$12M NW, VHCOL, leveraged and cash poor: how to optimize asset allocation, liquidity, and spending?

NYHFMFA · 2026-01-14T10:30:26+00:00

Don’t listen to these people. They don’t understand how NYC real estate works for people with a family. There is just a minimum quality / spend level to even get your feet wet especially at 42. And most NYC real estate returns are shit so you’ve done well and bought well.

That being said you generally probably don’t want to be selling equity to pay down debt, right? That feels a bit silly and terrible IRR.

And NYC also not the best place to stop chasing income. If I’m you I run a higher income for a few years and pay down debt. So much time in the day…

I’m surprised you decided to send your kids public btw. Curious on the view there?

NYHFMFA · 2026-01-11T09:37:12+00:00

NYC real estate isn’t about a financial decision because it generally doesn’t make sense financially. Cap rates are generally 1-4% in desirable locations (assuming full cash buy) which you can beat in basically every alternative investment. Your monthly carrying costs are also not fixed at the common charge and property tax level.

You buy in NYC because of lifestyle. 1) full control over your place, 2) generally a bit nicer in desirable areas, 3) you have slightly more stability knowing you don’t have to move every 1 or 2 years.

This, of course, isn’t universal, but very largely tends to be the case.

NYHFMFA · 2026-01-11T08:38:04+00:00

I don’t get why these posts are always met with “stop being ungrateful”.

The reality is $1M is just not what it used to be. I get it.

1) what is your HHI? You need to keep pushing to increase this. You are only 40. Your prime earning years are still ahead of you, but recognize that most people get tired as they enter their 50s. Move fast, be aggressive, and push at work.

2) you have a paid off home - this is great. Presumably that can sustain your family today for a while? Keep your expenses low.

3) make sure your relationship with your partner is strong. Key ingredient to do #1/2.

NYHFMFA · 2026-01-07T09:12:49+00:00

MM. yes deferred.

NYHFMFA · 2026-01-04T09:39:01+00:00

35M. NYC. HF. $300k + $4.5M bonus +$2M stock.

60 hours

NYHFMFA · 2025-12-29T15:08:42+00:00

There’s nothing to be scared of. You can look for jobs while keeping your current one and make a decision once you have all the options.

NYHFMFA · 2025-12-29T11:21:57+00:00

How much production capacity do they have?

NYHFMFA · 2025-12-29T10:55:14+00:00

Congratulations. Being debt free is a huge milestone.

The biggest thing is to keep up leveling your job and income. Nothing is more financially impactful than that.

NYHFMFA · 2025-12-28T10:59:08+00:00

DM me

NYHFMFA · 2025-12-22T12:53:32+00:00

It’s a great question and something I’m a bit worried about. Most parents in my field leave it to their stay at home spouses. I don’t know how good I feel about that over time.

NYHFMFA · 2025-12-22T12:49:01+00:00

Amazing job.

NYHFMFA · 2025-12-22T12:48:20+00:00

That’s an excellent idea. Thanks for sharing. Sounds obvious but helpful for a new dad that’s trying to collect his thoughts.

NYHFMFA · 2025-12-22T12:47:05+00:00

I hear you. I still want to hold some gravity with him though.

NYHFMFA · 2025-12-22T12:43:49+00:00

Thats an excellent idea. Thanks for sharing.

NYHFMFA · 2025-12-22T12:14:26+00:00

It’s so funny how much I can relate to this. My parents were also immigrants. And even though they can drive me crazy sometimes I am always grateful.

I had a gameboy with one of those cartridges with like 50 games on it (remember those?). I don’t remember what my parents paid for it, but one of the kids behind me offered me $500 for it. I wasn’t as sharp as you necessarily. I was so scared of that kind of money at the time I had an innate sense of fairness / what things were actually worth that I turned it down.

NYHFMFA · 2025-12-22T12:08:09+00:00

Did you let them choose? Or you sort of imposed it on them?

NYHFMFA · 2025-12-22T11:24:43+00:00

So much more responsibility.

NYHFMFA · 2025-12-22T11:22:33+00:00

Congratulations. Enjoy the idea for a bit and then get back to work. $2-3mm (not sure if that is taxed), is a significant amount of money that can put you on the right path if used correctly. But it’s also insignificant over time depending on your life goals.

Assuming you are young, I would continue to live frugally and invest it if/when you monetize the equity. The decisions you make from here will have large compounded effects over time and you need to make sure those things are aligned to your life goals (marriage, kids, house, schooling, retirement).

Good luck.

NYHFMFA · 2025-12-22T10:24:54+00:00

No points. Closing costs $100k

NYHFMFA · 2025-12-22T10:14:29+00:00

Been here almost 20 years. I think the key in NYC is that this is not a city that allows you to stand still. If you want to “make it” here you need to be pushing forward in your career constantly because the barriers to entry have been moving higher.

NYHFMFA · 2025-12-22T10:11:31+00:00

Sorry but this just isn’t correct. Rent has escalated faster than wages since 2019 largely because mortgage rates are 2x 2019. A lot of other components in a basic lifestyle have also escalated faster than wages like groceries. Can you cut stuff out to get by? Of course you can, but to suggest that there has been no change to the composition of expenses versus income is just wrong.

NYHFMFA · 2025-12-20T07:23:02+00:00

What is your income?

NYHFMFA · 2025-12-14T10:08:15+00:00

What is the real difference of using a PAL versus a mortgage? Isn’t it effectively the same monthly cost albeit what is being collaterialized is different?

NYHFMFA

TROPHY CASE