The problem I see in your investment is all of it comes from Real Estate. A true leveraged is not about putting your egg in one basket (referring to $200K liquid to buy one property). Your cash is better serve to use as cash reserve, repairs, down payment, and some invested mutual funds that will provide a nice return.
2nd - The real estate properties tend can be complex with tenants living on your property with rules/laws etc.
3rd - It would better serve your money by only putting small amount required say 20% for each property. Being a landlords comes with annual maintenance, property tax, repairs cost and often with big cost (unknown sometimes).
4th - A smart investor in general should establish a self directed retirement accounts especially for business owners which help reduce income tax.
5th - The house market could further reduced the value you will pay for condo. You could already be a lost once you rent it out.
6th - Another option would be invest $200K aggressively into the stock market, or by buying index fund. Also, I'll even consider hiring a financial advisor to manage your account.
I'm rambling here so pick and choose. Just a thought...good luck!
Last edited by tripods68 : 05-02-2008 at 09:03 PM.
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