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Have you considered buying individual municipal bonds. They are relatively safe, better than a bank account and are federally tax free. If you buy from your state, it will also be state tax free. However, it is not 100% safe though the default rate on munis are quite small. You can spread your risk by buying 3-5 rather than put it all in one bond.
Municipal bonds are probably facing more risk than they have in the last 50 years as more states and cities faces budgetary crises and falling revenue due to imploding real estate values and lower sales tax revenue.
100k, I would invest in income properties, with the prices today, you can buy a few income properties, make money while renting, then in 5 or 10 years (or whenever) the market goes up again sell the properties or keep holding until retirements.
I have a friend that got about 5 properties (all of them in the 25k to 30k range) and he is doing very well with the cash flow.
only problem with income properties is tenants lol... after being a landlord here in nyc for over 20 years its not something i would ever want to do again.
landlording is great, that is until its not. depending where your located it can be your worst nightmare.
on the other hand i do like non traded reits. they are as close to buying real brick and mortar properties as you can get without the headaches. unlike public reits they dont swing 14% in a day like my ICF does.
you get 7% or so as a dividend and at the end of 7 years the properties are sold off and any profits split.
only problem with income properties is tenants lol... after being a landlord here in nyc for over 20 years its not something i would ever want to do again.
landlording is great, that is until its not. depending where your located it can be your worst nightmare.
on the other hand i do like non traded reits. they are as close to buying real brick and mortar properties as you can get without the headaches. unlike public reits they dont swing 14% in a day like my ICF does.
you get 7% or so as a dividend and at the end of 7 years the properties are sold off and any profits split.
I agree, but lets be real, in all types of investments that are good and bad things about it.. If not everybody would be doing it...
And I understand your view on NYC, I used to live in NYC, and I that NYC is a lot more towards tenants compared to other places where are more landlord friendly.
I remember I lived in building were I paid 3 times what another tenant was paying because she was on rent control. The landlord was losing money with her so he had to increase the rent on everybody else that was not controlled.
to be honest to make money in real estate without waiting years for rents to exceed costs it really is a profession unto itself.
its a job just like any other job ,its not really passive income in a practical sense.
dont get me wrong i have done well with real estate and im just now winding down a family business that owns co-ops over looking central park .
but you really have to decide whether your looking for passive income or looking for a 2nd job handling rental properties.
its all fun until issues crop up and expenses spring out at you. then you wish you could go online ,hit sell like a stock and its gone.
however the op is looking for short term 3-5 years sooooo anything except a bank or short term bond fund is out.
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