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re: Are rental properties worth it?
Posted on 12/16/13 at 8:07 am to Libertariantiger
Posted on 12/16/13 at 8:07 am to Libertariantiger
The most important thing in my estimation is being able to carry property when the rental markets are bad, either in terms on rents or quality of tenants.
There is a relationship between rents/quality tenants, and interest rates. The current low interest rate climate has been somewhat different though.
There is a relationship between rents/quality tenants, and interest rates. The current low interest rate climate has been somewhat different though.
0
Posted on 12/16/13 at 11:21 am to nogoodjr
quote:
500k to make 24k return a year? That's a lot of headache for that poor of a return.
500k at 8% return is 40k and all you need to do is rebalance your portfolio a couple times a year.
If I was going to put that size investment into anything, I would want a ROI significantly larger than the market. Depending on the risks associated with the investment or business I would want a 16-20% return to put up with the hassle.
Is 2k a month the total ROI or just the net cash flow monthly ?
Well said. This is something more potential real estate investors need to consider .. the fact that they're tying that much money up into something that has a lower ROI than other investments. I'm with you, if I've got 500k I'm not using that to make 20k.
Posted on 12/16/13 at 11:39 am to Rohan2Reed
quote:
Is 2k a month the total ROI or just the net cash flow monthly ?
I don't believe this was ever answered, but it seems like the OP was calling the $2k net cash flow/mo.
That's how I read it.
That would be $54k/year in gross income on a $100k down payment. The mortgage would be covered leaving $2k/mo after all expenses. That doesn't sounds bad to me.
I forget if it was a quad or larger, if it was a 5 plex, it would fall under different(higher) tax treatment I believe.
Posted on 12/16/13 at 1:22 pm to I Love Bama
quote:
I'll share my latest success story.
Are you saying you purchased as owner occupied and now you are renting it out?
Posted on 12/16/13 at 2:04 pm to AutoYes_Clown
In March, the one year required time frame will expire. I will then rent it out and move on to the next one.
Posted on 12/16/13 at 2:34 pm to I Love Bama
Gotcha, what city is the property in? I used to work with investors in Birmingham. Im looking to get into it myself here in Baton Rouge.
Posted on 12/16/13 at 2:47 pm to AutoYes_Clown
Birmingham. Crestwood area.
Posted on 12/17/13 at 10:21 pm to I Love Bama
Come on guys. What if you had an apartment complex - say 250 units. That could work real nice?
Posted on 12/17/13 at 11:24 pm to Traffic Circle
I look for undervalued properties than I can rent out and improve. I look for at least a 10% ROI with the appreciation added. I'm very selective on my renters and can be due to the lack of rental properties in our area. Credit history and personal interviews are two must do checks. I'd rather a empty unit for a month or two as opposed to getting a shite tenant. Have never had any major issues. But only have a few. Not looking to be rental tycoon, just diversify and I like tangible assets.
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