50 Assets You Can Rent Out To Generate Passive Income

[Travispassiveinc]

Thank you! Potentially, however the model I invest in does not include speculating. I try not to be as concerned with appreciation as much as cash flow. The book, Bubble proof Real Estate Investing by Donald Trump is a fantastic read that basically states that even if the value goes down drastically, rents rarely do, they increase year by year. Taking calculated action is key. Over-analysis equals paralysis.

Well done! $7K passive is an equivalent to a $1.7M nest egg at 5%. Do you think we are flirting with a market top in housing?

 

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[QDF]

I just met a guy that is renting out cars to uber drivers. I wonder how that works!

I've met people before who had Uber drivers that they hired. They supply the car, and take a cut of the money.

Actually not a bad way to monetize your spare vehicles.

Most cities for Uber require a fairly new car and a commercial drivers license I believe. Offer to hire a driver, provide the car, and pay for their commercial license - just take, say, 25% of the income from driving in exchange.

Average Uber driver makes $20/hour. So if they worked 40 hours a week, that'd be 800 a month per car for you (25% cut before expenses).

Of course, this isn't taking into account cost of the car/car payment, gas, insurance, or vehicle depreciation.

And the driver would still make $15 an hour (still a higher wage than taxi drivers, etc.), wouldn't have to pay for the car or the commercial license or anything.

Fastlane plan? Buy multiple cars, hire multiple drivers, then sell out to Uber - would give them a chance to insource some of their drivers and increase margins. Plus, in the meantime, you provide a lot more drivers for them and increase their business.

You could easily profit at the very least 300-400 per driver per month after everything. Create a fleet of 100 cars in a large city, and you're making fastlane bucks. Only commandment it violates is control (which is a big one).

 

[LibertyForMe]

I know a photographer friend who isn't in business any more since demand for professional photographers has gone down sharply and also there are a lot of new people in the market working for cheap.

I was thinking about how he had a studio with all sorts of different props. There were arches, and tables, and an old rusty antique truck out back with wildflowers around it, and all sorts of different photography scenery.

I bet you could operate a building with different scenes and sets, and rent it out per hour to other photographers needing a place to shoot.

That would be pretty passive, and would be a good use for props that were just sitting around.

 

[100k]

Well done! $7K passive is an equivalent to a $1.7M nest egg at 5%. Do you think we are flirting with a market top in housing?

Thank you! Potentially, however the model I invest in does not include speculating. I try not to be as concerned with appreciation as much as cash flow. The book, Bubble proof Real Estate Investing by Donald Trump is a fantastic read that basically states that even if the value goes down drastically, rents rarely do, they increase year by year. Taking calculated action is key. Over-analysis equals paralysis.

It is the equivalent of a $1.7 million nest egg paying you interest at 5%.

1700000 / 100 x 5 = $85,000 paid out yearly

85000 / 12 = $7k/month

I know a photographer friend who isn't in business any more since demand for professional photographers has gone down sharply and also there are a lot of new people in the market working for cheap.

I was thinking about how he had a studio with all sorts of different props. There were arches, and tables, and an old rusty antique truck out back with wildflowers around it, and all sorts of different photography scenery.

I bet you could operate a building with different scenes and sets, and rent it out per hour to other photographers needing a place to shoot.

That would be pretty passive, and would be a good use for props that were just sitting around.

It sure would be! Be creative, but make sure you're filling a need.

I've met people before who had Uber drivers that they hired. They supply the car, and take a cut of the money.

Actually not a bad way to monetize your spare vehicles.

Most cities for Uber require a fairly new car and a commercial drivers license. Offer to hire a driver, provide the car, and pay for their commercial license - just take, say, 25% of the income from driving in exchange.

Average Uber driver makes $20/hour. So if they worked 40 hours a week, that'd be 800 a month per car (before expenses).

And the driver would still make $15 an hour, wouldn't have to pay for the car or the commercial license or anything.

Nice man. There are all sorts of ways to create passive income for yourself, create jobs for others and provide value to customers/clients.

Good thinking.

 

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[NVious]

Everyone ITT should watch:

And also read the book

 

[NuclearPuma]

Rental businesses I have come accross:

Margarita machines
High end camera lenses
Go-pro/action cameras
Drones
Classic cars
Tuxedos
Tools (even lawn mowers from home depot)
Kayaks/canoes
Biks/ATVs on the beaches
Boats and Jet skies
Scaffolding
Lighting equipment



A friend of mine is starting a rental business now actually.






Sent from my SAMSUNG-SM-G900A using Tapatalk

 

[mrarcher]

You can make a nice return renting Load bank testers to airports if you have one near by. They don’t take much maintenance and are a relatively passive income. More of a side thing though as you wont make a liveable income off of it, but for all of the work it takes its worth looking at.

 

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[GuestUser140]

High end camera lenses

Check http://www.borrowlenses.com/ and their prices, compare to sold used eBay listings of the good stuff. Could be profitable.

I see $2000 tilt-shifts rent for $100/week. You can even get rid of used stock on eBay, easily, if you pick the right lenses.

 

[Guest24480]

I was always interested in a rental-type business.

My question is why isn't there a popular peer-to-peer online rental marketplace using ebay's model but for renting out size-friendly items?

Is it due to shipping complications or a lack of trust in terms of returing the items to its owner?

 

[mrarcher]

I was always interested in a rental-type business.

My question is why isn't there a popular peer-to-peer online rental marketplace using ebay's model but for renting out size-friendly items?

Is it due to shipping complications or a lack of trust in terms of returning the items to its owner?

Would you post something like an xbox that cost you £400 across the country in the hope that 1. They will return it in good condition and 2. they will keep paying rent if they don't. When you look at silly things like how many overdue library books there are it would put people off renting out their possessions.

 

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[RHL]

I see $2000 tilt-shifts rent for $100/week. You can even get rid of used stock on eBay, easily, if you pick the right lenses.

Problem with rental of something like that is always theft/damage recovery. It doesn't have an address or a VIN and can't be easily tracked, could be very, very hard to get your money back if you have a total loss-Fighting shipping companies for insurance money and playing he-said-she-said with the recipient and the shipper is a losing proposition.

A certain member of this forum has rental cracked, in my opinion. He rents a huge volume of items which are worth very little money, not appealing on the resale market, and very, very hard to destroy, to people he drops-off to and picks up from in-person. That's about as good as rental of portable property gets.

I loathe mail rental because the damn post office will eat you for breakfast, lunch, and dinner. Rent a Gopro for $50/week? Great, and your shipping charges for the tiniest pelican case to get it there and back will be $25. So a rental package like this:

$2,000 tilt shift lense
$100 Pelican case
$10 combination lock that you can send to the customer to keep it safe
$15-20 postage to buyer with $2,000 insurance coverage and delivery confirmation
$15-20 return postage with $2,000 insurance coverage and delivery confirmation
Maybe $10 cost to acquire a customer to publicize in a crowded market

Nets you a return of like maybe $50 profit/week. So assuming no damage, screw ups, losses, thefts, etc, it takes you 43 weeks of the lens being rented just to break even, which will probably take about 3 years. Sure, you can maybe dump the asset at the end provided everything goes well, and get like $1000 of your $2000 back, so in 3 years you made effectively 1K off your considerable investment of time and $2000 invested.

No bueno.

 

[GuestUser140]

I loathe mail rental because the damn post office will eat you for breakfast, lunch, and dinner. Rent a Gopro for $50/week? Great, and your shipping charges for the tiniest pelican case to get it there and back will be $25. So a rental package like this:

$2,000 tilt shift lense
$100 Pelican case
$10 combination lock that you can send to the customer to keep it safe
$15-20 postage to buyer with $2,000 insurance coverage and delivery confirmation
$15-20 return postage with $2,000 insurance coverage and delivery confirmation
Maybe $10 cost to acquire a customer to publicize in a crowded market

Nets you a return of like maybe $50 profit/week. So assuming no damage, screw ups, losses, thefts, etc, it takes you 43 weeks of the lens being rented just to break even, which will probably take about 3 years. Sure, you can maybe dump the asset at the end provided everything goes well, and get like $1000 of your $2000 back, so in 3 years you made effectively 1K off your considerable investment of time and $2000 invested.

No bueno.

If you buy right (the right lens), you can sell them for nearly break even, not half. But don't count on it, and you should be safe.

The risks you mentioned:
things going los in the post => insured package
Also, postage rates would be around $10 with a contract over here.

Pelican case: there's plenty cheaper (http://www.bhphotovideo.com/c/buy/Lens-Pouches-Cases/ci/4529/N/4077634519) and extra packing materials are cheap.

Things breaking down? As far as I can tell with local stores here, when you rent a camera they require like a blocked amount of $500 on your credit card. This increases if you rent out more expensive stuff.
There has to be insurance for these types of businesses, so I wouldn't worry too much about it. Part of the game.

It's good to brainstorm negatively for weak points, but it's great to cut costs and make a lot more ideas feasible.

All said in good humor obviously!

 

[RHL]

If you buy right (the right lens), you can sell them for nearly break even, not half. But don't count on it, and you should be safe.

Creativity and tenacity is the secret sauce of anything. I'm blanking now, but I'm like 95% sure it's a Tom Stoppard play where there's an exchange like:

Character A: "That's it, it's perfect. It can't possibly be said any better."
Character B: "Well, not by you."

Just because I found it too daunting doesn't mean anyone else should be dissuaded.

 

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[vinylawesome]

Taking advantage of the Section 179 tax deduction could help this type of business scale more quickly.



"Jerry Kortesmaki,

The owner of London Road Rental Center in Duluth, Minn., relies on the deduction to stock up on equipment for his machinery and party supplies rental business.

This year, he is using it to help pay for some $200,000 in new goods, including chairs, a mini-excavator, four trailers, an insulation blower and a sewer camera.

He will write off the expense on his taxes using the Section 179tax deduction.

“I’ve been able to grow my company very quickly because I’ve been able to reinvest whatever I made in buying more equipment to rent,” said Mr. Kortesmaki, who has 11 full-time workers at his 13-year-old company.

The deduction works like this:

If a company has a $90,000 profit and decides to spend $50,000 of it on new computers, the company would normally write off the cost of the equipment gradually, deducting a portion of it each year over the span of the computers’ useful life.

But Section 179 allows the business to deduct the entire $50,000 cost at once in the year the equipment is purchased, reducing the company’s taxable profit to $40,000.

(The deduction cannot exceed a business’s total net income.)

Signed on Friday, the 233-page tax deal includes in its myriad tax breaks one that permanently sets the Section 179 cap at $500,000, subject to inflation adjustments."


Relevant to this thread:
https://www.thefastlaneforum.com/co...ermanent-tax-break-on-buying-equipment.64774/

 

[Knugs]

...Vending Machines...

When I was a kid, I really enjoyed buying from vending machines but nowadays they look so freaking cheap and old. It seems that not many people are using them anymore. Perhaps this is why the number of vending machines have decreased significantly. Anyway, over the last few days I was reading about the vending machine business and I noticed that many people go for buying old second-hand machines because they offer a better ROI.

I live in a city where most people use cards to buy goods. You cant even take the bus without a contact-less payment card anymore. Yet, whenever I see a vending machine, I can only pay by cash which is a major problem for me. I don't carry cash and I know a lot of people who don't. When I need a drink/food I'm instead forced to go inside a store and stand in the Que.

There is so much space to improve. Add payment types: cash, card and contact-less for fast payment. Make the machines look more appealing/modern. I know there is good monitoring software available. Offer high quality goods. Today's coffee machines are very high quality. All there is to do is to put one of these 2k quality bad-boys in a vending machine cache and make it work. Adding high quality coffee beans and local fresh milk each morning. Not to forget proper coffee cups that are at least the quality of Starbucks! I know this would reduce the margin but coffee yields 90% already. I assume the cost per machine lies somewhere between 5-10k.

Next, I put this machine on a busy commuting route. (I'm thinking train stations, transport hubs, subway but also check where the busiest coffee shops are at etc). Using some statistics from local coffee shops, they price a cup of coffee around ~0.14 (Lets assume mine costs 0.20). This allows me to offer a free cup of coffee to a lot of commuters. Whilst the machine is making the coffee, I can sell the quality of the coffee to the potential future customer too. Hopefully, the quality will speak itself. Even if I had given 1000 people a free cup of coffee, it would only cost me 200 in marketing cost. The only unanswered question is how many would come back to keep buying one each morning they go to work. How many will buy spontaneously? If I had to guess; A conversion rate of 1% (which is extremely poor IMHO when you have a quality product and face-face interaction) would equal 10 daily customers. I should maybe stop wild guesses at this point.

Let me know what you guys think. I might be a bit delusional.

 

[throttleforward]

I hear there's a lot of opportunity in renting moving crates and dollies.

 

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[GuestUser140]

Let me know what you guys think. I might be a bit delusional.

No, you're good. The thing you need to do now is make phone calls to get accurate numbers and find a location to put this idea out in the world. That's the difference between the guy buying from the vending machine, the guy calculating vending machine potential, and the guy collecting $ from a vending machine. 100% up to you.

 

[EvanOkanagan]

On the topic of storage facilities.

I own 2 houses that have detached garages. There's plenty of parking on/near the property at these houses so I rent the garages out to people looking for long-term storage (classic cars, furniture, etc) between $250-300/mo each.

Nice little additional cashflow on top of the rents.

 

[NuclearPuma]

On the topic of storage facilities.

I own 2 houses that have detached garages. There's plenty of parking on/near the property at these houses so I rent the garages out to people looking for long-term storage (classic cars, furniture, etc) between $250-300/mo each.

Nice little additional cashflow on top of the rents.

Now, this may depends on local laws, don't some zoning laws restrict what type of commercial activity is permitted?

I know for example, if you have customers coming onto your property you may want some sort of insurance. Anytime someone comes onto your property if you are acting as a business is a liability, even if rare or unlikely. A guy renting your garage trips and falls on the property and sues, that is a liability.

Not that it is a bad renting your garages, just that with any business or exchange of services there are many bases to cover, and failure happens when people don't account for them.

Sent from my SAMSUNG-SM-G900A using Tapatalk

 

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[GuestUser140]

A lot of those things also work for selling things on eBay & Amazon

You mean the items listed sell well?

 

[MJ DeMarco]

Taking advantage of the Section 179 tax deduction could help this type of business scale more quickly.



"Jerry Kortesmaki,

The owner of London Road Rental Center in Duluth, Minn., relies on the deduction to stock up on equipment for his machinery and party supplies rental business.

This year, he is using it to help pay for some $200,000 in new goods, including chairs, a mini-excavator, four trailers, an insulation blower and a sewer camera.

He will write off the expense on his taxes using the Section 179tax deduction.

“I’ve been able to grow my company very quickly because I’ve been able to reinvest whatever I made in buying more equipment to rent,” said Mr. Kortesmaki, who has 11 full-time workers at his 13-year-old company.

The deduction works like this:

If a company has a $90,000 profit and decides to spend $50,000 of it on new computers, the company would normally write off the cost of the equipment gradually, deducting a portion of it each year over the span of the computers’ useful life.

But Section 179 allows the business to deduct the entire $50,000 cost at once in the year the equipment is purchased, reducing the company’s taxable profit to $40,000.

(The deduction cannot exceed a business’s total net income.)

Signed on Friday, the 233-page tax deal includes in its myriad tax breaks one that permanently sets the Section 179 cap at $500,000, subject to inflation adjustments."


Relevant to this thread:
https://www.thefastlaneforum.com/co...ermanent-tax-break-on-buying-equipment.64774/

This alone is worth the NOTABLE tag. Tagged as such.

 

[MJ DeMarco]

Bump, since we're on the topic of "services I overpaid."

(Here: Services I Overpaid For

 

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