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Topic Title: Investment
Topic Summary: Passive income ideas, opinions?
Created On: 09/12/2020 03:58 PM
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 09/12/2020 03:58 PM
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Sector9surf

Posts: 1954
Joined Forum: 01/14/2010

I haven't been on here in awhile and had some free time so figured I'd post. I hear mortgage rates are at an all-time low. If you had enough savings for a down payment would you finance another home or use it for something else? Any passive income/ remote business ideas?

Edited: 09/12/2020 at 04:00 PM by Sector9surf
 09/12/2020 06:49 PM
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RobdaSlob

Posts: 230
Joined Forum: 07/24/2003

Not sure this is where I would go for investment advice but since you asked...how soon do you need the money and what shape are your other investments? I generally find real estate too concentrated and too hard to liquidate quickly if needed. The individuals that make money at it that I know are passionate about it and it is their full time job. I tend to stick to ETFs and mutual funds. I have some stocks I picked up in March when things got too cheap. But since August I have been moving to cash in anticipation of a fall correction. That being said I started watching real estate about six months ago but more because I want to buy something to retire to in a few more years.

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Even a blind hog finds an occasional acorn
 09/12/2020 09:42 PM
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fishkller

Posts: 9353
Joined Forum: 11/13/2016


There's always money in the banana stand...



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Edited: 09/12/2020 at 11:09 PM by fishkller
 09/13/2020 10:15 AM
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Cole

Posts: 48076
Joined Forum: 07/22/2003

The small beach-side airbnb rentals were killing it up until the Covd crap. Always full, $150 to $200 a night and minimum work to keep them up and running. This virus thing can't last forever. I hope.
 09/13/2020 03:30 PM
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SurferMic

Posts: 1144
Joined Forum: 06/30/2012

^ careful air bnbs are against code in Brevard County (min 90 days rental is shortest you can have) and the Town of Indi does not allow them at all. Differs from Town to Town do your homework if you go this route, Mel-Beach may have some restrictions...Satty is just plain dumb , allowing it? Cocoa Bch is most likely a free for all...many don't realize that they are against code.

Edited: 09/13/2020 at 06:11 PM by SurferMic
 09/13/2020 06:22 PM
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johnnyboy

Posts: 17774
Joined Forum: 07/22/2003

fishkiller, that stand burned down!!! Let's put 20 seconds on the clock.

Never get financial advice on a surfers forum. That's why we have skateboard forums.

Glenn Beck and Jerry Seinfeld say "gold."

We have a startup that uses jet engines to create offshore winds on onshore days. Memberships are for sale but the big money comes later for The big investor now.

Wave pools. They always work, on time and on budget.

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"One of the reasons why propaganda tries to get you to hate government is because it's the one existing institution in which people can participate to some extent and constrain tyrannical unaccountable power." Noam Chomsky.

 09/14/2020 02:59 PM
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fishkller

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No way! Sounds like the work of a Flamer!

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 09/14/2020 03:07 PM
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pompano

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Joined Forum: 01/06/2005

there are a few REIT's i've been looking into, but I'm not into the slum lord thing with dealing with insurance and potential renters and homestead, etc. However there is a local surfer dude who sells the most primo spots around here and is doing well, so maybe it just depends on what you like.
 09/15/2020 04:48 AM
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Bamboo

Posts: 6363
Joined Forum: 07/24/2003

If you just want a place to put your money where you don't really have to worry about it or even look at if for years it is hard to beat a Vanguard or Franklin type fund. I've been using Vanguard services for years and have been happy with the results.

I've had mixed results with real estate and no longer mess with it. It can be a big hassle and isn't a lot of fun unless you are into it. Locally it can good for an income stream, but not so much as an investment in itself. Best luck I had was with California real estate in that regard.

As usual, YMMV.

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It was a bright cold day in April, and the clocks were striking thirteen.

 09/18/2020 06:56 AM
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Cole

Posts: 48076
Joined Forum: 07/22/2003

Originally posted by: SurferMic

^ careful air bnbs are against code in Brevard County (min 90 days rental is shortest you can have) and the Town of Indi does not allow them at all. Differs from Town to Town do your homework if you go this route, Mel-Beach may have some restrictions...Satty is just plain dumb , allowing it? Cocoa Bch is most likely a free for all...many don't realize that they are against code.



Yep, have one right down my residential street. New people wandering around every few days. They make a killing on it.

About the gold: who buys it when you need to sell?


Edited: 09/18/2020 at 06:57 AM by Cole
 09/18/2020 07:24 AM
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johnnyboy

Posts: 17774
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When gold is down, the people that sold it will tell you that it's about $100 below the posted price. When you buy it, it's about $100 above the market rate. They catch you coming and going and it's a terrible investment unless you buy it every month for years to ride out the fluctuations. And then, you must have the balls to sell a lot when it hits 2k. If you want to spend a few hours on what not to do, google teachers union pension Texas.

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"One of the reasons why propaganda tries to get you to hate government is because it's the one existing institution in which people can participate to some extent and constrain tyrannical unaccountable power." Noam Chomsky.

 10/09/2020 04:57 PM
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Sector9surf

Posts: 1954
Joined Forum: 01/14/2010

I'm told interest rates are super low... so looking at a home purchase vs REIT or stock type investment. Only reason being is if you can put 3% down on a home that's $3k+ closing costs so about $10k on $100k purchase +/- (just using multiples of 10 for simplicity) Rent brought in is roughly 10% of home value so that brings in roughly $10k/ yr... a few expenses so just say return in equity is 1/2 and = $5k... you returned $5k in equity on a $10k investment. That's 50% ROI/ year...
Now lets look at REIT's or stocks. I've heard 10-20% increase is average on a 5+ year hold. Doing the math $10k * 1.2 = $2000 ROI/year. You only get $2k back vs. $5k for the SAME initial investment...
Now I know compounding is a factor. So the question is does compounding interest beat out rental revenue+ the increase in home value
Back to the drawing board, can a stock or REIT really be better than a highly leveraged mortgage??

Edited: 10/09/2020 at 05:04 PM by Sector9surf
 10/09/2020 05:53 PM
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StirfryMcflurry

Posts: 3366
Joined Forum: 08/17/2016

Snoop says: Mare Wanna stocks are about to be poppin

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pick up my guitar and play, just like yesterday
 10/09/2020 08:54 PM
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fishkller

Posts: 9353
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^^ Take it from Cap'n Inlander - He's winnin' bigtime!

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 10/18/2020 05:37 AM
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StirfryMcflurry

Posts: 3366
Joined Forum: 08/17/2016

Originally posted by: fishkreeper once again, I follow you from nsr.... !
I know dude - I'm flattered, & you can now back TF off, thanks.

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pick up my guitar and play, just like yesterday
 10/18/2020 08:03 PM
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fishkller

Posts: 9353
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10 days later? You're slippin, and I was in here first koooooooooooooook

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 10/19/2020 06:41 AM
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StirfryMcflurry

Posts: 3366
Joined Forum: 08/17/2016

Originally posted by: fishkreepyMcManFollower and I'm a man followin tributeTroll , fresh outta NSR ha ha
Indeed...so maybe give it a rest, as Plan B would say

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pick up my guitar and play, just like yesterday
 10/20/2020 12:27 PM
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WG

Posts: 35936
Joined Forum: 03/10/2005

If I had spare money to invest, Id be buying or building more single family rental real estate right now.
Rent rates are skyrocketing, way ahead of home costs.

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"The truth is incontrovertible. Malice may attack it, ignorance may deride it, but in the end,
there it is."
Sir Winston Churchill
 10/21/2020 05:42 AM
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SurferMic

Posts: 1144
Joined Forum: 06/30/2012

^^^ 5K in taxes and 5-6K in Hurricane/Flood insurance a year...so your rental property is in the RED about 12K before you collect one dollar in rent. Do your DD, rentals are not as easy as you think and again YOU START THE YEAR ABOUT 12K IN THE RED, how much rent are you getting? Is it enough to pay taxes, ins, maint. property man fees, maybe a vacancy or two, sounds easy "just buy a SFH for a rental" it can work out but you better have $$$$ ready to throw at the problems that arise.
 10/21/2020 07:56 AM
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6ScoopsMcGruntington

Posts: 127
Joined Forum: 01/25/2017

5k in taxes?
Maybe on the water or beachside or a 3000 sqft mini mansion.
My property taxes weren't more than $1500 last year. Insurance was about $1800.
Yes maintenance can be an issue, but if you are slightly handy, you can save a lot on that too.
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