I inherited a house after my dad died. It's in Los Angeles and worth somewhere between $450k and $500k

I would consider southern Europe instead of Colombia or Philipines. Similar temperatures, but more stable and no risk of getting kidnapped.

Think of Portugal, Spain, Greece. You can get along well with 1500-1800 Euros, and still save up a bit.

It's a big risk. There's a reason big wig investors and even crooks like Madoff get clients offering >10%.

I'd personally see what the zoning/construction issues are like and consider turning the place into a duplex or studios. Then rent out with a leasing company but do research on the company some are scum. If you go to the Philippines consider Siar Gao if you surf. Super cheap, live like a king. Fucking miss it.

Southern or Eastern Europe (Spain, Portugal, Malta, Italy, Croatia, Greece, Cyprus, Bulgaria...) is cheap, and much better than violent third-world countries like Colombia m8.

$500,000 can make you $1,000 to $1,250 per month if you invest them in bonds or dividend stocks (yields being 2.5 % or 3 %). That's a bit short for the good life, even in low-income countries, so you must wait to have a million. (Or you'd have to go in places like Thailand where $1,000 is more than okay.)

Renting out the house may be possible if you live abroad, you have to delegate the daily management to a real estate professional.

>15% yield

lol

dude its just REITS's
look it up .
its fucking real estate dividends from rental properties.

dont listen 2 this clown
investopedia.com/terms/r/reit.asp

they offer high dividends, cuz they are primarily dividend instruments, as opposed to growth stocks,

its not too good to be true . your getting rent on your money , by investing in a rental property etf. just look it up.

the only thing that is too good to be true is thinking u are going to make profit proxy managing a single residential real estate building from a different country.

You could also concentrate on very high dividend blue-chip stocks like Philip Morris (4.12%), AT&T (4.53%) or Total (5.85%), but you're screwed if there's a crash and depend on the money.

Major REITs in the USA have an average yield of 3.65%.

>lol
hey asshat.
get ur face out ur ass and do some research before you run your mouth on a financial website.

nasdaq.com/dividend-stocks/

15% dividend yeild a year is modest.

but yea, choose whatever div yeild your comfortable with
if he went with a 7% yeilding div stock he would get his 2k monthly .
marketwatch.com/story/10-reits-with-the-best-tracks-records-for-high-dividend-yields-2014-10-09

just research their financials and books, and you decide for yourself if you are comfortable with the investments or not.

but 3.65% yeild is for chumps or growth stocks at best, but your wanting a managed real estate fund.

>15% dividend yeild a year is modest
Total retard.

>2014 article
>top yield is nowhere near 15% anyway
>more like 5% on average
>so it's just like your average oil company

>i post faq's from nasdaq

>total retard.

ok bud .

sorry i gave u an article of past performance

when i get my time machine ill bring u some stock tips from 2050

>The MSCI US REIT Index (...) represents about 99% of the US REIT universe
>Div Yield: 3.65%

msci.com/resources/factsheets/index_fact_sheet/msci-us-reit-index.pdf

*just research their financials and books, and you decide for yourself if you are comfortable with the investments or not.

whatever u go with, its a lot less riskier than trying 2 rent out a fucking house over the phone with some dick head from ur bungalo on the tazmanian island or whatever.

These "high yield" stocks are garbage stocks, or legit stocks that recently collapsed so the yield isn't adjusted.

In almost all cases, a 15% yield is abnormal and unsustainable. Don't be a moron.

A sustainable 5% yield is already considered excellent.

you can talk all the trash you want about those companies.
but i looked alot of them up on yahoo finance they are doing fine, and having been paying attractive dividends akin for at leasts 4-5 years or more.

Do not give advice about stuff you "looked up" and did not buy yourself.

OP here. I don't know who to believe so I'm just going to throw $400k into the one with the highest rate of return.

lol
both myself and my grandfather have some of those.
he uses them to pay my moms car bill every month.

i gave them another look over tho just for you . wanna know which ones im in?

im diversified ofc....
OAKS
LAND
ARI
SNR
TICC
SXC
GLP
FULL
NMM

varying degrees of risk and reward.

that okay with u ?

those aren't all my holdings btw.
just my high yeild divs.

dont fuckin do that. i never fucking said that research the financials for a few weeks and diversify.

Never put your money in one stock, it's too dangerous.

Buy an index fund or an ETF that will hold several companies at once, for diversification. A "Dividend Aristocrats" ETF can be suitable for you.

Anyway, talk to a professional advisor before investing this kind of sum. You'll see if he recommends to put everything on one stock (hint: no), or if a 15% yield is considered reasonable and sustainable (again, no).

>OAKS
>microcap stock who lost 60% since 2013
>12% yield though!!!

Stopped reading here.

Keep the house and find a real estate company that will manage it,if you can get something like 1500$ monthly from it just move to eastern europe and you will be living a middle class life there.

I know what you can do with all that money...

etf are only as good as the managers and the market they are exposed too. your putting alot of trust in a bunch of companies u know nothing about , some smooth talking vanguard salesman who get paid wether or not you do.
you pay a large price for not managing your own choices and risk tolerances over time.
not everyone wants to pay that price.

your darling etf has just as much a chance or more exposure to shit the bed if the market tanks

as opposed to if op were to research himself and find some truly reasonable under valued gems.

Trailing P/E -5.77
Forward P/E 1 6.95

buy low sell high capitan.

>etf are only as good as the managers
More retardation. ETFs are not managed, that's the point.

>the market they are exposed too
Buy a MSCI ACWI IMI ETF. You own shares of almost every company in the world.

>you pay a large price
No.

>if op were to research himself
He doesn't even know the basics.

>value investing in companies who lose money
Please.

you have your strategy and i have mine..
i just want to let you know they both have their place in a well rounded diverse risk/reward portfolio.

but just putting into etfs is a good way to lose money believe it or not.

also u shouldn't invest in something when u dont have all the information

ie:

usatoday30.usatoday.com/money/perfi/columnist/krantz/2011-02-03-etf-fees_N.htm

fool.com/investing/etf/2010/05/20/etf-buyers-read-this-or-lose-money.aspx
i also own stocks in intel seagate and AMD 2 name a few but thats not what were talking about.

really depends where in LA and what condition the house is in.

You should have at least 20x your annual cost of living in investments before you retire. probably closer to 25x

you could probably just sell it and fuck off, but no matter what you're going to stress about your finances a bit.

investorplace.com/2012/07/5-reasons-people-lose-money-trading-etfs/#.V5fotJOAOko

>implying you can live in Europe for $1500 per month

There's more to life than money, mahuhnn.

sell it
you don't rent out houses over 250k in price. you could instead buy two houses with the same money and net more rent money per month. Then again, with 500k in cash, you could start buying up lots of 80k homes and rent out to senior couples and become an senior lord.

>where in LA
I'm going with Panorama City.

Hello, I live in Germany. Germany would be a bit hard but you could still make it in a fvew poorer regions. Or just go to a mid to low tier country like Portugal where it's easy.

Thank you. The only non-retarded post in this thread. Property management was made for people like OP.

It's in the valley. Sort of.

>80k homes

These exist in areas that aren't Detroit? Do you mean senior apartments or something?

>It's in the valley. Sort of
P city is sort of in the Valley.
Glendale?

Yeah.

I don't know what kind of setup you should use to lease/rent, but I'd probably hold.
My place has done nothing but go up in value.

If I sell now, I doubt I'd ever be able to buy back into the LA market again.

The house has already gone up almost 200k in value in the last 4 years.

who's gonna buy it , mexicans?

sell it before the bubble pops dummy.

Rent the fucking house dude. Talk to a real estate professional to set that shit up.

>I inherited a house after my dad died. It's in Los Angeles and worth somewhere between $450k and $500k.
It must be a piece of shit house is a shit neighborhood. Rent that shit to a section 8 family.

>I doubt I'd ever be able to buy back into the LA market again
You're probably right about that. Shit just gets more and more ridiculous.
You never know if your area will get marked for revitalization (like Silverlake and Highland Park) either.

This is /k/ b8

Op what did your dad want for you? What do you want? What's the point of going to another country where cost of living is cheaper (for a reason) but all the serious bad ass assets and getting them over there are are more expensive so you won't be able to attain them. Eventually what do you leave your kid?

Shit I don't even know what I'm talking about I guess you would still have that house in LA. I often wonder about moving to a less expensive place.

>guy giving advice in this thread
>lol 15% modest yield
>muh mom muh grandpa

This guy is 14 years old, right?

>15% dividend yeild a year is modest.

I don't think so. If you really are able to get 15% per annum, consistently on a relatively large amount of capital, you'd easily top most hedge funds. Consider it this way: you double your money roughly every 5 years.

If you ran such a fund for 20 years, it's 16x the original investment; at 30 years, it's 66x the original investment. That puts you into the category of legendary investor.

Bernie Madoff offered less than 15% per annum and he still wasn't able to make those kinds of numbers honestly.

In an era of zero interest rates and overpriced assets, I find it very difficult to believe that a REIT can genuinely offer 15% yields. And I'm assuming the REIT is publicly-traded since I suspect you're not an accredited investor.

I've taken a quick glance at some of those companies you listed and there's a lot of financial engineering going on.

These things will work until they don't at which point their investors will be destroyed. When that will occur no one can really know but in the meantime the dividends are nice.

I've considered and chose not to invest in two other companies that had high dividend yields but ultimately engage in too much financial engineering for my comfort:

NLY (Annaly Mortgage)
AGNC (American Capital Agency Corp.)

In the case of NLY, I seem to recall that some of the dividend was actually a return of capital. Regardless, assuming they don't go bust, I think one will find that the overall return over a longer period of time (10+ years) will fall far short of the 15% or so which is what the yield was in 2010.

Just a note: Jim Grant recommended NLY one or three years ago. He said that he knew the management who run the company and says they are honorable.

I've stayed away because honest people can make mistakes and lose money.

If you don't need the house sell it brah.
I inherited a house and after faffing around with rents and bullshit decided to sell. Money in the bank makes me feel secure.

Guess I'm just afraid of selling only to see the house be worth $700k in a few more years.

~5% return on 400k would get me $20k per year.

collecting rent minus HOA fees, insurance, property tax would get me $20k per year.

How about renovating it and upping the asking price for rent/lease?
That's got to be going on with other homes in the neighborhood.

>I don't think so. If you really are able to get 15% per annum, consistently on a relatively large amount of capital, you'd easily top most hedge funds. Consider it this way: you double your money roughly every 5 years.

>If you ran such a fund for 20 years, it's 16x the original investment; at 30 years, it's 66x the original investment. That puts you into the category of legendary investor.

>easily top most hedge funds

so? why is that a problem?

you have a fear of success ?

hedge funds are run by humans, usually stupid greedy , privilege white boys.

ofc i can do better than that.
also.

if you aren't in this game to make money. get the fuck out my face.

think astronomical return on investments are
"rediculous, or "far fetched", or "unrealistic"

and that i am 14 years old?

no... you are just vastly ignorant.

u dont wanna make money thats fine with me , go fuck urself.

aol.com/article/2012/08/14/coca-cola-stock-share-worth-millions/20299696/
people think saying negative "realistic" shit will make them sound smarter.
but it only proves you dont have any experience or education in the nature of the market.

>legendary investor

who like warren buffet?

if he can do it , why the fuck cant anyone else?

you think he got lucky ?

you have to use prudence when managing your portofolio , and keep an eye on the company's financials,

if you have to pull out of a dividend bearing company after a few years, then do it.
and take the dividends you accrued with you.
im not gonna sit her and detail and out line every little fucking step you need to take in managing a portfolio and achiving astronomical gains, its not nearly as hard as u think, but it will be pretty hard to do with all ur money sitting in some ass holes mutual fund managed by someones nepotist nephew , who drank his way thru college .

Already ripped out the carpet and put in hardwood floors. Working on the kitchen next. I also plan on redoing the bathrooms before I sell.

How are the neighbors places looking?
It's great if you can make your place look good, but even better if you can get your get their asses in gear.
The guy across the street from me is trying to sell his place for a staggering amount. He's a good guy, so it's too bad for the neighborhood, but if he pulls it off, it'll boost everyone else.

It's a great neighborhood.

I'd pour money into that fucker, then.
The people who sold to us only lived here a few years, but did a bunch of cosmetic shit and redid the kitchen and master bath.
They made like 40%.

It's gone up in value nearly 80% since 2012. This is part of why I'm afraid to sell. I could be losing out on huge potential.

But I don't really like being a homeowner. I'd rather live comfortably in another country and not work.

Yeah, I'd try and have my cake and eat it too.
Keep the house and use the rents to pay my expenses in wherever the fuck.
If I couldn't make it work as is, I guess I'd do the renovation first, charge even more, then move.

>80% return

>15% dividend is unrealistic

make up ur mind u cock suckers.

hookers and blow?

You could look into a property management company to deal with the tenants and pretty much everything elae for you. That's who I rent my house through, the management company does everything from signing rental agreements to repairs to lawn care to rent payment to showing the house to potential renters. I've never met the person who owns the house I rent or even know who they are, all they have to do is approve paying for major repairs like when the house needed a new central air unit a few months ago.

I'm not sure how much of a cut the property management company takes of the rent but plenty of property owners use their services so it must not be too bad.

Tell me where in LA and I can tell you if it has potential to increase or not. Lived in LA all my life and work for Coldwell Banker as a licensed agent. Pretty knowledgeable on up and coming communities. Based on only being worth 4-500k you are definitely not in west LA. Probably somewhere east or south central. Maybe even mid city.

They exist in every flyover state

sell now if you can; real estate markets all over the country are starting to fall off quick. LA might be one of the last to go, but you still need to be quick before the bubble pops

>if he can do it , why the fuck cant anyone else?
>you think he got lucky ?

He has a special skill set and he also had the advantage of being born into privilege.

By your logic, there should be tons of Buffetts. There are plenty of good investors. However, there are very, very few who are billionaires who got their money purely through investing and not asset stripping. I would be surprised if there are even 50 people on the planet who could do what Buffett has done.

Finally, I don't give a damn what you do with your money. I'm just commenting so that others will not necessarily blindly invest in the same things you do. I've been a pretty good investor and unless you trade or hedge your positions sometime in the future, I have a feeling that you're going to get blown out.

As others have said, there's a reason why the dividends are so high. If they really were safe and reliable, the market would arbitrage the yield away.

I would say rent it out but living thousands of miles away isn't good for that.

Do you have any family in LA that can deal with the tenants periodically? Also you can get them to send the money straight to your bank account instead of physically collecting it.

OP here.

What about selling and buying multiple properties in a market with a better rent-to-value ratio?

I could own 4 condos in AZ for what my house is worth.

>doesn't realize the market actually sets the rent

Is this really the consensus? All I've read points to steady rise.

Wait. You use a property management company and you don't even know what percentage they take?

You're giving advice?

or you could leverage your house as collateral and use it for a loan to buy 4 condos in Az. That way you have 5 properties.

>owning property in a liberal hellhole
Just sell it and put the $$ in a mutual fund. ez ~20k a year

>liberal hellhole
>real estate worth 5x as much

how's flyover country, user?

>what is a fraud based housing bubble

Looking at OAKS it lost 37% share value since inception with 12.24% yield according to nasdaq. Which comes out to an overall about 1% loss or nearly breaking even. Am I missing something?

You misunderstood my post, I RENT the house I live in, I do not own it.

well , ur not investing at inception , thats the beauty of value investing.
but
teh us economy has been slowly pushing towards a major bubble and is due for an epic recession
wait till it pops before you do any kinda reit investing imo.

why don't you try it genius? Why shill crypto coins when you could be receiving 15% dividend checks?

>he uses them to pay my moms car bill every month

okay he was just kidding guys. He was kidding

He has to go play Pokemon Go now, off you go outside now.

this
do it

Sell it, take the money, get some gold and silver, and go somewhere cheap where the women aren't fat and obnoxious. But don't get yourself trapped.

The housing bubble is getting ready to pop again, since the paper money that was dumped
into the economy can only paper over the damage for so long.

What if I have shit credit? I own the house outright but my credit score is pretty bad

definitely sell the house. you live too far away to deal with renters and maintenance.

think long and hard before you decide to relocate to some shit hole. people forget how good they have it in america compared to a developing country.

>think long and hard before you decide to relocate to some shit hole. people forget how good they have it in america compared to a developing country.

I really just want to travel for a few years and move every 6 months or so until I find a place I fall in love with.

>Sell it, take the money, get some gold and silver

Is this a serious post?

yes it is

Isn't putting all your money in precious metals dangerous? Everyone is always talking diversification here.

Chinese more like

So I've done the math and subtracting HOA fees, insurance, property tax and all expenses I'd be getting $1250 per month by renting it out.

So if I could get a return of 3.8% or higher from investing the $400k I'd be making more money.

Which is very doable.

No, think of Croatia, Montenegro, Albania, Romania, Bulgaria

Very stable countries nowadays, 1500-1800 Euro per month would be a very solid and comfortable upper middle class salary in all of them.