Should I Buy More Rentals or Pay Off Debt? (Here’s What I Did)

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  • Опубликовано: 26 дек 2024

Комментарии • 50

  • @danpasmore1596
    @danpasmore1596 Месяц назад +11

    Started 23 years ago built up to 50 single family and one duplex. Bought and flipped 6 or seven houses over the years. Locked in 30 homes 30 year fix about 15 years ago , did some 3 yr -5yr bank notes and some private money 15-20 yr loans now have about 10 paid off
    I like your videos because they are straight forward no fluff .

  • @Tino0325
    @Tino0325 Месяц назад +13

    50 minutes left in my drive, 50 minute video. It was meant to be! Currently at 19 doors here in Northeast OH. Goal of 50 doors, then start paying off. Looking forward to this video, thanks coach!

    • @soundsnags2001
      @soundsnags2001 Месяц назад +1

      19! Look at this stud in the comments. Dang homie!

    • @CoachChadCarson
      @CoachChadCarson  Месяц назад +1

      @@Tino0325 congrats on your progress! And thanks for listening.

    • @mjf5049
      @mjf5049 Месяц назад +2

      19 here and on the west side of Cleveland. Keep going 💪

    • @johntiernan6031
      @johntiernan6031 Месяц назад +1

      19 units here too! Willmar, Minnesota!

    • @Tino0325
      @Tino0325 Месяц назад +1

      @@mjf5049 love it, I’m down in summit county. Akron & surrounding areas. Keep it up!

  • @poonekar
    @poonekar Месяц назад +3

    I have asked and answered many of these questions for myself. The things that give me, and probably most people, the best night's sleep are:
    1) having passive cashflow, which real estate is one the best asset classes for
    2) the second best thing is a liquid net worth for emergencies or taking on new projects, and a brokerage account is one of the best for that.
    3) and finally, resiliency and predictability, which diversification helps with
    My plan as of right now is, to buy enough rentals so it pays for 1.5x my life expenses and with just enough of the loan paid down, so the profit that we show IRS is approximately equal to the depreciation. The rest of the wealth will be in stocks; it doesn't matter if this remaining portion is 20% of my overall net worth or 80%.
    The other stat that most successful investors don't know is that 70% of the wealth they leave for future generations is spent by their children, and 90% by the time it reaches great-grandchildren. So, my other goal is to teach my kids what I know so they can exponentially grow what I built instead of squandering it.

    • @CoachChadCarson
      @CoachChadCarson  Месяц назад

      beautiful. Thanks for sharing your approach.

  • @NutritionPolice
    @NutritionPolice Месяц назад +10

    25 Doors in Central Ohio. Not sure what my goal is. Just try to buy "cool" and unique properties that I have a good intuition about.
    Currently cashflow around $4k a month but there's sometimes a new roof or other big expense that kills it for a few months.
    Seems like the cashflow goes up around 8% a year, so 6 more years will be $6500 a month, will be pretty happy with that, especially alongside my full time job.

    • @walkbyfaithandbudget5718
      @walkbyfaithandbudget5718 Месяц назад +3

      If I may ask with that many doors how much do you keep in reserves?

    • @CoachChadCarson
      @CoachChadCarson  Месяц назад +1

      congrats! Keep up the good work! Thanks for sharing and for watching.

    • @NutritionPolice
      @NutritionPolice Месяц назад

      @@walkbyfaithandbudget5718 I had like $100k in reserves but I overspent doing a lot of rehab and improving HVAC systems. And one expensive sewer connection repair. So that's gone. I have around $10k in emergency emergency funds, and a lot of credit lines I can tap if needed ($60k worth or so at $12% but not ideal)
      Everyone says this, but yeah, have more reserves than you think you need. I have a good full-time job as well, so have my bases covered, but I can see how this type on investing would overwhelm most ppl.
      I also probably shouldn't have bought so many in a 2 year period. I went ham because interest rates were so low and I got lucky in the stock market.

    • @sincityguns3460
      @sincityguns3460 19 дней назад +1

      That’s awesome!! I have 4 single family homes but (had 5 but sold one back in 2020 to help build my new primary residence) but I went a different direction than you. I started in 2003 and focused on paying off and paying down my properties. Two of my four are paid off and I have small mortgages on the other two. Current cash flow is $7100 per month. We gross 11k per month. I am about to pay off the other two in the next two months so we will then have $11k in monthly cash flow. Time to buy more!

  • @Tom-zg9te
    @Tom-zg9te Месяц назад +3

    pre-2023 is very different from now. the key is to talk about now, instead of the history.

  • @TwoGuysTakeonRealEstate
    @TwoGuysTakeonRealEstate Месяц назад +1

    This was well said. We are working on figuring out our next move as well. Thank you. On a side note Coach Carson would love to come on your channel and vice versa. Let's chat

  • @Jimbo-Slice495
    @Jimbo-Slice495 25 дней назад

    This is good stuff, Coach. Big thank you. I believe most folks, myself included, like the examples given, i.e. how particular people did what they did. I look forward to hearing the case studies you mention.

    • @CoachChadCarson
      @CoachChadCarson  24 дня назад

      thanks for the feedback! I'll definitely be sharing more case studies like you mention.

  • @andresmattos7541
    @andresmattos7541 Месяц назад +7

    The bottom line is that life is short and you cant buy time. Make a goal work.towards it and enjoy instead of obessing about becoming a warren buffet of real.estate.

  • @ferrissaves
    @ferrissaves Месяц назад +4

    My goal is to replace income by retirement and to be extravagently generous! I started 4 years ago and I'm defintiely a small RE investor., but don't know about the mighty part. lol. Trying to decide to buy soon or hold and build equity. I'd love to see more videos with people at my stage with just a few rentals.

    • @CoachChadCarson
      @CoachChadCarson  Месяц назад +2

      I love that idea of being extravagantly generous! Count me in as well! Congrats on your progress. You're doing great! More videos coming with intermediate and "growth phase" investors. Thanks for watching!

  • @dropoutandretireearly1781
    @dropoutandretireearly1781 Месяц назад

    EXCELLENT VIDEO COACH !!!!

  • @TennisTD
    @TennisTD Месяц назад

    Totally relate to this more than any talk about real estate in the history of RUclips

    • @CoachChadCarson
      @CoachChadCarson  Месяц назад

      @@TennisTD awesome! Thanks so much for the feedback.

  • @gonoenriquez26.2
    @gonoenriquez26.2 Месяц назад +1

    Man, so much great information. Thank you guys!

  • @jillyanmacmorris5176
    @jillyanmacmorris5176 Месяц назад

    I can’t wait for the case study! That helps things click for me :)

    • @CoachChadCarson
      @CoachChadCarson  Месяц назад +1

      thanks for the feedback! We've got it in the works.

  • @Phoenix-lc7jv
    @Phoenix-lc7jv Месяц назад

    This conversation is so valuable. Thank you!

  • @cwall216
    @cwall216 Месяц назад

    Great discussion

  • @TropicTrdr
    @TropicTrdr Месяц назад

    I'm 68 and find it hard to take a knee when I have so much fun beautifying my town by buying dumps and fixing them up for long term rentals. I bought 2 of them this year. I follow Jay Leno's principle of living off of one income stream and banking the other. Military retirement is enough for me and the profits from the rentals go into an account to maintain them.I just bought a little lot in Baja and it won't take much to have fun down there.

  • @CanadianRealEstateChannel
    @CanadianRealEstateChannel Месяц назад

    Super insightful episode!

  • @leeroach3381
    @leeroach3381 Месяц назад

    Very helpful Thank you for sharing this

  • @rcolucci09
    @rcolucci09 Месяц назад +1

    20 properties cash flowing $500 is a lot of risk and work for $10k/month. And no this doesn’t include IRR. But still. One roof replacement one pipe burst, squatter and your yearly profit is gone.

  • @TheSelgomez12
    @TheSelgomez12 Месяц назад +1

    Would love more content on strategies and some real life working sessions!

  • @krisplacek7292
    @krisplacek7292 Месяц назад

    You hit the right timing coach. I'm having this dilemma in uk as we speak😂. I can't say thank you enough for your videos, full of VISDOM, not bs just to get likes and subscriptions. Thank you.
    Great book btw. It's the 2nd time I'm reading it as we speak.😊

    • @CoachChadCarson
      @CoachChadCarson  Месяц назад

      Thanks for much for the feedback and for reading the book. I was just in UK last summer with my family and enjoyed my time there (London in our case).
      What price range are your rentals out of curiosity?

    • @krisplacek7292
      @krisplacek7292 Месяц назад

      ​@CoachChadCarson
      I have 4x 70k. 3x 60% ltv, and 1 payed off. No point to get any more cos of new taxes. Thinking of new market outside of UK. Will apply your techniques to pay them off now. I did not reach my end game goal, so must move on, and carry on. Also don't want to create " frankensteins monster " here in UK.😊 I worked too hard for it.
      Thanks coach!

  • @jonb3189
    @jonb3189 Месяц назад

    Just my two cents. Just turned 60. Eight units, 4 houses and 4 condos. Four paid off. I'm going to save cash and diversify in the stock market. Fingers crossed.

    • @CoachChadCarson
      @CoachChadCarson  Месяц назад

      well done! Congrats. Thanks for sharing and for watching.

  • @seanbrancati5792
    @seanbrancati5792 Месяц назад

    I've had a property for the last 10 years (I'm 29 now). I moved from Toronto to Montreal where the prices of condos are nearly HALF. I'm thinking of selling my condo, taking that 300k in equity, and using it to buy a condo in a good area within Montreal (with good equity growth). I think I could put 80-90% down on a brand new condo here. Is this wise?
    My thought is, I'm essentially moving the equity from 1 condo to another, so not losing or gaining, BUT, I could immediately start cashflowing more than 1500$ a month, while also continuing to build equity.
    Any comments are very welcomed!

  • @Easyservice-x8q
    @Easyservice-x8q Месяц назад

    How do you make such beautiful videos?

  • @paulnovak2669
    @paulnovak2669 Месяц назад

    Chad, once again great video! I had a perspective question for you just to get your take. We aren't quite to the ender phase yet. I think I want to buy one more nice single family property and then will start transitioning to paying them off. A lot that you guys talked about in this video hit home because once I pay my properties off I will not want to be done, just transition to the next phase of investing. As I save to pay off my properties I didn't plan on making extra mortgage payments because I lose control of the cash and get nothing in return. I planned on saving the money and when the stockpile gets high enough pay a mortgage off in full. I am debating putting that money in low cost index funds like VOO vs. a traditional savings account to see if I could get more growth out of the money while I save it up and potentially have cash I could use if opportunities came up even though it's ear marked for paying off the properties. How did you do this? Did you keep your money in savings to protect it against downside when you got to the point of taking chips off the table or did you invest it? I know I need to make this decision for myself, I was just curious what you did and was looking for your perspective. Any feedback would be much appreciated.