People can do what they like with their money, but this doesn't seem like a good approach. It may have worked/be working for you now, but it's coming with significant risk. You are talking about only being invested in one very narrow sector. Not realistate, but realistate in California, but not just realistate in California, but income property in california. Should I venture that it's also only in a somewhat small area of California. Lack of diversification can result if a very sizeable risk. Remember what EVERY finacial add says at the bottom. Past performance is not an indicator of future performance.
I know I'd be more nervous if more than 10% of my investments were in one boat. Most advisors warn about 5% being too much in one boat. Maybe you believe you're not so narrow and that you could consider your income properties 3-4 boats. Then more than 20% would be scary for me. I hope it works out for you.
You would be correct in that I am heavy on Income Property... about 80% which includes property in 21 States but when I write it is mostly about my Residential Property in the SF Bay Area and the company I started 35 years ago.
I realize 35 years isn't long in the scheme of things but I have never had a bad year or a year not going to plan... and this would include when some property dropped 50 to 80% 2009-12... the reason I say I was OK is because I kept fully occupied and rents increased...
Over the years I have been able to exchange and grow through diversification into commercial and hospitality in 21 States covering a wide diversity for the Sector ranging from Shopping Centers, Hotels, R&D, Public Storage and even a US Post Office all traceable to a single family home I bought at age 22 which became my first rental.
My car hobby is just that but has also performed well... never sold a car for a loss and some have proved very lucrative with a collection of 50 ranging from a 1905 Oldsmobile to early Corvettes...
Of course property is subject to loss but both cars and real estate are easily insured...
I admire those that have done well in the markets... several of my friends have done so and also avoided the downturn by selling early and then buying back when everything was in the bargain basement as he says... one told me he admired my investment approach but residential rentals are just too much work compared to managing a Wall Street investment portfolio...
My first after school and summer Real Job started at age 12 working a parts counter and stocking shelves for a restoration business... no family connection or help getting the job...
Working there put me in a place with a lot of well to do individuals more than willing to give advice to the "Kid" Almost across the board they all said Real Estate and the sooner the better... some had large construction companies, others were Judges or Doctors and most had built businesses... all said their Real Wealth came through Real Estate and this is how I came to buy my first property at age 22 much to the chagrin of my family... but at 22 I was a home owner with no mortgage and within a year it was my first rental...
I paid 11,500, my family thought I had lost my mind putting every penny I had and selling my car to pay cash for it... my step-grandfather said I was so proud he didn't have the heart to tell me he really thought I had lost my life savings down a rathole...
It's has been rented continuously for the last 35 years and started my path in investing... the home clears more in a year than I paid for it...
That green plymouth valiant is the $800 car I drove every day for 20+ years... still own it and probably always will... hauled many loads with the home made dump trailer attaced.
