A millennial retired early by investing in real estate and one index fund. He explains why he likes owning both assets.
A millennial investor shares his strategy of combining real estate 'house hacking' with passive index fund investing to achieve early retirement. He emphasizes the importance of cash flow from property and the long-term growth potential of the S&P 500.
Why it matters
The article illustrates a common wealth-building strategy for younger generations, while acknowledging the role of market timing and location in achieving exceptional results.
Todd Baldwin with his wife, Angela, and their two children. Courtesy of Todd Baldwin Todd Baldwin used house hacking to jump-start his real estate portfolio. He later invested over $1 million in Vanguard's S&P 500 ETF, VOO. Real estate offered control and cash flow, while index funds let him grow his wealth passively. Todd Baldwin got an early start on investing, buying his first property at 23. He put $19,000 down on a $506,000 six-bedroom house outside Seattle, moved into the primary bedroom with his girlfriend at the time, now his wife, and rented out the remaining rooms. The rental income covered his mortgage and utilities and generated about $1,500 a month in additional cash flow, he said. By 25, Baldwin's net worth crossed $1 million, mostly thanks to rental income, he said.
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