Buying and Owning Assets

Spamalot
Spamalot

So a common theme I've observed in advice and literature pertaining to the creation and preservation of wealth is that if you want to be wealthy you need to own assets.

Aside from the obvious stocks, bonds, and real estate, what are some assets worth owning. In my own research some interesting options I've come across have been: self-storage facilities, tutoring centers, and automated car washes.

What assets does Veeky Forums own/ would like to own?

Soft_member
Soft_member

@Spamalot
Here's the easiest one. Buy real estate, charge enough rent to cover mortgage and earn a living. You'll probably need 4-5 buildings ie houses. So enough to cover mortgage bills and earn income and you're all set.

Evil_kitten
Evil_kitten

@Soft_member
aka im a generic uncreative investor.
no risk no reward- go balls deep in some proper infrastructure that you can rent out. i.e datarack net exchange et. find your niche

SomethingNew
SomethingNew

@Evil_kitten
It may be uncreative but find me something safer.

Flameblow
Flameblow

@Spamalot
Blacks.

I would like to own some blacks.

Ignoramus
Ignoramus

@Soft_member
Profit margins on rental properties aren't that great, and I didn't need to start a thread to know that was on the table.

DeathDog
DeathDog

@Ignoramus
You can set profit margins as wide as you freaking like.
Fuckin idiots.

BunnyJinx
BunnyJinx

@Ignoramus
the fuck? 500 a month per property isn't enough for you? literally retarded

farquit
farquit

@DeathDog
hey rent this house in the ghetto for $3k/month because user said you can set your margins as wide as you want!!
@BunnyJinx
Lol you're not gonna make $500/month on a single rental property unless there is some hidden technique I don't know about? In which case feel free to enlighten me

idontknow
idontknow

@farquit
k you are confirmed retarded. try and do a little research before you speak

Burnblaze
Burnblaze

@idontknow
I've crunched numbers on dozens of different potential rental properties in my area and optimistically with no hidden costs they'd be bringing in roughly $200/month. If you actually knew anything and had anything to contribute, but you're just an armchair hedgefund manager.

Evilember
Evilember

@farquit
quadplex
$700 - $900 / month / unit
~$3,200 / month before expenses
Assuming you find some halfway decent renters, I don't see why it wouldn't be a viable plan.

RavySnake
RavySnake

@Burnblaze
move out of the ghetto faggot

StonedTime
StonedTime

silver bullion bars and coins

PurpleCharger
PurpleCharger

@Burnblaze
How much do rental properties go for in your area? Where I live they tend to range from around $700/month to around $2000/month.

Fried_Sushi
Fried_Sushi

@PurpleCharger
Pretty much the same range for me. Anything below $800 is an apartment or trailer. Single family homes usually $900+.

Booteefool
Booteefool

@Fried_Sushi
What sort of costs drain enough revenue to drop you down to $200/month?

haveahappyday
haveahappyday

@Booteefool
The irony is every time I post a simple formula for generating income, some idiot posts why it won't work. The idiot has never tried it, while my mom has 3 rental properties.

cum2soon
cum2soon

@Fried_Sushi
why are you spending 700 a month maintaining a house

likme
likme

@haveahappyday
You've piqued my curiosity. Could you post the formula?

Firespawn
Firespawn

@Booteefool
Not OP but:

As landlord, you have:
- Property tax.
- Inspector to make sure there's no methlab on the property.
- Repairs & maintenance.
- Utilities (mandatory in some jurisdictions, also mandatory if you live in a place where winter happens and don't like replacing the pipes on a regular basis)
- COST OF THE PROPERTY.

Let's say I have $120K and spend it on a house. I rent the house for $1K/month. Assuming no interruptions in tenancy and no expenses whatsoever (I bought it up front, it's a magic self-maintaining house) I will not have turned dime one in profit until I've had it for ten years.

If, on the other hand, I get a mortgage on it, then I have the mortgage payment soaking up most of the inbound rent payments.

BinaryMan
BinaryMan

@Firespawn
you should really raise your rent

happy_sad
happy_sad

@BinaryMan
Raised rent to $1100/mo
Tenants found an okay single-family nearby for $1000/mo
House is empty for 1 month between tenants.

Congrats! I have made $12100 a year instead of $12000, AND I had to evaluate prospective tenants and stage the apartment for remarketing. I'd have been better off keeping the rent the same and mowing neighbourhood lawns for extra cash. And I'm now 22% above market rents so my new tenants may well consider migrating when their lease is up.

lostmypassword
lostmypassword

@happy_sad
@Firespawn
This FFS

PackManBrainlure
PackManBrainlure

@happy_sad
what fucking nighborhood are you in? a $100 difference in rent loses you business? you can only rent out a $120,000 house for a grand?sounds a lot like shitposting

Snarelure
Snarelure

@Firespawn
10 years before profit
but this is wrong. the property and house you now own have value. thats like putting $120k into stocks and if you make 1000 off dividends saying its not profit. the original investment is still there

Emberburn
Emberburn

@PackManBrainlure
Lmfao you're a fucking retard if you think anyone with a single god damn brain cell would like in a $120,000 shack for $1k/ month let alone for more than that. I know you're trying to be funny, but this thread could actually be useful to some people.

Firespawn
Firespawn

@Emberburn
wtf? are you in san francisco or similar? where is 120k a shack?

whereismyname
whereismyname

@Snarelure
This guy gets it. You still own the house and, assuming your tenants aren't absolute shit, you should be able to resell it when you're through with renting.

King_Martha
King_Martha

@Firespawn
Paying 120k for a house

there is the problem. also buying 1 house is pointless need at least 4 to make it worthwhile

Ignoramus
Ignoramus

not having skin in the game

Nude_Bikergirl
Nude_Bikergirl

@Firespawn
No I'm in east tennessee, property is very reasonable. But $120,000 is like a 900 square foot starter home. And again, I'd rather not discuss geographical real estate anomolies. Does anyone here own any good assets?

Crazy_Nice
Crazy_Nice

@Fried_Sushi
LOLOLOLOL dude apartments are $1050 minimum for crackhouse shit tier studios where I live. single family homes are $900+???? You live in poorville dog.

Boy_vs_Girl
Boy_vs_Girl

@Crazy_Nice
That is epic as hell dude. Seriously, that is a fantastic achievement that you live a place where real estate is expensive. I mean seriously I cannot congratulate you enough.

Spamalot
Spamalot

@Boy_vs_Girl
haha u mad sauhn. why u mad dog?

WebTool
WebTool

@Spamalot
what are some assets worth owning

Intangible assets, such as premium domain names, income-generating websites & apps.

WebTool
WebTool

@Firespawn
You know that when you buy a $120k house you have a $120k house, right? Your 1000 a month goes on top of that and is a return on your investment. After ten years you have $120k, and a house that you can now sell for 140 or more due to appreciation.

CouchChiller
CouchChiller

@happy_sad
How old are you? Did you have a math class yet?

CodeBuns
CodeBuns

@happy_sad

Nobody can be this retarded

Stark_Naked
Stark_Naked

@happy_sad
I'm hoping this is my landlords reasoning. We are currently paying at least 1/2 what our neighbors are. they could jack up rent but then they'd have to actually clean up this dump and find new tenants.

w8t4u
w8t4u

My mom owns 4 rental properties and the house she lives in

She keeps the rent as low as possible and thus has over 9000 applications to rent. Then she gets the pick of the litter and only goes with white business professionals with good office jobs.

Even if she's giving up like $5,000 per year per house in rent she may have been able to charge, the risk of carrying the house while it's not being rented is practically eliminated

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