Current assets: 3 houses, two mortgaged, one paid off. Primary residence and two rentals.
Total value about 750K.
I'm investing some of my disposable income/savings into more education (MBA).
No money in stocks, only recently learned about index investing after some bad experiences stock picking.
Have good credit, and am saving 80+K a year.
It's only 160K cash on hand, but will be increasing over the next few years if I keep hoarding cash.
Not sure I want to put money in at what could be the peak of the market, stock wise. Economists seem to predict a small down turn for three years starting in 2017, for real estate. So in a way, you could say it is likely the peak or near peak of real estate for a while.
Still considering buying another house to live in as I don't care for any of the areas I've lived. Crummy neighbors, traffic, crime, etc. I'd still be riding it up in value for a couple years if I buy, not to mention the principal pay down and tax benefits. At the same time, I worry about the transaction costs of cashing in my real estate portfolio eventually.
Reason I've considered selling is, as the prices on real estate have appreciated and the leverage wears off, my returns are basically that of a REIT index fund but with much more work and risk involved. It was a good investment that has paid handsome dividends, but the magic wears off over time.
I noticed FIFighter has sold much of his portfolio and is holding cash waiting for a down turn. He still has his rentals, just almost no stock.
I've considered doing the same, but...at least with RE, I still have potential for some gains in the short term. My areas market has not returned to it's pre crash level yet, and the principal pay down and tax benefits for a primary residence are something in the mean time. I want to put money into an index fund, but not comfortable putting it in with these valuations...