Probably best advice yet. Don't get a single family home... Get a small 4-10 unit complex, find a competent management company (unless you're extremely handy), and just sit back. In my part of town, CAP (roi basically) rates were 6% three years ago, but now 9.5% CAP very common.
promoteus1> there are funds that average ~ 10% with low drawdowns heech> where can you find a 6-10 unit building for 150k?
After November a clearer picture will develop as to where to place your elders capital. A good mix of asset including physical ones, to weather any economic events is a must. Portfolio allocation should include some growth aspect with a medium beta to capture any market upswing. A full spectrum approach with some risk due to age of your elder and his interests should be taken into account. Akuma
So why low beta? Wouldn't that mean low IV and low premium? Do you not get paid more for higher beta everything evens out in the long run?
I can't speak for Atticus of course, but the strategy makes sense since he isn't trying to trade out of option positions to avoid assignment. There would be lower risk of the position moving deep itm and having to work out of a big hole when assigned. Perhaps there is more of a comfort level there as well since it is a family member's $$. BTW Atticus, do you avoid higher dividend stocks, or just ignore that aspect when making your stock selections?
+1 This is the closest idea yet. In this market, you bargain hard for bankruptcy or other places - to overcome that properties may still drop in price some. Mortgage rates are very low, which really helps the bottom line. Buy in fairly decent areas (not Detroit!!!), where the monthly rental income compared to the selling price is higher (NOT in NYC metro area!). Areas of the country with lower unemployment rates such as the Dakotas, or in college towns are promising. But you need to bargain hard on the purchase price and the terms 0 that will impact you for decades. And don't get too old a place - the annual plumbing, out of code wiring and other maintenance costs can eat you alive. And a new place will age quickly under an onslaught of tenants who don't care about your property. Think something like 1965 construction (especially if it has been upgraded since) - not 1924 and not 2008.