let’s take someone who previously had $500k of saving in CDs.
BofA High Yield CD is at 1.2%, or $6000 interest per year.
$166k buys you a 1000 sqft condo in RB or San Marcos and so on… rent is $1300/month, minus $600 for property tax and HOA and property management fee, $700/month.
split the $500k into three, and you can buy 3 of these things in cash generating $700/month, that’s $25200/year, or a 5% return on your money.
$6000 a year vs $25200 a year, seems like pretty easy math to me.
