patrick.net

FortwayeAsFuckJoeBiden says

market is down, got cash doing nothing in the bank.

any market guys here think buying a rental all right next few month? im in idaho. im not flipping, long term buy and rent out.

eman if you can, would really appreciate any advice.

Depending on your market. Look at the price per a square foot vs the average for the zip code and crime. Reventure Consulting says Idaho’s metros are bubbles, so be cautious. I still think the market is going to decline a bit more.

FortwayeAsFuckJoeBiden says

long term buy and rent out.

What is long term? If it cash flows why not? As long as you have the management or temperament to deal with tenants personally you'll do fine. I can't see rents dropping all that much anywhere. Key is to buy right for a long term hold.

Not my realm, yet, but I'd look into small warehouse/commercial space. There are so many average Joe types needing storage space for their Amazon and Ebay inventory. Then you have your small plumber and electricians needing space. Basically anything in the trades that needs to store stuff. Business transaction, not a roof over your tenants head. Emotionless.

FortwayeAsFuckJoeBiden says

any market guys here think buying a rental all right next few month?

@FortwayeAsFuckJoeBiden I always say do the math. If the rental would make money (if it's cheaper to own it than to rent it) then it's a good deal for the landlord.

In other words, does the rent cover all the costs of owning?

I don't like the bigoted NY Times, but their rent-vs-buy calculator is good:

https://www.nytimes.com/interactive/2014/upshot/buy-rent-calculator.html

So many options with cash.

If you can’t find good investments, buy treasuries. You can ladder them with 4 weeks, 8 weeks, 13 weeks, 26 weeks and 52 weeks, etc… the yields are state tax free too.

If they don’t need to sell in the middle of the maturity, you can buy at treasurydirect.gov. Brokerages like Interactive Broker, Schwab, Fidelity, all have the ability to purchase treasuries, newly issued or secondary (those that have already been issued). Check with your broker.

If treasuries are too much trouble, your broker may have brokered CD’s. Basically, they offer CD’s from other banks, rates are close to treasury rates but they are taxed as regular interest.

Next Fed meeting decision is 12/14 where they’ll likely raise another 0.5%. Maybe after that is the best time to buy treasuries?

It also depends on your risk tolerance. Rin has mentioned some high yield dividend stocks like MO, PM, and even IEP pays around 15% yield annually.

A couple other companies that I like are ABR and LADR. They’re in the commercial lending space. They pay around 8-11% yield. I mostly sell puts and collect the premiums when they’re down rather than owning the shares. If I owned the shares, I would sell covered calls to collect premiums while also collecting the dividends. If the calls are in the money, I would roll them out a couple weeks before the ex-dividend date so they don’t get called away.

It really depends on each person’s personal situation, risk tolerance and knowledge.

Good luck.

I used to have 2,000 shares of PBFX, which is one of my favorite pipeline companies. Solid profit, solid balance sheet. I was getting $600 dividend every 6 months. It got acquired by the parent company yesterday. I got my cash and sold the exchanged shares this morning. Also closed out the covered calls.

I’ll have to find another pipeline company. CEQP and AM are the runner ups. They pay around 8-9% dividend….

https://www.schwab.com/fixed-income/certificates-deposit

https://www.interactivebrokers.com/en/trading/products-bonds.php

Some decent short term yields if you need to maintain the liquidity unlike previous years where they didn’t pay 💩 to the savers.

Eman says

Next Fed meeting decision is 12/14 where they’ll likely raise another 0.5%. Maybe after that is the best time to buy treasuries?

That's what I'm going to do.

Booger says

Eman says

Next Fed meeting decision is 12/14 where they’ll likely raise another 0.5%. Maybe after that is the best time to buy treasuries?

That's what I'm going to do.

do you guys target specific rate?

i never bought treasuries before, just went to treasurydirect.gov and read about them sold at discount.

i can see different types, not sure which is better to get.

Have you considered something like arrivedhomes.com and fundrise.com as a more hands-off approach to investing into rentals?

(Not affiliated and don't have a single red cent invested with either).

FortwayeAsFuckJoeBiden says

i can see different types, not sure which is better to get.

I went one round on the i-Bonds and will probably do some more next year. (max $10k per person/year). Current rate is 6.89%.

Did anyone invested in farming through companies like https://farmtogether.com/

How hard is it to get money out of I bonds, they wanted notorize n send actual mail to do do anything.

KgK one says

How hard is it to get money out of I bonds, they wanted notorize n send actual mail to do do anything.

I found it super easy to open an account (on line) and pull money from a checking account (via routing #) into Treasury Direct to purchase the I-bonds. Cashing out looks straight forward, though I haven't done it. Nothing needed to be notarized.
That said, my wife made an attempt to do it with a child's custodial account and it was a nightmare (WF refused to notarize -- said we don't do that). Ended up punting and going the 529 route instead.

Blue says

Did anyone invested in farming through companies like https://farmtogether.com/

I like the idea of these various farm investment outfits since you actually own a piece of the farm and thus have a claim to the food. But the media hype for farm land investments is very great in recent years, making me worry these are investments for suckers. I worry maybe the returns are teaser rates, like maybe bumper crops happen for the first few years, but then the soil depletes or something, and profits fall as a result.

The idea seems sound - an experienced farmer is given capital to setup a farm, which is then sold, and they rise and repeat.

I forget which one, but one of these companies will actually create a bespoke farm for you if you invest at least a million or 2. To me, the appeal of that is you own it outright, and to me it seems less likely to have weird legal baggage involved in fractional ownership.

But I kinda doubt the returns should be expected to surpass that of a farmland etf, and farmland etfs just dont seem to have good returns. Well, except for the past 2 years - they all spiked.

I read up on treasuries for the first time a few months back. I asked my uncle how much he knew about it (nothing), but he did ask his friend who suggested treasury ETFs. Easy in, easy out. It pays out as a dividend, with a little scraped off the top. I'm not sure about all the tax implications yet.

Search treasury ETFs, there are a ton made of different maturity dates.

I'm going to plop down some cash on BIL soon. I'm no expert so look all this up for yourself, but I think I understand it enough to try it. ... correct me if I'm wrong anyone...

Depending on the ETF (the various maturity dates that comprise it), you could lose (or gain) on your principal if you don't hold long enough.

Look at the chart for BIL which is for 1 to 3 month treasuries. It readjusts every month. If you do the math, those monthly price adjustments are equal to the dividend, so you can't just buy right before dividend then sell after. There is also a little lag in its dividends relative to current treasury offerings due to the fact that some of it is made of 3 mo treasuries.

Compare that to TLT, which is a 20+ year etf... you would have to hold it for a long time to avoid losing principal. Look at its chart... started dropping when the fed rate went up.

My only concern is what happens if the fed doesn't pay up when treasuries mature... like if the U.S. debt ceiling is surpassed. Maybe I will lose some of my principal? I plan to watch the congressional debt battle quite closely.

noobster says

My only concern is what happens if the fed doesn't pay up when treasuries mature... like if the U.S. debt ceiling is surpassed. Maybe I will lose some of my principal? I plan to watch the congressional debt battle quite closely.

If the US government defaults, then the dollar would likely collapse. If we get to that point, then cash will not matter. There will be a breakdown in society.

.

ad says

If we get to that point, then cash will not matter. There will be a breakdown in society.

I agree with ad on this. Last resort, the government prints to fulfill obligations. At that point, you've got bigger problems...

Here are some numbers to take in account:
Inflation, (your base) ~7%
Good buy rental RE cash on cash ~8-9-10%
Internal rate of return leveraged rental RE ~13-18%

Higher rate of return means higher risk.

All what you need to do is find investment that match or beat that numbers.

REpro says

All what you need to do is find investment that match or beat that numbers.

Assuming a 3% annual inflation rate, the minimum annual ROI is 7% for a real estate investment. This ROI includes the appreciation of the value of the real estate. The goal is to earn at least a real return of 4% annually.

So if the total price is $200,000 for a real estate, then the annual profit (includes appreciation of real estate value/price) should be at least $14,000.

.

When people in charge of trillions of dollars of investments expect to lose money on those investments, it skews the entire investment landscape.

An Airbnb host with 4 Idaho rentals breaks down why he's quitting the $60 billion platform: 'When everybody's going left, you should be going right'

https://www.businessinsider.com/idaho-host-airbnb-rick-carlson-breaks-down-why-he-quit-2022-7