How many of you have rentals (i.e. you're a landlord)? Are they worth it?

[Gailete]

Cool that means you are living for free

[disneysteve]

Cool that means you are living for free

My cousin did that for years. He bought a duplex. He lived on the 2nd floor and rented out the first floor. The rent more than covered the mortgage so he paid nothing. It is part of what allowed him to retire early at 55.

Another bonus was that his tenant was an older woman who kept the heat on high all winter. Since he was above her, it kept his apartment warm, too, and he hardly had to run his own heat which saved him more money.

[bjl584]

My cousin did that for years. He bought a duplex. He lived on the 2nd floor and rented out the first floor. The rent more than covered the mortgage so he paid nothing. It is part of what allowed him to retire early at 55.

Another bonus was that his tenant was an older woman who kept the heat on high all winter. Since he was above her, it kept his apartment warm, too, and he hardly had to run his own heat which saved him more money.

He got lucky that the heat was separate. Most duplexes share utilities and HVAC systems.

[TexasHusker]

Can you find me a property to buy?

I'm actually traveling out there this weekend - not looking for more buys currently, but am trying to rebuild one that burnt to the ground. 😎

[disneysteve]

He got lucky that the heat was separate. Most duplexes share utilities and HVAC systems.

How would that work? How could two separate residences share an HVAC system? I've never heard of that, and I lived in a duplex for a few years.

[kork13]

How would that work? How could two separate residences share an HVAC system? I've never heard of that, and I lived in a duplex for a few years.

They don't share the HVAC system itself. Multiplexes often do share utilities, however. As a single structure, they typically only get a single utility connection. So in a duplex, the 2 units share utilities. Often, that means utilities are included in the rent, since the 2 units aren't separately metered and can't be billed separately. This isn't always the case, however, as in the case of BJ's friend.

[disneysteve]

They don't share the HVAC system itself. Multiplexes often do share utilities, however. As a single structure, they typically only get a single utility connection. So in a duplex, the 2 units share utilities. Often, that means utilities are included in the rent, since the 2 units aren't separately metered and can't be billed separately.

Gotcha. No, in our area (well in Philadelphia, at least, where I lived and my cousin lived), it's common for each unit to have it's own electric meter. There's usually only one water meter, though, so that's included in rent, but water costs next to nothing so that's not a big deal. It's electricity that can vary dramatically with heat and air conditioning.

[Atretes1]

Atretes what areas did you buy in?

Suburb of Midwest Kansas where I live.

[prosper]

Enjoying this thread

[TexasHusker]

Here is a good sounding deal.

http://gsmaor.paragonrels.com/CollabLink/#/?id=574df3f4-dd54-4eb2-b09e-97ad066718a7

[LivingAlmostLarge]

if the 1 bedroom cabin is $199k what is the cap rate? What will it rent for?

[TexasHusker]

if the 1 bedroom cabin is $199k what is the cap rate? What will it rent for?

They are claiming it is doing $30K a year. After expenses I would figure $23K net. If you could buy it for $190K, that equates to a 12.1% cap rate / yield.

And if you're in the 28% income tax bracket, you would have another $1700 or so in income tax savings for depreciation. That boosts the yield to 13%.

The home would pay for itself in around 8 years.

[Gailete]

Very nice but having that billiard/pool table taking up one of the rooms seems a waste. I think it needs to be a library/reading room or a sewing room. And yes some of us take our sewing machines with us when we pack to travel!

[TexasHusker]

Very nice but having that billiard/pool table taking up one of the rooms seems a waste. I think it needs to be a library/reading room or a sewing room. And yes some of us take our sewing machines with us when we pack to travel!

I personally would have no use for either a hot tub or a pool table. But our experience has been that not having one, the other, or either costs you anywhere from $8000 to $15000 a year in lost rent, because vacationers want these amenities.

In the business of vacation homes (at least in TN and NC), the more of the following boxes you can check, the more your income:

- real log home
- great view
- river, creek, or lakeside
- pool table
- hot tub
- arcade/multicade game, or other games (ping pong, air hockey)
- HDTV with expanded cable
- wifi/internet
- access to a pool
- working fireplace
- sofa sleeper
- authentic log furniture


On my personal cabins, we can check everything except access to a pool, so we rent our cabins out A LOT.

We have homeowners in our program that steadfastly REFUSE to pay for WIFI, and it costs them from $5,000 to $10,000 a year in lost rents. Same story on hot tubs and pool tables. It is their home and their money - I can only make suggestions.

[Gailete]

- pool table
- hot tub
- arcade/multicade game, or other games (ping pong, air hockey)
- HDTV with expanded cable
- wifi/internet

One wonders why they left home to pay to go to a place to do the same things that they do at home? Apparently they don't go hiking, horse back riding etc.? I didn't realize that many people played pool. I do understand the need for Wifi in this day and age. Amazon sellers, even on vacation, have to stay in contact with any customer questions.

Curious is you stock things like old fashioned board games and books for your renters?

To me a vacation is any time I can get away and someone makes the bed for me, cooks and does the dishes and there is a nice cozy chair to snuggle in with a stack of good books! But then I'm at the point that I can't do the other stuff that requires physical energy.