Alias Detective 1,179 Posted November 10, 2023 5 hours ago, mmmmm...beer said: Current mortgage is $2300. Say we could rent it for $3500. $3500 - 2300 = $1200 - 8% management fee = $1,104 x 12 months = $13,248 a year (not counting any maintenance ie appliances/furnace going out) or paying taxes on that $13K as well. For that little... $300k × 4.3% savings account interest = $12,900/yr not even compounded. With zero risk. INFLATION Share this post Link to post Share on other sites
WhiteWonder 2,172 Posted November 10, 2023 38 minutes ago, Cdub100 said: You really think FFT is worth that much? probably halved in value after FBG closed their political cessp forum Share this post Link to post Share on other sites
WhiteWonder 2,172 Posted November 10, 2023 5 hours ago, mmmmm...beer said: Current mortgage is $2300. Say we could rent it for $3500. $3500 - 2300 = $1200 - 8% management fee = $1,104 x 12 months = $13,248 a year (not counting any maintenance ie appliances/furnace going out) or paying taxes on that $13K as well. For that little... $300k × 4.3% savings account interest = $12,900/yr not even compounded. With zero risk. I'd really only hire a management company if the property you're renting out was too far away from your main residence. It's an expense you shouldn't really need for a single rental. My aunt had 5 rentals. 4 condos near her and 1 vacation home in Cape May NJ. They used a management company for the vacation home for obvious reasons. She would just occasionally work with a realtor friend as far as the 4 other units. She sold 2 of them over these past 2 years. 1 to her daughter and soon to be husband (they actually just bought a rental property of their own in the same town and had a tenant lined up before they even closed on it). The issue is the mortgage. Which I've mentioned in a few other posts so not to beat a dead horse but I wouldn't bother trying to rent out your current home if you can only get 3500 with a 2300 mortgage. I would sell the home and do what you've already hinted at. Invest the funds where you feel comfortable, in something liquid or with a 5 year max term since you said you'll be back in a max of 5 years. THEN decide what you want to do. See how the housing market is when the time comes. You said you would get 300k on your home sale. I assumed that was your net amount. So you should have well more than that in 5 years. I think it only makes any sense if you can purchase the rental for cash and charge a bit more than wherever you choose to rent as your main residence (maybe the rental is in a more convenient location for a commuter, etc) Then you have your own monthly rent covered, with a little profit each month. It won't net you more per year than the potential interest income BUT the main thing is you own the property. If done right, Real Estate can be one of the best long term investments. 1 Share this post Link to post Share on other sites
mmmmm...beer 691 Posted November 10, 2023 Yeah my Old man is a rentals guy... 14 plexes several 6 plexes etc. That being said... feels like we're waaaay over valued right now. Don't want to go the way of the Jerry.... You're exactly right @Whitewonder w'll see what it looks like in 3 years. Maybe we crash and there's shiz to buy. 1 Share this post Link to post Share on other sites
BunnysBastatrds 1,918 Posted November 10, 2023 13 hours ago, IGotWorms said: Hookers and blow …in Vegas also. Share this post Link to post Share on other sites
BeenHereBefore 1,333 Posted November 10, 2023 Buy some race horses and you can get some decent ones for 20 grand or less, Hire a good trainer and etc. Share this post Link to post Share on other sites
peenie 1,690 Posted November 11, 2023 21 hours ago, peenie said: Congratulations on your move to Japan. Low crime, bidets, polite society, heaven! Why are you moving to Japan? Share this post Link to post Share on other sites
BeenHereBefore 1,333 Posted November 11, 2023 5 hours ago, peenie said: Why are you moving to Japan? Less black people ? Share this post Link to post Share on other sites
WhiteWonder 2,172 Posted November 11, 2023 6 hours ago, peenie said: Why are you moving to Japan? I think it’s a mandatory military related move? Not 100% sure but I saw PCS in the original post and I think that’s what it means 1 Share this post Link to post Share on other sites
IGotWorms 3,315 Posted November 11, 2023 6 hours ago, peenie said: Why are you moving to Japan? He got that yellow fever Share this post Link to post Share on other sites
GutterBoy 2,281 Posted November 11, 2023 37 minutes ago, peenie said: Okinawa? Tomi village Share this post Link to post Share on other sites
Stryker Ryker 176 Posted November 12, 2023 On 11/10/2023 at 12:15 AM, mmmmm...beer said: Been thinking on selling the house with this PCS move to Japan. We should get something like $300 from the home sale if it all goes smoothly. What if instead of buying another house when we get back . We just invest the whole thing immediately? I mean... we put it in our Vanguard brokerage account? Vanguard 500 ETF (VOO), which is Vanguards SP500 mirror has averaged 12.92% each year since inception 13 years ago. If we do that... $300 in 10 years @ 7% is $590K 10% is $778K 13% is $1,018K When we get back we just rent or I get a VA loan for another house down the road with 0% down. When will we ever have $300k free and clear? Never... Also thought about maybe when we come back (3 years minimum, 5 max) we can use that $300k to down pay several rentals? My pops has rentals... and a couple AirBnB's he's been renting to companies for $2500 a month. So I could learn from him. After thinking about it for awhile, I feel like putting that $300 down on another house would just be a wasted opportunity. If you do rentals, don’t do a single house. That’s a slow investment. You’ll want to do things like duplexes. Try to get small “apartments” that have anywhere from 3-5 units. Now, if you decide to do a single family house that’s fine. Just know you won’t be making a lot of it until years from now when that equity is built. Another thing is investing in things like laundry mats. Low cost, low Maintenance, and recession proof. Another one is vending machines. One can net you anywhere from $500-$1000/month. Last ones are more for if you’ll be around. Since you’re going to PCS you’ll prob not want to worry about all that. In which case, I’d do the multi unit apartments. I’ve been looking at things like this to do. Low maintenance things to earn passive income. Was looking at heavy equipment rentals, selling big loads of rocks (forgot what it’s called atm but seen a few places making bank off selling diff kinds of rocks & sand), wedding venues, and cemeteries are a few things I’ve been looking at starting. Share this post Link to post Share on other sites
RaiderHaters Revenge 3,584 Posted November 12, 2023 invest in cannabis in cali with a guy you know I promise Share this post Link to post Share on other sites
Gepetto 988 Posted November 12, 2023 scratch off tickets 1 Share this post Link to post Share on other sites
Stryker Ryker 176 Posted November 12, 2023 33 minutes ago, RaiderHaters Revenge said: invest in cannabis in cali with a guy you know I promise I’m actually looking to do this once it gets legalized in my state. SO many ppl here smoke it so I know you’d make a killing off of it 1 Share this post Link to post Share on other sites
mmmmm...beer 691 Posted November 16, 2023 On 11/11/2023 at 6:50 AM, peenie said: Why are you moving to Japan? Wife applied and got a job that will move us there to an Army base, she's a fed civ employee. I can retire next year when I turn 50. Win win... Share this post Link to post Share on other sites
mmmmm...beer 691 Posted November 16, 2023 On 11/11/2023 at 1:10 PM, peenie said: Okinawa? Nope... the mainland, like 40 mins SW of Tokoyo Share this post Link to post Share on other sites
mmmmm...beer 691 Posted November 16, 2023 On 11/12/2023 at 12:30 PM, Stryker Ryker said: If you do rentals, don’t do a single house. That’s a slow investment. You’ll want to do things like duplexes. Try to get small “apartments” that have anywhere from 3-5 units. Now, if you decide to do a single family house that’s fine. Just know you won’t be making a lot of it until years from now when that equity is built. Another thing is investing in things like laundry mats. Low cost, low Maintenance, and recession proof. Another one is vending machines. One can net you anywhere from $500-$1000/month. Last ones are more for if you’ll be around. Since you’re going to PCS you’ll prob not want to worry about all that. In which case, I’d do the multi unit apartments. I’ve been looking at things like this to do. Low maintenance things to earn passive income. Was looking at heavy equipment rentals, selling big loads of rocks (forgot what it’s called atm but seen a few places making bank off selling diff kinds of rocks & sand), wedding venues, and cemeteries are a few things I’ve been looking at starting. Yeah good post. Most of the business/rental stuff will be when we return in 3 years. I'll be retired so want an income just tooling around. Share this post Link to post Share on other sites
mmmmm...beer 691 Posted November 16, 2023 On 11/12/2023 at 12:56 PM, RaiderHaters Revenge said: invest in cannabis in cali with a guy you know I promise Boat sailed on weed a few years ago. Now it's cut throat... Share this post Link to post Share on other sites
