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Posted on 2/2/19 at 1:20 pm to Negatiger1986
quote:
This guy gets it. I do not understand the love for rental properties on this board.
Real estate investing in general, and holding rental properties specifically, isn't for everyone. But for those who have the personality and the ability to run rental properties as a business, it *can* be a fantastic journey in wealth building. When I was buying in the 80s, I used heavy leverage. I wouldn't suggest that for other people. It's just what I did and overall it worked out very well. I couldn't have built that just buying and holding stocks/mutual funds. Unlike with real estate, you can't buy and hold stocks using leverage and come out ahead. What I have now is paid for and I consider that portion of my investment portfolio like a bond proxy, because it's held primarily for income generation. If I was holding primarily for appreciation or I was speculating, say with flips, then I'd compare that to the appreciation I'd expect to get from equities. But I invest in stocks, ETFs and mutual funds too. I also trade options for income generation. I don't have the stomach for futures, so I don't trade those. It all comes down to what's profitable, and that you have an understanding of and an interest in.
But no, real estate rentals are not for everyone. Neither is owning a small business. Even if you have management in place, as I do with my rentals, you still have to deal with people (tenants, employees or property managers/business managers).
Personally, I wouldn't be 100% real estate or 100% equities. To me, that seems like a dangerous way to go as you enter the latter stages of your investing life. I think the wiser way is through diversification and having multiple income streams and appreciation avenues - that mitigates overall market risk, IMO.
The OP seems to have his head on straight and square. My guess is he'll be just fine.
Posted on 2/3/19 at 11:01 am to Negatiger1986
quote:
This guy gets it.
not really. he is most probably using his own RE investor failures and projecting it as a generalization for all.
quote:
I do not understand the love for rental properties on this board.
because you are very ignorant.
here read this and educate yourself.
RE and stocks
Posted on 2/3/19 at 11:18 am to Jag_Warrior
quote:
But for those who have the personality and the ability to run rental properties as a business, it *can* be a fantastic journey in wealth building.
NO WAY! didn't you know principal paydown, cash flow, instant equity, appreciation, and tax advantages and leverage are terrible! oh and better returns than stocks are bad too right?
you seriously cannot make the shite up i read here time and time again.
if somebody sucks at achieving what i have bolded up top and think they can get all that in a better form or fashion then hey go for it. I think many just do not know WTF they are talking about and are ignorant and uneducated or have massivley failed and project that as a mass generalization
as you stated earlier and like i stated above in my post with the link i like both markets! it is not a back and white choice. do both. but i get much better returns with RE! It does not mean everybody will! But how some can keep posting the same shite over and over ad infinitum that stocks are 100% better in all phases all the time is ludicrous when i have debunked that above with my link which leads to more links and an old post.
gotta love it here at times eh?
Posted on 2/3/19 at 11:35 am to GoIrish02
quote:
Don't waste your time on rental properties, their return is lower,
not mine, sorry you failed. read my post with link above
quote:
the headaches are greater
meh not with good PM. you always go into RE expecting two givens. maintenance and vacancies. however i have not had a vacancy issue at all!
quote:
limited tax benefit
light years better than stocks!
quote:
on't call you after 8 PM on a weeknight to unclog an AC drain line while you're reading to your kids.
sorry you could not afford quality PM. i do not have those worries. sounds like you bought wrong.
quote:
They pay you dividends every quarter,
i get dividends monthly in the form of rent and monthly from some stocks i hold. not sure what you are trying to project here.
quote:
require no maintenance
another great tax writeoff. there are pros and cons to all investments.
you really sound bitter because you failed. please stop projecting these failures as a generalization. read my link up a few posts. Again, i am sorry you failed at RE investing.
This post was edited on 2/3/19 at 11:39 am
Posted on 2/5/19 at 9:42 am to Negatiger1986
quote:
I do not understand the love for rental properties on this board.
dude WTF you at? Are you just a troll here?
that makes about as much sense as if someone here were to say " i do not understand the love for the stock market here when i do better in RE"!
i like both. no reason to trash either. i do better in RE. doesn't mean stocks are bad at all. i gave you reasons in my link why RE can be better for some NOT all. hopefully you UNDERSTAND now. Please do not come back here ignorant again saying nobody helped you understand. I do not think you want to understand which speaks volumes. The info has been presented above for you.
This post was edited on 2/5/19 at 9:44 am
Posted on 2/5/19 at 4:28 pm to Fat Bastard
Not trolling and I agree with Jag's level-headed post saying that rental properties can be a great investment. I own REITs in my own portfolio so I am not anti-real-estate at all.
My response was driven by the fact that several posters mentioned rental properties as a viable option for the OP who is just starting to dabble in taxable/non-retirement investments. To me it would make more sense to start building a nest egg in ETFs or other diversified investments before striking out into ownership of individual rental properties.
I personally am not a real estate expert, but in the neighborhood I know (my own) I estimate that I could yield ~13% on my equity and that's BEFORE any maintenance costs or management fees. Meahwhile, the SP500 averages ~10% returns over the long term. So, to me, the additional risk that comes without diversification is not worth the marginal 3%. That is certainly not to say that there aren't outsized returns to be made in real estate with diligent research of certain markets and moving quickly on discounted or even reasonable valuations. This is just my simple analysis.
Overall, it seems you are using your own real estate successes and projecting them as a generalization for all. See what I did there?
My response was driven by the fact that several posters mentioned rental properties as a viable option for the OP who is just starting to dabble in taxable/non-retirement investments. To me it would make more sense to start building a nest egg in ETFs or other diversified investments before striking out into ownership of individual rental properties.
I personally am not a real estate expert, but in the neighborhood I know (my own) I estimate that I could yield ~13% on my equity and that's BEFORE any maintenance costs or management fees. Meahwhile, the SP500 averages ~10% returns over the long term. So, to me, the additional risk that comes without diversification is not worth the marginal 3%. That is certainly not to say that there aren't outsized returns to be made in real estate with diligent research of certain markets and moving quickly on discounted or even reasonable valuations. This is just my simple analysis.
Overall, it seems you are using your own real estate successes and projecting them as a generalization for all. See what I did there?
Posted on 2/5/19 at 4:56 pm to kciDAtaE
you ever get on reddit and check out r/fire?
On their sidebar they have a flow chart that delves into exactly this question and others that may arise along the way to being financially independent and retiring early. Both things I would assume you're into since you're saving/ investing so much already.
Seriously, that subreddit has changed my life, and I go to it daily to read other's stories and get ideas, plans, and input of others with a similar mindset.
On their sidebar they have a flow chart that delves into exactly this question and others that may arise along the way to being financially independent and retiring early. Both things I would assume you're into since you're saving/ investing so much already.
Seriously, that subreddit has changed my life, and I go to it daily to read other's stories and get ideas, plans, and input of others with a similar mindset.
Posted on 2/6/19 at 1:06 pm to kciDAtaE
quote:
Any advice would be appreciated. Looking for options. TIA
REAL ESTATE
Posted on 2/6/19 at 1:09 pm to Negatiger1986
quote:
Negatiger1986
oh well like they say
ignorance is bliss eh? congrats!
Posted on 2/6/19 at 1:10 pm to Mr.Perfect
I hate that you are getting downvoted. Buying income producing property is the only reason I am semi-retired.
Posted on 2/6/19 at 1:18 pm to Fat Bastard
quote:
Fat Bastard
Your ideas that RE is for everyone is wrong and I don’t know why you are being such a jerk about it here. If everyone was into real estate like they are 401k’s then real estate would suck on returns, you realize that right? It would be too competitive. Real estate rentals is also not easy to get into in certain markets, such as booming areas where prices are high.
I agree with most of what you said, and returns can be great. But simply telling someone to get into real estate blindly without knowing their personality or experience is honestly not good advice.
Posted on 2/6/19 at 1:43 pm to Fat Bastard
quote:
ignorance is bliss eh? congrats!
Haha well I guess you got me. I took a few minutes to put together a reasoned response and you go right back to being obnoxious. I award you 10 internets. Good day.
Posted on 2/6/19 at 9:11 pm to Negatiger1986
quote:
Negatiger1986
Posted on 2/7/19 at 2:04 pm to Fat Bastard
I'm pro-real estate
anti Fat Bastard
anti Fat Bastard
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