I'm about to close on my 2nd rental which will increase my yearly income by another $32,000. With a property manager in place, I literally sit at home and make money with low maintenance building and background checked tenants.
Making money has never been easier. Cointards will never understand. Keep pumping your money into LINK and helping feed Sergei's food addiction you dumb fucks. Meanwhile me and the rest of those with a functional brain will be buying assets that people actually use.
let's do some math. did you use a mortgage? if so how much downpayment did you put down and how much did you borrow and the interest rate?
You skipped the step where I have enough money to buy a rental property.
>interest
>property taxes
>MIP
>hazard insurance
>flood insurance
>maintenance
getting into real estate in a non-flyover state is torture
25% downpayment
5% interest rate
Renting at $2500/mo
Bank is lending me $175,000
Before taxes I'm gaining $1000/mo after paying the mortgage.
How does this add up to 32k a year.
I can't do math, it adds up to $30,000/yr.
it adds up to less than $12,000/yr after taxes you idiot
How? Are you unironically larping?
Enjoy yoir -60% wealth drop when the current bubbles pop (real estate, stocks, bonds). It will be interesting to see what bitcoin does.
I think lower when you factor taxes. His dumb ass said
>Before taxes I'm gaining $1000/mo after paying the mortgage.
$2500 * 12 = $12,000?
News to me.
>$12,000
>Minus house upkeep (i.e. that new roof you'll need in 15 years)
You should be keeping 1-2% of the house's overall value for upkeep/general repairs.
I'd bet OPs 12k is more like 8k.
You're like one of those fuckers on those TV shows who gets asked about net profit and keeps mentioning ththe revenue
You have to be fucking kidding us, right? Look at the breakdown again. God damn this place is so fucking retarded.
You don't have to be good at math to get rich sonny boy.
Nice larp faggot now do the math on the multiple confirmed interest rate hikes coming.
Your hatred fuels me. Keep loading up on those LINKS
>he unironically valued land over Bitcoin
Economists and pundits pontificate about what gives cryptocurrency value. Even Bill Gates chimed in saying he would short Bitcoin if he could. But he can.
Money has value because of wide-scale public confidence that others will also accept it in exchange.
But underlying or backing money has always been the productivity of society. In the agricultural age, land was precious because a significant portion of our economic activity was involved with the production of food.
Even Julius Caesar and Andrew Jackson restored economic order by backing the debt with land. But the Industrial Age and now especially the Knowledge Age is rendering food production a shrinking share of the economic activity, and thus money is no longer backed by land. Thus borders, empires, and nation-states are becoming irrelevant!
Even a peasant worker in China realizes this stating, “We live in an economic age, a family cannot rely on a bit of land.” youtu.be
It is not hatred. You cannot math.
I have a Bitcoin position, just not a LINK position. I know a good asset to hold when I see one. Someday you'll understand sonny. Just pick yourself up by the bootstraps and put your head to the grindstone and you might make it too.
grats on your extra $32k a year (which in reality will be a third of that after maintenance and taxes)
i made $10k in a day by buying fomo3d at the right time, and today's move into fomofive will likely net me another 3 grand
while you're taking a multi-year risk and play nice with unsavory banks so they dare throw you a bone in loan form, i run one diff check on smart contracts, spend 10 minutes looking at the hype, and take my position knowing the outcome is cryptographically secure and mathematically guaranteed given my entry point
but hey, i'll point and laugh at the stinky linkies with you... i'll just do so while being richer than you
You better sell that house and buy some more LINK user. Your numbers are fucked.
Without knowing his purchase price we can't check Op on his numbers for certain, but you guys need to realize that 2500 a month brings in 30k annually.
Even accounting for his mortgage he is still bringing in a revenue of 30k half of which is erasing a liability.
Without complicating by accounting for taxes, maintenance, and other costs of property ownership lets think a little. If you have $0 and $10000 worth of debt and you make $20000 in a year using half to pay off debt, you have $10,000 left over. What your ending amount is does not negate the fact that your money coming in (Income) was still $20,000.
Also yes buy into fomofive.me. This will soar and can actually end unlike fomo3d which is going to spin on for months or years paying you pennies a day and then pennies a week as the keys become so diluted.
>making money on rentals
lmao dude you break even for the first decade. You have a mortgage to pay and yours is higher than the other people renting out in the area who bought 10-30 years ago.
to be frank, if the purchase price is around 235k and you are getting 2500 a month rental it's a good deal. but i can't imagine a location where the property value is so low that can yield 2500 a month in rental.
Is this b8 or am I just in a shitty area
You just live in a shitty area. If you can afford a rental of $2500. You should be able to afford a mortgage of 250k-300k at current rates (OPs purchase price). I doubt that OP will yield that high of a rental rate. I doubt the profit will even come from the rental - but from the appreciation of house value.
Being a landlord is an actual job, why not just put that money in an REIT that pays monthly? Then you can just comfy shitpost on biz forever
>hold 100k CET
>$25-30k annual passive income assuming you tether dividends
>borrowing $175000
>plopping down $25K
>netting $8K/yr
it'll take you 3 years just to get your down payment back. le rental property passive income meme is for poorfags
this. there are horror stories out there. you might get lucky with good tenants but its a crapshoot. people suck.
This is how you calculate your gain (before taxes).
1000 * 12 = 12,000
>assuming all other expenses are already taken out of this, like maintenance
Then you calculate how much equity you are getting in the house in a year.
>pro tip: it is less than 1500/month
So let us say after interest this year you are getting $400/month equity or $4800/yr
12,000 + 4800 = 16,800 (less taxes)
>not 30k a year...lol
>Making money has never been easier.
guess you've never built software LOL
So between the bank and the property management company, the only thing you added to the equation was a $60,000 downpayment?
So after taxes it would take you like seven years to make back the downpayment? In which time that $60,000 would have historically doubled in the stock market?
Property management is often around 10% of rent, so $2500 a month means at least $250/month. It may be up to around 15%.
Jesus Christ I hope this thread is just a massive LARP. That mockup house in OP is hideous btw.
This is why biz sucks, I've never noticed anybody mention REITs before. I'm sure they have, but I haven't seen it, mostly larping and crypto shit. REITs offer monthly dividends and a variety of sectors to diversify: rental property, retail property, warehouses, self storage, data centers, even cannabis farms.
Also DBCs like MAIN are worth looking into.
I think it'd be great to own some rentals that were expected to rent for at least 1% or better per month of the purchase price. Supposedly 1% is the magic ratio for worthwhile profitability. But in many areas that target isn't possible. Average price is 300k and rents are around 1500-2000... not 3000 per month.
So, luckily, there's the option of REITs, DBCs, and quality dividend paying stocks for passive income. Any of which can be purchased in small increments over time, 100 bucks a month, and start paying you headache free dividends in short order. Of course the payouts are peanuts, but after a decade or two it'll really start to be worthwhile. Plus you can always reinvest the payout to buy more shares and definitely should until you can live off the payouts and still have shares to sell if needed.
I heard reits aren't great because they have very high management fees. Can you confirm or deny? What more should I learn a out them. Are they intended as very long term dividend stocks, or for shorter term (just a few years) holding during the pump up? I used to own some STAG a few years ago but panic sold it when it kept going lower
How much is the property manager?
those of us who know anything about REITs know that Total US Stock already includes REITs, and that as an individual security they're extremely tax inefficient
as a result they hardly ever offer a return that's worth actually tilting a portfolio for
> he doesnt know about fixed rate mortgages
How much was your investment?
Lmfao love the photo bro
dunno about you, but to yield a 2500 USD rent per month, you'd need a property worth at least 700K. and i live in a area that some of the highest property values in the world with a less then 1% vacancy rate.
actually. if you assume that the market has returned double in value, you have to assume that the real estate market has appreciated as well. if his rent covers the costs of owning + puts equity into his pocket he can potentially return more then the market. it just depends on the comparison. he's leveraging his mortgage which makes sense.
"But private REITs are sold, not bought. They can pay up to 12% in marketing fees and commissions to the brokers that sell them. Public REITs pay no commissions."
Private REITs can have minimum purchase prices and really high fees, but I don't think publicly traded ones have fees. The only REITs I have are in an ETF and it is a pricey one, but .5% not the 12% a private REIT could have. Something to look out for though.
"The dividend payments made by the REIT are taxed to the unitholder as ordinary income, unless they are considered qualified dividends, which are taxed as capital gains. Otherwise, the dividend will be taxed at the unitholder's top marginal tax rate."
Luckily we recently got a tax break, so if they are taxed as ordinary income, it'll be less than before.
investopedia.com
Shit's definitely worth considering
>he's leveraging his mortgage
on an asset that has returned historically 1% real compared to 8% real
admittedly the capital gains won't be taxed, but only because thousands in property tax were paid annually
once maintenance and sales costs are factored in he will not come out ahead in the vast majority of US housing markets
and where will link be in 3 years? $0
>makes 10k off a legit "exit scam"
>turns around and throws profits into a "legit" exit scam
Fucking lol
I have rentals and coins
Step up op
are you like legitimately retarded or just honestly can't do math?
Also how stupid are you to invest in a home in the current inflated housing bubble?
you
What state you in OP? I want to rent houses but am looking at somewhere like Louisville