|
Lump sum of cash into rental property or markets?
12-22-2021, 08:15 AM
|
#1
|
Dryer sheet aficionado
Join Date: Dec 2021
Location: Odessa
Posts: 34
|
Lump sum of cash into rental property or markets?
I am sure this is another age old question, however I am too lazy to search. So please don't flame on me too much. I have an opportunity to purchase a nice rental property ($75k) in which I would have the 20% DP.
Question is better to move that lump sum into equities or this passive income opportunity? Merry Xmas all.....
|
|
|
|
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!
Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!
|
12-22-2021, 08:21 AM
|
#2
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2007
Location: Independence
Posts: 7,298
|
"passive income"
Had rentals before?
__________________
"Be kind whenever possible. It is always possible." Dalai Lama
|
|
|
12-22-2021, 12:23 PM
|
#3
|
Dryer sheet aficionado
Join Date: Dec 2021
Location: Odessa
Posts: 34
|
Quote:
Originally Posted by calmloki
"passive income"
Had rentals before?
|
Got two now....and yes, they're a pain in my arse! However, I dont like the fact of getting a good deal on the property and someone paying my note then some. Just curious if the wisdom shared in here would put the cash into the markets or property...
|
|
|
12-22-2021, 09:14 PM
|
#4
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2007
Location: Independence
Posts: 7,298
|
As an old landlord I'd say owning income producing rentals is a good thing. We got up to 53 doors, then thought we would sell out slowly. Then it was 2009. Oops. Held the rentals for the next decade plus, and they were plenty lucrative, but now I'm in my 70's and just really don't care to do it anymore. Sold hard the last couple years and are down to a triplex and a 16-unit. Taxes bit hard as our places were pretty much depreciated out. We've plugged money into the market, which I have trouble doing as it feels based on stock buyer mood rather than an actual service or object. But if everybody is doing it.. hard to buck the stream.
My thought, were I younger, is that inflation will make a leveraged rental purchase real worthwhile and protected on the down side by rent payments. Stocks feel like they are way high and due for a crash and sustained low values. But I bet wrong a whole bunch, countered by working the rental business like a business, so hopefully smarter people will chime in.
Midwest at $75k?
__________________
"Be kind whenever possible. It is always possible." Dalai Lama
|
|
|
12-22-2021, 09:47 PM
|
#5
|
Full time employment: Posting here.
Join Date: Aug 2008
Location: The 850
Posts: 980
|
Think it depends on the market. Mine is looking way out of wack right now.
In the Redneck Riviera, the local paper just featured someone who tore down an existing house to build a 4 story, 7,500 sq. ft, 18 bedroom rental-not on the beach, but nearby. Expecting to rent it to "extended families and corporations booking for golf weekends".
3,000 sq. ft. houses in my neighborhood are now selling for $400/ft or more, and I can't make the math work as a vacation rental. Good luck making that massive house pay as an investment.
As Calmloki advised, treat it as a business, which means being thoughtful about your entry point, a realistic assessment of your income, and the effort to make that income.
__________________
Stay at home slacker dad 2015-August 2024. With the last kid gone, now actually retired
|
|
|
12-22-2021, 09:52 PM
|
#6
|
Thinks s/he gets paid by the post
Join Date: Jun 2021
Posts: 1,577
|
If you are experienced with rentals and enjoy working on them, especially in-between tenants, then it is a form of diversification. For me, it sounds like alot of work and stress that I don't need. My last 2 rentals, lost more money to taxes than gain.
|
|
|
12-26-2021, 03:24 PM
|
#7
|
Dryer sheet aficionado
Join Date: Dec 2021
Location: Odessa
Posts: 34
|
Midwest at $75k?[/QUOTE]
Thx for the feedback…out here in west Texas you can still find some properties that are well under $100k
|
|
|
12-31-2021, 11:42 AM
|
#8
|
Full time employment: Posting here.
Join Date: Dec 2006
Posts: 881
|
Quote:
Originally Posted by Ninepoint5
Midwest at $75k?
|
Thx for the feedback…out here in west Texas you can still find some properties that are well under $100k[/QUOTE]
Must be why, a lot of my fellow California's are leaving.
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|