All Forum Posts by: Perig Vennetier

 Hi, no I really meant gross. Different country, $50k gross total is the target. The 50% rule doesn't apply quite like that there.

Jeff, that was not the point I was trying to make. What I meant was that if I were to buy a house cash I would not have to pay the mortgage or rent of $1,500 per month for the next 15 years. That means that I would be making the equivalent of a 4.4% return for that period of time. Sure it's low but it has zero risk. And keep in mind that I will not be in the USA so the markets are different there.

Thanks for the feedback. I don't think owning individual properties, even if managed, would be a good idea being out of the country. When I said 90% I meant that I am OK rebalancing here and there. But that's pretty much it. I should have said 99% hands off! 

Realistically, if I can put together a plan that can return 5% cash per year for income and be OK with that if it reduces most of the risks involved to a level I can sleep soundly at, I'd be pretty happy.

Thanks I'll check that out!

The book seems to be a business book. How would you say it applies here? I'll check out the video. Thanks! 

Market is much different there. Rates are extremely low. The only thing I see may make sense is buy a house with cash. $1300 rent versus $350k house is 4.4% return if I don't have to pay that every month.

Thanks for the response. The 4% rule is mostly for retirement, isn't it?

Here I am more looking at investment strategy. I get it that it's bit hard on a forum like this and I agree that a pro is a good idea. But most may only look at bonds and tell me I need millions at 2% yield. My belief is that the collective intelligence of forums like this one is a great start to get alternate ideas, especially in real estate.

I mean, I see discussions of 10% coc return in these forums. Would getting 4% return be quite safe and realistic with a diversified investment strategy?

Hi all,

I could move to another country in a few years selling everything I have in California including principal residence. I would need about $50k per year to be quite comfortable there. I can easily get a job for $25k there so I'm thinking another $25k from investment would be a good strategy.

How much would you calculate is needed to be invested and what strategy would be a "safe" and "reliable" year after year? What kind of diversification would be good? What would be a fair safe return on investment in current cycle? It has to be 90%hands off.

Additional question: the fact that California thinks I should still pay state taxes even though I would live overseas (need to confirm), what state would make sense to move to and invest before leaving for overseas?

Thanks!

Congrats!

@Matthew Perry, thanks for the comment.

The reason I started investing with these was for diversified investment income through the dividends they pay. I am not counting on appreciation for any of this even though I include it in the IRR calculations above which I know may not be the correct way... It is (feels like) a short term option to invest low amount of money and get a foot in the "real estate" field (sort of). I told myself that if the yields stay around 7 or 8% then that works for me. Time will tell but again, diversification is the main point for me. All these combined represent only about 5% of my portfolio.

All the advertised yields for these investments are advertised between 6 and 10% and it is what I see so far. These have been going at these rates for over 2 years, steadily increasing for most of them. Given it's not a very long time but as far as the business model is concerned, it seems sound and sustainable for me. What could change are terms and management fees which could dampen the yields. We will see if/when that comes.

Not sure how you calculated the "3.5% growth in a month" figure. For Fundrise, it went from 11.5% to 12.95% for the average of the two funds for 2018 so far, including appreciation (change in NAV). The increase was mostly driven by a change in NAV. The dividend yield has not changed at about 8% for the income fund and about 6% for the growth fund.

I am now investigating more tradition SFH buy and hold for rental but I am just looking at some of the deal on Roofstock to get a better idea of what makes sense. It's only been a few days since I've started to look at Roofstock (~100k sale price) but the deals I saw so far seem to net only about $100 per month. It's not all that bad I guess but that's just about the same I would get in dividends by putting $20k into Fundrise or other of these syndication (Groundfloor is my preferred place at this point).

Got to think about how tax, depreciation, etc. play into this but as a first pass, not sure what to think about the added headache that may come with remotely investing in SFH. Again diversification is an added benefit to that.