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Rental properties. How to start
Posted on 6/16/22 at 9:41 am
Posted on 6/16/22 at 9:41 am
For those that have rental properties, how did you start?
Seems that a guy w some cash could take advantage of some buying if properties in the next year or so due to higher interest rates and properties being a touch more affordable.
Does that seem like a reasonable position?
What advice would you give a newb looking at a handful of properties. Would like to turn a small profit but at least not lose my arse.
Seems that a guy w some cash could take advantage of some buying if properties in the next year or so due to higher interest rates and properties being a touch more affordable.
Does that seem like a reasonable position?
What advice would you give a newb looking at a handful of properties. Would like to turn a small profit but at least not lose my arse.
14
Posted on 6/16/22 at 9:45 am to tigerfoot
Why wait? I work for a lot of younger guys in the Lafayette area who are buying up rental property like crazy right now. If you can't do the physical rehab work yourself, you definitely need to find someone that you trust to go in there and get it done.
Posted on 6/16/22 at 10:01 am to tigerfoot
quote:
Would like to turn a small profit but at least not lose my arse.
I tell everyone starting out, this. You need to know EXACTLY what it will rent for, what your monthly expenses are and how much your rehab will be (if needed).
You can't afford to mess up on these.
The bare minimum should be 1% of your purchase price should be the rental price. My personal goal is 2% but that has become very hard in this market.
In my opinion, your first is your most important as that is the one you learn on.
The creative financing goes deep but these are good rules for someone starting.
Posted on 6/16/22 at 10:04 am to tigerfoot
I'd wait a bit before pulling the trigger unless you find a good deal. I have 7 rentals now. Here's a few things I've learned:
(1) The numbers don't lie. Run the numbers on each deal to make sure they make sense.
(2) Try to buy something that needs a good amount of work so you can get the best deal and put in sweat equity to fix it up.
(3) Make the rentals nice enough that you would live there.
(4) Screen tenants thoroughly.
(5) Put as little down as possible. Run the numbers and surprisingly and you'll be amazed to see that you actually make more by putting less money down.
(1) The numbers don't lie. Run the numbers on each deal to make sure they make sense.
(2) Try to buy something that needs a good amount of work so you can get the best deal and put in sweat equity to fix it up.
(3) Make the rentals nice enough that you would live there.
(4) Screen tenants thoroughly.
(5) Put as little down as possible. Run the numbers and surprisingly and you'll be amazed to see that you actually make more by putting less money down.
Posted on 6/16/22 at 11:11 am to tigerfoot
Posted on 6/16/22 at 11:34 am to tigerfoot
Where are you located? I may be able to help teach you to get started!
Posted on 6/16/22 at 11:36 am to tigerfoot
I bought some of the projects I was involved with in 2006..yes they went down but no mortgage and I retained the income..now, I am up about 50% from that time...
Posted on 6/16/22 at 12:27 pm to tigerfoot
I’ve bought 15 doors over the last 2 years.
I’m 29 years old.
Happy to help answer any questions.
I’m 29 years old.
Happy to help answer any questions.
Posted on 6/16/22 at 12:40 pm to tigerfoot
Drive thru the poor/rough areas of town. Find trailers with renters for under $10k, pay cash, collect $600-800/month rent via cash every month and keep building.
My FIL and I have done this for 5 years. Currently holding 30 trailers, half we own property other half we pay lot rent of $150/month.
He is a GC so he can handle the vast majority of repairs and I provide the manual labor he needs when necessary.
My FIL and I have done this for 5 years. Currently holding 30 trailers, half we own property other half we pay lot rent of $150/month.
He is a GC so he can handle the vast majority of repairs and I provide the manual labor he needs when necessary.
Posted on 6/16/22 at 2:39 pm to tigerfoot
Know your market rental rate per foot.
Before you buy the property, calculate rent based on what you WILL get per foot and not what you HOPE you’ll get.
If rents are going for $2 per foot then a
2,000 sq foot home should get $4,000 per month. Take that $4,000 and divide by .02 and get $200,000. that would be a very good purchase.
If the rents are going for $1 per foot then $200,000 is questionable.
Before you buy the property, calculate rent based on what you WILL get per foot and not what you HOPE you’ll get.
If rents are going for $2 per foot then a
2,000 sq foot home should get $4,000 per month. Take that $4,000 and divide by .02 and get $200,000. that would be a very good purchase.
If the rents are going for $1 per foot then $200,000 is questionable.
Posted on 6/16/22 at 2:54 pm to tigerfoot
The best advice I can give is "know your area." For example, let's take Baton Rouge. There are generally 2 jurisdictions that reside over evictions, the City of BR or Justice of the Peace. If your area falls under the latter, you can have a deadbeat out in approximately 30 days, give or take. If the former aka wokeass City of BR, good luck. You're probably at 6 months and they all know the game, claiming medical reasons etc that forced them to not pay rent. In summary, "know your area."
Posted on 6/16/22 at 2:58 pm to tigerfoot
buy multifamily properties. a 2 for 1 (duplex) or higher will give you better bang for the buck.
Posted on 6/16/22 at 8:03 pm to tigerfoot
quote:
For those that have rental properties, how did you start?
Gotta have some cash to really play. Some "house hack" and rent out rooms etc but I have a family.
I got 5 of them in the first quarter with 4% rates which I'm happy with and all are in premium locations/conditions. Hard to find.
quote:
Seems that a guy w some cash could take advantage of some buying if properties in the next year or so due to higher interest rates and properties being a touch more affordable.
The rate increases are more costly than any drop in price which I actually don't see happening (price drops.) It just won't appreciate 30-40% in a year like it has.
quote:
What advice would you give a newb looking at a handful of properties.
How much coin ya have to start?
Posted on 6/19/22 at 9:47 pm to tigerfoot
Are yall putting 20% down on all these properties to avoid PMI?
Posted on 6/20/22 at 4:30 pm to tigerfoot
Pay cash
Buy coastal
Rent weekly
I’ll never have to worry about an imperial federal government allowing my renter to live rent free in my home, as they are only there one week and must pay 100% in advance. The next renter in line evicts the last one.
Hurricanes can be a bitch, but otherwise it’s gravy if you time it right.
Buy coastal
Rent weekly
I’ll never have to worry about an imperial federal government allowing my renter to live rent free in my home, as they are only there one week and must pay 100% in advance. The next renter in line evicts the last one.
Hurricanes can be a bitch, but otherwise it’s gravy if you time it right.
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