Announcement

Collapse
No announcement yet.

Going to Look at a Rental House Tomorrow

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

    #16
    Originally posted by james.hendrickson View Post

    BJ,

    Why not buy some shares in a company that owns trailer parks? I've been eyeing United Mobile Homes (UMH) for a while. They have a solid 5.6% dividend, but their recent financials seem a bit weak. After all, once you factor in all the hassles of directly owning a manufactured home community, you might be better off going the publicly traded route.
    That is a possibility, and something that I will look into.
    I've asked myself the same question when it comes to buying more traditional rental properties. Why not just buy a REIT or do crowd funding.
    My answer keeps going back to owning actual tangible property and benefiting from the tax breaks and appreciation that comes with it.
    Brian

    Comment


      #17
      Actually Texas, I typed out a couple of heated responses here, but rather than simply rant at you, I'd like to invite you to share your thoughts on the following:

      1. In general, is it better to own common stock or directly invest in your own company? And...why?

      2. Between common stock and your own company, which form of capital is most flexible?

      3. Between common stock and your own company, which form is better from a tax standpoint?

      4. Between common stock and your own company, which is better from a generalized risk management perspective?

      Right, because thats the discussion here. Is it better to start your own real estate business (by owning and leasing property) or just hold shares in a REIT?

      Looking forward to your response.
      Last edited by james.hendrickson; 01-31-2019, 09:22 AM.
      [email protected]
      202.468.6043

      Comment


        #18
        Originally posted by james.hendrickson View Post
        Actually Texas, I typed out a couple of heated responses here, but rather than simply rant at you, I'd like to invite you to share your thoughts on the following:

        1. In general, is it better to own common stock or directly invest in your own company? And...why?

        2. Between common stock and your own company, which form of capital is most flexible?

        3. Between common stock and your own company, which form is better from a tax standpoint?

        4. Between common stock and your own company, which is better from a generalized risk management perspective?

        Right, because thats the discussion here. is it better to start your own real estate business (by owning and leasing property) or just hold shares in a REIT.

        Looking forward to your response.
        We have been over this ad nauseam. But I will grant a simple illustration, yet again:

        I am going to get the dates wrong here because it's been a while, but...

        1. In the early 2000s, I bought a $150K house. I only invested $30K in the house as a down payment and borrowed the rest. My investment wasn't $150K, it was $30K.
        2. My rent income was $1450 per month.
        3. My monthly income after the mortgage, taxes, and insurance was around $200 per month.
        4. Over 8 years, that provided about $20K in profits
        4. I held the property for 8 years.
        5. I sold the property for $173K.
        6. By that time, I only owed $60K - the renters had paid for $60K of house loan.
        7. I had spent $6000 repairs and had $6000 and lost rents from vacancy.
        8. My total tax savings from depreciation were around $10K.


        Total income including tax savings: $30K
        Total price appreciation: $23K
        Total amount of loan paid by renters: $60K

        Grand total: $113,000 in gross profit

        Total expenses of repairs and vacancy: $12,000

        Adjusted total profit: $101,000.

        Initial investment: $30,000.

        So over 8 years, $30,000 grew to $131,000. Equities and REITs cannot and will not do that.




        How can you have any pudding if you don't eat your meat?

        Comment


          #19
          I just offered a very detailed response, but for some reason it was flagged.

          Investing in a publicly traded company might give you a yield of 8-10-12 percent. A decent real estate purchase on your own will do twice that. What kind of dollars does that translate to?

          If you invest $100K and earn 9%, it will be worth $217K in 10 years.

          If you invest $100K and earn 20%, it will be worth $516K in 10 years.
          Last edited by TexasHusker; 01-31-2019, 09:54 AM.
          How can you have any pudding if you don't eat your meat?

          Comment


            #20
            Originally posted by TexasHusker View Post
            I just offered a very detailed response, but for some reason it was flagged.
            Darn it - thought Chris fixed that.
            [email protected]
            202.468.6043

            Comment


              #21
              I have a second one lined up to view on Sunday morning.
              i will post pics of both
              Brian

              Comment


                #22
                The first place was a bust. Basically a total gut and reno that I'm not wanting to involve myself in at this time.
                I did see a second place that has potential. Unfortunately, I didn't take pictures. But, I'll keep everyone posted on this one.
                This weekend I'm hoping to go look at a few more places. So, we;ll see.
                Brian

                Comment

                Working...
                X