA]) Nov 22, 2023 7:25 AM
       Home owner net worth (by zero [IN]) Nov 22, 2023 8:16 AM
       Home owner net worth (by S i d [MO]) Nov 22, 2023 10:43 AM
       Home owner net worth (by zero [IN]) Nov 22, 2023 10:37 PM
       Home owner net worth (by don [PA]) Nov 24, 2023 1:47 PM
       Home owner net worth (by Pmh [TX]) Nov 24, 2023 2:41 PM
       Home owner net worth (by GKARL [PA]) Nov 24, 2023 8:36 PM
       Home owner net worth (by Phil [OR]) Nov 26, 2023 5:57 AM
       Home owner net worth (by Chris [CT]) Nov 27, 2023 3:50 PM
       Home owner net worth (by zero [IN]) Nov 28, 2023 7:26 AM

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Home owner net worth (by S i d [MO]) Posted on: Nov 21, 2023 8:57 AM
Message:

Saw this article today from back in April by the National Association of REALTORS (NAR). For those who own MULTIPLE pieces of real estate (i.e. landlords), my guess is the comparison is off the charts. A good read for when you're tired of getting beat up by rough tenants. This quote in particular....

“This analysis shows how homeownership is a catalyst for building wealth for people from all walks of life,” says NAR Chief Economist Lawrence Yun. “A monthly mortgage payment is often considered a forced savings account that helps homeowners build a net worth about 40 times higher than that of a renter.”

Read the whole article below.

nar.realtor/magazine/real-estate-news/study-homeowner-wealth-is-40-times-higher-than-renters

--184.4.xx.xx




Home owner net worth (by Tony [NJ]) Posted on: Nov 21, 2023 10:02 AM
Message:

Good one. Thanks Sid. --73.215.xxx.xx




Home owner net worth (by Roy [AL]) Posted on: Nov 21, 2023 10:16 AM
Message:

Sid,

The holy grail here is not multiple mortgaged properties but multiple paid off rental properties. When you are no longer a slave to your lender, all of that extra cash goes into your piggy bank and not your lenders. However, I am just preaching to the choir here since you and I already know this. --71.207.xxx.x




Home owner net worth (by RB [TN]) Posted on: Nov 21, 2023 10:37 AM
Message:

Home(s) ownership has always been my top priority.

Glad I stayed on Track, all them years, financially. --69.130.xxx.xxx




Home owner net worth (by S i d [MO]) Posted on: Nov 21, 2023 10:43 AM
Message:

Indeed, Roy... you've hit the nail on the head.

I am glad to see my mortgages disappearing over the years. Less RISK. More PROFIT!

John Schaub (were you at that convention?) said once that all he wanted was 30 paid-off houses in good locations, and that produced more than enough income for him. I agree, and I like his philosophy of keeping things manageable. Could he leverage that portfolio into 100, 200, or 300 doors? I'm sure some bank would be happy to have his paid off properties feeding their balance sheets. But to what end? To have a $100 million net worth rather than $10 million? What does that get a person other than more headaches and much more risk?

I'm content with where I'm at for now.

--184.4.xx.xx




Home owner net worth (by 6x6 [TN]) Posted on: Nov 21, 2023 11:16 AM
Message:

Thanks for sharing, Sid.

Content: wanting what you already have and not what you don't. --73.190.xxx.xxx




Home owner net worth (by Roy [AL]) Posted on: Nov 21, 2023 12:22 PM
Message:

Sid,

Yes, I was at the Mr. LL convention when John Schaub was the keynote speaker. He and I had hotel rooms right across from each other and which means I got to pick his brain on a one on one basis! If 30 paid off houses is his holy grail, then my sweet spot number is only 15 paid off houses. I use to have 22 houses, but I sold some because I decided I did not need the extra hassle that comes with more houses. Besides, money is not everything in life. --71.207.xxx.x




Home owner net worth (by Robert J [CA]) Posted on: Nov 21, 2023 1:29 PM
Message:

Tenants in a "D" class apartment, worth a negative $15,000, credit card debt.

Tenants in a "C" class apartment, worth around $35,000 in retirement and savings.

Tenants in a "B" class apartment, worth between $50,000 to around $1 million.

Tenants in an "A" class apartment are worth between $500,000 to 3M.

--47.155.xx.xxx




Home owner net worth (by Jim in O C [CA]) Posted on: Nov 21, 2023 3:59 PM
Message:

I think Robert in LA has it covered. Without my rentals that I started buying and holding in 1971 I probably would be a Class B tenant today.

I had a friend in 1965 that bought $5000 of monster furniture. He was going to pay it off then buy a house. Five years later his furniture was almost paid off buy wearing out and he was still renting. --146.70.xxx.xxx




Home owner net worth (by Ray-N-Pa [PA]) Posted on: Nov 21, 2023 7:56 PM
Message:

Having cash flowing investments that are hedges against inflation does help. --24.101.xxx.xxx




Home owner net worth (by BRAD 20,000 [IN]) Posted on: Nov 21, 2023 10:53 PM
Message:

SID,

My college textbook for PERSONAL FINANCE class (an elective) had a chart showing how RENTING for 20 years was less expensive than owning. (A 20 year mortgage was the norm back then)

It showed you would have to replace a water heater if you owned.

I asked “What about year 21 when there is no more monthly payment?”

The professor just shrugged.

BRAD --73.103.xxx.xxx




Home owner net worth (by Phil [OR]) Posted on: Nov 22, 2023 5:34 AM
Message:

The other part that Brad2000 knows but didn't point out... rent goes up faster than the increase of PITI if you have a favorable Fixed mortgage. I stuck my neck out as far as I could on mortgages (was pretty conservative by some) and owed 2 million.. took about 15 years to really get a good cash flow. Not debt free yet, but will not be very many years. Cash flow is great, and net worth puts me in the top 7%. Don't need any more.. money or hassle. Done building my business, but my income and net worth keep going up every year. --76.138.xxx.xxx




Home owner net worth (by Ray-N-Pa [PA]) Posted on: Nov 22, 2023 7:25 AM
Message:

Owning is not as desirable as just controlling. When you have PITI, who owns the property? Well your name is on the title but stop making that payment and you find out that you had a 30 year fixed lease on a place.

Any landlord out there dumb enough to admit that they didn't raise rents in 30 years time? --24.101.xxx.xxx




Home owner net worth (by zero [IN]) Posted on: Nov 22, 2023 8:16 AM
Message:

I will bookmark the article for a later read.

My goal used to be owning the places outright. Still growing and using the bank's money to do so. I do not make as much per door this way, but I have been able to buy a few more, fix a few more and use some of the debt to buy toys that I pay myself with.

Still a little guy in a big sea. Another goal that I have before the end of the year is to work up what the changes would be if I paid off more places instead of holding the cash. With the rates being up though I still think letting the mortgages sit is going to work best.

About the only financial thing they taught us in high school was how to properly write checks and that your house would be your biggest investment.

I still write a few checks but the other was way off the mark. --107.147.xx.xxx




Home owner net worth (by S i d [MO]) Posted on: Nov 22, 2023 10:43 AM
Message:

Phil, yes a great point. Owning a home is a hedge against inflation of your housing costs. Also, congrats on the mortgage paydown process.

Brad, I'm a little surprised by your Prof's nonchalance at such an obvious statement. Was he a non-conformist in other ways or just this? Also, did you press him on that, or just keep quiet and take the A in the class?

Ray, I get what you're saying, but that's like saying if you don't pay your taxes you find you had a infinite lease on the place, because the city/municipality can always take it from you. We all know the deal: owners have many rights that renters don't. That's the key difference. That doesn't mean owners have ULTIMATE rights.

zero, I'm curious if you have a specific growth goal in mind. --184.4.xx.xx




Home owner net worth (by zero [IN]) Posted on: Nov 22, 2023 10:37 PM
Message:

Sid,

Unfortunately that growth goal is still something I am chasing. I had a set amount of money I wanted to make per year. Then I decided that I needed to increase that by maybe 20% so I had a buffer. I reached that tiny goal and then I didn't really move forward. I make more each year but without having a set goal in mind. Besides making more money I mean.

No W2 since 2012. Make more now than I would if I was still at it. Spouse could quit but then insurance needs to be adjusted. All the bills are paid, don't work 40 hour weeks. Some extra money socked away.

Living like the grasshopper instead of the ant at times I guess. --107.147.xx.xxx




Home owner net worth (by don [PA]) Posted on: Nov 24, 2023 1:47 PM
Message:

Roy, I'd rather have more properties with mortgages than fewer without. "Slave to the lender???" If I have a long term fixed rate mortgage at a low interest rate, how in the world am I a slave? Inflation causes everything to go up in price, including the rents I charge, and meanwhile my payment to the lender is fixed in dollars that are worth less and less every year. Furthermore, I gain the benefit of appreciation of the entire value of the property, not just my equity in it. --73.141.xxx.xxx




Home owner net worth (by Pmh [TX]) Posted on: Nov 24, 2023 2:41 PM
Message:

Don nails it. I give no credence to “slave of the lender” is just nonsensical. I pay to use $ I don’t have to allow me to use that $ to make me $. is a win win for both. my houses at 3.15 to 3.75 and my return on cash is 25-35%. I am a happy “slave”…..methinks Sid has made some bad investment decisions and so blaming others instead of himself (?) --12.232.xxx.xx




Home owner net worth (by GKARL [PA]) Posted on: Nov 24, 2023 8:36 PM
Message:

I think it gets down to preference and need. If I didn't borrow, I wouldn't have accumulated the wealth I have now. Leverage allows one to turbocharge in the right conditions. However, debt can be a hammer as many are about to find out. I'm referring to all the newbies piling in buying places with marginal or no cash flow hoping the appreciation. The judicious use of credit isn't a problem, however, having paid off houses isn't a bad deal. No need to grow for growths sake alone if you have enough. --209.122.xx.xxx




Home owner net worth (by Phil [OR]) Posted on: Nov 26, 2023 5:57 AM
Message:

Always had a positive cash flow on the properties with a mortgage. Good enough so that I could ride out the big crash of 2008, and just stayed the course. Took 15 years for the cash flow to support me in the manner I wanted to be accustomed to....

Now the purchases that I made 2010-2015 were really sweet deals and ROI much better. Still did mortgage on them. Did some refinance on some 2 years ago at under 3% fixed, nonowner occupied . Have some private money I am paying 6%...

Rent has to cover Principle, Interest, Taxes, Insurance, a maintenance factor, vacancy factor and a management fee or it's a no go.

I keep a spreadsheet of the properties with current value (not inflated value like DT did), remaining balance owed, rental amount, taxes, insurance, mortgage payment, management fees, owner paid utilities, gross monthly cash flow (not including vacancy or maintenance) and equity in the property. Update the spreadsheet every couple of months. It was very useful when borrowing money. Now I mostly keep it updated because it is fun to see the equity changes as the principal is the largest part of the mortgage payment. Some are paid off, some have 3 to 5 years, two that were refinanced have under 13 years. Monthly cash flow well exceeds the combined amount that my spouse and I made working regular jobs.

Net worth??? Yeah baby! I'm still small compared to many on this forum. --76.138.xxx.xxx




Home owner net worth (by Chris [CT]) Posted on: Nov 27, 2023 3:50 PM
Message:

I miss cheap money at 4% I'll borrow every penny a bank will lend me.

--32.217.xx.xxx




Home owner net worth (by zero [IN]) Posted on: Nov 28, 2023 7:26 AM
Message:

Saw a FSBO next to one of my places. Contacted the guy. He just signed a one year lease last month with some rather interesting people.

Got a little additional info from him and contacted my banker for rates. 7.75% with 2 points and 8.5% with one.

What a difference that makes on a 180k loan from what I would have spent last year. --107.147.xx.xxx



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