So i've got like 180k to invest and so far i came up with this strategy

takes2long
takes2long

So i've got like 180k to invest and so far i came up with this strategy
buy 2 apartments on loans for 80k and rent them out to cover the loans, put 20k away for empty periods, i've calculated it seems the average rent covers the loans and taxes
If i sell after owning these apartments for 10 years i pay no income tax on the sale
average market rise rate is +1.4% during the last 10 years and +8% during last two years
Putting 40k into structured products (got 7.4%) rate on that
10k into a mongolian USD deposit for a year at (6.4%)
20k into stocks
10k for a bad day in a stable bank at 0.3%
is this any good to you?

askme
askme

@takes2long
I fail to see how this will get your dick wet.

Bidwell
Bidwell

@takes2long
>>10k into a mongolian USD deposit for a year at (6.4%)
keep in mind that foreign banks advertising high interest rates generally also have really high inflation rates too

there's no free lunches

idontknow
idontknow

@takes2long
keep in mind that, while it's very possible to have your rented properties at 100% occupancy rate, that is not guaranteed. Other than that, try it out.

Methnerd
Methnerd

@idontknow
thats why the 20k on the side
@Bidwell
its a USD deposit, their local currency is smth like 15%

Carnalpleasure
Carnalpleasure

@askme
I fail to see how that is relevant?

LuckyDusty
LuckyDusty

do you realize how difficult it is to deal with renters and their bullshit

they will leave you with a crackhouse
this is why most people just leave it in a diversified portfolio of index fumds and forget about it

CouchChiller
CouchChiller

@LuckyDusty
I do realize it i worked with property before, but im not in US, so for 80k i can get good property that i will rent out to respectable normies not students and alike.

Spazyfool
Spazyfool

@takes2long
bumperino

LuckyDusty
LuckyDusty

Average rent covers loans and taxes only? Don't do it

TechHater
TechHater

@LuckyDusty
this. you need to make sure it covers enough for repairs too.

don't worry about making a profit on the rent though, the money comes from the sale of the home.

New_Cliche
New_Cliche

@TechHater
He can cover that with the 20k or take out home equity line of credit.

King_Martha
King_Martha

@LuckyDusty
@TechHater
Well im planning on upping the rent with every new person according to the market, also
@New_Cliche
The buildings are all around 10-8 years old only, would there be much to repair?
In addition, im getting around 70%-80% on each apartment even if i sell at the 2009 rate which was the lowest in 20 years.
But apart from that what about other investments? Structured products, bank account, stocks?

viagrandad
viagrandad

@King_Martha
Tenants can cause damage. Pipes can burst or leak, shit needs to be repainted every once in a while, so on so forth. What the hell is a "structured product"

cum2soon
cum2soon

@viagrandad
20k wouldnt be enough for that?
A structured product is a financial instrument, basically a bond+underlying 100% capital guarantee+interest on the underlying which is negotiable im going for the safest one with "look back" determines if interest is paid on averages of underlying over a set period of time.

takes2long
takes2long

@cum2soon
Better hope so.

Spamalot
Spamalot

@takes2long
shameless self bump

StonedTime
StonedTime

@King_Martha
What you are doing is called 'forcing cash flow' and it's not good. Choose a different property that had a better cap rate. In fact, you still don't know much about rei.

So read more on bigger pockets, get a sense for what's a good deal and what is not, learn the one percent rule, and buy where it makes sense, not where you live.

Then once you're done with all that, try a sfh for starters and see if you like it.

Lunatick
Lunatick

@takes2long
You fucker. There are so many kids that come to this board with $1,000 and they want to put it in the stock market until they realize 5% of that is only $50. Now you have actually money that you can make actual returns from, and you want to waste it on an apartment? This way of thinking is so retarded. You think there's a limit on how many stocks you can buy? Don't be mesmerized by the large number.

SniperWish
SniperWish

@Lunatick
I've asked for an opinion, im not trying to tell this is the best fucking model ever or smth.
@StonedTime
elaborate please

BlogWobbles
BlogWobbles

@SniperWish
Bigger pockets is a website with a big forum on investing in homes. He's saying start there and read up

farquit
farquit

@BlogWobbles
Thanks man. Will do. Real estate market I'd booming where I'm looking to buy growing 5% a year and won't stop for a while now

Poker_Star
Poker_Star

@BlogWobbles
but is this only for us because i am not there

w8t4u
w8t4u

Real estate is going to be the big fail investment for the younger generations.

The earths population is 50% higher, the baby boomers are ready to sell. The real value of that real estate is 50% over what they paid. We've already exceeded that, so it is a bubble. First youngin's to market were happy to overpay, so were young chinese millionaries, after all they had help from their parents/corruption.

Once the new reality sets in you'll be earning an income equal to two cheap apartment rentals (assuming you have them paid off). Or, by sane standards, one extremely crappy income.

If that's what you want, earn minimum wage but never work again, go for it. If you want max returns, this isn't it.

BlogWobbles
BlogWobbles

@takes2long
Over exposure to housing market.
Use of non liquid asset in liquid terms.
Failure to account for risk like negative equity.

Buy one place outright and Do the shares.

TurtleCat
TurtleCat

Industrial / Commercial Property
Cap Rate is everything

Spend almost your money on one industrial building with 4 units

Rent to contractors for $1,000 per month

48K will leave you with at least 10% cap rate

Take your money out via bank loan and do it again with another building

whereismyname
whereismyname

@w8t4u
I'm not in US ppl. Were just starting to have a population boom.

kizzmybutt
kizzmybutt

@takes2long
Kind of. But every 6 month borrow the equity in order to protect yourself. Nobody wants to sue a guy near upside down on shit like that. Also, use that mone in down payments for another. I not enough, throw in savings until u do. Continue this and never sell them unless you are losing money

Count your money

Profit

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