How many properties is enough for you? If you’re anything like me you want a massive portfolio – dozens if not hundreds of doors.
Maybe you’d like to chase the sun – strategically owning properties across the globe. Recreating the old British quip – the sun never sets on the [insert you name] empire.
While quantity has its appeal – quality offers some equally appealing efficiencies. What if 10 properties could productive the same returns as 100?
This week I am pleased to share an investor who strives for quality over quantity. It is my pleasure to introduce you to Mile High FIRE.
How many doors do you have?
Currently 12 doors
What got you into real estate investing?
Lax financing restrictions in 2006 allowed me to purchase my second home for almost nothing down. This afforded me the opportunity to keep me first home as an income property.
What market(s) do you operate in?
All in Colorado. Are 9 LTRs are in the Denver-metro area, and our 3 STRs are in Grand County (Winter Park area)
How would you describe your portfolio?
Stable. Moderatley leveraged, with high cash-flows.
What are you currently buying?
Looking at both LTRs and STRs, but with prices and rates this high, I not finding a lot of promising opportnity.
Tell us about your biggest mistake in real estate?
Putting too much enphasis on cash-flow over potential equity growth. An extra $200/mo in positive cash-flow is great, but a property that increases in value by an additional $50-100K is better.
Tell us about your biggest win in real estate?
Our most recent purchase was a STR in the Colorado mountains. Purchased for just under $1.1M in Feb of 2021. This property cash-flows about $4800/mo, and is currently worth about $400K more than what we purchased it for.
Outside of real estate what else do you invest in?
About 75% of our net-worth is held in RE. But we also have 401K and IRA accounts that hold stocks and index funds. We hold a little crypto, but its less than 1% of our total NW.
Books people should read before investing
I’m honestly not a huge reader, but any book that helps one get their head around interest rates, and compounding, would serve one well before they begin their investing journey.
What advice would you give to a new investor?
Whether you’re investing in RE, stocks, or index funds, the dollar-cost averaging approach will serve you well in the long-run.
This week I had the pleasure of dog sitting my childhood pup (Princess). It dawned on me that I’ve never really discussed her in the newsletter.
This bundle of love and fur was brought to my family 13 years ago today.
The med student who won her at a carnival apparently couldn’t handle her energy (true story). Through a game of telephone my folks heard about her and figured she’d be a nice addition to the growing family.
Her first years were a mix of sprinting at 8pm, jumping on any elevated platform, and us trying to figure out if she was deaf (turns out she is).
Those big pink ears that refuse to work have been an inside joke for over a decade.
No jokes – just love and loyalty.
See you next week