patrick.net

So many Hip And Cool ways to "invest" that are so much more exciting than boring mutual funds.

One thing I really like, about the mutual funds, there's no downside risk. I'm not talking about asset price drop risk. I'm talking about the risk of litigation.

Another thing that I really like about them, is the liquidity. If I change my mind, I can liquidate at no expense on the click of a mouse. If I want to liquidate a small portion of it to fund something small, say, like, - a weekend stay at someone else's airbnb or vrbo or whatever, - I can sell a small portion to get a bit of cash. Maybe even in a savvy way to harvest a tax loss. Difficult to do that with a large all-or-nothing "asset".

A third thing I like, is the maintenance costs. There aren't any.

It's not Hip, it's not Cool, it doesn't make me "smarter (or more savvy) than everyone else". It's boring, like a hipster friend told me, "Lazy and Stupid". Fine. Sticks and Stones.

B.A.C.A.H. says

Another thing that I really like about them, is the liquidity. If I change my mind, I can liquidate at no expense on the click of a mouse. If I want to liquidate a small portion of it to fund something small, say, like, - a weekend stay at someone else's airbnb or vrbo or whatever, - I can sell a small portion to get a bit of cash. Maybe even in a savvy way to harvest a tax loss. Difficult to do that with a large all-or-nothing "asset".

Even better: you can borrow against your holdings very cheeply, like all billionaires
do. Way cheaper than HELOC and doesn't require jumping through all the stupid hoops.

FuckCCP89 says

Even better: you can borrow against your holdings very cheeply

Yep. Maybe I used a margin loan to purchase Tacoma back in the day, as a sort of "bridge loan". The investment interest, deductible against gains, was way less than the tax bill would have been on a sale (not so nowadays with the lower tax brackets).

I'm not advocating one or the other. Our assets are in a mix of funds, real estate, and business. I certainly like having the option of liquid assets at my age, and I prefer the blandest of all - low cost index funds.
The topic at hand, though is the short term rental market. It has some appeal to us as a fun option. Real estate in many markets is safe to use leverage (safer than stocks), and current rates favor that. I do think the short term rental market is going to oversaturate, and there will be many people with dual purpose properties (short term rental / personal use) that end up not renting as well as hoped. Ideally, this won't happen shortly after a purchase.

The biggest elephant in the room is the possibilty of local ordinance severely limiting your shor-term rental operation AFTER you're already balls-deep into it.

FuckCCP89 says

The biggest elephant in the room is the possibilty of local ordinance severely limiting your shor-term rental operation AFTER you're already balls-deep into it.

Yep. My Hipster friend is having a difficult time trying to run his Real Estate Empire in San Diego that way with the neighbors and HOA's..

He's the same guy who says people like me who just cost average into mutual funds are Stupid and Lazy.

B.A.C.A.H. says

FuckCCP89 says

The biggest elephant in the room is the possibilty of local ordinance severely limiting your shor-term rental operation AFTER you're already balls-deep into it.

Yep. My Hipster friend is having a difficult time trying to run his Real Estate Empire in San Diego that way with the neighbors and HOA's..

He's the same guy who says people like me who just cost average into mutual funds are Stupid and Lazy.

They're doing this all over CA, in many counties you can't rent out guest houses anymore, so many live in the guest house of their vacation estate and rent out the main house.

Love Tahoe....go there every summer with the fam.
locals/full timers hate the vacationers but obviously you need the tourists to bring in the money. Would love to buy a vacation home in Tahoe and rent out but its so crazy overvalued right now and the risk of not being able to do short term rentals due to ban/restrictions is too high.

Just how does one upload an mp4 video from their phone?

@patrick

just_passing_through says

Just how does one upload an mp4 video from their phone?

Same as pictures.

413 Request Entity Too Large

413 Request Entity Too Large

---

nginx/1.6.2

Yeah, pics work but not a 20Mb vid..

Anyhow, VRBO, they can't steal your $ like airbnb does. Also an older better crowd usually.

That is the view from mine in Maui tonight.

Flew out to fix the toilet. ;)

YesYNot says

I'm not advocating one or the other. Our assets are in a mix of funds, real estate, and business. I certainly like having the option of liquid assets at my age, and I prefer the blandest of all - low cost index funds.
The topic at hand, though is the short term rental market. It has some appeal to us as a fun option. Real estate in many markets is safe to use leverage (safer than stocks), and current rates favor that. I do think the short term rental market is going to oversaturate, and there will be many people with dual purpose properties (short term rental / personal use) that end up not renting as well as hoped. Ideally, this won't happen shortly after a purchase.

Which is a good low cost index fund?

just_passing_through says

Yeah, pics work but not a 20Mb vid..

If you have an iPhone you can choose between 3 sizes when uploading a pic.