quote:
Good advice.

Problem is I moved from one booming area to another. Real estate around me is pretty pricey. I'd have to go to parts of town I don't know at all to find houses in that range.

I have no interest in property management. Just seeing some of the dumbass requests they get for my relatively new house is enough to scare me off.

Got one the other day that the freezer was leaking. It's one of those nice Samsung stainless steel french door with the freezer on the bottom ones.

Freezer wasn't leaking. The stupid a-hole used the ice dispenser and not all the ice came through the slot and melted. frick property management.

Yea the request can be a PITA really...as well as getting it rented. My BIL is a agent so I let them vet and rent the place then I take over. I also am lucky to have a good handy man thats not too expensive, fast, and used to be a locksmith so I dont have to go let him in if the tenants are good with it

quote:
Youre going to want to keep at least a hundred dollars every month aside for maintenance, capex, and vacancy

I save 100% of the profit until I save 6 months rent + 2k for each property until I take any.

This post was edited on 1/9/20 at 12:36 pm

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Posted by Thecoz

Member since Dec 2018

2622 posts

Posted on 1/9/20 at 1:15 pm to NOLAGT

Long but consider the following

Not sure if all the specifics but for the rental
Rent minus cost ( insurance,mortgage,taxes, management?)

Throw in two months every other year as downtime to find a new tenant.

If using management they will take half a month fee to find a new tenant to.

Repairs —- usually not bad but be honest with expectations.

Figure that and do you have positive cash flow.

Now for the write offs: you write off all ( and I mean allllll) operating expenses so depending on your tax bracket you get that back 15-33 percent?

You can write off the occasional trip back to Houston to visit property and do some stuff. Be honest about it but it can subsidize an occasional visit.

Depreciation of the value of the house is the big write off. Value of house not land divided by 27 or something like that years. This income will not be counting on your yearly taxes and is good to (legally hide income if trying to keep income low like in retirement)

Consider you can write off repairs to improve it for selling..... but not replacements like change ac. You depreciate that.

You get value of unit appreciation.

Ok so now all figured out.... is this better than just getting 3.7 percent to 5.35 percent from investment grade corporate bonds???

FYI I have in my retirement portfolio: equities, bond ( Corp and fed) annuities ,cash and rentals for diversification

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