Home › Forums › Financial Markets/Economics › rental sale pending- need interest bearing ideas for proceeds
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CA renter.
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October 17, 2012 at 12:13 PM #20199October 17, 2012 at 12:24 PM #752695
sdduuuude
ParticipantWhy in the world did you sell it ?
October 17, 2012 at 12:37 PM #752696
CoronitaParticipant[quote=sdduuuude]Why in the world did you sell it ?[/quote]
If it was locally in san diego, and you are here, I would agree. 6% isn’t bad at all.
No idea.
October 17, 2012 at 12:41 PM #752697birmingplumb
ParticipantDon’t think 1,000 month return is enough on 240k and it’s super high offer for Detroit suburb as I valued it 175k 3 yrs ago. Timing. Motown
October 17, 2012 at 12:45 PM #752698livinincali
ParticipantYou can’t right now unless you’re willing to take risk in the stock market casino. Why do you think entry level investment property is so incredibly hot right now? Everybody in your age bracket is desperately looking for low risk income streams.
October 17, 2012 at 1:12 PM #752699spdrun
ParticipantHow the hell did you get only a 5% cap rate in Deeee-TROIT?
What about using it to open/buy a small business? In a real city, not a festering outhouse, of course.
As far as buying property, it’s not only the original poster’s age bracket. I’m 33 and I’m looking diligently. If I play it smart, I can probably not worry about basic living costs/a full-time job for a good long time if I get some property leased up.
October 17, 2012 at 1:12 PM #752703bearishgurl
Participantbirmingplumb, I recently received this tip from a fellow “boomer” as a “safer” income investment:
http://investing.money.msn.com/investments/stock-price/?symbol=JHP
I’ve never been good at picking investments. Any more well-versed Piggs care to comment here?
October 17, 2012 at 1:17 PM #752705enron_by_the_sea
Participant[quote=bearishgurl]birmingplumb, I recently received this tip from a fellow “boomer” as a “safer” income investment:
http://investing.money.msn.com/investments/stock-price/?symbol=JHP
I’ve never been good at picking investments. Any more well-versed Piggs care to comment here?[/quote]
Does a “safer” investment drop 80% in ~ 1 year?
October 17, 2012 at 1:26 PM #752706Participant[quote=enron_by_the_sea][quote=bearishgurl]birmingplumb, I recently received this tip from a fellow “boomer” as a “safer” income investment:
http://investing.money.msn.com/investments/stock-price/?symbol=JHP
I’ve never been good at picking investments. Any more well-versed Piggs care to comment here?[/quote]
Does a “safer” investment drop 80% in ~ 1 year?
I just found this … from the horse’s mouth:
http://www.nuveen.com/CEF/Product/Overview.aspx?FundCode=JHP
Investment Strategy
The fund invests at least 80% of its managed assets in preferred securities, and up to 20% of its net assets in debt securities, including convertible debt securities and convertible preferred securities. The fund invests predominantly in securities that are rated investment grade (BBB/Baa or better by S&P, Moody’s, or Fitch) at the time of investment, and may include up to 10% in securities that are rated investment grade by at least one of S&P, Moody’s, or Fitch, and lower by another. The fund uses leverage.
It appears the month(s) it lost 80% of value correlates with the time frame of the highest amount of foreclosures all over the nation.
Could it be that the fund invested in subprime mortgages and/or residential mortgage-backed securities that were worthless? If so, does it still invest in residential mortgages today?
This merits further research. I don’t know if the “recommender” was invested in the fund in 2009 but is happy with it now.
October 17, 2012 at 1:31 PM #752707ParticipantAcc to its shareholder fund report, JHP pays $1040 month on a $200,000 investment (.052%). That is $40 more than the OP was making on his rental house (w/no tenant headaches).
I haven’t found the dividend history.
October 17, 2012 at 1:39 PM #752709ParticipantStrike that (this is why we have financial advisors, lol). $10,400 annually (.052%) is what JHP would pay in dividends on a $200K investment.
That is $866.67 mo.
:=0
October 17, 2012 at 1:41 PM #752708CoronitaParticipant[quote=birmingplumb]Don’t think 1,000 month return is enough on 240k and it’s super high offer for Detroit suburb as I valued it 175k 3 yrs ago. Timing. Motown[/quote]
Here’s an idea.
You have 200k now. I remember you posting about how your daughter was dealing with a landlord…
… Buy a condo for your daughter in sandiego with the 200k fully paid off.
Write your daughter a note giving her a market loan rate, 30 year fixed with appropriate points/etc. Make sure it’s legit, fully doced/notarized etc (for IRS purposes). Let her make payments to you.
*You get the 4% income which is more or less safe (assuming your daughter can be trusted).
*Your daughter doesn’t end up throwing money away to a landlord. Heck, your daughter doesn’t even end up throwing money away to a bank.
*Assuming it’s a legit loan, your daughter gets a schedule a tax deduction as normally.
*And check with a trust attorney…But I have a feeling that loan you wrote to her ends up belonging to her/your kid’s estate when you pass away if it’s not paid off by then…
*Tuck away the loan payments she makes for you (less income you need to report)….It becomes her’s or your other kid(s) if you pass away too.Cut out the middlemen (bank).. Check with people in know that really know how to do this.
October 17, 2012 at 1:41 PM #752712Participant[quote=flu][quote=birmingplumb]Don’t think 1,000 month return is enough on 240k and it’s super high offer for Detroit suburb as I valued it 175k 3 yrs ago. Timing. Motown[/quote]
Here’s an idea.
You have 200k now. I remember you posting about how your daughter was dealing with a landlord…
… Buy your a condo for your daughter in sandiego with the 200k fully paid off.
Write your daughter a note giving her a market loan rate, 30 year fixed with appropriate points/etc. Make sure it’s legit, fully doced/notarized etc (for IRS purposes). Let her make payments to you.
*You get the 4% income which is more or less safe (assuming your daughter can be trusted).
*Your daughter doesn’t end up throwing money away to a landlord. Heck, your daughter doesn’t even end up throwing money away to a bank.
*Assuming it’s a legit loan, your daughter gets a schedule a tax deduction as normally.
*And check with a trust attorney…But I have a feeling that loan you wrote to her ends up belonging to her/your kid’s estate when you pass away if it’s not paid off by then…Cut out the middlemen (bank).. Check with people in know that really know how to do this.[/quote]
That’s a good idea, flu.
October 17, 2012 at 1:42 PM #752710Participant[quote=birmingplumb]Don’t think 1,000 month return is enough on 240k and it’s super high offer for Detroit suburb as I valued it 175k 3 yrs ago. Timing. Motown[/quote]
I would have asked the “what would I do with 200K to make $1000/month” question before selling it. If no answer, then don’t sell. If lots of answers, then sell.
October 17, 2012 at 1:42 PM #752713Participant[quote=sdduuuude][quote=birmingplumb]Don’t think 1,000 month return is enough on 240k and it’s super high offer for Detroit suburb as I valued it 175k 3 yrs ago. Timing. Motown[/quote]
I would have asked the “what would I do with 200K to make $100K/month” question before selling it. If no answer, then don’t sell. If lots of answers, then sell.[/quote]
The OP was only making $1K month on his rental house.
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