Invest in real estate or rental properties would be my suggestion. Safer and asset-based with a lower downside risk.
quote:Who's taking care of all that? Short sided answer in my view.
I agree with above. I'd go all in on rentals in a good city with a large college. $200k should get you 20% down on 5-6 places. Leverage the bank for the rest. Cash flow should be $2k/month total if you buy right. Plus the 5-6 places should be worth a million plus in 30 years.
quote:$200K for 20% down equals $1m in properties. I would sure hope they are worth a million in 30 years.
I agree with above. I'd go all in on rentals in a good city with a large college. $200k should get you 20% down on 5-6 places. Leverage the bank for the rest. Cash flow should be $2k/month total if you buy right. Plus the 5-6 places should be worth a million plus in 30 years.
quote:Solid and well done.
I have a great handyman that fixes the repairs when needed as far as taking care of them. Majority of my tenants have been in place for 4-5 years now. Most directly deposit rent into my bank account or mail it to my office. Cash flow is roughly $375 or more per house and sitting on 16 of them currently. So while they may be some extra work, it is worth the money and returns that come from them. rents can decrease by over 30% in Houston and I would still break even or cash flow a bit. If rents go down 30% and all homes prices go down 30-40% in Houston area.. we are all screwed and out of work anyways! These are long term investments as well. I still work and so does the wife. Most of the loans are all locked in on 30 year fixed rates under 5%.
quote:You must have not been around in the 80's. Or in 2008 in the Sunbelt markets. Real Estate investing is not for the faint of heart. The market can change overnight, and real estate is illiquid so you can't cash out on a dime. You can lose 20-50% of your asset value in a simple congressional pen-stroke, and you probably wouldn't be aware of it because you don't have a legal/political team watching out for you. It has happened before, and will happen again.
Safer and asset-based with a lower downside risk.