I own an Internet business that's doing very well. I'd like to diversify into one non-internet related area that brings in cashflow. I'm looking to build up 5-10k/month of non-internet income -- enough to live off of if the Internet business ever goes south. I have a decent amount of cash on hand, so capital shouldn't be a problem.
My main requirement is that my new investment can't take up much (preferably none) of my time on an ongoing basis. My time is best spent working on growing my online business, and I get a much better return on my time doing that than I would trying to muddle into some new area. I have more money than time now and I'm trying to learn better ways of getting my money to work for me without requiring my involvement.
I'm looking into several possibilities and I'm hoping that all of you can help me figure out the pros and cons of each, or possibly suggest new possibilities. I've listed my initial ideas below, along with my initial thoughts on each. I don't have experience with any of these areas, so I may be way off-base. Please don't hesitate to correct me if needed.
--Residential rental real estate - Seems like a good income earner with potential for appreciation. The problem is that it seems that it would take up a lot of my time on a regular basis dealing with problems. Even if I hired a property management company I'd still need to keep tabs and manage the managers some. I believe I might be able to make the management more simple and streamlined if I bought a single apartment building instead of multiple single family homes scattered all over the place. Any thoughts on this? How much time do those of you with rental properties run by property management companies end up spending on managing them and dealing with problems? Can residential real estate income ever be truly passive?
--Commercial rental property - Seems like it would require less management and give me less headaches than residential. Is this the case?
--Passive paper investments - Tax free municipal bonds look pretty good to me. From my research it looks like it should be fairly easy to get the equivalent of a 7% yield (when taking tax savings into account). Although they offer a smaller return than my other options they're safer, and require less of my time to manage. The downside is that at only a 7% return I'll have to tie up a lot more cash to hit my target cashflow than I would with other options. It seems to me that this much cash could possibly be put to better use elsewhere. Anyone else here investing in Municipal bonds? What kind of rates are you able to get and how much planing and maintenance does it take to keep your portfolio optimized?
Any other thoughts on stable income producing paper assets that I should check out?
--Other possibilities? Bring them on!
My main requirement is that my new investment can't take up much (preferably none) of my time on an ongoing basis. My time is best spent working on growing my online business, and I get a much better return on my time doing that than I would trying to muddle into some new area. I have more money than time now and I'm trying to learn better ways of getting my money to work for me without requiring my involvement.
I'm looking into several possibilities and I'm hoping that all of you can help me figure out the pros and cons of each, or possibly suggest new possibilities. I've listed my initial ideas below, along with my initial thoughts on each. I don't have experience with any of these areas, so I may be way off-base. Please don't hesitate to correct me if needed.
--Residential rental real estate - Seems like a good income earner with potential for appreciation. The problem is that it seems that it would take up a lot of my time on a regular basis dealing with problems. Even if I hired a property management company I'd still need to keep tabs and manage the managers some. I believe I might be able to make the management more simple and streamlined if I bought a single apartment building instead of multiple single family homes scattered all over the place. Any thoughts on this? How much time do those of you with rental properties run by property management companies end up spending on managing them and dealing with problems? Can residential real estate income ever be truly passive?
--Commercial rental property - Seems like it would require less management and give me less headaches than residential. Is this the case?
--Passive paper investments - Tax free municipal bonds look pretty good to me. From my research it looks like it should be fairly easy to get the equivalent of a 7% yield (when taking tax savings into account). Although they offer a smaller return than my other options they're safer, and require less of my time to manage. The downside is that at only a 7% return I'll have to tie up a lot more cash to hit my target cashflow than I would with other options. It seems to me that this much cash could possibly be put to better use elsewhere. Anyone else here investing in Municipal bonds? What kind of rates are you able to get and how much planing and maintenance does it take to keep your portfolio optimized?
Any other thoughts on stable income producing paper assets that I should check out?
--Other possibilities? Bring them on!
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