Due diligence when it comes to tenant screening and we only do month to month leases in case someone turns into a problem.
I’d prefer to be a landlord. I can do a lot of maintenance myself. I have a plow and enjoy plowing. In theory if this worked out in my favor I’d prefer to buy more property and eventually have a nice flow of passive income.
What stocks could I invest in and have a couple grand in returns every month? If it was common to break even every month on rental properties then no one would do it. I would use the “brrr” method.As a percent of investment? (Monthly income - financing cost - all other cost/taxes) x 12)/your investment. I would be surprised if it much more than 7% and that assumes that you accurately modeled all the hidden cost, your time in maintaining it, step ups in property tax rates, etc. etc.
Not trying to shit all over your idea, just want to make sure you put appropriate level of thought into it. Alternative is to simply buy a stock or bond that pays you this income without the headache and you can sell for $6.99 with a mouseclick if you ever need the money. Vs. 7% realtor fee and a few months on the market (if you are lucky) if you ever want to sell your rental house.
The best hope on home rentals is break even on monthly income over entire hold period and make money when you sell it. That assumes that you are buying right which may be tough to argue in current market.
As a percent of investment? (Monthly income - financing cost - all other cost/taxes) x 12)/your investment. I would be surprised if it much more than 7% and that assumes that you accurately modeled all the hidden cost, your time in maintaining it, step ups in property tax rates, etc. etc.
Not trying to shit all over your idea, just want to make sure you put appropriate level of thought into it. Alternative is to simply buy a stock or bond that pays you this income without the headache and you can sell for $6.99 with a mouseclick if you ever need the money. Vs. 7% realtor fee and a few months on the market (if you are lucky) if you ever want to sell your rental house.
The best hope on home rentals is break even on monthly income over entire hold period and make money when you sell it. That assumes that you are buying right which may be tough to argue in current market.
I guess that depends on a lot of factors. Like another poster said. He has managed his properties from over seas. my old childhood best friends dad has 6 properties of duplexes and triplexes and he does/did everything on his own while working a 9-5 and being a single father and he seemed to do all right. Not saying it can’t/won’t be difficult but I think a lot depends on the condition of the property and quality of tenants.Owning property is not passive income. My dad has owned hundreds of units over about 30 multi unit homes. It took a small team of employees to just keep up with them. Even with 5-10 units it’s a second full time job.
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What stocks could I invest in and have a couple grand in returns every month? If it was common to break even every month on rental properties then no one would do it. I would use the “brrr” method.
Buy. Renovate. Refinance. Rent.
Take the money from the new refinanced loan and it reinvest it.
What stocks could I invest in and have a couple grand in returns every month? If it was common to break even every month on rental properties then no one would do it. I would use the “brrr” method.
Buy. Renovate. Refinance. Rent.
Take the money from the new refinanced loan and it reinvest it.
Been a landlord for ~40 years. Some properties just seem to be headache, while others work out good. I got a super deal on a small mixed use commercial/residential property about 25 years ago.. still own it, all paid off - which is the big key. Once you pay it off is when you start making decent money.
I used to get real angry at tenants when rent is late, but then changed my attitude. Now I simply tell them I love them (and I do, usually), but have too many bills to pay. They can either pay or move, their choice, no hard feelings, but one of those has to happen. And I am now collecting rent much easier with this approach, plus I won't give myself a frakkin' heart attack!
Time to buy more dividend stocks....................![]()
I don't plan on being a "professional landlord" and probably won't ever buy another investment property. I kept my first house and turned it into a rental. $800/month complete escrow (principal/interest/taxes/insurance) and I get $1600/month in rent. 1400 sq ft 3/2/2 7500sq ft lot. Same tenants going on 3 years now. First tenant (wife's friend) was there for about 1.5 years.
Acquisition cost was about 1 hour of my time and the $49 I paid to have a lease contract customized for me on legalcontracts.com. Zillow lets you list a rental for free and I used mysmartmove.com to vet the potential tenants (they pay the $39 fee).
I reviewed credit/criminal background checks, called references, then scheduled interviews in person and chose from there. I do any maintenance work myself and usually have a few hundred in receipts (tools/materials/repairs) each year to claim on taxes for miscellaneous. Harvey flooded the house and I didn't have insurance but it only cost me $7k for new floors, doors, drywall/insulation (2'), vanities, etc. doing the work myself.
So I profit $800/month plus a steady decrease in mortgage principal. If I were you I would just see what $/sq ft rentals are getting in certain sought-after neighborhoods (near good schools is a plus) and buy the best deal you can find.
800 profit a month is good money. If you wanted you could pump that into the stock market or 401k. Like you said your principle is going down, and once it's paid off, you have a nice little gold nugget to sell and make a great profit. I remember my grandfather told me his first house was $20,000. Just puts everything into perspective.
I used to get real angry at tenants when rent is late, but then changed my attitude. Now I simply tell them I love them (and I do, usually), but have too many bills to pay. They can either pay or move, their choice, no hard feelings, but one of those has to happen. And I am now collecting rent much easier with this approach, plus I won't give myself a frakkin' heart attack!
Time to buy more dividend stocks....................![]()
$20k would be awesome, I've heard my grandparents talk about those kind of values before. I
Yes but their annual income was $12,000. It is all relative. The price of housing can only grow at the rate of population growth which is 2% over the long term.
What if the birthrate falls below 2? What if it was something like 1.7 in the US. What will that do to property values?
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