Misc brothas,

Help me figure out a side hustle to invest in. I have a good chunk of capital to invest in starting and growing a passive income stream.

I’d love for it to be something related to construction, real estate, residential contractor services, etc. But I’m open to ideas outside of this space as well.

I’ve considered everything from starting a “college pro painters” business, to buying and renting out heavy equipment, to investing in my friend’s business where he renovates multi-family units in between tenants.

Anyone have experience with passive income businesses or know anyone that’s had success with investments that were cash flow positive in short to mid-term?

Buying and renting, painting and renovating are not passive income. Passive income literally means you are not lifting a finger while money is coming in.

What's a "good chunk" in actual numbers? Also if you're asking misc how to invest you have already lost the game.

I definitely want to build a rental portfolio but income property ROI is not really short-mid term in Washington (where I live). Haven’t dug too much into investing in out of state rentals.

Painting/renovating are absolutely passive income if I’m putting up the money for others to manage it and do the labor...I’m also okay with it not being 100% passive in the beginning.

By good chunk I mean $100k-150k.

I am asking the misc for fun, and because there are actually some intelligent and successful miscers among us who may have some decent ideas.

Perfect idea for you —> sucking dinks at the corner streets


Pretty passive for you since you enjoy it

Why do all that extra work? Just invest in some index funds/ETFs and call it a day

Invest substantial capital into the giant bubbalicious bubble gum bubble that is the market right now? Instead of something I can control and potentially see a much faster rate of return on? No thanks Jeff.

Definitely plan on buying up plenty of Vanguard index/ETFs once this sh*t pops. Not looking for market investment advice ITT.

No longer will the excuse of “I have too many bills to pay to quit my job and enter the Fastlane full time” remain valid. We are building your shelter. We are building your money tree. We are building the castle from which you will wage your war.

This thread is targeted for those of you who currently have:
A stream of income from your lame J.O.B., from your own business (need 2 years of 1099 history for this to work if self-employed), from your full blown Fastlane venture or from your sugar daddy/ momma (whatever) and
Currently do not have an FHA mortgage
We are going to learn how to purchase a duplex, 3-flat or 4-flat with as little as 3.5% down that will cash-flow and pay for itself.

Are you tired of paying your landlord your hard earned wage each month and having nothing to show for it? Do you wish you had a money tree in your backyard? Good. Let’s rock and roll.

Let’s break down what you will need to do into a simple list:

1. Contact / engage a mortgage broker​
Hop on Yelp! and search for the best mortgage broker in your city. Pick one who has high remarks in their reviews. Don’t get bogged down searching for the perfect mortgage broker. There are thousands in every city. Call a few and pick the one that pays attention to you (answers quickly, calls you back quickly, etc.)
Obtain a mortgage pre-approval (broker will walk you through the steps) for an FHA mortgage (broker will walk you through all the documents they need you to sign)
i. An FHA mortgage is a tool that first time home buyers who will be owner-occupants (move into the property) can utilize

ii. Broker will run your credit (FHA minimum score threshold is around 550 I think, so hopefully you are a responsible, bill-paying-son-of-a-b*tch)!
​
3. Once you are pre-approved, the mortgage broker will get you the loan you need once your real estate broker (step 2) finds you the property you want. They will charge you a fee at closing (likely 1%, or 1 “point”) which can be rolled into your loan
​
2. Engage a real estate broker​
Same thing, head to Yelp! and pick based on reviews. Call a few and tell them what you are searching for:
Tell your broker you want to look for owner-occupant Freddie Mac (HomeSteps), Fannie Mae (HomePath) properties that are between 2 to 4 units (our ideal number is 3 or 4 units)
i. The reason we like Fannie and Freddie foreclosures is because owner-occupant buyers have a 14 day window to bid on these properties before investors. This restriction is intended to keep real estate investors from driving up the price of houses on the home buying citizens of America. Which is good for you, Mr. first time home-buyer!​

3. Look at some properties (criteria)​
Check out properties you think fit the size criteria, and that are in a good area of your city. Try to stick near big transportation hubs (trains) and try to pick an up-and-coming neighborhood (read: follow the hipsters)
i. Hipster neighborhoods are the next places that will “turn” economically in a given city, and are great spots to realize cash flow​
2. Hop on PadMapper.com (good for checking rents in an area) to see what kind of rents you can expect from the property you are looking at

i. Example (all made up): 3 unit, Seattle with all units having 2 beds 1 bath.
Rents in the area are $1,000 per unit on average (same size, quality, finishes, etc.)
3. Take the gross amount of rents and apply a safe buffer of 50% for expenses:

i. 3 units x $1,000 = $3,000 per month gross rents x 50% = $1,500 expenses
This means you keep $1,500 in your pocket (your “NOI” or Net Operating Income)
4. Figure out a buffer for your mortgage (and any possible cash flow)

i. If you paid $200,000 for this property @ 4.25% for 30-years and 3.5% down, your monthly payment would be ~$1,500. Voila, no mortgage
This doesn’t take into account that most months you will not hit 50% expenses. Some will be 0% (very cash positive), some will be 150% (cash drain) so be sure to keep reserves set aside from the good months for when the bad months come around
ii. You make your money when you BUY not when you sell​

4. Pull the trigger!​
I would recommend looking at 15 to 20 properties with your agent and getting a good feel for the market. You will start to recognize trends.
This whole process will only take 2 months or so and sets you up for months of lower-stress productivity. Stop subscribing to get rich quick mindset. Good things require process and take time.

If this interests you, just start calling people! Just because you talk to brokers doesn’t mean you HAVE to buy something. Good brokers will hold your hand through the whole process. If a property was recently rehabbed or isn't more than 10 years old...then use 40% for expenses when you do your quick-check math. If a property has under market rents...don't pay for what the property "COULD" be operating at. Pay what it is currently worth knowing that when you increase the rents you will cover your mortgage and realize equity appreciation. Just use common sense.

If you think you can spend your resources in a better place, or make the “jobless” leap without buying your “castle”, then please do. This thread is for people stuck in a job or who are too timid to take a leap of faith without first building a small form of support.

I did not even touch on the fact that you can utilize an FHA 203-k loan, and get rehab construction rolled up into your loan amount, or the larger fundamentals of apartment investing, but that is because I am not trying to teach you how to be a guru here, I am simply providing a path to ease your monthly financial burden.

If you are going to make this move and want to hit a home run, DO YOUR RESEARCH and take a dive down the rabbit hole. If you don’t want to spend a ton of time learning how to hit a home run, that’s alright because you must remember that singles, doubles and triples (pun intended) still put points on the board in the long-run. Just get moving NOW!

Read some apartment investing books over the course of a few weeks and then plan your path to freedom carefully. Don’t shoot in the dark, but make sure you do in fact shoot. No deal will ever be perfect. The timing will never be right. Pull the trigger now.

Note: I am not a financial advisor or a lawyer and this thread is purely an opinion that I hope you can draw from. Purchase property, or invest, at your own risk.

PS. Buy in the winter months if you want to get lower pricing and less market competition.

Starting a business: put in a ton of work and capital up front, and statistically it will probably fail and lose money

Investing in ETFs: make good returns over the long term with zero effort

Suit yourself brah. Everyone thinks they can be an entrepreneur at first...

Good luck finding people to run it and make you money while you dont lift a finger.

They’ll cut your dik off and sell it if you’d let them. Watch over them like a hawk. And if you trust them cuz they earned your trust, still watch over them like a lazy hawk. But

Watch

Over

Them

!!

People speak from their experiences. Maybe he got burnt

For everyone saying real estate, the cap rates are ass and the competition is hilariously difficult. Very tough to find a deal worth the risk and capital outlay in the PNW without huge amounts of capital and connections.

What is your professional background?

This ignores the fact that there is statistical variations that can't be seen by just looking at averages. I haven't taken a look at the specific business types (OP, do your research) but I know a chit load of businesses are restaurants and a chit load of them fail-which probably skews the average. There are probably other types prone to this. I can't imagine something like an accounting firm failing for no reason like a restaurant might.

Your advice overall makes sense though. S&P 500 annualized average returns is somewhere b/w 7-10% and requires zero effort. Probably the safest route, but even that ignores periods that can last a decade where virtually no returns are to be had. Imagine dumping money in the S&P in '99 and then watching everything go to chit in '08...

why not just get a job that you actually enjoy and not be miserable at it.
its just 8 hours per day, what else you gonna do with all that time, jack off??

Historically and statistically, there's no better way to invest your $ than in real estate and the stock market. All others are bull**** high-risk alternatives. Go for the high risk if you're able to stomach potential loss.

Yeah this... Thanks for clarifying what I was trying to say earlier!

I work in tech consulting but have a good amount of exposure to real estate and construction services having flipped a couple houses and a bunch of buddies in the industry.Lol I have a job that I somewhat enjoy and am not miserable at, hence the ~$250k I’ve saved...$100k+ of which id like invest in a sustainable side hustle to eventually work less than 8 hours a day.

g4p

lol super disappointed in my misc right now. Not a single relevant recommendation so far.

You’re 100-150k turned into 100k by reply 19 and really isn’t much in terms of a foundation to build extravagant amounts of wealth upon by US standards. Sorry this is the misc and your dick is small and money short sir.

However, as OP, I think you have a bright future with G4P or video broadcasting fisting yourself. Let’s start there

Lol I said “$100k+” in that reply with the “+” implying “more than $100k”. Pretty sure I never said anything about generating extravagant wealth lol. Ah well, guess I have too much blind faith in this forum.

Also, dick is large and money is 1%.

OPie you made up your mind on you your side hustle?

Maybe peace of mind is worth it and you should keep your main hustle and invest the $$$ in stock market. With the free time, do anything that the misc has suggested. lol

Less is more...unless it money.

That's really not that much tbh. Invest in real estate until you have at least 500k in liquidity you can start toying with more lucrative endeavors.

There are instruments that give you good passive income. But it's kind of a club, you already have to be rich in order to be in the type of network that offers this service.

Passive income is such a bullsht phrase. Index funds are the only passive income, everything else is work.

FUking lol at calling contracting passive income, fuking lol at calling entrepreneurship passive income, and fuking lol at thinking hiring contractors to fulfill jobs means the business is passive. No growing business is passive and the earlier you learn that the less you'll fuk up if you ever do try.

I think the goal is part time work until you can build it up to the point where you sell it or mostly phase your labor out.

Lol this. You guys are so damn literal. As I said before, it doesn’t need to be passive in the beginning. Some real experienced investors in here though. So far I’ve got, “Index funds”, “instruments”, and “ETFs”.

I’m convinced. Brb investing $200k instead of the $100k-150k, so I can make $25k year on it. Maybe I’ll be able to quit my day job when I’m 65...assuming the market doesn’t implode like it’s going to.

Inb4 muh compounding interest. In b4 you can’t make money unless you have tons of money.

Do you live in Bothell? Look around, what do you think the market needs? I know someone semi-passively making $120k/year on a fukkin cycling studio in kirkland.

Whit do you go finding these clubs??