Pasife income
Tech actually got hit hard during that time. I got laid off twice and was unemployed for 13+ months. Our house, bought in 2006, dropped 25% book value from when we bought it, and it's currently up well over 20% from our purchase price. The house we sold in 2006, dropped nearly 50%+ and is up to almost where it was in 2006. Slightly different areas, one more desirable than the other.
Good and bad things happen all the time. We must do our best to analyze new and existing investments, rebalance our portfolios, and continue to aggressively save. Don't count on the Bank of Mom & Dad, an inheritance, a rich Aunt, or the government to save you.
If I ever turn into a blogger who blogs about blogging, I might include my online income. But for now, I won't and most people here aren't interested. The blogging audience is less than 5% of my readership. For blogging related stuff Yakezie.com is where it's at.
Sam, I currently own 6 investment properties in the city where I live (Tulsa, OK). My wife and I have developed a love for vacationing in Colorado. We are in the market for another rental property, and instead of buying here locally, we are considering investing in a vacation rental in Colorado that we can also use a few weeks a year. The goal is ultimately to spend at least a full month each summer in Colorado. With that end goal in mind, we are considering getting our CO property now, instead of waiting for 10 years. What are your thoughts on these types of investments? We'd be happy to put 20% to 25% down on the CO property and just break even each year from a cash flow perspective (including essentially a free place to stay while on vacation). Is it a crazy assumption to think a property like this could break even or even turn a slight operating profit after debt service? Obviously, property type and location are key drivers, but I'm just looking for high level feedback right now. Thanks!
here is what I can add to the question as I have been in your exact shoes: every single one of my counterparts/friends that have second homes as "rentals" regret it from a financial standpoint. Now there are the exceptions of those guys who are older and bought a place for 400k that is now worth 1.4M…but all in all the common theme is that it is a pain, and for the couple weeks a year you get to enjoy it, you could stay at the Ritz and have less headache and the big one…not be tied to going to the EXACT same place every single time. On the bright side, if you are the type who has a hard time taking time off…this would sort of force that, and that is a good thing IMO.
When a taxpayer records a loss on a passive activity, only passive activity profits can receive have their deductions offset instead of the income as a whole. It would be considered prudent for a person to ensure all the passive activities were classified that way so they can make the most of the tax deduction. These deductions are allocated for the next tax year, and are applied in a reasonable manner that takes into account the next years earnings or losses.
My pre-tax portfolio includes my SEP IRA, rollover IRA, and solo 401k. I'm slowly shifting these portfolios towards more dividend-producing, lower volatility stocks and index funds. I was spending way too much time punting around my rollover IRA with uninspiring returns. These pre-tax portfolios should be steady and cause the least amount of stress. I plan to contribute the maximum to all three portfolios to the extent I'm allowed by law.
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