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    #91
    Originally posted by Singuy View Post
    A trashed up rental of course is a negative, but shouldn't deter you from investing into real estate since it is so uncommon.
    And this is where I disagree. I believe this possibility, regardless of how uncommon it is, should be considered before getting into real estate.

    Questions you need to ask yourself in regards to this potential scenario:

    Is this a headache I am prepared to deal with?
    Do I have adequate and the appropriate insurance to cover damages?
    Do I have someone to call who can manage the clean up/rehab?

    Comment


      #92
      Originally posted by disneysteve View Post
      I think you are reading too much into some comments.

      Sure, a rental could get trashed. No, it isn't likely or common. So is it a negative you need to seriously consider when buying a rental? Probably not.

      Now if you are thinking of buying a rental near a college campus and renting to undergrads, maybe that possibility is a bigger risk and should enter into your decision. But when buying a luxury lake house, that risk is probably close to zero.

      Sorry, but I'm just getting really tired of the negativity on the site. Too many people here can't seem to have a discussion without it being, "I'm right. You're wrong." We don't all have to agree, but I'd like to see folks disagree without having to attack each other in the process.
      I just answered the question as to whether a rental getting trashed should be considered.

      I understand where you are coming from regarding the arguing on this site. I have recently abandoned threads due to the arguing that was going on. It certainly wasn't my intention to attack TH or anyone, and I don't feel that is what I was doing. I was disagreeing with a statement and the defense of that statement. I know it was not my intention to make it personal, and I apologize if that is the way it came across.

      What I have read from TH today is the type of stuff I wish he had posted from the beginning. I see a ton of helpful information and advice being shared, and that is what this site needs more of. Tom posted he is getting excited about the possibility of getting into real estate. I think that is awesome. The type of information TH posted today is the type of stuff that used to get me excited about investing in RE. I still love reading about it, but DH and I came to the conclusion it wasn't for us.

      Comment


        #93
        Originally posted by StormRichards View Post
        And this is where I disagree. I believe this possibility, regardless of how uncommon it is, should be considered before getting into real estate.

        Questions you need to ask yourself in regards to this potential scenario:

        Is this a headache I am prepared to deal with?
        Do I have adequate and the appropriate insurance to cover damages?
        Do I have someone to call who can manage the clean up/rehab?
        And you should consider tornadoes carefully before you move to Oklahoma. One might hit your house.
        Never underestimate the power of stupid people in large groups.

        -George Carlin

        Comment


          #94
          Originally posted by TexasHusker View Post
          And you should consider tornadoes carefully before you move to Oklahoma. One might hit your house.
          Back to your unhelpful sarcasm in defense of your love for real estate.

          Yes, I would most definitely consider whether I would want to invest in areas more prone to natural disasters.

          Comment


            #95
            Originally posted by StormRichards View Post
            Back to your unhelpful sarcasm in defense of your love for real estate.

            Yes, I would most definitely consider whether I would want to invest in areas more prone to natural disasters.
            I would never move to Rowell, NM until they get the alien thing sorted out.
            Never underestimate the power of stupid people in large groups.

            -George Carlin

            Comment


              #96
              today i did a walk through of all my properties.... because of the neglected sink i thought there could be more underlying damage, my wandering mind was giving me snapshots of holes in walls and kicked in doors but to my absolute delight there was no signs of intentional damage in any unit. one has a gutter issue that is causing some water rot under the eaves and another has a few electrical issues that are a piece of cake, tonight will be a good good night!
              retired in 2009 at the age of 39 with less than 300K total net worth

              Comment


                #97
                I'm closing in on another vacation rental. It has averaged $41,000 a year for the last 3 years and the ask is $210K.

                Even if I have to give that much, I'm still going to net $25-26K a year after all expenses, bare minimum. That's 12% or better, not including depreciation !

                Hoping I get it !
                Never underestimate the power of stupid people in large groups.

                -George Carlin

                Comment


                  #98
                  Originally posted by TexasHusker View Post
                  I'm closing in on another vacation rental. It has averaged $41,000 a year for the last 3 years and the ask is $210K.

                  Even if I have to give that much, I'm still going to net $25-26K a year after all expenses, bare minimum. That's 12% or better, not including depreciation !

                  Hoping I get it !


                  Those numbers are ridiculous, I'd be hoping to get it too, you would recoup your investment within 5 or 6 years.

                  Several of my tenants have been with me since day 1 and they have paid me in rents more than what I paid for the house, essentially they bought me the house they're renting
                  retired in 2009 at the age of 39 with less than 300K total net worth

                  Comment


                    #99
                    Originally posted by 97guns View Post
                    Those numbers are ridiculous, I'd be hoping to get it too, you would recoup your investment within 5 or 6 years.

                    Several of my tenants have been with me since day 1 and they have paid me in rents more than what I paid for the house, essentially they bought me the house they're renting
                    Yes I'm actually buying it on behalf of my dad who has Alzheimer's. I am investing part of his estate in this in order for the income to help pay for his care.

                    I'll know if I get the deal done in a few days!
                    Never underestimate the power of stupid people in large groups.

                    -George Carlin

                    Comment


                      I own one rental, and have a property manager (eats into the income, I know). What I do to avoid having tenants complain and whine about BS stuff is I set the initial rent for a new tenant at market, then hold the rent constant if they're a good tenant for future years.

                      For a normal tenant, I'll field a few complaints about xxx thing not working right for the first year. After the first year, I hold the rent constant. If the renter is smart, they keep their mouth shut and deal with small issues on their own. Currently I have a tenant that's in my rental going on their 3rd year, aside from getting their deposits and my property manager going in to inspect the property once a year, I don't hear a peep from them. They know they're paying below market rents of $100-150 per month, and it's stupidity to attract the attention of the landlord by complaining about crap.

                      To me, collecting a lesser amount from a good tenant is better than trying to collect maximum amount of rents and changing tenants every year, dealing with downtime between tenant switches, and potential deadbeat tenants.

                      Comment


                        Originally posted by disneysteve View Post
                        I think you are reading too much into some comments.

                        Sure, a rental could get trashed. No, it isn't likely or common. So is it a negative you need to seriously consider when buying a rental? Probably not.

                        Now if you are thinking of buying a rental near a college campus and renting to undergrads, maybe that possibility is a bigger risk and should enter into your decision. But when buying a luxury lake house, that risk is probably close to zero.

                        Sorry, but I'm just getting really tired of the negativity on the site. Too many people here can't seem to have a discussion without it being, "I'm right. You're wrong." We don't all have to agree, but I'd like to see folks disagree without having to attack each other in the process.
                        Managing a rental should be treated as well as managing your own personal finances. My recommendation for a rental is holding 6 months rent aside as a emergency savings fund in case things happen with your rental (as they could with you personally). It could be anythign from repairs , to not finding tenants, to a deadbeat tenant, etc.

                        Comment


                          Yes I am under market on 2 of my units also, they have been with me foe a long time and I haven't raised them st all. When I walked through they mentioned that they have been fixing little issues themselves, I think they do keep their mouths shut when they know they are paying under market.

                          I brought each tenant a box of cookies as a goodwill gesture and thanked them for taking care of my property at the end of the walk through
                          retired in 2009 at the age of 39 with less than 300K total net worth

                          Comment


                            Originally posted by 97guns View Post
                            Yes I am under market on 2 of my units also, they have been with me foe a long time and I haven't raised them st all. When I walked through they mentioned that they have been fixing little issues themselves, I think they do keep their mouths shut when they know they are paying under market.

                            I brought each tenant a box of cookies as a goodwill gesture and thanked them for taking care of my property at the end of the walk through
                            My other is an absolute miser, pinching every nickel she can find. She has 4 rentals, and asked me "when can I go up on the rent?" I said "As long as they are paying on time and not calling you, NEVER."
                            Never underestimate the power of stupid people in large groups.

                            -George Carlin

                            Comment


                              Originally posted by 97guns View Post
                              Yes I am under market on 2 of my units also, they have been with me foe a long time and I haven't raised them st all. When I walked through they mentioned that they have been fixing little issues themselves, I think they do keep their mouths shut when they know they are paying under market.

                              I brought each tenant a box of cookies as a goodwill gesture and thanked them for taking care of my property at the end of the walk through
                              Originally posted by TexasHusker View Post
                              My other is an absolute miser, pinching every nickel she can find. She has 4 rentals, and asked me "when can I go up on the rent?" I said "As long as they are paying on time and not calling you, NEVER."


                              Haha nice, glad I'm not the only one doing this.

                              From a landlord perspective, as long as you're making a decent amount of money, breaking even to pay off the mortgage, or whatever your goal may be, I really do think it can be a win-win situation.
                              Last edited by ~bs; 01-23-2017, 03:03 PM.

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