Author Topic: cash flow or more liquid assets ???  (Read 2003 times)

texxan1

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cash flow or more liquid assets ???
« on: December 10, 2019, 03:19:22 AM »
Ok,, so here is the deal.. about 3 to 4 months away from fire and an offer has come up that im analyzing.

I currently own two Twice the Ice Ice vending machines.. These things do great business and keep cash steadily coming on.   

I have about 2.16m between my investments accounts,cash and such.. i dont not count by vending business, guide business or such in these numbers

So here is the deal, ive got my side gigs set up to go for retirement after megacorp but if i calculation my cash flow.. Its very much market dependent with the exception of the side gigs ( ice machines and fishing business)

The opportunity has come up for me to buy two existing ice machines... roughly 120k each.   Each earn around 35k Net per year..

So if i deduct initial cost from my nest egg.. still leaves me with 1.9m.

The way i see it, these machines have a lifetime of 10 to 20 years... depending on location etc.  One of these is 2 years old, the other is 6.. both good shape and not needing much..

So if i was pulling 70k total from these two, and another 50k from my other machines... im at 120k a year and wouldnt have a need to touch my investments letting them compound for a long time

i kinda want more cash flow in my life, since im about to get married and my young bride will want to travel some.... which im good with

a few tidbits

Age 47 ( 48 at time of fire next year) (fiance 32)
Paid for house  500k
Paid for boats
Paid for truck

I have zero debt, and want to keep it that way forever.

So what do you guys think, cash flow or save the money and just let it ride in the market...   im leaning cash flow and more return on investment... I guess i do need to throw this in there.. I do not operate my machines, i have a young man who does it for me and will continue... He gets 11% of gross.

Thanks

Tex

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Re: cash flow or more liquid assets ???
« Reply #1 on: December 10, 2019, 07:48:49 AM »
You have a business that is almost a dead lock to produce 20%+ cash on cash returns without requiring debt and you have to think about it?  Buying the ice machines is a no brainer to me.

MrBean

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Re: cash flow or more liquid assets ???
« Reply #2 on: December 21, 2019, 07:12:37 AM »
I feel like now's a great time to spend some cash on an income producing asset.

The alternative is you put that cash in the equity markets, which are at an all time high. That could pan out for you, but A.) we could take a market hit dropping value and spending 3 years catching up and B.) I don't think you'll regret cashing in some equity value at the 11year mark of a bull run. If now's not a good time to convert that to operating assets, I don't know when will be.

I'm generally conservative but it sounds like you have the experience and expertise to turn these new machines into profits. Good luck with your marriage! Wishing you the best.