You have $200,000 to invest in a passive income stream in 2021. What would YOU do?


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Outlaw

Outlaw

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I second the dividend fund. Businesses fail, a lot.
With 200k in dividend funds you could probably get around 4% annually along with 4-6% annual appreciation of the fund.

Agreed they fail a lot, but something like a coin-op car wash 95% of your investment is in a property that you can resell if it goes belly up. Again, I might be ignorant but that's how I see it at least :dunno:
 
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I understand the investment side of things, guys, I really do. And I appreciate the hell out of the advice and will be using it for as much of the money as I can. I want to build a business. Something that will pay the bills while allowing me to continue to operate my current truck/equip sales business as well as snow removal.

If it comes to light that I can purchase a car wash for 250K and I only have to put 20% down then I'll for sure be putting the rest of that money into some sort of ETF or other investment acct. But my main focus is to increase my annual income and if possible, acquire some space to expand my business.
 

Sprayin

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I understand the investment side of things, guys, I really do. And I appreciate the hell out of the advice and will be using it for as much of the money as I can. I want to build a business. Something that will pay the bills while allowing me to continue to operate my current truck/equip sales business as well as snow removal.

If it comes to light that I can purchase a car wash for 250K and I only have to put 20% down then I'll for sure be putting the rest of that money into some sort of ETF or other investment acct. But my main focus is to increase my annual income and if possible, acquire some space to expand my business.
I hate to recommend this. But there are a lot of pages on like Reddit and FB that are focused on stuff like this. Might be a good place to bounce around ideas.
 
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I'm on Reddit, I'll have to check it out. I knew there were a few guys on here with rental properties and such, or that someone would throw a curveball my way with some business venture that isn't super common but lucrative.
 

Sprayin

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I'm on Reddit, I'll have to check it out. I knew there were a few guys on here with rental properties and such, or that someone would throw a curveball my way with some business venture that isn't super common but lucrative.
There's a few retire early or financial independence pages where they talk about all sorts of stuff. Whether it be dividend stocks, businesses, rental property, etc.

Just gotta figure out what your jam is.
 

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What I said in regards to dividend investment stuff is the same at what N20gt said. The point is as you build it so you get passive income and you also get the gains in the market. The goal for a lot of people is to build up a large enough set of investments and dividends that they can just live off of the dividends in retirement and never touch the "principal" If you just did that for 10 years you would basically double your money, in 20 years it could be worth 800k. And this is figured with 5 percent yield and 4 percent share appreciation.

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Rentals you can obviously move faster. But also your dividend portfolio isn't going to squat on your property and take 8 months to evict in the court system while they put a hole in every wall in the house :).


There are stories of people who went from 1 rental to 10-20-30 in 5 years. You have to build systems/help for yourself if you get that big as otherwise you will end up always being on call if something goes wrong.


Great podcast for learning a lot of rental stuff. They have books also, although I prefer a few others for how to find good properties, tenants and related laws to screening them, etc etc.

If you were looking to buy a 120k rental you could find the right fixer upper for say 70-80k (Example https://www.zillow.com/homedetails/209-Park-Ave-Dekalb-IL-60115/61699643_zpid/)

You can buy it (with cash) or a mortgage if they let you
Renovate it for 10-30k,
Rent it (for around 1600-1800 bucks
Refinance for the new value of the property (to get your money out) for 100-140k on a 700-800 dollar mortgage and like 200-300 in maintenance expenses per month.

And you are now cash flowing 600-700 bucks a month. While they also pay off the mortgage and you build equity on it over 30 years.

Then go and get another one as you now have your cash out of the deal and it is cash flowing. Getting a mortgage for a place that already has tenants makes it easier as you can show that it is making money.
 
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I totally understand the ETF/ Dividend Investment stuff from that aspect. I think that's something I will look into for sure. I found your calculator site. All the same inputs but 250k for 30 years. 3.25 million. I wouldn't even be 60 lol... Something to consider for sure.

My biggest problem is I'm a busy body of sorts. I like the idea of having some sort of a business to go check up on every day, empty the machines, etc... Not to say I can't do both of those things, but the one that involves the grind just seems more appealing to me. For what reason? No idea. I'm probably just a fucking idiot.
 

Intel

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I mean you could just split the difference and do both. Throw 100k into investments, use the other 100k to try your hand at a business. Once you get things going with your businesses automate some of that money into retirement/investment accounts. The key is to automate it to "pay yourself" otherwise you end up buying stupid shit.. like everyone else on this website :) \

I will say the car washes are getting more difficult as people more and more want the automatic shit which gets expensive (75k to 150k a bay for the machines) but if you are in a more rural area the coinup spray your own 4x4 seem to still do well.

Coin laundry is also interesting I have seen this guy post a bunch of them.

 
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I wouldn't necessarily be trying my hand at business. I've got four years under my belt self-employed. What I'm trying to get away from is the irregularity that the changing markets due to COVID, money printer go brrrrrrr, supply chain disruptions, etc have brought to my business. I've had six figure years, I've had sub $40,000 years. To start, I'd love to get an additional 50k/year of income. At that point my bills are paid and I'm living comfortably. I can do my auction gig, probably enjoy it more because I wouldn't relying on it solely to pay my bills and go from there with a second business, rental properties, investing, etc...

As you said, luckily, I don't make stupid purchases. I could buy my dream truck in cash right now and I'm driving a 2k prius and a 3k Silverado 3500 gasser for towing my purchases home from the auctions because in my mind, if I'm smart now maybe in 5-10 years I'll have that new truck paid for towing a Cigarette Top Gun, working 30 hours a week enjoying myself.

My next purchase, and something that will get paid for out of this money but already budgeted for is a 2-3 car wedge trailer. I'm having to go a lot further for inventory these days.
 
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Bumping this.

Looking to kill two birds with one stone. Did a walk-thru on a 6000 sq/ft commercial property today in McHenry. Building is divided into 3x 2,000 sq/ft units and has a 9k sq/ft outside yard and parking up front.

I’ll be utilizing one of the units for myself as well as most of the yard, and plan to lease the other units (they are currently occupied, so that’s a plus.)
 

Shawn1112

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Bumping this.

Looking to kill two birds with one stone. Did a walk-thru on a 6000 sq/ft commercial property today in McHenry. Building is divided into 3x 2,000 sq/ft units and has a 9k sq/ft outside yard and parking up front.

I’ll be utilizing one of the units for myself as well as most of the yard, and plan to lease the other units (they are currently occupied, so that’s a plus.)
Renting out 2 units if you end up buying the property?
 
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Renting out 2 units if you end up buying the property?

Correct. Rent two, Keep one. Right now they’re leased at $1,400/month which is borderline charity for the square footage and outside parking. The outdoor space is far more valuable to me for trucks and trailers. The units are 34x60 each, so that’ll be plenty of space for me to put a lift and keep a handful of my nicer flips indoors.
 
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Some exterior pics. The two existing tenants would be getting the boot. The current owner is a woman in her late 80’s and doesn’t check up on the place. Tenants have been able to have full run of the place and have the yard filled with burned up trucks and garbage.

One is month to month, other is out in June. In the short term showing a rental income should help with the mortgage.

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95/5 VTI/BND for the foreseeable future. Then cash out down the line when all these foreclosure proceedings start going through again and I can start buying loans again.

Edit: probably wouldn't even do the bonds.
 

Pro Stock John

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I'm 54 (sheesh) and so I think about this more and more. Personally I'm leaning more towards dividends than property, mainly because I would not have the time to check up on properties and deal with stuff. I do have a buddy who has a apt building by me and I should ask him how that's working. Is Jason W on here, his family has rental properties.
 
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Outlaw

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The Walgreens stock I have pays a good dividend and is creeping its way back up to its 52wk high. I’m not putting all my eggs in this basket. What I can say is I want absofuckinglutely nothing to do with holding dollars right now.

I had a couple bigger dollar sales over the past week and I’m jonesing to buy more inventory just to be rid of them. I’m keeping a 3mo cash cushion right now. Outside of that no thanks
 
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