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re: Another reason why real estate > stock market
Posted on 1/5/14 at 4:18 pm to foshizzle
Posted on 1/5/14 at 4:18 pm to foshizzle
I'm slowly getting into rentals to give me an income source outside of medicine. Hasn't been a hassle so far. They can call for assistance and leave a message. I have no obligation to go out in the middle of the night. I look for properties I can slowly improve and grow in value. It's win, win, win. I get rent, I depreciate the property, I can expense out my improvements, but in real value my properties are appreciating.
This post was edited on 1/5/14 at 4:19 pm
1
Posted on 1/5/14 at 4:27 pm to I Love Bama
quote:
Another reason why real estate > stock market
Not always. You've made too much of a blanket statement.
quote:
anyone can make easy money in real estate.
Sure. Also, anyone can make money in the stock market. What's your point?
Posted on 1/5/14 at 4:28 pm to Smalls
]I Love Bama, aren't you also in ....
I am. I'm heavily in it. I find deals in that arena as well but don't have the money to jump in yet.
It's not a secret, but delete what you posted if you don't care. Lot of lurker friends on this board. I don't mind sharing numbers with you guys but not people I know IRL
I am. I'm heavily in it. I find deals in that arena as well but don't have the money to jump in yet.
It's not a secret, but delete what you posted if you don't care. Lot of lurker friends on this board. I don't mind sharing numbers with you guys but not people I know IRL
Posted on 1/5/14 at 4:31 pm to SmackoverHawg
quote:
Hasn't been a hassle so far
Tenant selection is EVERYTHING. I'd rather have a unit vacant for 6 months than get someone bad in there. They will cost you a whole lot more at the end of their lease.
Posted on 1/5/14 at 4:42 pm to I Love Bama
quote:
Tenant selection is EVERYTHING.
This.
Since I'm active military I move a lot. I own one house in Central Texas and rented it out when I moved. It is on a 15-year mortgage and I was fortunate enough to get good renters with no kids or pets. What I did was list it somewhat high and then when I found renters I wanted, agreed to drop the rent price in return for them signing a two year lease.
Posted on 1/5/14 at 4:54 pm to I Love Bama
With your focus on distressed properties, what's your opinion on rentals vs a straight flip?
This post was edited on 1/5/14 at 4:58 pm
Posted on 1/5/14 at 5:00 pm to Smalls
quote:
With your focus on distressed properties, what's your opinion on rentals vs a straight flip?
Personally, I'd rather rehab a distressed property for higher rent to provide long term income over short term.
Posted on 1/5/14 at 5:22 pm to I Love Bama
quote:
To keep it simple, he said his investment criteria is the 2% rule. If you can rent a house for 2% a month (or more) of the purchase price, he buys it
That doesn't exist in my area unless you have connections with bank and get cheap foreclosures.
Posted on 1/5/14 at 5:32 pm to SmackoverHawg
quote:
Personally, I'd rather rehab a distressed property for higher rent to provide long term income over short term.
Same. I'm hoping to generate $50,000 a year (or more) in passive income by the time I am 40. When I do have a family, I plan to work part time and do more traveling.
I'm not interested in flipping at this point. If the market goes crazy again, I may do a few.
Posted on 1/5/14 at 5:32 pm to yellowfin
quote:
That doesn't exist in my area unless you have connections with bank and get cheap foreclosures.
Where do you live?
Posted on 1/5/14 at 5:40 pm to I Love Bama
Lafayette, LA
Last one I looked at and thought about buying was a townhouse they were asking 95k and I'd be looking at about $1,100 a month in rent
Last one I looked at and thought about buying was a townhouse they were asking 95k and I'd be looking at about $1,100 a month in rent
Posted on 1/5/14 at 5:43 pm to yellowfin
quote:
Last one I looked at and thought about buying was a townhouse they were asking 95k and I'd be looking at about $1,100 a month in rent
I woulda bought it if you could pay cash and if you thought it would appreciate. Another thing to look at is that rent will go up yearly. 10 years from now you may be getting 2000 a month but you're still only in it for the original $95,000.
Posted on 1/5/14 at 5:43 pm to yellowfin
Same thing in my area. I'm looking for 1% rent. If you get into mobile homes (slum type) you can get that 2-3%. Right now I'm getting them on 10 and 15 year notes and planning on making my money in 10 or 15 years when I sell the house or just keep collecting the rent note free
ETA: I only have two properties. Looking to add another in the short term.
ETA: I only have two properties. Looking to add another in the short term.
This post was edited on 1/5/14 at 5:45 pm
Posted on 1/5/14 at 5:46 pm to chuckitdeep
I thought of doing the trailer thing too, I have property I could put them on but it just seems like too much headache for the return
Townhouses are risky because of the shithead associations that could decide to repave the parking lots and charge everyone 5k
Townhouses are risky because of the shithead associations that could decide to repave the parking lots and charge everyone 5k
Posted on 1/5/14 at 5:48 pm to yellowfin
quote:
95k and I'd be looking at about $1,100 a month in rent
Yea that doesn't seem that good of a deal.
If you have any friends who are successful landlords, I bet they have some 2% deals. They aren't easy to find, but they are out there. You probably won't find them on the MLS...
Posted on 1/5/14 at 5:53 pm to I Love Bama
quote:
If you have any friends who are successful landlords,
I do, he's also the president of a local bank so.....
Posted on 1/5/14 at 6:16 pm to yellowfin
Slummish trailers have been the best return bit they can be a headache. Stuff breaks a lot more and renters tend to be much less... dependable is a nice way to put it.
Posted on 1/5/14 at 6:19 pm to I Love Bama
Once people know you are in the rental business they will seek you out on a deal. I get calls occasionally and I'm not a big time landlord. Haven't gotten any sweet deal calls yet but it's good to be in the mix. Once it gets to a realtor you'll be lucky to even find that 1% deal.
Posted on 1/5/14 at 6:40 pm to chuckitdeep
quote:
chuckitdeep
I've experienced this too.
Family got a nice condo in Tuscaloosa to live in for 7 years (brothers college then mine) then rent out. Not too long after that got a call from the realtor about a less expensive unit in a complex that was about to be renovated which weren't even listed for sale.
Posted on 1/5/14 at 7:36 pm to yellowhammer2098
Keeping my fingers crossed for a killer deal. In the meantime I'm going to keep plugging along with my 1% and trying to add to the real estate portfolio.
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