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Buying rental property as primary source of retirement income
Posted on 3/17/25 at 3:47 pm
Posted on 3/17/25 at 3:47 pm
My wife and I own a rental home opposite side of the country (formally our home but we moved for my job and kept the house). It generates rent that helps offset part of the mortgage (mortgage is ~20% more). Obviously this isn’t super smart since I’m cash negative every month and expect taxes to hurt as well.
I always see these people online saying they buy rental property to retire and have massive cash flow. I’m guessing this isn’t a year 1 resolution so question is at what timeframe should we be looking at this? We can buy another home (down payment plus mortgage) but is this really sustainable after n years?
I always see these people online saying they buy rental property to retire and have massive cash flow. I’m guessing this isn’t a year 1 resolution so question is at what timeframe should we be looking at this? We can buy another home (down payment plus mortgage) but is this really sustainable after n years?
16
Posted on 3/17/25 at 4:03 pm to fareplay
The rental market is dead brah. Black rock bought all the houses
If you’re younger than 40 you won’t need to worry about retirement because it won’t exist
If you’re younger than 40 you won’t need to worry about retirement because it won’t exist
Posted on 3/17/25 at 4:04 pm to fareplay
We need some numbers. How much is the house worth and what is the mortgage balance?
Are you getting the market rent now or could it be bumped to offset some of the 20% shortfall?
Converting your home to a rental usually doesn't work as far as being a good investment.
Are you getting the market rent now or could it be bumped to offset some of the 20% shortfall?
Converting your home to a rental usually doesn't work as far as being a good investment.
Posted on 3/17/25 at 4:11 pm to ItzMe1972
House is worth 1.3 mortgage with escrow is 5800 and tenant is paying 4600.
Yeah we bought it for 1.17 and now 1.3 and just hoping long term equity. Open to small apartment complex
Yeah we bought it for 1.17 and now 1.3 and just hoping long term equity. Open to small apartment complex
This post was edited on 3/17/25 at 4:12 pm
Posted on 3/17/25 at 4:12 pm to fareplay
How much do you owe on the house?
How long have you had it? 30 year mortgage?
What are house prices doing in that area?
How long have you had it? 30 year mortgage?
What are house prices doing in that area?
This post was edited on 3/17/25 at 4:15 pm
Posted on 3/17/25 at 4:19 pm to ItzMe1972
850k left, had it for 1.5 years. It’s Boston suburbs so been doing well, most houses are old but ours is build late 80s which is considered new.
Posted on 3/17/25 at 4:22 pm to fareplay
Why are you keeping it if you can’t rent it for Atleast what your note is?
Posted on 3/17/25 at 4:24 pm to npt817
Hopes of appreciation offsetting the cash flow negatives. I’m open to being convinced otherwise but I’m also concerned my kids can’t afford a home in the future
Posted on 3/17/25 at 4:33 pm to fareplay
Sounds like about $450,000 in equity that is losing ~$14,000 a year.
And that's not including repair costs which will come.
What is the appreciation rate in that area?
And that's not including repair costs which will come.
What is the appreciation rate in that area?
Posted on 3/17/25 at 4:38 pm to ItzMe1972
Can only speak for Redfin but have been consistently going up (probably same with all homes near a city)
This post was edited on 3/17/25 at 4:39 pm
Posted on 3/17/25 at 4:41 pm to ItzMe1972
Also probably losing more than that. I’m taxed on rental income and that’s a lot of taxes
Posted on 3/17/25 at 4:46 pm to fareplay
Sounds like the Arlington area; know it well
Posted on 3/17/25 at 4:47 pm to Clint Torres
Yep I am in Arlington. Great schools and I’m close to the little down town we have (20 min walk)
Great eye
Going back to topic, I can buy another one of these and keep taking losses. I’m assuming there’s a point where rent increases to where this is net 0. Is waiting for that normally worth it?
Great eye
Going back to topic, I can buy another one of these and keep taking losses. I’m assuming there’s a point where rent increases to where this is net 0. Is waiting for that normally worth it?
This post was edited on 3/17/25 at 4:49 pm
Posted on 3/17/25 at 5:01 pm to fareplay
I don’t know any investors that are taking losses on their properties. Are you not able to rent it for more? Someone renting a 1.3mil house would certainly be paying a higher note than that today if they tried to buy.
Posted on 3/17/25 at 5:02 pm to npt817
Comps are roughly 4-5k so I’m aligned between those numbers. Also the tenants are solid.
Good to know im not crazy. I don’t mind selling the house but also had a dream of owning multiple homes and retiring a landlord
Good to know im not crazy. I don’t mind selling the house but also had a dream of owning multiple homes and retiring a landlord
This post was edited on 3/17/25 at 5:03 pm
Posted on 3/17/25 at 5:34 pm to fareplay
If you did not own this home already and it were for sale, would you purchase it for FMV as rental/ investment? If not, then you need to sell it.
For a benchmark, the people doing well at this have gross monthly rental income that was 1% of the purchase prices of the house. I think that number is harder to achieve now, but that’s why it’s gotten less lucrative.
For a benchmark, the people doing well at this have gross monthly rental income that was 1% of the purchase prices of the house. I think that number is harder to achieve now, but that’s why it’s gotten less lucrative.
This post was edited on 3/17/25 at 5:38 pm
Posted on 3/17/25 at 5:38 pm to fareplay
quote:
House is worth 1.3 mortgage with escrow is 5800 and tenant is paying 4600.
It's a lot easier to make money owning and renting cheap properties vs. expensive ones.
Posted on 3/17/25 at 6:08 pm to fareplay
You don’t have to do “rentals” to retire.
I’m retired. I own my house and no other properties.
I have no aptitude or interest in real estate.
Others have done very well in real estate. I know several people who are just good at it. I’m not them. I do not envy their success, and I don’t think I could replicate it. It does not look like easy money to me.
I’m retired. I own my house and no other properties.
I have no aptitude or interest in real estate.
Others have done very well in real estate. I know several people who are just good at it. I’m not them. I do not envy their success, and I don’t think I could replicate it. It does not look like easy money to me.
Posted on 3/17/25 at 6:34 pm to fareplay
I got in 20 years or so...no mortgages..appreciation on the condo and primary..+100%...good cash flow from that and the 2 houses.
Posted on 3/17/25 at 6:49 pm to fareplay
quote:i lm certain I'm speaking for the entire board when I say, please don't procreate.
I’m also concerned my kids can’t afford a home in the future
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