What We Dream To Be

or may already be…

I am ready to buy myself some cash cows to balance my portfolio a little bit. Apartment buildings in Central Valley towns to stay on the good side of Prop 13 and the upcoming 50% rise in min wage.

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Key takeaway from linked article,

“In my mind, the game of rental properties is eventually getting it free and clear of debt, so that you have a very low risk, high income investment that allows you to … do whatever else you’re going to do with your life …” he said.

Hence, it follows that the younger investors can have some mortgage, and reduce mortgage as they grow older till no mortgage. If start the game at older age, may want to do cash immediately.

Well my take away from that is what most of us probably experienced when we bought our first properties. We were probably cash flow negative and then after some years either through refinancing down or just gutting it out then went positive. Unless you paid a big down being positive from the beginning is not realistic but with the tax benefits perhaps it was not as bad as it could have been. I was fortunate that when I bought my multi unit I was positive from the get go. My IRS buddy was surprised to see that right off the top when he did my taxes back then.

I am only paying cash and I want at least a 5% positive cash flow with hopefully a 5% ler year appreciation …Impossible to find in the BA…