Announcement

Collapse
No announcement yet.

Passive vs active real estate investment

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • #16
    Many roads in medicine education as well as investing strategy.

    is a medical degree.wasted being a cmo of a medical startup or a fiction writer using their medical find of knowledge to that pursuit? Or having a medical degree preclude one from doing another job just because one can potentially earn more being in medicine? A teacher in say grade school? Is that a waste)missed earnings opportunity and lesser than?

    From the financial aspect, the x and o should pencil out a lot better than passive. Yet the sweat equity is real and cannot be dismissed especially at the physician salary. This is why the SAHspouse really plays the lynchpin on whether this works. Much like that same SAH spouse would be the best effective manager of a private practice for many same reasons.

    25% recapture and the differential of deferred taxation on this amount off the peak earning years is a huge shift of funds and done in volume that makes 401k leveraging and Roth conversion look tiny . Rinse repeat with 1031 until stepup really amps the benefit....but does take time and sweat equity that's hard to measure for sure.
    ​​​​​​

    Comment


    • #17
      Yes, my spouse retired so that is why she decided to pursue REPS this year. The tax breaks are too valuable to pass up. We have a real estate investment plan to allow us to shelter 100% of our 2021 active income from multiple sources.

      We calculated what her hourly earnings will be in real estate. Once we realized it is over $1000/hr, we decided it is worth it. Your mileage will vary greatly based on where you are in your real estate investing journey.

      Comment


      • #18
        Originally posted by White.Beard.Doc View Post
        Yes, my spouse retired so that is why she decided to pursue REPS this year. The tax breaks are too valuable to pass up. We have a real estate investment plan to allow us to shelter 100% of our 2021 active income from multiple sources.

        We calculated what her hourly earnings will be in real estate. Once we realized it is over $1000/hr, we decided it is worth it. Your mileage will vary greatly based on where you are in your real estate investing journey.
        I would say WBD that you have been amazingly successful, and have seemed to navigate the demands of both practice and direct-ownership RE well. But I would submit you're the exception, not the rule. Especially at today's inflated RE prices, many younger docs (not you or me..) would not be able to duplicate what you did. So I congratulate you, but don't think that's the path for most docs, especially as juggling a practice, young family, and life.

        Comment


        • #19
          Originally posted by ScopeMonkey View Post

          I would say WBD that you have been amazingly successful, and have seemed to navigate the demands of both practice and direct-ownership RE well. But I would submit you're the exception, not the rule. Especially at today's inflated RE prices, many younger docs (not you or me..) would not be able to duplicate what you did. So I congratulate you, but don't think that's the path for most docs, especially as juggling a practice, young family, and life.
          I am incredibly fortunate, yes. And I juggled and continue to manage many things… family, medical practice, business start up, and real estate. I like to be extremely busy; it’s my nature.

          For the younger docs here, my early career real estate investment strategy was to buy positive cash flowing real estate that would attract high quality tenants and therefore be relatively low maintenance on an ongoing basis. The combination of ongoing cash flow, rising market values magnified by leverage, tenants paying off out mortgages over time, and then all the tax benefits combined to make these investments very successful.

          Comment

          Working...
          X