Quote History Quoted:
Living
at/next door to your rental property will be sucky. If you own rental
property expect to do all of the work yourself, because one major
professional repair can knock out your profit for an good portion of the
year or even an entire year. Running rentals is not a passive activity
IMHO.
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Quote History Quoted:Living
at/next door to your rental property will be sucky. If you own rental
property expect to do all of the work yourself, because one major
professional repair can knock out your profit for an good portion of the
year or even an entire year. Running rentals is not a passive activity
IMHO.
I had that decision to make about 3 years ago. We had just sold our house, moved to a new city, and had $50,000 cash from the sale. We really looked at the pros and cons of buying two small houses, one for us to live in and a rental. We're both very handy and have remodeled houses in the past, so we could have handled most of the work ourselves.
Ultimately, we decided to buy a nice house that we would want to live in until we retire, and put about $10,000 into our post-tax brokerage account where we already had a bunch of good dividend paying blue-chip stocks. Kind of like this guy....
Quoted:
I'm not an investment pro or anything. Buy I've got my pension(pathetic) and my 401k(actual intended retirement) already budgeted in so my new income stream is going to be oil companies. They are currently in the crapper(BP, Shell), oil aint going away, and they pay solid dividends. bought with E*TRADE, set up reinvesting. Sounded like a plan. I think ill buy some Catapiller next,. the world is going to be needing lots of heavy equiptment, and cat makes a good product.
Now instead of dealing with tenants we sit back and get dividends paid into our brokerage account. We add a little cash to it from every paycheck and reinvest all the dividends. We have to pay income tax on the dividends at the end of the year, just like you would on any profit from being a landlord.
I've put a lot of money into oil companies in the last year; they're super cheap and guys like Rex Tillerson are fanatically devoted to maintaining their dividend.