Side business

[Ticker]

Landlord. The second oldest profession known to mankind.

I bought a rental property that I planned on owning long term. Figuring in all my expenses and allowing for future expenses like a roof every 20yrs, water heater every 10yrs etc I came up with a basic formula to figure my cash on cash return based on realistic rental rates. It's not just cash flow month to month, it's return on investment. You don't make your money when you sell the property, you make it when you buy it. I ended up with a 17% cash on cash return. I miscalculated initially and thought I was under 10%. Boy was I happy. Pay too much and you may end up praying to just break even if you have to sell early. That's what happened to the flippers. They were speculating. Gambling. Some got lucky. Many got bit.

My life took a turn and I had to sell. I did not want to be living in a different city than where my property was. Anything you have to pay somebody else to do eats in to your return. I decided to sell. I got lucky, I sold in the middle of the upswing. I made a nice 6 figure profit. I cleared my debt and had a nice cushion when the crash happened. It saved our butts!

I'm seriously considering getting back into the rental business. I had an excellent mentor who helped me along and kept me from making some big mistakes on my first purchase.

 

[Dumb Pilot]

Running a successful business is not really something to be done "on the side." If you're willing to give up aviation, then there are plenty of great businesses out there that you can start and run, being your own boss. But it will be a lot of work the first few years, and trying to fly full time at the same time is unrealistic.

Nonsense....! I'm running my real state investments without a problem, and I have properties abroad as well. Speak for yourself!

 

[PCL_128]

Nonsense....! I'm running my real state investments without a problem, and I have properties abroad as well. Speak for yourself!

Investments are not the same thing as a business. Could you quit your flying gig and live solely on your real estate investments plus have additional profit? If not, they're not a business.

 

[Dumb Pilot]

Investments are not the same thing as a business. Could you quit your flying gig and live solely on your real estate investments plus have additional profit? If not, they're not a business.

As a matter of fact, yes I could. I don't only have investments, I am running construction projects as well, and no! my wife has her own thing going.

 

[Dumb Pilot]

Several of my colleagues here have side business...! So your argument is that there is no way you can manage two or more business at a time?? A good friend of mine has 3 business ventures in three different continents and flies for a major in the US. I know several pilots that have side business, another friend of mine flies corporate and has 4 cafeterias in south Florida.

 

[PCL_128]

As a matter of fact, yes I could. I don't only have investments, I am running construction projects as well, and no! my wife has her own thing going.

I'm impressed! Good for you. Not many people would be able to pull that off.

 

[PCL_128]

Several of my colleagues here have side business...! So your argument is that there is no way you can manage two or more business at a time??

Two or more established businesses? Certainly. Two or more more start-ups? Hell no. Not a chance in hell.

 

[kf4amu]

Investments are not the same thing as a business. Could you quit your flying gig and live solely on your real estate investments plus have additional profit? If not, they're not a business.

I agree with this. My real estate is designed to have a little of my involvement as possible, and only then it's on my own schedule. I run it as seriously as a business, but I wouldn't call it a business.

 

[Dumb Pilot]

Two or more established businesses? Certainly. Two or more more start-ups? Hell no. Not a chance in hell.

Yeah..! Because half a month off is just too little time to use your imagination and delegate work.

 

[PCL_128]

Yeah..! Because half a month off is just too little time to use your imagination and delegate work.

In a couple of start-ups, who exactly are you delegating work to? Because unless you're starting out already wealthy, then start-ups don't have the resources to have employees sitting around who work can be delegated to. A pilot starting up a few businesses certainly isn't going to have those sorts of resources, unless he's fallen assbackwards into a massive inheritence.

Sorry, but I'm calling BS.