@Tarantado,
I live in Colorado and do the same
*My childhood home that my parents bought for @29k is now worth over $600k. Paid off
*My primary res is valued at $460k with a mortgage of $350k @3.5% (took advantage of VA loan)
*My rental #1 is valued at $470k with a mortgage of $360k. Mortgage pmt is $1902/ rent is $2600 @4%
*My rental #2 is valued at $380k with a mortgage of $190k. Mortgage pmt is $1340/rent is $1650 @5.25% (ugh)
*My rental #3 is valued at $340k with a mortgage of $172k. Mortgage pmt is $1161/rent is $1850 @4.375%
*My rental #4 is valued at $305k with a mortgage of $86k. Mortgage pmt is $602/rent is $1775 @4%
*My rental #5 is valued at $210k with a mortgage of $120k. Mortgage pmt is $1100/rent is $1200 @5% (ugh)
I do realize that the real estate bubble will burst. With the exception of the primary res (which we sold a rental to get....) and Rental #1, which we got in 2017, we have held all the properties (and more from time to time) for over 20 years. We've weathered the downturn, where most were valued at $50k under what we owed on them, but when the market came back, it came back stronger. So even with a downturn, if you can weather it and keep the rents high enough to pay expenses, I feel like they will ultimately come back stronger and worth more than they are worth today, in a short amount of time. In fact, during a downturn, I would spend all my savings to buy more real estate
We had two other homes that have been sold. Actually they were mine. I bought my first at 24. My mortgage payment was $602. I rented two of the bedrooms @ $300 each. Worked two jobs. Bought a second home as a rental. Got married to my husband and we bought a home together. I sold the first one with the birth of our first child; it provided a replacement of my work income for 2 years so I could stay home. We sold the second one when our second child was born because she was so sick and medical bills piled up. If we still had those homes, we would be doing GREAT; they would be paid off and bringing in good money.
Yes, all our "eggs" are in real estate. I've been thinking about changing that, but not sure what to do.
We have 10k banked per house, for emergencies. Money that is untouched.
We also have a TON of debt. We will have to pay most of that off before getting another house...which we WANT to do in a year or so, but in a different state.
Incidentally, some states are more landlord friendly. Colorado is one. I would never buy property in CA, WA, VA, DC, NY, PA. Good states are TN, MO, TX (maybe....real estate taxes are really high); GA, FL(again...maybe). I hear horror stories from other landlords in those states that just makes me quiver.
We also self manage; have an LLC set up; and it's my "job" as a SAHM (who is a teacher to 5 kids who are home schooled; a property manager; a tutor to anywhere from 2=6 kids; a mystery shopper; a babysitter; and a VIP kid teacher....)
If we purchase in another state, I will get a property manager, as each state's laws differ so much.
One thing: I wish, wish, wish that when I'd purchased my first house at 24, I would have purchased in Summit County or Eagle County (I worked in Summit).....my friend purchased her first home at the same time. She spent $110k on hers and I spent $82k. I was just TERRIFIED to break that 100k barrier, so I purchased in a different area. Mine grew in equity to around $300k. Hers grew in equity to over $700k. Yeesh