02-05-2021, 12:17 AM
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#31
02-05-2021, 12:39 AM
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#32
- Coach McGuirk
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Originally Posted By guest89⏩
This.I'd probably buy as many single family homes as I could. With 20% down on each. 30 year mortgages. Then rent them out. Right now interest rates are about 2.5%. Homes appreciate on average 3% per year. Rent goes up 3% per year. My math might be a bit off but If I'm thinking correctly that 1 million should get you into about 5 million dollars worth of real estate. Its pretty common to make around 8% in real estate. So 400K per year. Lets be conservative and say half of that. 200k per year.... Not too shabby.
It wouldn’t be totally passive but you could hire a property management company to deal with the headaches.
02-05-2021, 12:51 AM
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#33
02-05-2021, 01:25 AM
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#34
- areyoucereal
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Originally Posted By guest89⏩
^ ThisI'd probably buy as many single family homes as I could. With 20% down on each. 30 year mortgages. Then rent them out. Right now interest rates are about 2.5%. Homes appreciate on average 3% per year. Rent goes up 3% per year. My math might be a bit off but If I'm thinking correctly that 1 million should get you into about 5 million dollars worth of real estate. Its pretty common to make around 8% in real estate. So 400K per year. Lets be conservative and say half of that. 200k per year.... Not too shabby.
also remove "buy a restaurant" from your list or i'll bash you in yer goober, swear on me mum
You trying to get rich or go broke?
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02-05-2021, 02:10 AM
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#35
Originally Posted By dbluevette⏩
With 1 mio cash I could retire right now.What would you invest it in so that you could retire in 10-15 years?
Buy some real estate?
Stonks?
Bit cones?
Buy a restaurant or some other turnkey business?
I know there are a few financial genius' on the misc.
I value your imput.
Please advise.
Buy some real estate?
Stonks?
Bit cones?
Buy a restaurant or some other turnkey business?
I know there are a few financial genius' on the misc.
I value your imput.
Please advise.
We spend 15k per year. 1 mio would give us 66 years.
Cycling, walking, swimming.
No car.
02-05-2021, 03:27 AM
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#36
- MotorCityCobra
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Real estate 60-70% and the rest in mutual funds/ETFs and some solid stocks
02-05-2021, 04:02 AM
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#37
02-05-2021, 04:22 AM
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#38
02-05-2021, 05:46 AM
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#39
- SoutheastBeast1
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I admit I don’t understand real estate very well. But I have a hard time seeing it as an investment. Everything I read makes me think you won’t be securing a good rate of return
Here’s what I’ve summarized:
1. Yes property values rise
2. They take a long time to rise, so the increase is offset by inflation
3. You’re constantly on the hook for property taxes cutting into your earnings every year. Average state being around 1%, so that’s 1% higher ROI you’ll need to make to offset that burden
4. There’s constant maintenance and repair costs to property. General rule of thumb is that it will cost between 1-4% of the homes value to maintain it. Let’s say 2% and estimate
So now we have to make sure our ROI covers 3% of the value in simple taxes and maintenance, factor in another 2% on average for inflation and you’re looking at 5%
I haven’t even factored in the expensive costs of brokerage fees when you do sell.
Not to mention the time spent with active upkeep of the properties themselves.
It’s liquidity is also horrible.
Some of you will point out the property can be rented. Well yeah you can become a landlord, but that comes with a host of other fees and legal responsibilities. You basically just added a full time job to your plate. Maintenance/repair fees will also go up when renting.
The kicker is OP can’t invest all 1 mil if that’s all he has. He needs some on hand to cover these costs. And that money not being invested is money lost too.
I don’t know... seems like an awful investment to me. And god forbid the neighborhood goes to sh*t and you’re on the hook for a huge depreciating asset.
Here’s what I’ve summarized:
1. Yes property values rise
2. They take a long time to rise, so the increase is offset by inflation
3. You’re constantly on the hook for property taxes cutting into your earnings every year. Average state being around 1%, so that’s 1% higher ROI you’ll need to make to offset that burden
4. There’s constant maintenance and repair costs to property. General rule of thumb is that it will cost between 1-4% of the homes value to maintain it. Let’s say 2% and estimate
So now we have to make sure our ROI covers 3% of the value in simple taxes and maintenance, factor in another 2% on average for inflation and you’re looking at 5%
I haven’t even factored in the expensive costs of brokerage fees when you do sell.
Not to mention the time spent with active upkeep of the properties themselves.
It’s liquidity is also horrible.
Some of you will point out the property can be rented. Well yeah you can become a landlord, but that comes with a host of other fees and legal responsibilities. You basically just added a full time job to your plate. Maintenance/repair fees will also go up when renting.
The kicker is OP can’t invest all 1 mil if that’s all he has. He needs some on hand to cover these costs. And that money not being invested is money lost too.
I don’t know... seems like an awful investment to me. And god forbid the neighborhood goes to sh*t and you’re on the hook for a huge depreciating asset.
"One day I won't be able to lift any more. Not I won't want to lift. I mean physically unable. That day could be decades from now or it could be tomorrow. All I know is that's the day I'll wish I could lift more than ever. The day I'd give anything for one more workout, one more set, or one more cardio session. So go hard and enjoy every workout, every set, every rep. Because one day you will wake up and you will never get it back."
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02-05-2021, 05:57 AM
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#40
- Kawhilights
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Originally Posted By SoutheastBeast1⏩
That's a nice goal broseph. I just stole your goal.Don't get me wrong, I'm shooting for 3 mil personally so I can live off 100k+/yr
Im just saying feasibly you can easily be fine if you invest properly with 1 mil on hand. You wont be rich but you'l be plenty comfortable. Keep in mind when I say 60k you won't be taxed as heavily either so it's not the same as saying a 60k salary. It's more than that. But still you're right, not lavish vacation/travel status either.
If you have a family then factoring in that significantly changes things too since you have to support more than yourself.
Im just saying feasibly you can easily be fine if you invest properly with 1 mil on hand. You wont be rich but you'l be plenty comfortable. Keep in mind when I say 60k you won't be taxed as heavily either so it's not the same as saying a 60k salary. It's more than that. But still you're right, not lavish vacation/travel status either.
If you have a family then factoring in that significantly changes things too since you have to support more than yourself.
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02-05-2021, 05:59 AM
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#41
- Lb54TG
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Being a landlord who has rented out individual rooms for maximum income the last 3 years, I found there’s been many times I’ve had to deal with headaches, specifically on the second house I tried to do this with. All the tenants were ****, and I finally just had an eviction hearing that I won yesterday because the guy didn’t show up. But there were damages to the property and I’m hoping there won’t be more before I can get the guy to leave.
I think renting a single family right be easier but where I live renting out the whole house gets you about 2k or so. Which isn’t great when you consider mortgage is gonna be $1400 so it only nets $600 a month, and property taxes are like 3k a year. Then there’s maintenance and repairs. Don’t see how it is profitable here in Colorado, besides just slowly building equity.
I think renting a single family right be easier but where I live renting out the whole house gets you about 2k or so. Which isn’t great when you consider mortgage is gonna be $1400 so it only nets $600 a month, and property taxes are like 3k a year. Then there’s maintenance and repairs. Don’t see how it is profitable here in Colorado, besides just slowly building equity.
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02-05-2021, 06:26 AM
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#42
- Sandmang27
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If I had an extra $1mil to invest I'd put it all into Canadian bank stocks/ blue chip stocks that pay around a 5% dividend.
That's a $50k-$60k dividend payout each year for doing nothing.
Even with taxes that's a full time job's pay.
Then let's say you're in your 20's you spend a few years putting 100% of your after tax dividends back into the sock. That's over $30k a year extra and over $1500 dividend extra each year. After 10 years of that you're at like $45k-$50k after taxes from dividends.
Then you can work whatever job you want and not have to worry so much about the pay. Save up and buy a house and pay it off as soon as possible.
Then you have freedom, real freedom. Don't have to worry about retirement or anything. You could even retire right away and just live off that.
That's a $50k-$60k dividend payout each year for doing nothing.
Even with taxes that's a full time job's pay.
Then let's say you're in your 20's you spend a few years putting 100% of your after tax dividends back into the sock. That's over $30k a year extra and over $1500 dividend extra each year. After 10 years of that you're at like $45k-$50k after taxes from dividends.
Then you can work whatever job you want and not have to worry so much about the pay. Save up and buy a house and pay it off as soon as possible.
Then you have freedom, real freedom. Don't have to worry about retirement or anything. You could even retire right away and just live off that.
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02-05-2021, 06:27 AM
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#43
02-05-2021, 06:48 AM
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#44
- JStrez
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Originally Posted By guest89⏩
This is the only logical option .I'd probably buy as many single family homes as I could. With 20% down on each. 30 year mortgages. Then rent them out. Right now interest rates are about 2.5%. Homes appreciate on average 3% per year. Rent goes up 3% per year. My math might be a bit off but If I'm thinking correctly that 1 million should get you into about 5 million dollars worth of real estate. Its pretty common to make around 8% in real estate. So 400K per year. Lets be conservative and say half of that. 200k per year.... Not too shabby.
You buy a houses, rent them out to cover the mortgages/taxes, and you're literally living rent free. The more you buy the better.
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02-05-2021, 06:56 AM
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#45
- SoutheastBeast1
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Originally Posted By Lb54TG⏩
Yeah I just don’t understand.Being a landlord who has rented out individual rooms for maximum income the last 3 years, I found there’s been many times I’ve had to deal with headaches, specifically on the second house I tried to do this with. All the tenants were ****, and I finally just had an eviction hearing that I won yesterday because the guy didn’t show up. But there were damages to the property and I’m hoping there won’t be more before I can get the guy to leave.
I think renting a single family right be easier but where I live renting out the whole house gets you about 2k or so. Which isn’t great when you consider mortgage is gonna be $1400 so it only nets $600 a month, and property taxes are like 3k a year. Then there’s maintenance and repairs. Don’t see how it is profitable here in Colorado, besides just slowly building equity.
I think renting a single family right be easier but where I live renting out the whole house gets you about 2k or so. Which isn’t great when you consider mortgage is gonna be $1400 so it only nets $600 a month, and property taxes are like 3k a year. Then there’s maintenance and repairs. Don’t see how it is profitable here in Colorado, besides just slowly building equity.
There’s no way real estate is as lucrative as the hype it gets. Maybe I’m missing something... that’s very possible.
But I admit I don’t see it as anything special the way people boast about it. I think it’s just become popular rhetoric to assume it’s a great investment
"One day I won't be able to lift any more. Not I won't want to lift. I mean physically unable. That day could be decades from now or it could be tomorrow. All I know is that's the day I'll wish I could lift more than ever. The day I'd give anything for one more workout, one more set, or one more cardio session. So go hard and enjoy every workout, every set, every rep. Because one day you will wake up and you will never get it back."
-SoutheastBeast1
02-05-2021, 07:10 AM
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#46
- Kev1972
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I'd put it in the market and sell what I need to live on. The only real estate I'd do is flips or new construction. With that capital you could have some prefabs built out on land and sell for profit pretty easily. Renting just seems like a hassle especially with all the laws protecting deadbeats who won't pay.
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02-05-2021, 07:12 AM
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#47
Originally Posted By SuperHercules⏩
lmao sure bro. 2008 was a great year for real estate investors.Real estate is nearly retard proof
You have to be a bit of a simpleton or get swindled by a really clever con artist to lose your money in real estate
You have to be a bit of a simpleton or get swindled by a really clever con artist to lose your money in real estate
02-05-2021, 07:14 AM
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#48
- Lb54TG
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Originally Posted By Kev1972⏩
This, if you’re a landlord in Cali right now, the past year has definitely screwed you.I'd put it in the market and sell what I need to live on. The only real estate I'd do is flips or new construction. With that capital you could have some prefabs built out on land and sell for profit pretty easily. Renting just seems like a hassle especially with all the laws protecting deadbeats who won't pay.
If you’re a landlord in anywhere else that adopts new laws such as those in Cali you’re fukked.
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02-05-2021, 07:18 AM
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#49
- SoutheastBeast1
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Originally Posted By Anachron⏩
Ah ok, I can see advantages thereIf you look at it from a pure cashflow perspective, it makes more sense.
ROI would be calculated on only the cash put down, and that helps the numbers a great deal. At current interest rates, it wouldn't be wise to purchase property with cash.
ROI would be calculated on only the cash put down, and that helps the numbers a great deal. At current interest rates, it wouldn't be wise to purchase property with cash.
Like I said I admit there may be things I’m not totally seeing in the real estate idea.
I still don’t know if this necessarily tips my opinion on it but it’s not something I thought about either so good point. Would rep again but you’re on spread.
"One day I won't be able to lift any more. Not I won't want to lift. I mean physically unable. That day could be decades from now or it could be tomorrow. All I know is that's the day I'll wish I could lift more than ever. The day I'd give anything for one more workout, one more set, or one more cardio session. So go hard and enjoy every workout, every set, every rep. Because one day you will wake up and you will never get it back."
-SoutheastBeast1
02-05-2021, 07:30 AM
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#50
- HalfDragon
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1 commercial growers license
10 acres of land
10x titan greenhouses
1x 3000 sqft metal building sectioned off for drying, curing, and trimming
With utility installation etc should come in just under $1m. 7 figure return first year.
10 acres of land
10x titan greenhouses
1x 3000 sqft metal building sectioned off for drying, curing, and trimming
With utility installation etc should come in just under $1m. 7 figure return first year.
02-05-2021, 07:35 AM
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#51
fleshlights, booze, firearms, ammo, and generators. the only things that will have value after the dollar collapses.
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02-05-2021, 07:41 AM
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#52
- Redfish225
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Go to Columbia, buy 550 birds. Come to US, sell birds.
Instant 16,500,000
Instant 16,500,000
I loe e.
02-05-2021, 09:23 AM
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#53
- guest89
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Originally Posted By Anachron⏩
There's a lot more to it then just buy houses and collect a check. I've been researching it awhile now. from what I can tell going long on single family homes, with today's interest rates, if you buy in good housing markets, is an amazing opportunity. Assuming I were working with 1 million. I'd be going with new construction homes in expanding areas. It just off-sets a lot of maintenance issues for the first 5-10 years off the bat. And in growing areas there are massive opportunities for appreciation.There's quite a bit more to it as well, but it's too much for a simple forum post...
Property deprecation for tax breaks, capital losses in case of property value going down, all kinds of tax write-offs depending on locality
At the end of the day, while the misc does exaggerate any investment opportunity, there's more than meets the eye in this case.
Property deprecation for tax breaks, capital losses in case of property value going down, all kinds of tax write-offs depending on locality
At the end of the day, while the misc does exaggerate any investment opportunity, there's more than meets the eye in this case.
Aside from the amazing tax incentives/write offs. The ability to have someone else pay for what will end up being an expensive asset. And the idea that in 15-20 years the properties will also provide a solid cash flow. Etc.
I personally believe the housing market will continue to inflate. Miscers like to talk about the price of housing. That there will be a crash. Etc. Maybe. But I think in expanding/booming areas real estate will continue to rise. Professionals who have a family with kids, a dog, etc. will want a home not just an apartment/condo.
Bend Oregon, Austin Texas, and other places like those cities have lots of long term potential.
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