Author Topic: New To Investing Thread  (Read 327251 times)

0 Members and 2 Guests are viewing this topic.

Offline sys

  • Contributor
  • Pak'r Élitaire
  • *****
  • Posts: 40472
  • your reputation will never recover, nor should it.
    • View Profile
Re: New To Investing Thread
« Reply #875 on: June 01, 2014, 11:52:52 AM »
I don't believe in timing the markets, but as a new grad starting his investment life, getting in at the record highs is not very profitable correct?

there's always something cheap.
"experienced commanders will simply be smeared and will actually go to the meat."

Offline meow meow

  • Pak'r Élitaire
  • ****
  • Posts: 11087
    • View Profile
Re: New To Investing Thread
« Reply #876 on: June 10, 2014, 09:44:33 AM »
should i be getting some gold into my portfolio?

Offline Daddy Claxton

  • Combo-Fan
  • **
  • Posts: 297
    • View Profile
Re: New To Investing Thread
« Reply #877 on: June 10, 2014, 10:59:45 AM »
 Back on page 13 or something, I was asking about using a "guy".  Thanks to Rams and ERiI for informing me on what it should cost. Thanks to others for their insight, too.

Anyway, I ended up paying him a flat fee and he got my current portfolio in proper order, which was worth the cost to me. I sold a bunch of my employers stock, and my "guy" wasn't as specific as I had hoped about what to do with the proceeds. So I bought a subscription to Fidelity Monitor and Insight* and just follow their model portfolios. They send me an email every Friday telling me what to buy/sell. Probably not ideal for everyone, but it works well for what I want/need and costs less than a "guy".

*fidelityinsight.com

Offline Kat Kid

  • Global Moderator
  • Pak'r Élitaire
  • *****
  • Posts: 20444
    • View Profile
Re: New To Investing Thread
« Reply #878 on: June 10, 2014, 11:36:20 AM »
Assuming you have the principal (~$15-$20K) to find a decent rental property why shouldn't someone:

1.  buy 3BR home for $100K
2.  15yr Mortgage ~$750/mo (absurdly high)
3.  Rent ~$1000/mo (low)

assuming $1500/yr in upkeep (absurdly high) you make min. $1500/yr for 15 yrs then either sell property and be done with it, upgrade to a nicer property or roll the profits in to a second cheap property.

Anyone done this?  Anyone doing this?  How big a pain is this assuming you live in the same town?

(rick daris bait)

Offline Emo EMAW

  • PCKK7DC Survivor
  • Pak'r Élitaire
  • *******
  • Posts: 17891
  • Unrepentant traditional emobro
    • View Profile
Re: New To Investing Thread
« Reply #879 on: June 10, 2014, 11:43:00 AM »
Assuming you have the principal (~$15-$20K) to find a decent rental property why shouldn't someone:

1.  buy 3BR home for $100K
2.  15yr Mortgage ~$750/mo (absurdly high)
3.  Rent ~$1000/mo (low)

assuming $1500/yr in upkeep (absurdly high) you make min. $1500/yr for 15 yrs then either sell property and be done with it, upgrade to a nicer property or roll the profits in to a second cheap property.

Anyone done this?  Anyone doing this?  How big a pain is this assuming you live in the same town?

(rick daris bait)

Doing this.  Outcome unknown.

Sent from my SPH-L710 using Tapatalk


Offline Mrs. Gooch

  • Pak'r Élitaire
  • ****
  • Posts: 9975
    • View Profile
Re: New To Investing Thread
« Reply #880 on: June 10, 2014, 11:43:46 AM »
Assuming you have the principal (~$15-$20K) to find a decent rental property why shouldn't someone:

1.  buy 3BR home for $100K
2.  15yr Mortgage ~$750/mo (absurdly high)
3.  Rent ~$1000/mo (low)

assuming $1500/yr in upkeep (absurdly high) you make min. $1500/yr for 15 yrs then either sell property and be done with it, upgrade to a nicer property or roll the profits in to a second cheap property.

Anyone done this?  Anyone doing this?  How big a pain is this assuming you live in the same town?

(rick daris bait)

Depends on the renters.

Online 8manpick

  • Pak'r Élitaire
  • ****
  • Posts: 19129
  • A top quartile binger, poster, and friend
    • View Profile
Re: New To Investing Thread
« Reply #881 on: June 10, 2014, 11:48:51 AM »
Seems like a lot of work for 1500 a year
:adios:

Offline Kat Kid

  • Global Moderator
  • Pak'r Élitaire
  • *****
  • Posts: 20444
    • View Profile
Re: New To Investing Thread
« Reply #882 on: June 10, 2014, 11:51:54 AM »
Seems like a lot of work for 1500 a year

I think realistically you would make ~$3-4,000.  In addition you would make turn $20,000 in to $102,500 in 15 years.  That is a pretty good return.

Offline raquetcat

  • PCKK7DC Survivor
  • Katpak'r
  • *******
  • Posts: 1956
  • ^ I let us down
    • View Profile
Re: New To Investing Thread
« Reply #883 on: June 10, 2014, 11:52:47 AM »
Assuming you have the principal (~$15-$20K) to find a decent rental property why shouldn't someone:

1.  buy 3BR home for $100K
2.  15yr Mortgage ~$750/mo (absurdly high)
3.  Rent ~$1000/mo (low)

assuming $1500/yr in upkeep (absurdly high) you make min. $1500/yr for 15 yrs then either sell property and be done with it, upgrade to a nicer property or roll the profits in to a second cheap property.

Anyone done this?  Anyone doing this?  How big a pain is this assuming you live in the same town?

(rick daris bait)

Depends on the renters.
Rental properties are usually a good investment, it's just a matter of how much hassle you're willing to deal with. Did you add insurance into your model somewhere?
I'm purple down

Online michigancat

  • Contributor
  • Pak'r Élitaire
  • *****
  • Posts: 53675
  • change your stupid avatar.
    • View Profile
Re: New To Investing Thread
« Reply #884 on: June 10, 2014, 11:58:04 AM »
Assuming you have the principal (~$15-$20K) to find a decent rental property why shouldn't someone:

1.  buy 3BR home for $100K
2.  15yr Mortgage ~$750/mo (absurdly high)
3.  Rent ~$1000/mo (low)

assuming $1500/yr in upkeep (absurdly high) you make min. $1500/yr for 15 yrs then either sell property and be done with it, upgrade to a nicer property or roll the profits in to a second cheap property.

Anyone done this?  Anyone doing this?  How big a pain is this assuming you live in the same town?

(rick daris bait)

1500/year in upkeep does not seem absurdly low. You also have to account for crappy tenants and vacancy and time spent hounding for rent, fixing crap, etc. Basically it could be fine, but it could also be a huge pain in the ass in a place like MHK with so many short term residents.

Why not just put $15k + $750/month in the stock market?

Offline steve dave

  • Global Moderator
  • Pak'r Élitaire
  • *****
  • Posts: 85178
  • Romantic Fist Attachment
    • View Profile
Re: New To Investing Thread
« Reply #885 on: June 10, 2014, 12:03:35 PM »
24/7 on call kat kid handyman service is a hilarious thing for me to think about. DO IT.

Offline Kat Kid

  • Global Moderator
  • Pak'r Élitaire
  • *****
  • Posts: 20444
    • View Profile
Re: New To Investing Thread
« Reply #886 on: June 10, 2014, 12:24:35 PM »

Assuming you have the principal (~$15-$20K) to find a decent rental property why shouldn't someone:

1.  buy 3BR home for $100K
2.  15yr Mortgage ~$750/mo (absurdly high)
3.  Rent ~$1000/mo (low)

assuming $1500/yr in upkeep (absurdly high) you make min. $1500/yr for 15 yrs then either sell property and be done with it, upgrade to a nicer property or roll the profits in to a second cheap property.

Anyone done this?  Anyone doing this?  How big a pain is this assuming you live in the same town?

(rick daris bait)

1500/year in upkeep does not seem absurdly low. You also have to account for crappy tenants and vacancy and time spent hounding for rent, fixing crap, etc. Basically it could be fine, but it could also be a huge pain in the ass in a place like MHK with so many short term residents.

Why not just put $15k + $750/month in the stock market?

The $750/mo doesn't come out of "my" end.  It is covered by rent.

Offline Kat Kid

  • Global Moderator
  • Pak'r Élitaire
  • *****
  • Posts: 20444
    • View Profile
Re: New To Investing Thread
« Reply #887 on: June 10, 2014, 12:26:09 PM »

Assuming you have the principal (~$15-$20K) to find a decent rental property why shouldn't someone:

1.  buy 3BR home for $100K
2.  15yr Mortgage ~$750/mo (absurdly high)
3.  Rent ~$1000/mo (low)

assuming $1500/yr in upkeep (absurdly high) you make min. $1500/yr for 15 yrs then either sell property and be done with it, upgrade to a nicer property or roll the profits in to a second cheap property.

Anyone done this?  Anyone doing this?  How big a pain is this assuming you live in the same town?

(rick daris bait)

1500/year in upkeep does not seem absurdly low. You also have to account for crappy tenants and vacancy and time spent hounding for rent, fixing crap, etc. Basically it could be fine, but it could also be a huge pain in the ass in a place like MHK with so many short term residents.

Why not just put $15k + $750/month in the stock market?

Vacancy rates in MHK?  LoL ok.  The $1500 is for fixing stuff.  And obviously the sweat equity is the big difference between this and investing in the stock market.

Online michigancat

  • Contributor
  • Pak'r Élitaire
  • *****
  • Posts: 53675
  • change your stupid avatar.
    • View Profile
Re: New To Investing Thread
« Reply #888 on: June 10, 2014, 12:27:42 PM »

Assuming you have the principal (~$15-$20K) to find a decent rental property why shouldn't someone:

1.  buy 3BR home for $100K
2.  15yr Mortgage ~$750/mo (absurdly high)
3.  Rent ~$1000/mo (low)

assuming $1500/yr in upkeep (absurdly high) you make min. $1500/yr for 15 yrs then either sell property and be done with it, upgrade to a nicer property or roll the profits in to a second cheap property.

Anyone done this?  Anyone doing this?  How big a pain is this assuming you live in the same town?

(rick daris bait)

1500/year in upkeep does not seem absurdly low. You also have to account for crappy tenants and vacancy and time spent hounding for rent, fixing crap, etc. Basically it could be fine, but it could also be a huge pain in the ass in a place like MHK with so many short term residents.

Why not just put $15k + $750/month in the stock market?

The $750/mo doesn't come out of "my" end.  It is covered by rent.

yeah, dumb post by me.

Online michigancat

  • Contributor
  • Pak'r Élitaire
  • *****
  • Posts: 53675
  • change your stupid avatar.
    • View Profile
Re: New To Investing Thread
« Reply #889 on: June 10, 2014, 12:29:02 PM »

Assuming you have the principal (~$15-$20K) to find a decent rental property why shouldn't someone:

1.  buy 3BR home for $100K
2.  15yr Mortgage ~$750/mo (absurdly high)
3.  Rent ~$1000/mo (low)

assuming $1500/yr in upkeep (absurdly high) you make min. $1500/yr for 15 yrs then either sell property and be done with it, upgrade to a nicer property or roll the profits in to a second cheap property.

Anyone done this?  Anyone doing this?  How big a pain is this assuming you live in the same town?

(rick daris bait)

1500/year in upkeep does not seem absurdly low. You also have to account for crappy tenants and vacancy and time spent hounding for rent, fixing crap, etc. Basically it could be fine, but it could also be a huge pain in the ass in a place like MHK with so many short term residents.

Why not just put $15k + $750/month in the stock market?

Vacancy rates in MHK?  LoL ok.  The $1500 is for fixing stuff.  And obviously the sweat equity is the big difference between this and investing in the stock market.

OK, go for it. You obviously can't lose.

Offline steve dave

  • Global Moderator
  • Pak'r Élitaire
  • *****
  • Posts: 85178
  • Romantic Fist Attachment
    • View Profile
Re: New To Investing Thread
« Reply #890 on: June 10, 2014, 12:35:29 PM »
I worked for a property management company for a couple years during college doing on call stuff and painting on turnovers and junk like that. it's awful. you will be putting a shitload into the place at every turnover and plan on replacing a lot of stuff in the house because your tenants won't take care of anything. you are also going to run into stuff with collections, small claims, complaints from tenants re. deposits and upkeep, etc. maybe won't be an issue for you if you had just one property but on a macro scale you deal with that a lot (I'd say 5% of rentals each year). obviously screening tenants and not being a slum lord helps here.

Online wetwillie

  • goEMAW Poster of the WEEK
  • Pak'r Élitaire
  • *****
  • Posts: 30240
    • View Profile
Re: New To Investing Thread
« Reply #891 on: June 10, 2014, 12:43:33 PM »
100k seems really low as a purchase price in mhk  for a decent income producing property.  I think real estate is a good investment in mhk though.
When the bullets are flying, that's when I'm at my best

Offline Kat Kid

  • Global Moderator
  • Pak'r Élitaire
  • *****
  • Posts: 20444
    • View Profile
Re: New To Investing Thread
« Reply #892 on: June 10, 2014, 12:46:17 PM »
An actual Canadian friend is getting into this and I brought up all of these points.  He is a garage sale/refurbisher and handy man.  I was very negative about the idea and brought up all of these points (including Krusty's point about $750/mo in stock market) and he seemed confident and had answers.  I was mostly trolling for Daris to weigh in.  I obviously would never do this because I suck at nearly every skill required to do it profitably.

Online michigancat

  • Contributor
  • Pak'r Élitaire
  • *****
  • Posts: 53675
  • change your stupid avatar.
    • View Profile
Re: New To Investing Thread
« Reply #893 on: June 10, 2014, 12:49:17 PM »
100k seems really low as a purchase price in mhk  for a decent income producing property.  I think real estate is a good investment in mhk though.

Yes, also I'm not sure what type of tenant is drawn to a $1000/month 3BR in Manhattan (I have no idea what the market is like, but that would have been reasonable for a student slum 10 years ago). I guess these numbers could be hypothetical though so who knows.

Offline Kat Kid

  • Global Moderator
  • Pak'r Élitaire
  • *****
  • Posts: 20444
    • View Profile
Re: New To Investing Thread
« Reply #894 on: June 10, 2014, 12:53:33 PM »

100k seems really low as a purchase price in mhk  for a decent income producing property.  I think real estate is a good investment in mhk though.

Probably more like $120K purchase  $100K mortgage.  That would maybe make the numbers a bit more realistic.  I did a quick mortgage calc at 15 yr and 5% with no PMI and property taxes baked in then rounded up to the nearest $50.  But that was on an $80k mortgage.

Offline Emo EMAW

  • PCKK7DC Survivor
  • Pak'r Élitaire
  • *******
  • Posts: 17891
  • Unrepentant traditional emobro
    • View Profile
Re: New To Investing Thread
« Reply #895 on: June 10, 2014, 01:07:30 PM »
KK also keep in mind you can put a lot of money into your existing home and expense it to the rental property.

Offline 06wildcat

  • Katpak'r
  • ***
  • Posts: 1663
    • View Profile
Re: New To Investing Thread
« Reply #896 on: June 10, 2014, 01:17:49 PM »
Single family homes are generally terrible for rentals unless there's the potential for significant instant equity (short sale, foreclosure, pocket listing etc) to keep your initial investment amount small. It helps if you can buy the property in cash and finance it later.


Offline Dr Rick Daris

  • Global Moderator
  • Pak'r Élitaire
  • *****
  • Posts: 23382
    • View Profile
Re: New To Investing Thread
« Reply #897 on: June 10, 2014, 01:28:48 PM »
I was mostly trolling for Daris to weigh in. 


if you aren't very handy and don't like dealing with/talking to people all the time about money they owe and crap they think you need to fix, then i don't recommend it.

Offline Boom Roasted

  • Katpak'r
  • ***
  • Posts: 1573
    • View Profile
Re: New To Investing Thread
« Reply #898 on: June 10, 2014, 01:37:54 PM »
Taxes
Insurance
1500 per year is average but what about when the furnace or AC go out?  Roof? Each of those is basically double your yearly average.

Offline Kat Kid

  • Global Moderator
  • Pak'r Élitaire
  • *****
  • Posts: 20444
    • View Profile
Re: New To Investing Thread
« Reply #899 on: June 10, 2014, 01:56:51 PM »
Boom roasted.