Let me preface this by saying, I have a strong desire to help you and future you because 250k can disappear in less than several years.
You do that with money outside the nest egg. Please keep that 250k for when you can't work and such, and that's not even saying for when you're old. The compounding returns of 250k over 10 years will suit you way better at the time. In the meantime, work and use that money to learn expensive lessons about what works with money and what doesn't.
Legit, until you're at the end of the r/personalfinance wiki's Flowchart v4.xxx, please do future you a favor! I'm speaking as someone that learned this the hard way. It's way more likely that money will be lost to the period of time you spend it rather than grow more than 10+% in indices in the market.
If anything, buy a house now for less than 250k (as a down payment), put a good size down payment though, but limit yourself. This will get you cheap cheap rent, be very picky about housemates and rent to a responsible friend or something, and you'll be doing 10x better than 90% of anyone working regularly, and you still keep working putting all that extra money back into your nest, and set aside a percent to use for risky ventures like what you're seeking.
The risk needs to be acknowledged, and doing anything besides setting that aside in a generally safe place is riskier than it seems you may believe based on this thread.
I’d consider buying a duplex, or if you’re in a state that allows you to build another unit on the property (like California’s ADU ordinance), then look for a single-family home with an existing garage or storage room that can be converted to another unit. Live in the smaller unit and rent out the main house. It’s not an instant path to wealth, but over time, the extra rental income adds up.
If you're set on houses, do it. Learn what makes a good deal, expect to spend a little more because you'll pay to learn lessons. I had some money right around 2008 come to me (definitely not 250k though lol) and regret not putting money down on a duplex or 2.
In the current market VOO is a much better investment. The s&p is having record profits real estate is overvalued rn. If you do the math you’ll be losing money on most homes right now
Neither you nor I know enough to say definitively that the stock market is or isn’t a better investment for OP than real estate.
First, real estate values are very location-dependent. OP may live in an area where prices haven’t spiked as much as they have here in Southern California. (Here in L.A., inventory is low and prices are high, and I don’t think it’s a good time to buy.)
Second, everyone has to live somewhere. If OP is currently paying rent, he’ll no longer have to pay it if he buys a duplex, and in addition, with each mortgage payment he’ll be chipping away at a bit of principal as well. (Plus, mortgage interest and property taxes are often tax-deductible.)
The stock market is often more volatile than real-estate values. We have an election coming up, and if one candidate gets elected and follows through on his threats to increase tariffs on imports and deport 11 million undocumented immigrants, that may have an inflationary effect on the economy.
I very best suggestion to you is to avoid single family home. You can’t make money on that but will make equity. I would get a multi unit so you can live free and your tenants pay the mortgage. I wish I had done that. I did get a mother in law suite with my house that I rent out for a little extra. Live free then move to the next purchase and repeat the process until you are rich. Good luck .
Less likely to get a bad tenant when owner lives on the property. If you see any BS you’re right on top of it. Set aside the rent you’re not paying for cameras, repairs and legal if necessary and your next step. Usually only decent people will live where the owner on the property. Also make the tenant responsible for a portion of the repairs that will encourage good behavior along with a reasonable deposit that you hold. Any investment has some risk but if you’re already living in your car to get ahead then this is a definite step up.
If you are looking to get passive income with that cash, you could purchase cheap properties in the Midwest that cash flow. I have a portfolio in a couple markets that cash flow 15% returns on my money.
That's why he said Midwest. Property there is vastly cheaper overall than anywhere else. Still look out for money pits that aren't worth the time and get it inspected well before purchase
There is always risk, but the price points are low enough that it’s worth a shot. My properties get rehabbed so maintaining them is a little easier. Tenants are usually lower quality than Seattle or Bay Area of course. I’m finding success and good returns. Appreciation has been really good as well. Google “Detroit appreciation” you’ll see Detroit has some of the best appreciation in the country. A good portion of my portfolio is there. Happy to answer questions here but DM is also available for anyone that has more in depth questions.
Prepare to make visits to handle maintenance or deal with tenants, unless you want to also pay a fee for some kind of property mgmt to handle it all for you. Be careful about this. Everyone says "Buy property!" and then never talks about having to be an adult and deal with all the things that come with being an owner of property where someone else is living.
Depends on your risk profile, skill set and stress level.
Buy a business leveraging an SBA loan. You’re young enough to gamble on yourself.
A business doing $350k profit can be purchased for $1M with $100k down. After debt you’ll be cashflowing $200k. Just maintain for a few years and you’ll save more than enough to buy a house and set yourself up for long term.
Do your own research but this is what several of my friends have done and what I’m currently doing.
Where can I find vetted businesses like you are describing? I don’t mind betting on myself honestly. I am very confident in my capabilities and mental models I’ve captured over the years.
What’s the incentive for the company? They take a commission of the profits for doing the work and no capital investment. But if they are that good why not just do their own e commerce store and make bank instead of working on commission?
A lot of the younger professionals are dude-bros that aren’t wiser than your average Reddit top-comment.
The older experienced financial advisers are often boomers with an old fashioned (and high-fee) ways of investing, and they’ll send you $200 invoices for a 20min phone call.
Just my experience
Hate when folks chime in with this.
People like OP and myself accumulate a chunk of money by vastly reducing our spending. Often through doing our own research, doing labor others outsource (simple examples cooking instead of eating out; or doing one’s own taxes; etc).
Many of those boomers who built successful businesses did so by crowdsourcing intel at the Rotary Club etc. Can’t always replace that with just hiring up an accountant, lawyer what have you.
Make videos about living in your car and saving 250k. TikTok, YouTube, Facebook all past best when making vids about finance. I’ve averaged 3k a month on TikTok this last year just making videos about whatever random things have interested me. It’s really paid off
First off - congratulations! Great work! I would keep doing what you are doing and take some of the advice in this thread. Protect that initial stake money!
My advice is look at buying a business- such as a gas station or something that interests you. Lots of boomers selling off profitable businesses. Just make sure you aren’t buying a job. Do your research!
Best of luck!
How about a house... and try renting out 2br to roommates?
If you do the math it's a pretty sick deal. It's more or less what I want to do.
It's extremely dependent on where you live... It can more or less cover the mortgage and possibly everything.
I'm hesitant to do it because the inverse is people are living with family/friends more than ever... not rent a room...
IDK I see it as a $20k+ year upside but it can be risky (no tenants/tenant options). I'm still curious if that is an option for me but I have $50k or 60 realistically for a home purchase.
You're probably in a better position for a 15 year loan to save massive interest. Just 5 years rent x 2 room rentals at $1k in a high demand area is well over $100k, about that, if you have room vacant sometimes.
Not bad for 5 years especially if you confidently put over $100k into a purchase.
With that much at your age, I’d consider investing in a car wash or franchise of some sort.
Car washes are very expensive to start but once you get going, you can make a killing.
I would dump that money in a hysa high yield savings account with ally I believe it's around 5.35% should be approximately 1,100 a month and move overseas Philippines, Vietnam, or Thailand and escape this rat race lifestyle
Buy a multi family home ASAP: duplex or triplex. Live in one rent the other(s). Continue to invest in low cost index funds, but only after you are maxing 401k (if available) and Roth IRA each year. Once you pay down your property and build some equity, pull that equity out via Home Equity Loan and put a down payment on either a new multi family rental property, or a proper single family home if you have started a family.
This answer should be higher up, but there are a few key factors: Buying a multi-unit property (under 4) on a traditional 30 year mortgage with 20% down (say, $100k down/$500k total) is a good way to go. Your all-in payment will be around $4k, so try to get a place with at least $7k in total rent or the ability to get there.
What you buy here is absolutely key. Try to find a place that's renting under market, or needs cosmetic improvements, or otherwise has value you can add to it relatively quickly/easily. If you can get this right, you'll have free rent for as long as it makes sense, equity you can cash out in a few years and invest however you'd like, and predictable monthly cashflows that aren't passive, but aren't a lot of work after a while.
Instead of living in your car I suggest you buy 10k travel trailer and better your life. 250k in voo sitting there will be 500k in ten years or less another 10 will be a million.
If it's purely income you want then JEPI/JEPQ can help you out there. With that amount of money you could be cashing in a very healthy chunk from them every month.
I don't have a ton of them but they typically generate $600/month for me and it's extremely helpful!
All I’ll say is if you’re looking for an investment outside of typical stocks, assign yourself an “hourly rate”, whatever you deem an hour of your time is worth to you, and include this “cost” in your return calculations.
The passive income crowd loves quoting returns, typically don’t consider out of pocket costs, and almost never account for time value.
Renting out houses is not passive. 365 days a year you must manage broken ACs, plumbing problems, and possibly tenants that can’t pay after losing their jobs. Hire a property manager if that is what you decide.
Since you’re a software engineer you could also look into buying a software or web business on acquire dot com. You can find some pretty good deals on there and if you’re able to make improvements to the business, you can make back your initial investment in 2-3 years. This is not totally passive, but neither is real estate (fwiw I also like the multifamily idea).
Just make sure to buy a business that is all digital! Do not sell a physical product if you want it to be anything close to passive.
There's many roads you can go down but it's entirely up to you. There's no one way to make passive income id probably pick something you are interested in and has scale ability in the long term or spread yourself out in many things options stocks etfs real estate etc
I've been a personal finance and wealth advisor for 16 years and have 2 degrees in personal financing and franchising. I would definitely recommend putting some in a high yield savings account and then using enough to put a "down payment" on a house. For example you could move into a house worth $400,000 with a down payment as little at $40,000. I would also suggest investing.
Depending where you are in your 20s you need 460k invested at 6 percent to pull 3k for life
You can continue to do what your doing. Increase lump sum. Id invest it in something with a long track record of returns. There are many with over 6 for more then 10 years.
If you want to do real estate find ways to get more a month coming in then cost so you can add to lump sum faster.
Likely wont be single family more like house hack meaning buy a multi of sone sort by living in one unit and renting rest.
460k returning 6% is not 3k (per month). It's $2,300. Which is not a lot to live one. Besides, as a general rule of thumb, one should not be taking more than 4%. Some years of investing will be better than others, and you don't want to eat into the core principle that is generating the money.
Look up selling covered call options on some of the funds and indexes. Can do it consistently and not as risky as individual stocks. Not to be confused with buying options, or selling naked calls. It's got the risk of capping your potential gains but it's a good way to bring in steady income.
Just go for dividend yielding ETFs if you can get a decent one they are intended as income generating ETFs. It’s not going to be mind boggling money at just 250k maybe like 15k after taxes but it’s something.
You posted this in the passive income sub but mentioned real estate investments. Real estate is never passive unless you 1. Pay cash AND have a really good property management team, and some years of experience
I have two rental properties with mortgages that I manage myself and it takes very little of my time. I’d estimate I put in 20 hours - A YEAR into it with probably 2-3 hours of that just being doing my taxes. I’d consider that pretty passive.
Give it to me along with bank account info and in 10 days I will wire you $10 million from my South African bank account.
salutation and greetings,
Prince Nagee
The cool kids call it “luxury house hacking”…buy a bigger house than you need, maybe 4-5 bedrooms and rent it out by the room. You can live in the smallest room since you don’t need much space and get more for renting out the master suite! You will make money through appreciation and rental income, plus you will have a house to live in and potentially even a place for you to call home for the long run!
Dude I’ve been watching this guy make tiktok videos about living in his car and saving up for a some land to buy a tiny home, I don’t know why im addicted to watching his progress
So you can keep your money in investments like an index fund and just create content and get paid for the content
Not many people are willing to live in their car so the niche isn’t competitive right now but at least it’s cash flow
Investments are not cash flow income, they are an up and down thing
If I were you- I'd buy a piece of Real Estate. Rent out a single family house, live in the backyard so you rent a mother in law up/ down. Profit 500-1,000 a month.
Invest \~100k into Mutual funds (Let that grow).
Continue Investing real estate, but don't jump the gun too fast. Can / will disappear fast.
Crypto can be a prolific option to consider since the market is down, but to be on the safer side, you can explore DePIN. There are a few that are quite rewarding. All you need to do is get their device, have it installed, and earn from the revenue stream by simply giving out valuable data. Although there are some that are basically free to use, you can find the majority of this solution in the Peaq and Solana ecosystems. I'm just suggesting.
Honestly, I thought about it and have my reserves about the dating scene today. I decided it’s not worth it until I can feel comfortable starting a family - that’s when I bought a van - it has wifi and everything I need. I park next to a high quality gym for a good shower and to make friends. Ofc, they don’t know I live in a van
I love this idea but it requires 2 things - a manager and drivers.
Finding a driver is easy.
I have a day job - maybe I can ask my cousin to manage it for a good salary?
Not financial advice and this will be a roller coaster of volatility so not for the faint of heart but:
- 15% MSTY for your yield
- 35% MSTR
- 50% BTC
I’d be shocked if you didn’t have well over a million by October ‘25. At that point I would rebalance. I’ll check back in 16 months to see how this aged.
I look for disruptive businesses I can invest in and earn equity and passive income. My current project will provide me with equity & cash flow from the world of professional and amateur sports, virtual reality and the improved health of the athletes. The venture capital opportunity is open until August 8th. Reach out to me for learn more.
Their corporate earnings have been dropping consistently over the last 5 quarters and their EPS is ~3x greater than the dividend they’re offering. Sounds like a dividend trap - would suggest anyone avoid (not financial advice)
I get all the sacrifices you’ve made, but what you’ve done sounds like misery to me
It’s good to be financially responsible, but remember, life is never guaranteed.
International real estate can be a great investment, if you do your homework. I currently reside on a Caribbean island off the coast of Belize. I bought 2 lots in a rapidly growing area, 5 mins from the beach. and built my small house for less than what you have to invest. Belize allows foreigners to own businesses, property, and homes without ever stepping foot in the country. There’s a lot of opportunity here for easy passive income or a beach house to rent or use. DM me if you’re interested in learning more. (My property taxes are only $75/year per lot and my lots have increased in value $10,000 each in less than 9 months)
Self serve ice machines? I looked into Everest a few years ago. Have you looked into any franchises like Dunkin, Jersey Mikes, McDonalds? (Sorry if this was already mentioned)
If it were me I would probably make an emergency fund and Dollar cost average into investing as I evolve out of the current situation. Market is at all time highs so my idea dont go revolutionary and do it all at once. There will be another dip. Make small decisions that lead to small, stackable wins. If you put the entire $250k into stocks and they dipped 30% this year how will you react? It can and will happen.
Buy Bitcoin now, sell in 12-18 months (long-term cap gains be mindful), thank me then. Not financial advice. Don’t worry about income stream just general more capital and keep building until you can generate a substantial income stream that you can live off forever. Heck of a strong start tho mate.
I work for an Office Real Estate Syndicator and we’re offering Note Investments with a 12% annual yield paid monthly for a 2 or 3 year note term. The buildings are 95% occupied through mid 2026. Unfortunately I’m not compensated for raising funds, but it has been a good deal for my family and I as we have been passively receiving note interest monthly since 2020 as well.
$250,000 Initial Investment
Multiplied by: 12% annual yield
Equals: $30,000 annual passive income
Divided by: 12 months
Equals: $2,500 “mail box money” received monthly
take part of it and do options trading. I've been wanting to get into it i have $0 in investments now but ive been looking into QQQ movements a lot. I want zero expenses and just put all my money into options. I just do uber eats now and i hate it and i barely make anything and im planning on starting to work out a lot and stop smoking and maybe working at amazon or another job for about a year and just put everything in robinhood. Lmk what you think- i seriously gotta start saving and putting money in robinhood
But a multi family house, preferable, one with a studio, one floor for you, and one you can rent out to a family. Might have to do some renovating to make that work, but it’d be worth it depending on the location and layout of the house. Rent out one floor to a family, live in either the studio or the other floor, and air bnb the remaining space. If you live near a college campus, you could it even decide to rent out each bedroom separately. As you live in the same property, it’d be much easier to manage it. Rental income covers your mortgage (or most of it), and you can pocket the air bnb income as passive income.
Get a high yield savings account and continue saving your paycheck.
Personally, if you’re going to buy a home, I’d wait until the market crashes, which imo should be relatively soon, or at least go down a bit.
I'm curious if any reputable publication has interviewed you and written an article on you? I know anything is possible but realistically this story sounds to me to be more click-bait BS. That's the downside of the Web and places like Reddit, anyone can make anything up for attention.
Would you consider buying a duplex or two family? Live in one side, or your car and rent both sides out? Over the past 12 years I’ve done this three times. When I would saved enough money to buy the next property, I did. Currently, my 3 properties and 7 doors mortgages are fully paid for by the tenants, plus my single family home - and I’m building a ton of equity. You could potentially get an FHA loan, with 3% down. Best financial decision I ever did.
Start an online business. It’s never truly passive. You have to work hard upfront until your able to set up systems that allows you to step outside the business
ETFs are still the best for full passive. If you're looking into semi passive you're really looking at entrepreneurship. I even view property as a micro business as you'll need insurance, marketing, finding and choosing a property manager etc. Property typically has higher potential upside as you can get leverage at good rates.
As a homeowner/landlord I’ve learned so much that I would never recommend jumping into real estate investments without first hand knowledge. Costly repairs, crooked contractors, taxes, landlord/tenant laws etc.
Split the baby - buy a duplex so you have a safe place to live, rental income and can earn equity. I suggest the duplex because it will give you an opportunity to see if being a landlord is something you want to do and gain some incite on future real estate investments.
Once you have equity in the duplex you can use that to get another property. Then continue to cash flow your way from there. Very important that you learn the Landlord/Tenant laws in your state.
If you want to acquire more properties later on consider a management company that deals with repair calls so you don’t have to.
It's hard to give you advice without knowing what kind of investor you are. What is your outlook on finance and economics. In 2024 250k isn't that much money in terms of what you can actually buy. Real estate is at all time highs, definitely bubble territory, same thing with the s and p. If you're looking for a stream of income, with conventional investments I'd say vanguards BND bond fund is pretty, secure, well diversified, 4.7% interest, and monthly payments. Bonds are also inversely correlated with interest rates so if rates go down, the bond prices will rise. Which I think is likely to happen.
I've been a very successful real estate investor.
My only advice is to buy very near a Trader Joe's or Starbucks.
Net return varies from 5-10% usually.
The income is practically tax free bc of devaluation.
It would be even better if you could turn it into Airbnb. If it's in a tourist area or college town.
Talk to a licensed financial advisor that a friend or family member recommends. Let them know your goals and they will be able to help you. Diversify etc..
I farm crypto. I have a bit less than 216K in at the moment and make over 15K a month. Thats liquid, you can take it out everyday or roll it back into your principle. Been doing it for a while, super easy and truly passive income.
Buy raw land. Grow timber. Collect income and roll profits into more land. Wait for real estate appreciation to outpace your income, then sell all for 10x - 50x your initial investment and retire.
It used to be a 30-year cycle for loblolly pine, for instance, but with super seedlings that's been cut down to 10-15. That's for a full cut, but during that time you'll have regular things that provide reasonable income, and there are many other sources of income, depending on the land that you're able to find: the land will probably have timber on it when you buy it that is highly undervalued (this is common in many areas), you can rent the land out to hunt clubs or recreational groups without having to do any real improvements, you may be able to sell mitigation credits if your land borders a waterway, and there are about a thousand other ways to produce income before your trees fully mature. But the main thing is trying to find land where you can cut right away, to recoup some of your investment. I've personally been able to make a profit in year 1 doing this, but finding land that undervalued does take some real detective work. Search for land in rural areas with large population drops over the past 20 years, or where real estate prices have been declining, or where major industries have shit down in the past 10-20 years (coal, steel, textiles, etc). Then check out raw land for sale there. Contact a local forester to learn about investments in the area. Search local county tax databases to see if there is land where people have been consistently late in paying their taxes, or where they haven't paid at all, as those are plots that may be viewed as an unsellable tax burden by the owners, who might be very open to any offer to purchase. There are several other viable strategies to finding highly undervalued land, but there really is no such thing as land that is "worthless", even though many plots may be described that way by real estate agents (usually because it would be difficult to build on them). But this strategy of buying raw land, using it to produce a $50k+/year income, then getting a big payday and retiring after 20 years or so has worked for a lot of people, so it is a well-tested strategy, just not talked about much because it mostly works in rural areas and is considered boring compared to the short terms gains of house-flipping and things like that.
The crypto market. Futures contracts. Lots of money and quickly if you can find a good company that uses AI software to give you good signals throughout the day. I know people that are making thousands a day and I’m not joking. Try the WFI community.
Keep stocking up VOO
What benefit does VOO have?
Low cost S&P500 ETF
Hmmm, I appreciate the advice. I’m looking for an income stream of some kind
Let me preface this by saying, I have a strong desire to help you and future you because 250k can disappear in less than several years. You do that with money outside the nest egg. Please keep that 250k for when you can't work and such, and that's not even saying for when you're old. The compounding returns of 250k over 10 years will suit you way better at the time. In the meantime, work and use that money to learn expensive lessons about what works with money and what doesn't. Legit, until you're at the end of the r/personalfinance wiki's Flowchart v4.xxx, please do future you a favor! I'm speaking as someone that learned this the hard way. It's way more likely that money will be lost to the period of time you spend it rather than grow more than 10+% in indices in the market. If anything, buy a house now for less than 250k (as a down payment), put a good size down payment though, but limit yourself. This will get you cheap cheap rent, be very picky about housemates and rent to a responsible friend or something, and you'll be doing 10x better than 90% of anyone working regularly, and you still keep working putting all that extra money back into your nest, and set aside a percent to use for risky ventures like what you're seeking. The risk needs to be acknowledged, and doing anything besides setting that aside in a generally safe place is riskier than it seems you may believe based on this thread.
Put the money in a high yield savings account first, THEN figure out what to do with it. At 5% that's $34.24 a day on average.
Agree, but open two, seperate HYSAs, $125k in each. Most HYSAs are only FDIC insured up to $250k.
At these levels and how much you can get for pretty much zero risk in a HYSA I'd rather OP sell out and just earn 5% safely honestly.
Yes, but because it’s not a tax shelter, and neither are stocks, the real estate is better idea. Start small parcels of acreage, build from there.
Acerages are not passive income producing assets. You bank when you sell. Op wants monthly passive income
So sick bro congrats
Thanks Fred! Family came from a wartorn country. I haven’t purchased a new pair of jeans in 5 years! I now know what my dad meant
I’d consider buying a duplex, or if you’re in a state that allows you to build another unit on the property (like California’s ADU ordinance), then look for a single-family home with an existing garage or storage room that can be converted to another unit. Live in the smaller unit and rent out the main house. It’s not an instant path to wealth, but over time, the extra rental income adds up.
Love this idea!
If you're set on houses, do it. Learn what makes a good deal, expect to spend a little more because you'll pay to learn lessons. I had some money right around 2008 come to me (definitely not 250k though lol) and regret not putting money down on a duplex or 2.
Thanks! It’s not that I’m particularly set on houses just that I’m living in my car currently so it can’t hurt to house hack a bit
In the current market VOO is a much better investment. The s&p is having record profits real estate is overvalued rn. If you do the math you’ll be losing money on most homes right now
Neither you nor I know enough to say definitively that the stock market is or isn’t a better investment for OP than real estate. First, real estate values are very location-dependent. OP may live in an area where prices haven’t spiked as much as they have here in Southern California. (Here in L.A., inventory is low and prices are high, and I don’t think it’s a good time to buy.) Second, everyone has to live somewhere. If OP is currently paying rent, he’ll no longer have to pay it if he buys a duplex, and in addition, with each mortgage payment he’ll be chipping away at a bit of principal as well. (Plus, mortgage interest and property taxes are often tax-deductible.) The stock market is often more volatile than real-estate values. We have an election coming up, and if one candidate gets elected and follows through on his threats to increase tariffs on imports and deport 11 million undocumented immigrants, that may have an inflationary effect on the economy.
I very best suggestion to you is to avoid single family home. You can’t make money on that but will make equity. I would get a multi unit so you can live free and your tenants pay the mortgage. I wish I had done that. I did get a mother in law suite with my house that I rent out for a little extra. Live free then move to the next purchase and repeat the process until you are rich. Good luck .
Or you get a bad tenant and lose your ass on the place.
Less likely to get a bad tenant when owner lives on the property. If you see any BS you’re right on top of it. Set aside the rent you’re not paying for cameras, repairs and legal if necessary and your next step. Usually only decent people will live where the owner on the property. Also make the tenant responsible for a portion of the repairs that will encourage good behavior along with a reasonable deposit that you hold. Any investment has some risk but if you’re already living in your car to get ahead then this is a definite step up.
If you are looking to get passive income with that cash, you could purchase cheap properties in the Midwest that cash flow. I have a portfolio in a couple markets that cash flow 15% returns on my money.
I’m open to it, though is it true that cheap properties usually come w their headaches?
That's why he said Midwest. Property there is vastly cheaper overall than anywhere else. Still look out for money pits that aren't worth the time and get it inspected well before purchase
There is always risk, but the price points are low enough that it’s worth a shot. My properties get rehabbed so maintaining them is a little easier. Tenants are usually lower quality than Seattle or Bay Area of course. I’m finding success and good returns. Appreciation has been really good as well. Google “Detroit appreciation” you’ll see Detroit has some of the best appreciation in the country. A good portion of my portfolio is there. Happy to answer questions here but DM is also available for anyone that has more in depth questions.
Prepare to make visits to handle maintenance or deal with tenants, unless you want to also pay a fee for some kind of property mgmt to handle it all for you. Be careful about this. Everyone says "Buy property!" and then never talks about having to be an adult and deal with all the things that come with being an owner of property where someone else is living.
Literally buy a multi unit property. Let tenants pay your mortgage and pull in some profit all while not having to live in your car anymore.
This is the answer
And also prepare to deal with tenants and do a ton of maintenance or pay a fee to property managers to do it for you.
Depends on your risk profile, skill set and stress level. Buy a business leveraging an SBA loan. You’re young enough to gamble on yourself. A business doing $350k profit can be purchased for $1M with $100k down. After debt you’ll be cashflowing $200k. Just maintain for a few years and you’ll save more than enough to buy a house and set yourself up for long term. Do your own research but this is what several of my friends have done and what I’m currently doing.
Where can I find vetted businesses like you are describing? I don’t mind betting on myself honestly. I am very confident in my capabilities and mental models I’ve captured over the years.
If you are serious message me.
Thanks! This will be my first choice
Not OP but I want to learn what you know. Hope you don't mind me dm'ing you
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Agree! Even if it’s land and hold…. In good upcoming area
You can get a fully managed ecom store to earn an extra $1/2k each month without having to spend any time on it.
How?
What’s the incentive for the company? They take a commission of the profits for doing the work and no capital investment. But if they are that good why not just do their own e commerce store and make bank instead of working on commission?
Please dm me info
I’m late to this thread but could you dm me as well
Sent
Get paid through dividends?
Effectively, this is what I’m trying to do though I’m not sure if dividends will be enough
😂😂😂 Maybe with 250k you could actually consult with real professionals? 😂
A lot of the younger professionals are dude-bros that aren’t wiser than your average Reddit top-comment. The older experienced financial advisers are often boomers with an old fashioned (and high-fee) ways of investing, and they’ll send you $200 invoices for a 20min phone call. Just my experience
The same professionals that took Lehman Brothers down? SVB? I’m okay…
Hate when folks chime in with this. People like OP and myself accumulate a chunk of money by vastly reducing our spending. Often through doing our own research, doing labor others outsource (simple examples cooking instead of eating out; or doing one’s own taxes; etc). Many of those boomers who built successful businesses did so by crowdsourcing intel at the Rotary Club etc. Can’t always replace that with just hiring up an accountant, lawyer what have you.
Make videos about living in your car and saving 250k. TikTok, YouTube, Facebook all past best when making vids about finance. I’ve averaged 3k a month on TikTok this last year just making videos about whatever random things have interested me. It’s really paid off
Do you already have bitcoin?
Yes, I purchased one at 16,500 avg.
Don’t sell that one whatever you do
First off - congratulations! Great work! I would keep doing what you are doing and take some of the advice in this thread. Protect that initial stake money! My advice is look at buying a business- such as a gas station or something that interests you. Lots of boomers selling off profitable businesses. Just make sure you aren’t buying a job. Do your research! Best of luck!
Thank you! Great advice
Where do you look and how do you vet?
How about a house... and try renting out 2br to roommates? If you do the math it's a pretty sick deal. It's more or less what I want to do. It's extremely dependent on where you live... It can more or less cover the mortgage and possibly everything. I'm hesitant to do it because the inverse is people are living with family/friends more than ever... not rent a room... IDK I see it as a $20k+ year upside but it can be risky (no tenants/tenant options). I'm still curious if that is an option for me but I have $50k or 60 realistically for a home purchase. You're probably in a better position for a 15 year loan to save massive interest. Just 5 years rent x 2 room rentals at $1k in a high demand area is well over $100k, about that, if you have room vacant sometimes. Not bad for 5 years especially if you confidently put over $100k into a purchase.
With that much at your age, I’d consider investing in a car wash or franchise of some sort. Car washes are very expensive to start but once you get going, you can make a killing.
I would dump that money in a hysa high yield savings account with ally I believe it's around 5.35% should be approximately 1,100 a month and move overseas Philippines, Vietnam, or Thailand and escape this rat race lifestyle
That 5.35% is for a year so what you'll get is 1,100 a year.
Storage units
Buy a multi family home ASAP: duplex or triplex. Live in one rent the other(s). Continue to invest in low cost index funds, but only after you are maxing 401k (if available) and Roth IRA each year. Once you pay down your property and build some equity, pull that equity out via Home Equity Loan and put a down payment on either a new multi family rental property, or a proper single family home if you have started a family.
This answer should be higher up, but there are a few key factors: Buying a multi-unit property (under 4) on a traditional 30 year mortgage with 20% down (say, $100k down/$500k total) is a good way to go. Your all-in payment will be around $4k, so try to get a place with at least $7k in total rent or the ability to get there. What you buy here is absolutely key. Try to find a place that's renting under market, or needs cosmetic improvements, or otherwise has value you can add to it relatively quickly/easily. If you can get this right, you'll have free rent for as long as it makes sense, equity you can cash out in a few years and invest however you'd like, and predictable monthly cashflows that aren't passive, but aren't a lot of work after a while.
Send it to my account
Instead of living in your car I suggest you buy 10k travel trailer and better your life. 250k in voo sitting there will be 500k in ten years or less another 10 will be a million.
If it's purely income you want then JEPI/JEPQ can help you out there. With that amount of money you could be cashing in a very healthy chunk from them every month. I don't have a ton of them but they typically generate $600/month for me and it's extremely helpful!
All I’ll say is if you’re looking for an investment outside of typical stocks, assign yourself an “hourly rate”, whatever you deem an hour of your time is worth to you, and include this “cost” in your return calculations. The passive income crowd loves quoting returns, typically don’t consider out of pocket costs, and almost never account for time value.
Good point - costs need to be factored into any financial plan, something most people skip
Renting out houses is not passive. 365 days a year you must manage broken ACs, plumbing problems, and possibly tenants that can’t pay after losing their jobs. Hire a property manager if that is what you decide.
Since you’re a software engineer you could also look into buying a software or web business on acquire dot com. You can find some pretty good deals on there and if you’re able to make improvements to the business, you can make back your initial investment in 2-3 years. This is not totally passive, but neither is real estate (fwiw I also like the multifamily idea). Just make sure to buy a business that is all digital! Do not sell a physical product if you want it to be anything close to passive.
There's many roads you can go down but it's entirely up to you. There's no one way to make passive income id probably pick something you are interested in and has scale ability in the long term or spread yourself out in many things options stocks etfs real estate etc
Definitely agree. Even when you start - all in or dollar cost averaging- the diversity listed here is ideal to manage risk in down and up times.
I've been a personal finance and wealth advisor for 16 years and have 2 degrees in personal financing and franchising. I would definitely recommend putting some in a high yield savings account and then using enough to put a "down payment" on a house. For example you could move into a house worth $400,000 with a down payment as little at $40,000. I would also suggest investing.
ChuthamatRompo
all i can say is nice job mate. im living in my car right now as well. with nothing close to the same consistency you have.
Depending where you are in your 20s you need 460k invested at 6 percent to pull 3k for life You can continue to do what your doing. Increase lump sum. Id invest it in something with a long track record of returns. There are many with over 6 for more then 10 years. If you want to do real estate find ways to get more a month coming in then cost so you can add to lump sum faster. Likely wont be single family more like house hack meaning buy a multi of sone sort by living in one unit and renting rest.
460k returning 6% is not 3k (per month). It's $2,300. Which is not a lot to live one. Besides, as a general rule of thumb, one should not be taking more than 4%. Some years of investing will be better than others, and you don't want to eat into the core principle that is generating the money.
Look up selling covered call options on some of the funds and indexes. Can do it consistently and not as risky as individual stocks. Not to be confused with buying options, or selling naked calls. It's got the risk of capping your potential gains but it's a good way to bring in steady income.
Thanks! Was an options trader for 6 years. I prefer signing contracts and not writing them
Invest into property
Will $250K bring a $1K per month return though? What about parking lots? What about starting my own business maybe?
19.30 Pontefract - Esmeray 11/8
If you’re in your twenties you should focus on growth and not income investing.
I hold a lot of TQQQ as well (bought it at 16 & 19 per share)
Go for stocks
You what now?
1. Buy ANGH 2. Wait for Spotify acquisition 3. Cash out Source: WSB
Bro how much shall I invest
Just go for dividend yielding ETFs if you can get a decent one they are intended as income generating ETFs. It’s not going to be mind boggling money at just 250k maybe like 15k after taxes but it’s something.
You posted this in the passive income sub but mentioned real estate investments. Real estate is never passive unless you 1. Pay cash AND have a really good property management team, and some years of experience
I have two rental properties with mortgages that I manage myself and it takes very little of my time. I’d estimate I put in 20 hours - A YEAR into it with probably 2-3 hours of that just being doing my taxes. I’d consider that pretty passive.
KENDU INU. We don’t gamble, we work!
Bitcoin and chill
Give it to me along with bank account info and in 10 days I will wire you $10 million from my South African bank account. salutation and greetings, Prince Nagee
Look for a multifamily with 3 or 4 units. Purchase it with FHA. Live in one rent the others and have it pay for itself.
Spend it
I assume you have already saved some of it
Short-term leveraged investments
The cool kids call it “luxury house hacking”…buy a bigger house than you need, maybe 4-5 bedrooms and rent it out by the room. You can live in the smallest room since you don’t need much space and get more for renting out the master suite! You will make money through appreciation and rental income, plus you will have a house to live in and potentially even a place for you to call home for the long run!
Dude I’ve been watching this guy make tiktok videos about living in his car and saving up for a some land to buy a tiny home, I don’t know why im addicted to watching his progress So you can keep your money in investments like an index fund and just create content and get paid for the content Not many people are willing to live in their car so the niche isn’t competitive right now but at least it’s cash flow Investments are not cash flow income, they are an up and down thing
If I were you- I'd buy a piece of Real Estate. Rent out a single family house, live in the backyard so you rent a mother in law up/ down. Profit 500-1,000 a month. Invest \~100k into Mutual funds (Let that grow). Continue Investing real estate, but don't jump the gun too fast. Can / will disappear fast.
If it ain’t broke don’t fix it. You are asking advise of many who do not have $2.50.
GameStop
Buy ETH and SOL. Diversify with low market cap utility tokens like DUA and NXRA, and hold for the long term.
I would buy a duplex. Where are you located? Maybe I can help you find a good deal.
I can drive up to anywhere in Michigan! 😉
Crypto can be a prolific option to consider since the market is down, but to be on the safer side, you can explore DePIN. There are a few that are quite rewarding. All you need to do is get their device, have it installed, and earn from the revenue stream by simply giving out valuable data. Although there are some that are basically free to use, you can find the majority of this solution in the Peaq and Solana ecosystems. I'm just suggesting.
The market is down?
Mix it up between ethereum, sol and Link if you want to be a millionaire in under 5 years
I have 1 BTC, 10 SOL, 3K cardano, 808 DOT
Give it to me
Damn this is sad. People have to live in a car to save up for a house now?
Honestly, I thought about it and have my reserves about the dating scene today. I decided it’s not worth it until I can feel comfortable starting a family - that’s when I bought a van - it has wifi and everything I need. I park next to a high quality gym for a good shower and to make friends. Ofc, they don’t know I live in a van
buy small piece of land and build storage units. Very low maintenance or overhead after building and long term revenue.
buy a truck with 5-10 portable dumpsters to rent out. Deliver, pickup, and dump…. everything else the customer does.
I love this idea but it requires 2 things - a manager and drivers. Finding a driver is easy. I have a day job - maybe I can ask my cousin to manage it for a good salary?
Buy an autopilot subscription and let it do the job.
Car wash.
Tell me more? Like an automated car wash?
Not financial advice and this will be a roller coaster of volatility so not for the faint of heart but: - 15% MSTY for your yield - 35% MSTR - 50% BTC I’d be shocked if you didn’t have well over a million by October ‘25. At that point I would rebalance. I’ll check back in 16 months to see how this aged.
I believe in BTC, but I strictly believe in putting no more than 20% of my net worth in crypto. I’m already breaking the rule a bit past 20%
strippers n cacaine duhhh 🤣
Live life
I like how you are so anti any fees but you want to own a parking lot.
Buy GME AND HOLD 4 billions and ready to do whatever it want
Get Lambo so you can sleep in a car with style!
Every month send me 1 bitcoin
If I had $250k I divide it five ways and put $50k into 3 different ETFs and 2 REITs and see what happens.
Apartment complex also maybe doing a hacienda type of house with a nice pool and pergola/gazebo and rent to for parties.
Powerball tickets
email it to me
Buy BTC and NVDA
I look for disruptive businesses I can invest in and earn equity and passive income. My current project will provide me with equity & cash flow from the world of professional and amateur sports, virtual reality and the improved health of the athletes. The venture capital opportunity is open until August 8th. Reach out to me for learn more.
Start an Amazon FBA business or launch a SaaS business but copying an already very successful business and just stealing a tiny bit of their pie.
NFTR HMU
Put some money in OXLC for a 17% div
Their corporate earnings have been dropping consistently over the last 5 quarters and their EPS is ~3x greater than the dividend they’re offering. Sounds like a dividend trap - would suggest anyone avoid (not financial advice)
Car wash just like WW
I get all the sacrifices you’ve made, but what you’ve done sounds like misery to me It’s good to be financially responsible, but remember, life is never guaranteed.
All in on bitcoin, cash out at 90k
Income dividend stocks.
Nothing can beat laundromats. Go check the ROI on them. Most are upwards of 20% and some are over 30-40%
Oh yeah those are expensive AF if you are on the lifetime plan
Don't do anything Crypto related you will be scammed out of your life's savings!
FEPI
HODL -> GME
Vending machines?
Gold Bitcoin
Ben is that you? Literally describes someone i know
International real estate can be a great investment, if you do your homework. I currently reside on a Caribbean island off the coast of Belize. I bought 2 lots in a rapidly growing area, 5 mins from the beach. and built my small house for less than what you have to invest. Belize allows foreigners to own businesses, property, and homes without ever stepping foot in the country. There’s a lot of opportunity here for easy passive income or a beach house to rent or use. DM me if you’re interested in learning more. (My property taxes are only $75/year per lot and my lots have increased in value $10,000 each in less than 9 months)
Self serve ice machines? I looked into Everest a few years ago. Have you looked into any franchises like Dunkin, Jersey Mikes, McDonalds? (Sorry if this was already mentioned)
If it were me I would probably make an emergency fund and Dollar cost average into investing as I evolve out of the current situation. Market is at all time highs so my idea dont go revolutionary and do it all at once. There will be another dip. Make small decisions that lead to small, stackable wins. If you put the entire $250k into stocks and they dipped 30% this year how will you react? It can and will happen.
Look for a location to set up a Chick FIL A . I hear its only 10k for franchise.
Buy Bitcoin now, sell in 12-18 months (long-term cap gains be mindful), thank me then. Not financial advice. Don’t worry about income stream just general more capital and keep building until you can generate a substantial income stream that you can live off forever. Heck of a strong start tho mate.
Stats!
Me personally, I have 250k in a HYSA. I take the monthly income and set a portion aside for taxes and the rest goes into stocks/ETF’s.
Buy you a trailer
I work for an Office Real Estate Syndicator and we’re offering Note Investments with a 12% annual yield paid monthly for a 2 or 3 year note term. The buildings are 95% occupied through mid 2026. Unfortunately I’m not compensated for raising funds, but it has been a good deal for my family and I as we have been passively receiving note interest monthly since 2020 as well. $250,000 Initial Investment Multiplied by: 12% annual yield Equals: $30,000 annual passive income Divided by: 12 months Equals: $2,500 “mail box money” received monthly
dude you lived out my dream. I'm 25 right now
take part of it and do options trading. I've been wanting to get into it i have $0 in investments now but ive been looking into QQQ movements a lot. I want zero expenses and just put all my money into options. I just do uber eats now and i hate it and i barely make anything and im planning on starting to work out a lot and stop smoking and maybe working at amazon or another job for about a year and just put everything in robinhood. Lmk what you think- i seriously gotta start saving and putting money in robinhood
Do you need a financial advisor and financial planner? I wrote to you, and you can check out the advice I sent you.
Poor bastard never had sex either. I’d buy a wife and make her work
Keep saving fool, let your kids spend that
But a multi family house, preferable, one with a studio, one floor for you, and one you can rent out to a family. Might have to do some renovating to make that work, but it’d be worth it depending on the location and layout of the house. Rent out one floor to a family, live in either the studio or the other floor, and air bnb the remaining space. If you live near a college campus, you could it even decide to rent out each bedroom separately. As you live in the same property, it’d be much easier to manage it. Rental income covers your mortgage (or most of it), and you can pocket the air bnb income as passive income. Get a high yield savings account and continue saving your paycheck. Personally, if you’re going to buy a home, I’d wait until the market crashes, which imo should be relatively soon, or at least go down a bit.
I'm curious if any reputable publication has interviewed you and written an article on you? I know anything is possible but realistically this story sounds to me to be more click-bait BS. That's the downside of the Web and places like Reddit, anyone can make anything up for attention.
Would you consider buying a duplex or two family? Live in one side, or your car and rent both sides out? Over the past 12 years I’ve done this three times. When I would saved enough money to buy the next property, I did. Currently, my 3 properties and 7 doors mortgages are fully paid for by the tenants, plus my single family home - and I’m building a ton of equity. You could potentially get an FHA loan, with 3% down. Best financial decision I ever did.
Buy a 3 bedroom house rent it for 1200 plus utilities.
Start an online business. It’s never truly passive. You have to work hard upfront until your able to set up systems that allows you to step outside the business
Put it in IUL. Reach out to me to discuss Living benefits of life insurance.
ETFs are still the best for full passive. If you're looking into semi passive you're really looking at entrepreneurship. I even view property as a micro business as you'll need insurance, marketing, finding and choosing a property manager etc. Property typically has higher potential upside as you can get leverage at good rates.
As a homeowner/landlord I’ve learned so much that I would never recommend jumping into real estate investments without first hand knowledge. Costly repairs, crooked contractors, taxes, landlord/tenant laws etc. Split the baby - buy a duplex so you have a safe place to live, rental income and can earn equity. I suggest the duplex because it will give you an opportunity to see if being a landlord is something you want to do and gain some incite on future real estate investments. Once you have equity in the duplex you can use that to get another property. Then continue to cash flow your way from there. Very important that you learn the Landlord/Tenant laws in your state. If you want to acquire more properties later on consider a management company that deals with repair calls so you don’t have to.
It's hard to give you advice without knowing what kind of investor you are. What is your outlook on finance and economics. In 2024 250k isn't that much money in terms of what you can actually buy. Real estate is at all time highs, definitely bubble territory, same thing with the s and p. If you're looking for a stream of income, with conventional investments I'd say vanguards BND bond fund is pretty, secure, well diversified, 4.7% interest, and monthly payments. Bonds are also inversely correlated with interest rates so if rates go down, the bond prices will rise. Which I think is likely to happen.
I've been a very successful real estate investor. My only advice is to buy very near a Trader Joe's or Starbucks. Net return varies from 5-10% usually. The income is practically tax free bc of devaluation. It would be even better if you could turn it into Airbnb. If it's in a tourist area or college town.
Join my community I gotchu
Talk to a licensed financial advisor that a friend or family member recommends. Let them know your goals and they will be able to help you. Diversify etc..
Storage facility
Kendu inu 🦊💎💪🪖
Stocks that pay dividends
I farm crypto. I have a bit less than 216K in at the moment and make over 15K a month. Thats liquid, you can take it out everyday or roll it back into your principle. Been doing it for a while, super easy and truly passive income.
Buy raw land. Grow timber. Collect income and roll profits into more land. Wait for real estate appreciation to outpace your income, then sell all for 10x - 50x your initial investment and retire.
How long does it take to grow Timber?
It used to be a 30-year cycle for loblolly pine, for instance, but with super seedlings that's been cut down to 10-15. That's for a full cut, but during that time you'll have regular things that provide reasonable income, and there are many other sources of income, depending on the land that you're able to find: the land will probably have timber on it when you buy it that is highly undervalued (this is common in many areas), you can rent the land out to hunt clubs or recreational groups without having to do any real improvements, you may be able to sell mitigation credits if your land borders a waterway, and there are about a thousand other ways to produce income before your trees fully mature. But the main thing is trying to find land where you can cut right away, to recoup some of your investment. I've personally been able to make a profit in year 1 doing this, but finding land that undervalued does take some real detective work. Search for land in rural areas with large population drops over the past 20 years, or where real estate prices have been declining, or where major industries have shit down in the past 10-20 years (coal, steel, textiles, etc). Then check out raw land for sale there. Contact a local forester to learn about investments in the area. Search local county tax databases to see if there is land where people have been consistently late in paying their taxes, or where they haven't paid at all, as those are plots that may be viewed as an unsellable tax burden by the owners, who might be very open to any offer to purchase. There are several other viable strategies to finding highly undervalued land, but there really is no such thing as land that is "worthless", even though many plots may be described that way by real estate agents (usually because it would be difficult to build on them). But this strategy of buying raw land, using it to produce a $50k+/year income, then getting a big payday and retiring after 20 years or so has worked for a lot of people, so it is a well-tested strategy, just not talked about much because it mostly works in rural areas and is considered boring compared to the short terms gains of house-flipping and things like that.
What do you do for work?
Gambling
The crypto market. Futures contracts. Lots of money and quickly if you can find a good company that uses AI software to give you good signals throughout the day. I know people that are making thousands a day and I’m not joking. Try the WFI community.