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    Trading Long Strangles vs. Rental Properties: The Best Use of Leverage to Build Wealth: Financial Freedom, #255
    Trading Long Strangles vs. Rental Properties: The Best Use of Leverage to Build Wealth: Financial Freedom, #255
    Trading Long Strangles vs. Rental Properties: The Best Use of Leverage to Build Wealth: Financial Freedom, #255
    Ebook93 pages1 hour

    Trading Long Strangles vs. Rental Properties: The Best Use of Leverage to Build Wealth: Financial Freedom, #255

    By Joshua King

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    About this ebook

    Getting into real estate is a tough proposition nowadays. Just getting into a primary residence is daunting, let alone buying a rental property.

     

    A more accessible way to use leverage is trading long strangles on the options market.

     

    A long strangle involves buying one put and one call to "strangle" the stock price. You can profit in either direction as long as the stock moves violently.

     

    Owning rental properties is the long game, as it may take 20 years to become profitable. Once you have the startup capital, you can turn a profit rather quickly with options trading.

     

    Ideally, you would trade long strangles over a few years to grow your down payment for a rental property. Then, you can leverage up from there. Good Luck!

     

    LanguageEnglish
    PublisherJoshua King
    Release dateAug 13, 2024
    ISBN9798227956248
    Trading Long Strangles vs. Rental Properties: The Best Use of Leverage to Build Wealth: Financial Freedom, #255

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      Book preview

      Trading Long Strangles vs. Rental Properties - Joshua King

      Table of Contents

      MILITARY FAMILY INVESTING | Joshua King | Home of the Free PDF

      Trading Long Strangles vs. Rental Properties

      All Right Reserved Military Family Investing | 01  Trading Long Strangles vs. Rental Properties

      02  Is Homeownership Still the American Dream?

      03  Is It Difficult to Own Multiple Homes?

      04  The Sacrifice of Retirement

      05  Build Wealth Slowly 2

      06  Saving for a House Down Payment #5: Family, Small City

      07  Trading Long Strangles vs. Money Market Funds

      08  Trading Long Strangles for Passive Income

      09  BCRE: Become Capitalist Retire Early

      10  The Options Wheel vs. Dividends

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      MILITARY FAMILY INVESTING

      Joshua King

      Home of the Free PDF

      www.militaryfamilyinvesting.com

      Trading Long Strangles vs. Rental Properties

      The Best Use of Leverage to Build Wealth

      01  Trading Long Strangles vs. Rental Properties

      02  Is Homeownership Still the American Dream?

      03  Is It Difficult to Own Multiple Homes?

      04  The Sacrifice of Retirement

      05  Build Wealth Slowly 2

      06  Saving for a House Down Payment #5: Family, Small City

      07  Trading Long Strangles vs. Money Market Funds

      08  Trading Long Strangles for Passive Income

      09  BCRE: Become Capitalist Retire Early

      10  The Options Wheel vs. Dividends

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      Disclosure: I am not a financial advisor or money manager, and any knowledge is given as guidance and not direct actionable investment advice. I am an Amazon Affiliate. Please research any investment vehicles that are being considered. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it.  I have no business relationship with any company whose stock is mentioned in this article.

      All Right Reserved Military Family Investing

      01  Trading Long Strangles vs. Rental Properties

      Owning a home has become increasingly difficult. Most people view homeownership as the simplest way to build wealth, but those days may be over.

      Further, owning multiple properties and becoming landlords allowed people to grow their net worth, increase their passive income, and build generational wealth.

      However, purchasing a primary residence is challenging enough; how should people buy an additional property to rent?

      The Bait Resignation: Should You Quit Your Job?

      The magic of leverage? Purchasing a home is so powerful because buyers can use leverage. In this case, leverage means the buyer can invest 20% of the purchase price, and the bank will give them a loan for 80%.

      However, with high home prices, saving the 20% down payment can challenge most average Americans. However, we can use leverage in other parts of the financial market, such as options trading.

      Today, I want to evaluate how the average person can use leverage to purchase a rental property or trade options (specifically long strangles).

      Each path has pros and cons, but the overall goal is to build wealth slowly; therefore, we will make decisions with that as our primary objective.

      Join Up! Time to Sign Up for the Military

      Let’s start with our primary residence. Before you purchase a rental property, you’ll want to buy your primary residence. I recommend buying something small, cheap, and safe first.

      Your primary residence is your launchpad for all your future real estate ventures. You can take multiple paths once you purchase your primary residence.

      Wait until rents equal your mortgage. Once the rental value of your primary residence equals your mortgage, it’ll be easy to move and rent your current home. You may need another down payment.

      Use a cash-out refinance. Once you have enough home equity, you can use a cash-out refinance to obtain the down payment for a rental property. Your mortgage may increase, but getting a roommate can offset the cost.

      Invest with a family member. You can obtain an equity stake with a family member by helping with the down payment. Investing with your

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