Landlord for residential homes is not passive income. It's a full time job managing sidewalkers and their problems.
I'm in real estate finance, particularly existing mortgages. I consider a low return a 10% yield secured by a property with 50-60% loan to value ratio... meaning $50k-60k loan on a $100k house. I regularly sell to IRA investors who use their self directed IRAs to buy at a 10-12% yield. There are investments out there that will work for you. Nice thing about secured assets are that you have an asset worth MORE than your investment as collateral. You have zero collateral with the stock market.
thanks for the reply. so these properties have 40-50% equity, that you use as collateral to lend and get cash on cash return of 10%+?
If there's defaults, its secured by equal collateral in housing value. So you have minimal downside, and income upside....not a bad business
Where is the risk? Early mortgage repayment?
Dislike ads? Remove them and support the forum:
Subscribe to Fastlane Insiders.