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Are they still generating $70k/yr? How many properties are we talking? I personally prefer investing in the stock market vs. property, because 1) property taxe
by charlesdm 10y ago
Are they still generating $70k/yr? How many properties are we talking?
I personally prefer investing in the stock market vs. property, because 1) property taxes, 2) tenants, 3) things break, etc etc. But others won't share that opinion. If you like property, you can also invest through REITs, which are publicly traded real estate funds that pay dividends.
One reason why I would not sell these houses is potentially taxes. Are you liable to pay capital gains tax on these? Or was the counter on those gains wiped when you inherited them? With interest rates being low, asset prices tend to increase fast(er). So if possible I might consider selling them. Depends on the property, city, location, etc.
$1.5m is still low enough that you can achieve above average returns by investing well in smaller deals and/or individual stocks, i.e. 10-30% a year. If I were you, I'd throw in the towel at your job and start learning how to invest your capital properly. And once your money is working for you, you can explore other entrepreneurial projects.
Invest in what you know, i.e. public technology companies, or buy a small tech company with some equity down + an SBA loan, etc etc. Put some of it in an S&P fund after a market decline. But take your time, don't rush it. A little capital can go a long way.
You're free, congratulations. Most people don't ever get there. Just keep reinvesting your profits, it snowballs faster than you realise if you don't blow it all on useless stuff.
- thrownaway_help 10y agoThere are 3 properties, 4 with the addition of my parents' home (which I believe I could probably rent for more than the others, to generate at least around $100k total). They three are all rented out for (at a minimum) the rest of 2017. I believe the tax basis on the homes has been reset with their passing, so capital gains would be set to $0 if I were to sell immediately (but as we have renters, I don't foresee that happening). These houses are also in a state that doesn't have state income tax, for what it's worth. Sales tax is relatively high though. I'll definitely be reading more books to get a better grasp on the situation, too - thanks.