vania-janet/multiturn-rag-retrieval-data huggingface dataset:
It actually depends on the services provided. If you're renting through AirBnB, you're likely to provide much more services to the tenants than a traditional rental. It may raise it to a level when it is no longer a passive activity. See here, for starters: Providing substantial services.   If you provide substantial services   that are primarily for your tenant's convenience, such as regular   cleaning, changing linen, or maid service, you report your rental   income and expenses on Schedule C (Form 1040), Profit or Loss From   Business, or Schedule C-EZ (Form 1040), Net Profit From Business. Use   Form 1065, U.S. Return of Partnership Income, if your rental activity   is a partnership (including a partnership with your spouse unless it   is a qualified joint venture). Substantial services do not include the   furnishing of heat and light, cleaning of public areas, trash   collection, etc. For information, see Publication 334, Tax Guide for   Small Business. Also, you may have to pay self-employment tax on your   rental income using Schedule SE (Form 1040), Self-Employment Tax. For   a discussion of “substantial services,” see Real Estate Rents in   Publication 334, chapter 5
Millionaires?   No offense, but you're talking out of your ass.    My mother lives in a house that my parents bought in the 1980s.  She's definitely not a millionaire.  Nowhere close.  But she owns the house free &amp; clear and can afford the taxes.  I bought my house from a retired lady for about 5x what she paid for it in the sixties.  Maybe more.  I don't recall, but she was the original owner.  Definitely not a millionaire.  Just a retired widow.  Most of the folks who own these 1950s to 1980s tract homes in good areas are beneficiaries of good locations and lack of development.    The reason those homes are so valuable is because we're not building new housing in anything resembling the scale needed.  We need something like 40,000 new units built annually in Los Angeles and Orange counties to catch up to the population growth and lack of new construction happening now.  It ain't gonna happen, but that's what we need.    In 20 years, I'll benefit from Prop 13.  It flows.  And it benefits property owners.  It encourages property ownership.    If you wanted to argue that property taxes on commercial properties should be different from residential properties, I'd be up for the debate.  It's an interesting topic and I don't know the answer, but it would result in wholesale reduction in commercial property values in the state because of the reduced cash flow from higher taxes.  Huge dislocation and a massive transfer of wealth from commercial property owners to the taxpayers.
Over the last ten years you have reaped the benefits of a good financial decision. (Presumably your low mortgage has freed up money for other financial priorities.) There would be no harm in making a clean break by selling as is.  On the other hand, the resale value would probably be rather low considering the condition and the neighborhood. I don't want to assume too much here, but if a potential buyer is interested in the house by virtue of not being able to afford a house in a better neighborhood or better condition, their finances and credit history may make it difficult for them to be approved for a mortgage. That would reduce the potential buyer pool and further reduce the sale price. If you can pull more in rent than the mortgage, you definitely have an opportunity to come ahead. Maybe window A/C units and a repaired chimney are enough if you're renting. Your rental income would pay for that in less than a year even while paying your mortgage for you. (Of course you don't want to become a sleazy slumlord either.)
You can hire a builder to build for you on a lot that you would be happy to live on with utilities already connected. Subdividing a large piece of land gets a little more complicated. What easements exist, and what new easements would need to be created when connecting utilities? Would all of the lots already have street access, or do you need to dedicate some of the land to building a new road in the subdivision? Also, I edited your post because 83,000sqft is 1.9 acres. Building homes on .19 acre parcels (assuming no need for a road to take another 15% of the lot) reduces the value of the homes that you are building. You should run the numbers with 6 houses and see how attractive the math looks. Also, you should look for updated numbers on cost to build. Custom homes are likely closer to $275-$350 (where an architect is involved with drawing the plans).
You can't even assume that a rule like ""all expenses over $50 must be cleared by me first"", as that can simply mean that they don't bother to come to you for certain kinds of repairs that would cost more than that, or that they just get them ""taken care of"" by their own person (done poorly, illegally, etc.) and never tell you. Never trust their choice of tenants blindly. Visit the place yourself at least every few months - a quick driveby at a minimum or better if you can, arrange a reason to walk through the house personally. Check the back yard, never assume that the front yard is indicative of anything else. Never assume that a ""no pets"" rule will be followed, or that tenants wouldn't lie to the management about having pets. Never assume that the tenants won't move additional people into the property as well. Always expect a bare minimum of 1 month vacancy every year, and an additional minimum of 1 month's rental revenue in unexpected maintenance/repairs every year. This is at a minimum! You might do much better than this, and have a high quality tenant in place for years who costs next to nothing in extra maintenance. But do not count on it. Rental real estate investing looks so simple on paper, where it's just numbers. But reality has a very rude habit of surprising you when you least expect it. After all, no one expects the Spanish Inquisition! Good luck!"
Your experience is anecdotal (outside Australia things are different). There are many companies and real estate investment trusts (REITs) that own residential properties (as well as commercial in many cases to have a balanced portfolio). They are probably more common in higher-density housing like condos, apartment buildings, flats, or whatever you like to call them, but they are certainly part of the market for single family units in the suburbs as well. What follows is all my own opinion. I have managed and rented a couple of properties that I had lived in but wasn't ready to sell yet when I moved out. In most cases, I wish I would have sold sooner, rather than renting them out. I think that there are easier/less risky ways to get a good return on your money. Sometimes the market isn't robust enough to quickly sell when it's time to move, and some people like the flexibility of having a property that a child could occupy instead of moving back in at home. I understand those points of view even if I disagree with them.
You are neglecting a few very important things around real estate transactions in Belgium So in the end a 300K building may cost you more than 340K, let's take some unexpected costs into account and use 350K for remainder of calculation. Even worse if it's newly built (which I doubt) the first percentage is 21% (VAT) instead of 10%. All these costs can be checked on the useful site www.hoeveelkostmijnhuis.be Now, aside from that most banks will and actually have to demand you pay part of all this yourself. So you can't do 5*60K (or 5*70K now). Mostly banks will only finance up to about 90% of the value of the building, so 90% of 300K, which is 270K (5*54K), the other 80K (5*16K) you have to pay yourselves. But it could be the bank goes as low as 80%. Another part to complicate the loan is how much you can pay a month. Since the mortgage crisis they're very strict on this. There are lots of banks that will not allow you to make monthly payments of more than 33% of your monthly income when you are going to live there. This is a nuisance even when buying one house, you want to buy 2. Odds seem low they'll accept high monthly payments because you either need an additional loan or need to pay rent, so don't count on a 5y deal. Now this is all based on a single loan, it will probably be a bit different with multiple loans. However, it is unlikely any bank will accept this, even if all loans are with the same bank. You need to consider the basics of a real-estate loan: A bank trusts you can pay it off and if not they can seize the real-estate hoping to regain their initial investment. It's very hard to seize a complete asset if only one out of 5 loan-takers defected. You could maybe do this with another less restrictive/higher risk type of loan but rates will be a lot higher (think 5-6% instead of 1.5%).
It is a necessary process to inspect the building. If you want to buy a building in future, then you should search a good experienced team, that's done professional work. As you know, today so many problems are creating. We perform by a good  inspector, the Assured Building Inspections are the most and  regulatory building inspection safety agency, which is available in your city. We are responsible for overseeing the most effective and efficient services. It's also known as Australia's largest  pre purchase building inspections Newcastle NSW. Building inspectors impact the making plans and creation levels of initiatives and investigate compliance with constructing codes.
List of critical skills that gets you a shot at being an agent: http://www.fbijobs.gov/1112.asp  Accounting, Finance, and Law qualifications are huge, and I think the most common way in.  Foreign language proficiency is pretty huge, too.  Still, something like IT or law enforcement experience can get you there.  It helps a lot if you're non-white and female.
"as someone that works in finance, i will say it is really hard to get out of the sales web, regardless of where you are.  i don't want to discourage you, but you will need to get advanced degrees/certification to get into analysis or fund management. there are plenty of broker/service roles available at large broker-dealers, but you will take a pay cut and likely only advance to your current pay in those roles. and you will still have some ""soft"" sales responsibilities.  all that being said, if you want to go this route, go for it - and the sooner the better. if you are smart and hardworking, you can wrap up your bachelors in 2 years and then go for the CFA over the next 3. you'll need some luck to do the CFA in that amount of time (as there are 3 levels that take a minimum of 1 year each to complete), but you could potentially have some traction in 5-6 years.   so it would be difficult, but achievable. the CFA will qualify you for some corporate finance roles as well. i have some friends that were hired to these positions after only passing the first or second levels of CFA, but i believe they had accounting/finance background already.  i think that, regardless of your intermediate term plan, getting a bachelors is a great next move. it's a minimum in a growing number of financial roles. you can also look at getting the CFP, which is less demanding and quicker, but it will remove you less from the sales process. (you need a bachelors to qualify for the CFP, too)"
It really is dependent upon your goals.  What are your short term needs?  Do you need a car/clothing/high cost apartment/equipment when you start your career?  For those kinds of things, a savings account might be best as you will need to have quick access to cash. Many have said that people need two careers, the one they work in and being an investor.  You can start on that second career now.  Open up some small accounts to get the feel for investing.  This can be index funds, or something more specialized.  I would put money earmarked for a home purchase in funds with a lower beta (fluctuation) and some in index funds.  You probably would want to get a feel for what and where you will actually be doing in your career prior to making a leap into a home purchase.  So figure you have about 5 years.  That gives you time to ride out the waves in the market. BTW, good job on your financial situation.  You are set up to succeed.
Wow! First, congratulations! You are both making great money. You should be able to reach your goals. Are we on the right track ? Are we doing any mistakes which we could have avoided ? Please advice if there is something that we should focus more into ! I would prioritize as follows: Get on the same page. My first red flag is that you are listing your assets separately. You and your wife own property together and are raising your daughter together. The first thing is to both be on the same page with your combined income and assets. This is critical. Set specific goals for the future. Dreaming and big-picture life planning will be the foundation for building a detailed plan for reaching your goals. You will see more progress with more sacrifice. If you both are not equally excited about the goals, you will not both be equally willing to sacrifice lifestyle now. You have the income now to be able to set yourselves up to do whatever you want in 10 years, if you can agree on what you want. Hire a financial planner you trust. Interview people, ask someone who is where you want to be in 10 years. You need someone with experience that can guide you through these questions and understands how to manage your income stream. Start saving for retirement in tax-advantaged accounts. This should be as much as 10%-15% of your income combined, so $30k-$45k per year. You need to start diversifying your investments. Real estate is great, but I would never recommend it as this large a percentage of net worth. Start saving for your child's education. Hard to say what you need here, since I don't know your goals. A financial planner should assist you with this. Get rid of your debt. Out of your $2.1M of rental real estate and land, you have $1.4M of debt. It will be difficult to start a business with that much additional debt. It will also put stress on your retirement that you don't need. You are taking on lots of risk here. I would sell all but maybe one of the properties and let it cash flow.
You are young so you have time on your side. This allows you to invest in more aggressive investments. I would do the following 1) Contribute at least what your company is willing to match on your 401k, if your company offers a Roth 401k use that instead of the normal 401k (When this becomes available to you) 2) Open a Roth IRA Contribute the maximum to this account ~$5500/year 3) Live below your means, setup a budget and try and save/invest a minimum of 50% of your salary, do not get used to spending more money. With each bonus or salary increase a minimum of 75% of it should go toward your savings/investment. This will keep you from rapidly increasing your spending budget.  3) Invest in real estate (this could be its own post). Being young and not too far out of college you have probably been moving every year and have not accumulated so much stuff that it makes moving difficult. I would utilize your FHA loan slot to buy a multifamily property (2-4 Units) for your first property using only 3.5% down payment (you can put more down if you like). Learn how to analyze properties first and find a great Realtor/Mentor. Then I would continue as a NOMAD investor. Where you move every year into a new owner occupied property and turn the previous into a rental. This allows you to put 3-5% down payment of properties that you would otherwise have to put 20-25% and since you are young you can afford the risk. You should check out this article/website as it is very informative and can show you the returns that you could earn. Young Professional Nomad Good luck I am in a very similar situation
1) Don't get an MBA yet. You should spend ~3-5 years in the industry first.  2) If you think you need Excel classes, you probably need Excel classes. Depending on what type of path you want to take, either learn financial modeling/forecasting or data analysis. Or both. There are a ton of free resources online to get yourself started. [Like this.](http://macabacus.com/)  3) If you need to, start in an ops/support role to build your network. These roles don't require a ton of industry experience, allow you to build your skill set, and (most importantly) allow you to network with people in the industry. I started off in a Market Risk support role at a major bank and now I'm working in front office finance. Just go above and beyond people's expectations, learn as much as possible, and keep an end game goal in mind.
You have made the most important first step by starting to think about your money, well done. Firstly pay of all credit cards as quickly as you can and start to live within your means.  Until you have paid of your credits cards don’t spend any money of unnecessary items, e.g. Once your credit cards are paid off you can start living a more normal life.  Each time you spend money you need to ask yourself: Is this worth more to be then being   able to buy a new house in a few years   time? You should be able to save at least half the amount you were paying of the credit card each mouth and still leave a reasonable life, so setup a standing order at the start of the month to  your saving account. Given your age you are like to get promoted and hence have increased pay or get increments for each year of service.  Therefore Every time your pay goes up, set up a   standing order to transfer at least   half of the pay increases to a saving   account.   You did not have this money   before, so you will not miss it when    you save it. In the long term, you should be able to keep your car until it is about 15 years old, so will not have the cost of buying another car.  Therefore once the car loan is over, you can save that money as well.
"At this stage, I would think about education.  You can attend open houses, and often times real estate agents and bankers put on seminars for first time home buyers.  Borrow books from the library and I would watch some HGTV.  Many of the shows are entertaining and quite educational.   Secondly you may want to get your finances in order.  Make and stick to a budget.  Start building a down payment and emergency fund.  Pay down consumer debt/student loans.  Picking up side work or overtime will help.   You will look far more attractive to a lender if you go in with a large down payment and an emergency fund then someone with better credit scores and 100% financing.  That is if the lender does manual underwriting.  If not, then use a different lender. Once you get a budget figured out, how much of a down payment and emergency fund you need, and how much consumer debt to pay off, you can then predict when you will hit your goals.  Then you will know when you are ready to buy.  If it seems too far off, cut spending and work more if it is that important to you! You can make a prioritized list about what is most important features to you and your wife. I would wait on doing this until after you view some homes.  Open houses are a great way to do this, but be careful not to get ""house fever"" and rush into a decision.  You will get some encouragement to do so by the selling agents.   After viewing some homes, and developing your list you can get an idea as of what the home will cost.  This will further refine your budget, goals, and timeline.    I think that is a lot of work to start."
One way is to think of a REIT as a fully managed portfolio of real estate investments. Risks and returns are averaged across the real estate portfolio and managed by experts, possibly industry leading experts.  REITs have a well documented track record you can research - most individuals do not. Many individuals have learned a hard lesson or two while attempting to generate passive income with real estate. Conversely, some people derive a great deal of satisfaction from owning real estate and have a true passion to do so.  Plus, if you are expecting interest rates to raise and/or rate of inflation to increase in the next 30 years, you may benefit from the financing aspects of the investment as well.  There are some regions/ opportunities that seem to do better than the average REIT a majority of the time, but may not be desirable to you or fit into your budget for various reasons. I'm not sure what your level of experience, knowledge or financial situation , but for everyone considering, there are many additional things to know about investment property compared to a primary residence.  A good place to start with REITs is the prospectus of one that interests you.  Research their holdings, create a model, or otherwise make a connection with the REIT before clicking buy.
why not ask a fee only financial adviser? Contact a local adviser and ask how much they will charge to work through the process.  The options aren't as complex as they seem. The general idea is to first figure out what you can afford each month. This is a generally straight forward calculation.  Then figure out the costs that are specific to your area, e.g property taxes.  Figure out how much of a down payment /closing costs you can gather.  Then start with your local bank or credit union. The number of options for mortgages will not be as complex if you already know how much you can afford and how much cash you can bring to the transaction. A simple table can be easily created based on what you can afford each month, how much cash you have, and the rates currently available. The bank will have a way to estimate the costs of each option as part of the required disclosures. Another source of good info can be a highly regarded local real estate agent. Focus on one that will represent you as a purchaser. They want you to be able to buy a house. While they do have a bias, they want a commission, most of it is eliminated if you know how much you can afford before you meet with them. They will know all the government programs that can make the monthly costs or closing costs cheaper.
Can't pretend to be an expert in construction or real estate but I'm pretty sure that you can approach the people you know and pay them on a per job basis. I'm pretty sure finding other workers on a per job basis will be easy. I wouldn't say its common but its not uncommon either.
In no particular order - to help you on deciding whether to invest or not: Building Wealth One House at a Time Buy & Rent Foreclosures: 3 Million Net Worth, 22,000 Net Per Month, In 7 Years...You can too!  Landlording on Auto-Pilot: A Simple, No-Brainer System for Higher Profits and Fewer Headaches and for when/if you actually decide to start: Investing in Real Estate I've read all the books above and they all have a little bit of information here and there to take out - although they have some redudency it is the good type you need to learn/know anyway. Hope this helps.
"If you're looking for a well-rounded view into what it's like to actually own/manage real-estate investments, plus how you can scale things up & keep the management workload relatively low, have a look at the Bigger Pockets community.  There are blogs, podcasts, & interviews there from both full-time & part-time real estate investors. It's been a great resource for me in my investments. More generally, your goal of ""retiring"" within 20 years is very attainable even without getting extravagant investment returns.  A very underrated determinant in how quickly you build wealth is how much of your income you are contributing to investments. Have a look at this article: The Shockingly Simple Math Behind Early Retirement"