/biz/ - Business & Finance

[Anonymous No.56311798]

>Get loan from bank
>Buy multiple small but profitable properties
>Pay back loaned money with profit from properties
>Repeat
Any flaws in this plan?

[Anonymous No.56311823]

>>56311798
Not accounting for potential downtime and repairs not to mention interest rates fucking you in the ass. I do think rental income is a great strategy for growing wealth but there’s a lot that can go wrong. Id either start off slowly by househacking or already have a lump sum to invest (~500k or so)

[Anonymous No.56311852]

the main problem is that right now whatever price you charge for rent will not be able to compete with anyone who got a mortgage with a 3% interest rate. you will have to charge more to make your payments. and in a year you will be double fucked because current property values are not sustainable at 8% apr.

basically youre 5-10 years late. it might be a good idea in another 5-10 years

[Anonymous No.56311863]

>>56311798
>Any flaws in this plan?
none
do it

[Anonymous No.56311883]

>>56311798
Like with literally any other decision, it comes down to risk.
>The risk that interest rates will go up
>The risk that you won't be able to find tenants
>The risk that your property will need expensive repairs
>The risk that the land value will go down and cause a net capital loss even with a positive cashflow
There's no such thing as a cheat code in finance (except for maybe LINK). Pretty much everything returns more or less the same amount once you factor in risk, where higher risk investments require higher potential rewards in order to be worthwhile.

[Anonymous No.56311902]

>>56311883
>LINK
yea bc believing 'insider' sauce my gaping anus stories on here, has literally 0 risk at all bro

[Anonymous No.56311947]

>>56311902
Huge amounts of risk, but the risk:reward is much better than the price would suggest. Simple as.
But shares, real estate, commodities, buying a kebab shop... All of these have pretty well understood risk profiles and profit expectations, and their price reflects that. If anything I'd say real estate is priced slightly higher than things like shares, because it's an easy way to load up on huge amounts of debt. That's the main reason why I bought a house, frankly. It was an easy way to get $1m in dirt cheap debt (1.99% fixed 4 years). But OP, obviously the more real estate you buy with mortgages, the higher leverage you're playing with. If you buy a house with 20% down on a mortgage, that's already a 5x leverage. If you're using the income on that house to pay off mortgages for other houses, your leverage (see: risk) can shoot through the roof faster than you might expect.

[Anonymous No.56311963]

>>56311947
the risk in believing a grifter schizo on here, is literally to lose 100% of your investments lol

[Anonymous No.56311965]

>>56311798
>#dropkiwifarms
Eat shit troon

[Anonymous No.56311990]

>>56311798
>but profitable properties
Oh wow so that’s the secret I was missing.

Your plan is solid but is about as useful as saying take out a loan to start a successful business

[Anonymous No.56312224]

>>56311990
Honestly, it isn't a set plan (Though I am interested in obtaining property). I just wanted to see potential problems and risks involved that aren't generic "Something might happen".

[Anonymous No.56312356]

>>56312224
If you buy a small block of units, eg. 4x 2bd, it is cheaper than buying 4 different properties. You get better returns, especially if you live in one of the units and let the tenants pay the mortgage.

These properties don't have capital growth like houses do though, but the cash flow is awesome. You can have trouble attracting good tenants to these places as well, so you need a good management system to evict bad tenants promptly.
I found that when I lived in a unit and managed the block myself it went very smoothly.

[Anonymous No.56312369]

>>56311798
>buy multiple overpriced properties at 8% mortgage rate right before real estate market collapses from being overpriced with rates at recent all time highs
This is a great plan OP. Buying high and selling low is always /biz/ approved. Do it.

[Anonymous No.56312997]

>>56312369
okay dumbass do you really think i take financial advice from a bunch of internet morons what an idiotic plan i bet you're gonna lose all your money and have to suck dick for rent money go buy some real estate and see how that works out for ya retard

[Anonymous No.56313363]

>>56312997
you're wrong dumbass i am smarter than you i am not going to lose my money and i am not going to have to suck dick for rent money

[Anonymous No.56313540]

>>56313363
listen up you stupid bastard you think you're so smart well let me tell you you're a moron nobody cares about your money or your dick-sucking

[Anonymous No.56313736]

>>56313540
listen here you pathetic pissant nobody cares about your pathetic and idiotic whining about nothing you must think you're very smart telling people what to do and i must say you're a massive idiot go and cry to your mother you twat

[Anonymous No.56313794]

>>56311798
People do this all the time. You just need to find a good property and be careful not to get crushed by some dumb expense like needing to replace the roof.

[Anonymous No.56313816]

>>56311798
>>56311863
this. you have all green lights from /biz/. be sure to come back later and tell us how it went.

[Anonymous No.56313844]

>>56312356
Can you provide any tips on what worked in your house hacking strategy? I’m looking into buying a duplex but my current situation is complex, I’ll have family in the other unit and don’t expect them to pay market rent, just help with the mortgage. I only plan to stay for about 5 years though, then I’ll be moving rentoids into my vacant unit and hopefully acquiring another 2-4 unit property to repeat the process in, except no family this time.

[Anonymous No.56313877]

>>56313736
listen up you little punk ass pussy don't tell me what to do you must think you're some kind of hotshot tough guy with balls of steel but i'll tell you now that you are completely wrong you are just an angry idiot who needs to go crawl back into your mother's basement

[Anonymous No.56314043]

>>56313877
listen here you little punk ass pussy i don't take crap from anybody and you're gonna learn that real quick you may think you're some kind of big shot tough guy but you probably still piss your pants any time a loud noise goes off i'd like to see you say that to my face instead of hiding behind your computer screen like the spineless wonder that you are

[Anonymous No.56314218]

>>56314043
you are a sad pathetic little man your balls are about the size of a raisin and your brains are about the size of a rat's don't you dare speak to me as if i were a coward

[Anonymous No.56314296]

>>56311798
>small but profitable
there's your problem - small properties are almost always cashflow negative, no matter how you structure them
if you rent them to a business or family too low compared to your local comps, you'll be hit with additional taxes
if you price them too high, no one will rent them
your sweet spot is basically at a margin where you're pocketing about $300-$600 a month, which won't be enough to cover the mortgage, no matter where you buy the property
>inb4 i'll just short-term rental
that entire industry will collapse in 6 months time - just compare an airbnb map with realtor.com and realize how many people have the same idea; do you really think a shit ton of people are taking vacations to your shitty hovel in Austin or Jacksonville? no, they got that out of their system when the lockdowns ended and now are not taking any vacations because they need cash like everyone else does

[Anonymous No.56314371]

>>56314218
you don't look like a tough guy either you sound like a little sissy girl with a chip on her shoulder go to hell you pathetic little coward

[Anonymous No.56314501]

>>56314371
i am not going to respond in anger to this nonsense the person who wrote this is obviously a moron i don't need to waste my time on morons

[Anonymous No.56314533]

buy bitcoin

[Anonymous No.56314621]

>>56314533
buy bitcoin more like buttcoin am i right crypto is for suckers it's just a scam made by the chinese government to steal your money

[Anonymous No.56314742]

>>56314621
listen here you stupid dipshit bitcoin is the future and you'll be sorry when you don't buy it you're the kind of person who would have called the internet stupid back in the day you're a clueless hater

[Anonymous No.56314940]

>>56314742
listen up shithead do not try and push your crypto scam on honest working americans you lowlife scum you and your crypto buddies probably sit around all day watching the price of your useless digital tokens plummet

[Anonymous No.56315066]

>>56314940
oh yeah and you know the value of money right jackass you probably think that paper money is so much better right well guess what you don't know sh*t about anything maybe you should just go ahead and shut the f**k up because you don't know sh*t

[Anonymous No.56315083]

>>56311798
Interest rates and prices are way too fucking high to make the numbers crunch right. You should expect at least 10%/yr in revenue which is a low bar to set and I struggle to find anything north of 5% in my area, even slumlording doesn't pay 10% anymore. The name of the game in real estate isn't so much positive cashflow, yes that's important, but your money is made simply by paying down debt over time and generally property/rent values rising simultaneously. Well property and rent values haven't risen for a whole year while interest rates recently set new highs. It's a fucked market in the meantime.

[Anonymous No.56315174]

>>56315083
look at the market right now all these rates are bullshit and everything is gonna go down this whole time your landlord been paying off your property at a loss what does that say to you you should be happy to pay rent and shut your mouth

[Anonymous No.56315322]

>>56315174
i don't pay rent you dickwad landlord don't talk smack you don't know what the f*** you're talking about this ain't gonna be your average bear market - the economy is falling apart

[Anonymous No.56315331]

>>56311798
the small but profitable business owners will ripp you off on price.

[Anonymous No.56315377]

>>56311798
Being a landlord is harder than people think, your renties are always running into problems and they think they're entitled to endless free fixes from you. So you either work on that shit yourself or lose money paying to fix their shit. And if your area becomes undesirable or there's a general downturn in the economy you can be sitting on a property nobody wants, for months, losing money.

[Anonymous No.56315457]

>>56315331
oh you think you're so smart

all you small business owners rippin' people off on the god damn prices

you're worse than the big fat cat corporations who only make a small profit of several billion dollars per year