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Old 08-23-2011, 01:43 PM  
MrMaxwell
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Join Date: Jul 2005
Posts: 10,057
Quote:
Originally Posted by gideongallery View Post
that not passive income either that capital growth

you have to liquidate the asset to get the profit

stocks with dividends would qualify maybe but your passive income on 5k is maybe $150.
$150/mo on 5k if truly passive would be pretty good, as far as I am concerned..

I like property for that reason, there is semi passive or passive income AND capital growth so long as you're not buying in a crazy market (and most have been this past half decade - lol!). You can buy a SFR at a good price, let it cashflow for a year or two and then sell it paying only cg tax

And you can do anything with property. Some would be sfr flippers even 1031 into bigger properties. Sure, it's only deferring taxes, but you have that much more buying power. And that much more cashflow

Finding property, at least regular SFRs that will cashflow AFTER paying a management co is a real real bitch. I think that it's a lot easier buying apt complexes that will do that and be truly passive. As an example my ex lived in a duplex here in wichita.. The rent was regularly $895 but the people liked me and I got it for $695 for her. We could have bought the whole property for $91k and paid a $7000 payment. And that is for two bedrooms on each side, huge finished basement with 1bd and full bath. That kind of deal is still out there. But that is far above my league at this point without cash or credit.
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