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He Walked Away From 10 Booming Properties At The Peak Of The Market. 'People Tell Me I'm An Idiot,' Says The Real Estate Investor
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Seth Jones spent nearly a decade building a 10-property real estate portfolio across Florida and South Carolina. He sold every one of them. The Rule Guided His Investments—And His Exit Jones, a former mortgage broker in Port Orange, Florida, followed a simple but strict rule: if a property couldn't rent for at least 1% of its purchase price each month, it wasn't worth buying. "It's very simple, back-of-the-napkin math," Jones, 36, told Business Insider. "On a $100,000 property, am I able to rent it out for $1,000 per month? On a $200,000 property, am I able to rent it out for $2,000 per month?" Shop Top Mortgage Rates A quicker path to financial freedom Your Path to Homeownership Personalized rates in minutes Don't Miss: 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. Accredited Investors: Grab Pre-IPO Shares of the AI Company Powering Hasbro, Sephora & MGM— He and his wife lived extremely frugally, relying solely on her teacher's salary while using all of his income to save for properties. "We hardly ever ate out and never went to bars," Jones said. After starting with two small homes in 2014, he gradually expanded. By 2019, he owned higher-quality properties in strong school districts, including one out-of-state investment in Lexington, South Carolina, purchased for $138,000. But as the COVID-era housing boom began, Jones started to feel uneasy. "I watched things take off," he told Business Insider. "The fundamentals started to change." He noticed the industry shift away from cash flow toward speculation and appreciation. That didn't sit right with him. "That's just never how I've looked at underwriting deals," he said. Trending: $100k+ in investable assets? – no cost, no obligation. From Landlord To ETF Investor Between 2019 and 2023, Jones sold all 10 properties. One of them, purchased for $190,000, sold for $500,000. Instead of buying more real estate, he moved everything into a diversified exchange-traded-fund portfolio that includes stocks, gold, and both short- and long-term treasuries. "I have no regrets," Jones said. "I think I'll be vindicated once we have some type of correction." Not everyone agrees with his decision. "I have people who tell me I'm an idiot for selling off my properties," he told Business Insider. "They think they could've made 10 times what I did." Even so, Jones said the relief has been worth it. 'From a liability perspective, I have no external worries. No one's going to get hurt. I'm not dealing with late-night phone calls.' He added that while there is still stress in stock investing, life is 'way simpler' now. , The 1% Rule Still Has Value The 1% rule isn't perfect, but it's a common starting point for real estate investors. If monthly rent meets or exceeds 1% of a property's purchase plus rehab cost, it's often seen as having the potential for positive cash flow. For example, if a home costs $170,000 total, an investor should be able to rent it for at least $1,700 per month to meet the rule. While easy to calculate, it doesn't account for factors like mortgage rates, homeowners association fees, or maintenance costs. Other methods, like the 2% rule or the 50% rule, which reserves half of rental income for expenses, offer different perspectives. But for Jones, the 1% rule offered the clarity and discipline he needed to make confident decisions. Read Next: With Point, you can This article He Walked Away From 10 Booming Properties At The Peak Of The Market. 'People Tell Me I'm An Idiot,' Says The Real Estate Investor originally appeared on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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'I Don't Do Anything Other Than Working,' Says Perplexity CEO Aravind Srinivas As His $14 Billion AI Startup Challenges Tech Giants
Perplexity Chief Executive Officer Aravind Srinivas says speed and urgency are nonnegotiable as his artificial intelligence startup races tech giants. "I don't do anything other than working," Aravind Srinivas admitted in a Reddit Ask Me Anything in May, emphasizing the intense focus needed to stay ahead in the AI race. Srinivas leads a $14 billion search engine challenge to Alphabet (NASDAQ:GOOG, GOOGL)), Microsoft (NASDAQ:MSFT), and Apple (NASDAQ:AAPL). Speaking at Y Combinator's AI Startup School in mid-June, he warned that bigger firms will inevitably copy successful ideas. Investors crave speed, rivals borrow ideas, and users expect quick answers. Srinivas's strategy is clear: move faster than fear and keep building. His advice to founders is to treat urgency as a protective moat until the tech giants catch up. Don't Miss: Accredited Investors: Grab Pre-IPO Shares of the AI Company Powering Hasbro, Sephora & MGM— 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. You can Embracing Fear As Strategy "Live with that fear. You have to embrace it," Srinivas told the students, explaining that founders must remember "your moat comes from moving fast and building your own identity." He added a broader warning: "You should assume that if you have a big hit... a model company will copy it." Perplexity shocked Silicon Valley with a $14 billion valuation after its Series C funding round in May. Bloomberg reported in June that Apple executives even discussed acquiring the startup to strengthen Safari's search abilities. Google and Microsoft responded by adding AI summaries to their search results. Srinivas simply shrugs, insisting that speed outpaces scale. Work-Life Trade-Offs Get Real Srinivas doesn't downplay the personal strain of running an AI startup. In the same Reddit AMA, he admitted to working nonstop, squeezing in audiobooks and podcasts whenever he could—even if sleep had to wait. He urges individuals to ditch doom‑scrolling on Instagram and focus on mastering AI instead, warning that adaptability and grit—not comfort—will determine who thrives as the field accelerates. Trending: $100k+ in investable assets? – no cost, no obligation. AI Gold Rush Raises Stakes OpenAI CEO Sam Altman predicted a "one-person billion-dollar company" while chatting with Reddit co-founder Alexis Ohanian last year. Meanwhile, former "Shark Tank" investor Mark Cuban went further in June, telling the 'High Performance" podcast that AI may mint the first "trillionaire... just one dude in a basement." Those forecasts intensify the spotlight on Perplexity and the broader AI field. But with that spotlight comes pressure. Perplexity's head of communications, Jesse Dwyer, told Business Insider that Big Tech companies "not only copy your features but they also try to drown your voice," highlighting the uphill communication battle startups face when competing with dominant platforms. Read Next: Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." Can you guess how many retire with a $5,000,000 nest egg? . Image: Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article 'I Don't Do Anything Other Than Working,' Says Perplexity CEO Aravind Srinivas As His $14 Billion AI Startup Challenges Tech Giants originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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Jobs report shocker resets Fed interest rate cut bets
Jobs report shocker resets Fed interest rate cut bets originally appeared on TheStreet. The Federal Reserve hasn't had an easy job in 2025. The central bank is governed by a dual mandate to set rates at levels that encourage low unemployment and inflation—two often contradictory goals. When the Fed increases its Fed Funds Rate, it can lower inflation by slowing economic activity, which also causes job losses. When it cuts rates, economic activity picks up, reducing unemployment but increasing inflation. Most want Fed Chairman Jerome Powell to cut rates this year, but doing so may fuel inflation further, given that tariffs may already be causing it to climb. Consequently, deciding what to do with interest rates this year is particularly challenging, particularly after the latest jobs report showed serious cracks forming in the job market. Jobs data causes major shift to Fed interest rate cut chances in September The Fed watches the unemployment rate very closely because of the dual mandate. Last year, the fact that unemployment had climbed above 4% from 3.4% in 2023, while inflation retreated, allowed the Fed to cut interest rates by 1% before the year's end. This year, the Fed has remained sidelined on rates, awaiting clarity into whether unemployment or inflation first significant signs of job weakness may have emerged in July. According to the Bureau of Labor Statistics, the US economy created only 73,000 jobs. Wall Street economists expected 100,000 jobs, which would have still marked a retreat from May, when 147,000 jobs were created. There were also significant downward revisions to jobs previously reported to have been created in June and May. "Those revisions point to just 33,000 jobs created during those two months, far less than the 272,000 previously cited," wrote portfolio manager Chris Versace on TheStreet Pro. As a result, the unemployment rate increased to 4.2% from 4.1% in May. More specifically, it climbed to 4.248%. That's concerning because it narrowly avoided being rounded to 4.3%, which would have marked the highest unemployment rate since 2021. Since unemployment was higher than expected and is potentially nearing a cycle high, the CME FedWatch tool reported that bets for a Fed interest rate cut in September improved to 87% on August 1 from 38% on July 31. The Fed risks falling behind the curve as officials disagree The Fed held interest rates unchanged at a range of 4.25% to 4.50% on July 30, but not every voting member agreed. Michelle W. Bowman, Vice Chair for Supervision, and Christopher J. Waller, a Fed Governor, dissented, favoring a quarter-percentage-point cut to rates. Additionally, absent and not voting at the meeting was Adriana D. Kugler. Bowman said in a statement released August 1 that her dissent was based upon "increasing signs of fragility" in the labor market and tame inflation. Waller echoed those sentiments in his statement, suggesting that rates are currently too restrictive, and a 3% Fed Funds Rate would be more appropriate. A hesitancy to cut rates could result in the Fed falling behind the curve, requiring it to make more extreme rate cuts in the future. These cuts could prove more dangerous to inflation than more measured cuts this year. Tariff inflation impact keeps Fed on hold Bowman and Waller's opinion isn't shared by Fed Chair Powell, who struck a hawkish tone on monetary policy during his post-decision press conference this week. More Federal Reserve: GOP plan to remove Fed Chair Powell escalates Trump deflects reports on firing Fed Chair Powell 'soon' Former Federal Reserve official sends bold message on 'regime change' Powell reiterated that inflation remains above the Fed's 2% target rate and, while acknowledging that the impact of tariffs on inflation may be transitory, urged caution given that the US economy seemingly appears still on solid ground. The Fed's preferred inflation measure is the core Personal Consumption Expenditures Index, or PCE, which excludes volatile energy and food. PCE showed core inflation of 2.8% in June, up from 2.6% in April. Powell may also have a point regarding economic activity being in a good place, given the advance estimate placed gross domestic product, or GDP, at 3%, reversing a 0.5% contraction in the first quarter, and matching the level reported in the second quarter of 2024. Another reason supporting patience is that President Trump's pause on reciprocal tariffs ended on August 1, resulting in a slate of new tariffs that could increase inflation. The President's newly set tariffs range from 10% to 41%, including a 35% tariff on Canada. What this means for American consumers The Fed Funds Rate is the rate banks charge each other on overnight loans. If the Fed cuts rates in September, consumers should see a drop in borrowing rates, including credit card, auto loan, and mortgage rates. Mortgage rate relief would be particularly welcome, given that rising home prices and higher mortgage rates have discouraged many would-be home buyers. Banks typically set mortgage rates at 2% to 3% above the 10-year Treasury note yield. After the unemployment rate update, the 10-year Treasury yield slipped to 4.22%, its lowest level since April 30, when it was 4.17%.Jobs report shocker resets Fed interest rate cut bets first appeared on TheStreet on Aug 2, 2025 This story was originally reported by TheStreet on Aug 2, 2025, where it first appeared.
