Investment BS Thread - Stocks/Futures/Mutual Funds/Bonds/Commodities/Options/ETFs/401ks/Etc

i love rental income its the best. I disagree with gpb however. My rentals produce tons of positive cash flow. I dont even care about the appreciation in the equity because im not selling. I was buying up condominiums about 5-7 years ago. There monthly atm machines. I honestly forgot what a few of them look like inside. I have 1 eviction where i had to pay the person for the keys and she trashed the place. Small loss wich lowered my taxable income. I recommend investment property to everyone as long as there POSITIVE cash flow off the rip

 

Yep. Worst thing a landlord can do is become friends with a tenant. Gotta keep the relationship strictly business. Doesn't mean you can't help through a rough patch, but have to treat it as a business choice and have every agreement in writing.

After a few years I personally got to where I hated the phone ringing on the weekend or evening. Switched to a professional property manager. He handles all the minor stuff, and gets a % of rent. It's worked out for me as I've had far less vacancy and thus the guy effectively pays for himself as compared to my prior experience.

Used to know a guy that'd buy fixer upper duplexes. He'd move into one side and rent out the other while he rehabbed the side he was living in. When done, at the next lease renewal he'd swap sides and rehab the other. Then when done he'd find another duplex to buy and keep the existing one.

 

Never rent to friends, ever.

 

I avoid business with friends altogether

 

hell yea, my first scoop of it was at $4.22 and been getting more and more since

 

I'm in single-family-detaches, so probably part of the difference. Plus I'm stating this from a 15+ year timespan where I've had to do paint/carpet, appliance replacement, roof repairs, tree removal, as well as HVAC repairs or replacement.

Certainly if one has positive cashflow that's a great thing - but I'd caution folks not to expect it when factoring in long term upkeep and turnover / freshening expenses.

Also may well depend on the area.

 

For all you $NAIL people I sold the $34 19 JUN 20 Call for $2.25 (it's ask is at $2.45 now). That means if NAIL Is under $34 on June 19 I keep the $225. If it's over $34 I lose 100 shares @$34.00...But it would have to be over $36.25 on Jun 19 for me to lose out on any possible gains...and I still have 75 shares...If NAIL retreats back to $28 I can buy back the contract or just ride it out...

 

I'm kind of annoyed I can't sell covered calls on NRGU today...

 

Looks like final hour sell off

 

That's why I REALLY wanted to sell some covered calls...

 

Yea, you’d think there would be opportunity

 

Yeah, for me I would only do a double or triple family I was living in. I would want to be on site.

We're actually kind of considering that if we move to ATX. Hand our house over to property management company and live in ATX. If we decide to move back in 5 years, we move back into the same house in an area we know etc etc.

Oh I knew that one. As said, inherited through estate.

A few of my coworkers do rental either apartments or vacation rentals, they're fine with them - we'll see what the future holds, it's a strong maybe. I could probably do a duplex or townhome, a triple/double decker would be a bit much for me.

 

Just got my account on TD approved for covered calls.

Time to lose some money.

 

OR make money! You sell covered calls on days like today or anytime you're ready to sell a stock. You can sell the in the money calls at a premium. It's a no brainer when you're ready to exit a solid gain position.

 

I have not done options before, I figured applying will light a fire under me to learn it faster. Then, suddenly....I was automatically approved without needing a further review That's why I was joking about losing money.

 

Well my stop on MARK hit. Least it was only $100 I threw in the garbage. Didnt hurt as bad considering the day, but that wasnt just on paper like the day was.

 

I bought my first options today and dam I see how they swing. I bought the following calls.

CCL June 26th 25 dollar call

GE July 7th 10 dollar call
GE July 7th 11 dollar call

See how this goes, not a whole lot of money in it.

 

The important thing to notice, when buying calls today, is how much the price jumped...those CCL calls started the day at $0.35 and rose $1 to $1.35....Make sure you have a plan. What is the price you would sell at? Be sure to set up a limit sell for them right away in case they hit the $$ you want and you miss it. DON'T let them expire in the money without enough cash in your account to buy the shares...So if CCL Closes above $25 on 6/26 your broker will execute the contract and you need $25x100 shares, $2500 cash in your account. If not, they will liquidate all of your shares to cover the cost and then you get a penalty for insufficient funds etc.
There's almost no chance where it's worth it to execute a contract. If the shares are at $25 the contract should be worth $0, but it will be worth like $0.20...So if you sell the contract to close @$20 you still only would need $2500 for 100 shares and you still have that $20 left...
Options for Dummies is a great book. I put a PDF link in here somewhere....Copy paste this and go

Code:

online.slidehtml5.com/azff/nyuw/nyuw.pdf

 

You'll probably make money first few trades. Don't be blinded by it and think you're invincible!

 

https://www.marketwatch.com/story/i...ngs-on-one-insanely-risky-position-2020-06-03