skargo
Banned
Thread starter- Joined
- Sep 14, 2008
- Messages
- 4,640
I used to play the market, and worry about what my money was going to do. In recent years I have pretty much given up on the market, and have been investing in real estate. I feel real estate overs a much higher ROI and is much safer.
Why?
Let's look at 2 scenarios,
Scenario 1, you take $5000 and invest in the market. I don't care who you are, you are taking a huge chance that half of your money, or most of it, could be gone in no time at all. Can you make money, sure, but on average not much, especially after fees, commissions, taxes, inflation takes their toll.
Say maybe in 10 years you have made $10K after all is said and done. I've played the game here and there and made a few bucks, nothing to really get excited about for the most part.
Scenario 2,
take the same $5K(I have done it with ZERO out of pocket but that's another thread) and use it for closing costs on a $50K(total with renovation) rowhome in Baltimore city(or any city with not so good neighborhoods).
If you keep this house for 10 years, and collect $1400 a month rent(very doable with section 8 or other programs) after your mortgage/insurance/vacancies/tax/maintenance it will cash flow at $500 a month or more.
That is $60K over that same 10 year period.
And say the real estate market does NOT recover, which is highly unlikely, but for s&g say it's the case. Say that same house is still valued at $50K and you want to sell it, you still make a huge profit because remember, you only invested that original $5K ten year prior!
Once I saw it I woke up
I'm just a dumb guy with a 9th grade education, but I can see these are GOOD times, not bad, desperate times like some people like to say, as they sit on the couch feeling sorry for themselves.
Being a landlord is NOT for everyone, but for some, it is easy, and if you are one of those people, you will enjoy it immensely.
I've been a landlord for a long time, but just recently have started doing it full time.
I just bought a house for less than $10K last week. After I put less than $15K in it it will be really nice, and I will pull at least $800 a month out of it!
If you are near a major city, you can do this too. I am lucky I live within 30 miles of Baltimore, and one of the areas I concentrate in I lived in back in the 80's.
It's the gold rush of our times, go ahead and get you some!
Why?
Let's look at 2 scenarios,
Scenario 1, you take $5000 and invest in the market. I don't care who you are, you are taking a huge chance that half of your money, or most of it, could be gone in no time at all. Can you make money, sure, but on average not much, especially after fees, commissions, taxes, inflation takes their toll.
Say maybe in 10 years you have made $10K after all is said and done. I've played the game here and there and made a few bucks, nothing to really get excited about for the most part.
Scenario 2,
take the same $5K(I have done it with ZERO out of pocket but that's another thread) and use it for closing costs on a $50K(total with renovation) rowhome in Baltimore city(or any city with not so good neighborhoods).
If you keep this house for 10 years, and collect $1400 a month rent(very doable with section 8 or other programs) after your mortgage/insurance/vacancies/tax/maintenance it will cash flow at $500 a month or more.
That is $60K over that same 10 year period.
And say the real estate market does NOT recover, which is highly unlikely, but for s&g say it's the case. Say that same house is still valued at $50K and you want to sell it, you still make a huge profit because remember, you only invested that original $5K ten year prior!
Once I saw it I woke up
I'm just a dumb guy with a 9th grade education, but I can see these are GOOD times, not bad, desperate times like some people like to say, as they sit on the couch feeling sorry for themselves.Being a landlord is NOT for everyone, but for some, it is easy, and if you are one of those people, you will enjoy it immensely.
I've been a landlord for a long time, but just recently have started doing it full time.
I just bought a house for less than $10K last week. After I put less than $15K in it it will be really nice, and I will pull at least $800 a month out of it!
If you are near a major city, you can do this too. I am lucky I live within 30 miles of Baltimore, and one of the areas I concentrate in I lived in back in the 80's.
It's the gold rush of our times, go ahead and get you some!