Passive Income Ideas for 2019

3 updated Passive Income ideas for 2019 - including ideas for seasoned investors with over a million to invest, as well as options for those starting out with little or no money. We also look at section 179 tax breaks to turbo charge certain passive investments.
So stocks overvalued, real estate in cities overvalued. Where else can we go. So in our last passive video we covered franchises. Franchises can be a good option and I won't go over this again in detail but here are the high points. 1. Not all franchises are passive like you may think - in fact most big name franchise brands require you to dedicate a full time effort to the business. you can still own multiple units, but they want you making sure your restaurants or salons are always clean and operating well.
Now a limited number of franchises do have completely passive ownership options, others have managed models or semi absentee that might require 10-15 hours a week. So we see a lot of working professionals who start with a single location and keep their job, then two locations and eventually after opening 5-6 locations will then quit their job. Hair Salons are a popular choice for passive because unlike food there is no inventory, no theft, no spoilage, and it's a relatively simple operational model. They also have great remote tracking software so you can see number of cuts per day and total revenue even if you are sitting in a beach somewhere. And While the market overall has been stagnant there are certain markets within the beauty sector that have grown over the past 2 years.
Now an exciting additional tax benefit now available is the section 179 depreciation deduction which allows you to deduct certain equipment as an actual expense rather than depreciating it over time up to one million dollars. So if your taxable income is up there this is an amazing way to get a 100% tax write off. It's a beautiful thing. There are a limited number of very specific passive ownership businesses that do qualify for section 179 due to the nature of the equipment such as water purification, or services involving vehicles.Now for high income earners because of the tax benefits alone this type of business can bring significant benefits. If you have a minimum of 200k to invest feel free to contact franchise city for a list of options available in your area, and for everyone else make a point to check into the section 179 for your own business as your vehicles or other equipment may qualify for a big tax deduction..
If you look outside cities there is some very cheap real estate. If you are in Gary Indiana you can apply for their $1 house program - true story but you need to rehab the home within one year. Think outside the box and outside the cities. or if you prefer the city - 2.5 million.