Passive income = the best

[97guns]

Getting ready to leave for 104 days in Asia soon and getting my finances in order, I’ll be collecting over $16k in rents while sipping on whatever they drink out there I hear Vietnam has some bangin coffee

 

[retired1]

 

[Another Reader]

Who's minding the store while you are gone? Will your tenants call you on your cell phone in Saigon to tell you the upstairs toilet is leaking? Who will you call if there's a major problem? Are you sure you can trust that AC guy if he tells you that the unit is shot?

After decades of land-lording, my conclusion is that it is not passive income. Hope you have a pleasant and uneventful trip...

 

[97guns]

Nope, nope, Nadia, nope, your conclusions are inconclusive, haven’t had that issue in a long while, now that you got me thinking about it... a $4000 renovation 9 months ago and prior to that a new ac unit for $2800 around 5 years ago. I haven’t stepped foot anywhere near my properties in a couple of years. After almost a decade of landlording things couldn’t be smoother

 

[Keim]

Nope, nope, Nadia, nope, your conclusions are inconclusive, haven’t had that issue in a long while, now that you got me thinking about it... a $4000 renovation 9 months ago and prior to that a new ac unit for $2800 around 5 years ago. I haven’t stepped foot anywhere near my properties in a couple of years. After almost a decade of landlording things couldn’t be smoother

You are soooooo jinxing yourself!

 

[Freedom56]

Getting ready to leave for 104 days in Asia soon and getting my finances in order, I’ll be collecting over $16k in rents while sipping on whatever they drink out there I hear Vietnam has some bangin coffee

You mean Ca Phe right? It is good. I prefer the bia. $16K will go a long way in Vietnam, Thailand and other neighboring countries. We were there in 2009. Enjoy!

 

[97guns]

You are soooooo jinxing yourself!

Nope...


I’ve heard all the landlording horror stories and have witnessed and personally lived through a few but the wealth building capabilities that I’ve witnessed with real estate far outweighs any of these catastrophes. Right now my brother is rehabbing a property that the tenants left in shambles, $20k to get it back in order and rentable.. but on the flip side, the tenants have been there 12 years and have paid over $175k in rents during that time. The 20k cost of rehabbing comes back to your pocket on the tax return

 

[Free bird]

Charmed life

 

[corn18]

Humblebrag

 

[gauss]

I’ve heard all the landlording horror stories and have witnessed and personally lived through a few but the wealth building capabilities that I’ve witnessed with real estate far outweighs any of these catastrophes. Right now my brother is rehabbing a property that the tenants left in shambles, $20k to get it back in order and rentable.. but on the flip side, the tenants have been there 12 years and have paid over $175k in rents during that time. The 20k cost of rehabbing comes back to your pocket on the tax return

Well a fraction of it does -- unless there is a tax credit that you are referencing that I am unaware of.

-gauss
a newly minted landlord

 

[HadEnuff]

Humblebrag

humble?

 

[Amethyst]

I love my passive income from OPM.

When did we start "sipping on" drinks, instead of just sipping them?

 

[LOL!]

My wife's uncle went on an extended trip and came back to find all his guns were stolen.

 

[pb4uski]

.....I’ve heard all the landlording horror stories and have witnessed and personally lived through a few but the wealth building capabilities that I’ve witnessed with real estate far outweighs any of these catastrophes. Right now my brother is rehabbing a property that the tenants left in shambles, $20k to get it back in order and rentable.. but on the flip side, the tenants have been there 12 years and have paid over $175k in rents during that time. The 20k cost of rehabbing comes back to your pocket on the tax return

Lucrative yes.... passive... not so much.

 

[ncbill]

Residential rental real estate is not what I'd consider passive, either.

As a former member here demonstrated, the best returns on the above come from doing all the work yourself (demo, roughing in plumbing/electrical, screening tenants & collecting payments, etc.)

Paying a management company usually cuts into the returns enough that you might as well just put the money in a stock/bond portfolio instead.

 

[marko]

Dividends and interest are also passive income.

They just magically show up every month in my account.

While I'm sipping (on) a drink.

Wherever I might be.

Once or twice a year I get un-passive and review my results and consider changes. After that, I return to being passive. As does my income.

 

[calmloki]

Naw - its as passive as can be. I remember the time we were literally on the beach in Sayulita after losing my wallet when I handled getting an old failed main sewer line replaced at a triplex. Thank you memorized phone contacts. Very cool to be able to do that while being a real drag that I was doing it WHILE ON THE BEACH in Mexico.

Then there was the frozen up laundry room I found out about at a stop flying back from Boston. Gave instructions for getting the thawing started and then got the news about the flooding from the broken pipes when we got into Portland.

Passive as hell.

 

[CardsFan]

Dividends and interest are also passive income.

They just magically show up every month in my account.

While I'm sipping (on) a drink.

Wherever I might be.

Once or twice a year I get un-passive and review my results and consider changes. After that, I return to being passive. As does my income.

I'm with you on this one.

But they are not entirely passive. I do have to click a few times to see them and move them around .

 

[pb4uski]

Naw - its as passive as can be. I remember the time we were literally on the beach in Sayulita after losing my wallet when I handled getting an old failed main sewer line replaced at a triplex. Thank you memorized phone contacts. Very cool to be able to do that while being a real drag that I was doing it WHILE ON THE BEACH in Mexico.

Then there was the frozen up laundry room I found out about at a stop flying back from Boston. Gave instructions for getting the thawing started and then got the news about the flooding from the broken pipes when we got into Portland.

Passive as hell.

Passive is doing next to nothing... not spending time on the phone fielding call about problems from tenants and co-ordinating repair work with contractors.... not as passive a stocks and bonds using index funds... rebalancing once a year (or even less) so an hour a year... it doesn't get more passive than that... no tenants or failed sewer pipes or frozen pipes to deal with.

 

[marko]

But they are not entirely passive. I do have to click a few times to see them and move them around .

Right. It can be a workout! Gotta watch for that carpal tunnel syndrome!

 

[gstillson]

I see from your sig that you retired with $300,000 which is $100,000 more than we did.

I do active investing to produce ~$45,000 to $80,000 a year from our $200,000 nest egg. It has worked for the past three years which doesn't prove much but we have withdrawn and spent more than what we started with.

I spend maybe 2 to 3 hours a day on it, which isn't really passive I guess. But I don't have to unclog toilets.

 

[Amethyst]

In any discussion of landlording, tenants and clogged toilets inevitably appear in the same sentence. Funnily enough, the one problem we never actually had, in 25 years of landlording, was a clogged toilet.

Clogged toilets would have been a snap, compared with what we did deal with...

 

[hesperus]

And so we hear from the Jordan Belfort of real estate.
When's the book coming out?

 

[Chuckanut]

I do active investing to produce ~$45,000 to $80,000 a year from our $200,000 nest egg. It has worked for the past three years which doesn't prove much but we have withdrawn and spent more than what we started with.

I spend maybe 2 to 3 hours a day on it, which isn't really passive I guess. But I don't have to unclog toilets.

So you work from home, part-time and earn 45-80 grand a year. Not a bad job.

 

[SumDay]

I inherited property from my parents. If you love your children, you won't leave them real estate. There is NOTHING passive about it - at least in the model my dad followed.