I recent got my hands on a bunch of money. Something along the lines of 45,000$.
I am comfortable in my job and don't have any debt (which feels awesome, btw).
The money is nice, but I really don't want to spend it on useless crap. Putting it all in a long term investment account is ok, but the interest rates are pretty low. Even with compounding it would take decades for me to make a substation amount of money.
So I was thinking of buying a property and renting it out.
Obviously 45k, is not enough to buy an apartment complex, I know that.
The idea is to make a big down payment on a duplex and have the monthly payments be covert by the rent of the tenants with a little profit left over.
Does anyone have experience with this kind of venture, or have friends/family that do it?
What would be another good way to turn this lump sum into cash-flow?
I really don't need that much money, but I would love to see a monthly check to cover my bills.
How old are you? And you want to make money with this money or do anything that sounds good with it? Also US?
>>17122641
32 years old, haven't lived with my parents since I was 15. I got experience, work very successfully in sales, and can get my way.
I want to make money with that money, yeah.
I manly want to have some form of monthly income. 45k is not a lot in terms of investment, I am not going to quit my job, I am not delusional; but enough to cover my own rent and a few bills.
Yeah, US. Texas to be exact.
I used to work in real estate and was managing roughly $20 million worth of rental property in Chicago before I changed careers. A big part of my management business came from people who bought an income property thinking that it would be a good way to make money and realizing its an incredible pain in the ass.
The thing you need to keep in mind is that the profit margins are thin in the rental market and you don't really make your money from rents. Rent covers your expenses: mortgage, taxes, upkeep, and general building maintenance. You might end up with a few dollars left over at the end of the month, but you'll want to put that away for when you need a new roof or some asshole tenant with fuck all in assets sets your kitchen on fire. The way you make money, especially on the small scale, is appreciation. You buy, let the property appreciate for a few years, then use that equity to put a down payment on another place. Lather, rinse, repeat.
The problem when you only own one or two units, though, is that you can get fucked easily. Can you cover your expenses out of pocket for six months if one of your tenants just flat stops paying rent and forces you to go to eviction? What do you do if you suspect a tenant is running a brothel out of your apartment? If theres a bad fire, can you survive not having a tenant for the time it takes insurance to pay out and contractors to rehab?
>>17122671
okay, I don't know the taxation laws, but as an investment definitely some real estate you can rent out, and you can use that money, but you need a plan to pay of the rest, so real depends on the rest.
second thing, use all the money towards some monthly expense, you will have more leftover from your job payment.
Third thing is hold on to it, this really depends on taxing laws, perhaps for kids or something else in the future that might come up.
Fourth, use it to study, improve your resume and earn more money from your job/get a higher function.
fifth invest in your own home, make it more valuable and better to live in.
Let me think of some more, there are so many option. Sorry that my advice is all over the place.
>>17122699
The taxes won't be something he needs to worry too much about. If push comes to shove he can always form an llc or put it in a trust when he gets older. He should probably form an llc to insulate himself from lawsuits, anyway.
