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

Well if they're asking 90k for a property and it returns 800-1000 a month that's a huge dividend. Given I'm not guaranteed to receive the dividend (rent). I'd also hope to purchase the apartment/condos cheaper than 90k maybe closer to 80-85k?
Also with 20% down I'm not having to put 90k into the property to receive that kinda ROI.
There's also some tax benefits I believe over property investment vs stock investment.

I am looking for advice for sure. Of course I have reserves.

 

I liken the rent to dividends your not guaranteed dividend either. However my experience with a good prop manager is good rent payments With proper adjustments to stay with market demand and you get to write depreciation off at tax time, management fees and of course maintenance. I am not much into leveraging which is why I have the one paid for. I can easily let that thing sit without concern if something goes sideways. But I get the leveraging and doing the 20% just sweated through the recession with to much leverage and not enough equity anywhere to cover the shortage.

 

Well with a mortgage payment under $600 after a 20% down payment it could sit empty and I could pay for it, but that's not a good investment and I'd be upset if I got into that without any renters for a year. Yes i'd be fine, but we're trying to make passive income.

 

Dividend payments might be less, but they also have advantages. I have to do literally nothing and receive dividends. Depending on your situation, owning rental property can be a nightmare. Also, liquidity. I can liquidate my entire stock portfolio tomorrow. You can't do that with properties. I don't doubt you can get a higher return if you know what you're doing with rentals, but there are benefits that come with dividend investing that (to me) makes it worth it for the lower returns.

 

less work will always equal less pay.. well generally. no risk no reward. I would still do both, investing in the market and investing in properties.

liquidity isn't an issue if you keep the rainy day fund in check. It's smart to have at least 3 months pay saved up to me, and with all investments that can be easily liquidated I'd say 1 year pay.

if you account for a property manager in the rent you can pay it if you decide it's too much for you to handle. I'm only looking at properties within 10 mile or less radius of my house. That way I can manage until I decide I don't want to. I would never buy a property I couldn't drive to, at least not starting out of course.

 

I agree. liquidity is different, total costs is different, diversification considerations but I like driving by and seeing and it will never have a zero value. I have gone through the nightmares of rentals- lesson learned I am too nice of a guy- much better experience to have a middleman running the rental, worth every penny I pay him.

 

i do side work, a lot of side work. I never let someone know I own and operate the side business. Then there's no negotiating.

Probably worth starting an LLC for the Rental properties.

 

I would never say the stock market is better than rental properties, probably the opposite actually. For me, it is though, because it is so passive I can earn money working to buy shares (and reinvest dividends), and that’s about it.

I have just heard so many horror stories it has scared me away from owning property. If it was truly passive I’d be all over it. Maybe with the right management team it could be.

 

So get this. On the apartment/condo I was talking about apparently insurance is included in the HOA of $210. I guess they want to make sure every building is covered. Plus it’s probably cheaper anyways to have it included in a group pay.

 

A duplex, triplex or 4 plex would be a nice property to have. One building with multiple rental units.

 

Point of entry is a big barrier and I already have a location and house I like living in. Plus I’ve already pushed up dirt to build a shop.

Reason I bring up my current living situation is bc if I didn’t already have this place I’d look into a duplex+ for sure bc I’d live in a part of it and claim homestead.

Anyways here’s where shops going to be.

 

^^Agreed totally.

 

I am pleased to see that NIO is up 5% in pre-market. I was expecting it to be down since I purchased 5 mins before market close yesterday, so that is a nice surprise.

 

LYFT got a sell rating and a $42 price target. All I can say is lol, I think it’s more like a $5 stock until it starts being profitable.

 

Holy smokes, if true I would imagine lawsuits will follow. Investment banks can't screw people that hard and get away with it, I would hope...

 

I'll be buying at $5 if we ever actually see it. Uber as well. I could see one of these companies ruling autonomous driving maybe 10+ years in the future in areas that people don't purchase their own vehicles.

 

It was down 12% yesterday and 4% in pre-market trading today. I could see lawsuits already brewing considering this is probably due to a lot of people who were allowed to buy at the IPO price of $72 dumping their shares as soon as it opened on the market. I don't even understand how that's legal, it's a quick transfer of money from the retail trader to the already rich who were "allowed" in on the IPO.

 

shoulda bought right there with you, but all my equity is tied up into this 3x oil stock. And that's been doing alright (after a long time of not). More upside potential as far as I can tell, but only a little

 

okay so everyone knows if you hold a stock for more than a year, your tax burden is greatly reduced.

However I am wondering if this rule also applies to leveraged ETFs like the 3x oil ETF I am holding. Or does the tax burden get "packaged in" and it doesn't matter when you buy and subsequently sell the ETF?

 

I think it would follow the same rule as stocks: