Around 2011, I met my PWM ex-colleague A.Lin in Midtown a few times. He told me he had about 5 rental properties in Brooklyn [6]. What I remember he said is now mixed with what I imagine he said…

• I think he said he bought fixer-upper[1] properties and “worked my butt off”[2] to make them usable again — FHR improvement.
• I think he said his parents ( in-law? ) helped in some big way, perhaps renovation or rental mgmt[3].
• I estimated that his[4] gross[5] rental income could be 10k/M but he didn’t confirm.
• I have no clue about his mtg and haircut [pTax, maintenance, vacancy]

This is one of my biggest moments of FOLB on my path as an investor. He became one of the role models at the back of my mind. However, as I told HF.Sun, we outsiders don’t know some of the key facts of each deal, and should not assume its value.

[1] Risk: judgment risk. In this game, High return seems to entail high judgment risk.

[2] sacrifice. No pain no gain? But such sacrifice may not be worthwhile. I feel my HDB rental yield of 4% is not so high, but my effort is much lower. My Blk 177 realized rental yield was above 6%.

[3] Risk: legal risk, as Edward experienced.

[4] the rental income, the asset ownership ,,, is not 100% his. In contrast, I did all of my rEstate investment single-handedly, without family help.

[5] Q: what is his GRY and NRY assuming no mortgage on any property. I tend to assume GRY close to 10%. NRY is around half, up to 5%.

[6] Risk: concentration risk. Brooklyn is where he lived and knows well. In comparison, my overseas rental properties are more risky and higher costs.

— enviable ptf? How about div stock ptf?

Q: which portfolio is more enviable — AA) $1.5M cash deployed in 4~7 rental units with 50% loan + 7% NRY + leg work, BB) $700k in div stocks, no loan no legwork, 7% DYOC, diversified over 70+ stocks
A: most people would envy AA

Q: which one is more risky? AA due to legwork, delinquent tenant, LIR