All Forum Posts by: Alex Williams

Thanks everyone (mostly) for the feedback. @Dan H. In your experience, with no leverage involved you lose as much as 50% of monthly rent? I haven't experienced that myself, but perhaps in markets where the 1% rule is attainable, which is not the case where I live, that holds true. Also, you wouldn't consider diversification through multiple markets diversification enough?

I have made very successful use of index funds, but at this point I want regular monthly cashflow for my father and certainly can't rely on the market not going to hell any time soon. Will consider the syndication and hard note suggestions as well.

@Account Closed I'm not a kid and I'm not an idiot. 1% per month of the purchase price on an unlevaraged rental property does not seem so extraordinary - but that's why I was asking here. You don't seem so immediately negative regarding the 1% rule in your other posts. If you read my post you'll also see I realize it's not entirely passive and I point out that I own multiple rental properties, have done for 20 years, and will be able to monitor my investments. Thanks for your useful input though.

I am the trustee of my father's trust. He has $2 million available and I need it to make close to $20k per month to cover his monthly expenses. This must be fairly passive. My idea I am toying with is to invest in $2 million worth of turnkey rental properties, paying all cash. No leverage. Going on the idea that the 1% rule appears achievable in many of the successful turnkey markets, this seems like a workable plan. Is it? And while I don't need appreciation, am I fairly likely to get pretty much the same amount back as I started with when I sell them down the road if he passes away? I wouldn't have to sell them immediately.

Are there any far better ideas than this given my requirements, or is this a pretty good, safe way to get close to the monthly cashflow I'm looking for? By the way, I realize it is not entirely passive but I have several rental properties of my own and I will be able to monitor the investments properly. Would greatly appreciate anybody's feedback on my situation.