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Ask HN: What passive income investments exist to supplement your salary?

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Re: Ask HN: What passive income investments exist to supplement your salary?

#261

Post by PiRho3141 »

revicon wrote: post #245
PiRho3141 wrote: post #59

I see a lot of people talking about rental properties and I don't think there's enough talk in favor of rental properties so here's my shot at it. My philosophy of being a landlord is not to bank on appreciation, but rather find houses where the mortgage is well below what tenants are paying for. How do you find those kinds of houses? You buy dilapidated houses, renovate them and then rent them out. If you don't want…

I think you missed mentioning the greatest thing about rental properties: You're buying the property using someone else's money (via a mortgage). There is literally no other investment besides real estate that allows you to do this.

I did. Fourth paragraph number 3:

Principal payments (part of the mortgage the tenant pays goes into the principal of the property--usually around 30% of the first payment goes to principal if you put down 20% and it only goes up from there

Re: Ask HN: What passive income investments exist to supplement your salary?

#262

Post by jimmydorry »

jmcqk6 wrote: post #197
jimmydorry wrote: post #134

Earlier quoted context omitted.

The problem with this though is that you are giving ammunition to those shooting at you. If their gambit succeeds (shorting), the value of your shares diminish. The net effect of doing this might not be entirely visible as a "smaller fish in the pond", but it is there none-the-less.

>If their gambit succeeds (shorting), the value of your shares diminish. The causality here seems kinda confusing. People shorting an equity doesn't make it go down automagically. They don't have control over that. They might be right that the stock will go down, but more likely, the shares are going to be used by someone riding trends of some sort. If you're a long term investor, you don't care about short term tren…

The shorter borrows the stock to immediately sell (typically at the “buying” price of the spread). This creates immediate down pressure on the price, which is meant to be balanced by eventual up pressure when they have to buy shares to cover.

If you add up the effect on the price lending all retail stocks has on the market, it won’t be insignificant.

Looking at it the other way, if you can generate “less risk” income off it, you have to be aware that the people borrowing the stocks are earning more than they are parting with.

There is no free lunch on the stock market.

Re: Ask HN: What passive income investments exist to supplement your salary?

#263

Post by jimmydorry »

quickthrower2 wrote: post #193
jimmydorry wrote: post #134

Earlier quoted context omitted.

The problem with this though is that you are giving ammunition to those shooting at you. If their gambit succeeds (shorting), the value of your shares diminish. The net effect of doing this might not be entirely visible as a "smaller fish in the pond", but it is there none-the-less.

Not if you are buying for the long term. The shorters need to close their positions eventually so that’s a buy back. The shorters can’t be long term.

That has been the prevailing wisdom, as far as I was aware of it. But as many have recently been made aware, there are sophisticated ways to continue rolling over your shorts while increasing your short position.

Re: Ask HN: What passive income investments exist to supplement your salary?

#264

Post by hookdump »

marmot777 wrote: post #244
js2 wrote: post #214

Earlier quoted context omitted.

I have lots of those books. They are among the 10% of books that aren't crap.

For sure. I like the animals on the covers too.

I actually buy these books only because of the nice cover pictures.

Re: Ask HN: What passive income investments exist to supplement your salary?

#265

Post by EVa5I7bHFq9mnYK »

impostervt wrote: post #32

Publish books on Amazon. I've published 4 and make about $3k in profit per month, after paying for ads on amazon. Don't write them yourself, that's a lot of work. Instead, do key word research about what books sell in non-fiction categories (fiction is a whole different ballgame). Look for keywords that 1) auto complete in the amazon search bar, and 2) have less than 4,000 matching books, and 3) have an average Amazo…

Well, he did create "an outline on the subject" and spent a few days on it. It is theoretically possible he is so talented that this creative work alone made it a worthy read.

Re: Ask HN: What passive income investments exist to supplement your salary?

#266

Post by EVa5I7bHFq9mnYK »

quickthrower2 wrote: post #176

I’m doing some eBay arbitrage for about $200 a month profit but I’m just starting. I call it arbitrage as I buy at consumer prices from a store online and sell on eBay for a profit. I profit even when paying listing fees, shipping and PayPal fees.

It's not a passive investment.
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