Hello everyone I had a question about investing rental income. I am not asking for advice on what particular investment I should invest but I was curious to hear what everyone else might be doing with their additional money to help it grow.
I was thinking to help my rental income grow. I should invest it into the stock market or some other investment (of course I leave emergency funds in case something happens). What do you guys do to help your money grow faster instead of having it sit in your bank account. Look forward to hearing from you guys.
@Mohamed Farih I leave mine in the bank. But I put it in a high yield savings account. I currently have my money in a Wealthfront Cash account 2.35% interest. I recently saw adds for green dot wich advertises 3%. I know that this is ultraconservative but since I would like to use the money to reinvest in another property at some point then I would rather not risk losing value in the stock market. I am not against the stock market I have investments there too but bu my real estate money.
A couple things here. One, you are 100% correct in that you should have some sort of emergency fund. How large that $ amount is is up to you. You are also correct in that once you have that emergency fund built up, you should invest the rest. Money sitting in the bank account is doing you no good, and most would argue you are losing money to inflation.
As far as what to invest in, I can't answer that without knowing your goals. Personally, I'm all in on real estate with a little money in the market as it's more liquid than real estate. I can get to it in case of an emergency whereas trying to sell a rental house quickly isn't that easy.
What are your financial goals? It sounds like you're asking how to let your current savings grow until you reach enough for maybe a down payment on another rental?
@Tyler Gibson Thank you for your advice. I have looked into high yield savings account. I am considering that as an option. I do plan to grow my money to hopefully invest into more real estate.
@Aaron Bonne Ultimately my financial goals are to invest into more real estate and I am trying to figure out what are my best options to make my money grow to ultimately use it for future investments. So what do you usually do with your extra rental income to make it grow a little faster?
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