- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Just put an offer on my first rental property
Posted on 2/21/18 at 9:19 pm
Posted on 2/21/18 at 9:19 pm
Been wanted to get into this for a while
Friend of mine is helping me
Any advise? Tips?
Friend of mine is helping me
Any advise? Tips?
5
Posted on 2/21/18 at 9:20 pm to kjntgr
Start lambo shopping, Donald Jr.
Posted on 2/21/18 at 9:25 pm to kjntgr
quote:
Any advise? Tips?
Yea....don't buy residential rentals. Either owner finance it or buy commercial/industrial rentals.
Posted on 2/21/18 at 9:30 pm to stout
quote:
commercial/industrial rentals
Examples?
Posted on 2/21/18 at 10:08 pm to kjntgr
In December I bought 2.5 acres I plan on building metal building type warehouses on for industrial rentals. My first one I am planning is 50x100 and I am laying it out where it can house multiple tenants or just one. It will be versatile. I am also installing a billboard on the land with 4 sign areas to rent out as the land is on a busy highway not far from a few casinos.
Business owners are much easier to deal with vs individuals that don't care about your property or will call you at 2AM when their A/C goes out in the middle of August. I have been there and will never do it again. It works for some people but I have been in RE for 17 years now and invested a number of different ways (flips, rentals, as a residential contractor and developer) and residential rentals are my least favorite.
The repair on the A/C at 2AM is another reason to owner finance. The repairs and maintenance fall on the "owner" and not you yet you still collect funds equal to or greater than rent. You also get a sizeable down payment to offset your initial out of pocket cost to obtain the property.
Business owners are much easier to deal with vs individuals that don't care about your property or will call you at 2AM when their A/C goes out in the middle of August. I have been there and will never do it again. It works for some people but I have been in RE for 17 years now and invested a number of different ways (flips, rentals, as a residential contractor and developer) and residential rentals are my least favorite.
The repair on the A/C at 2AM is another reason to owner finance. The repairs and maintenance fall on the "owner" and not you yet you still collect funds equal to or greater than rent. You also get a sizeable down payment to offset your initial out of pocket cost to obtain the property.
Posted on 2/21/18 at 10:17 pm to stout
Dilly Dilly
Posted on 2/21/18 at 10:29 pm to I Love Bama
A friend of mine/business partner that has over 60 properties owner financed as well as owning several mini storage units wrote a book one time about how he does it.
LINK
It's not a bad read but I am biased since I have known him for 15 years now.
He did recently change it up and bought an apartment complex but he got such a good deal on it he couldn't pass it up. He is slowly fixing it up as people move out, raising rates after he remodels units, and is planning a long term flip of it.
LINK
It's not a bad read but I am biased since I have known him for 15 years now.
He did recently change it up and bought an apartment complex but he got such a good deal on it he couldn't pass it up. He is slowly fixing it up as people move out, raising rates after he remodels units, and is planning a long term flip of it.
Posted on 2/21/18 at 11:21 pm to stout
Thanks man
Sounds like you and your partner know your shite
Just bought his book
I have A LOT to learn but it’s exciting
The prospect of collecting cash for doing nothing sounds amazing
Sounds like you and your partner know your shite
Just bought his book
I have A LOT to learn but it’s exciting
The prospect of collecting cash for doing nothing sounds amazing
Posted on 2/22/18 at 12:24 am to kjntgr
quote:I wouldn't say it's 'nothing'.
The prospect of collecting cash for doing nothing sounds amazing
Posted on 2/22/18 at 1:00 am to kjntgr
If you want to collect money for doing nothing, look into REITS and crowdsourced approaches like Fundrise.
Very hands off with regular income that requires no input in exchange of a lower cash flow.
I’m kinda curious what our resident RE vets budget to put aside of each payment for a repairs/vacancy/renovations fund.
Or what they put aside before cash flow became diversified enough that you could essentially fund a major repair of one unit off the cuff with proceeds of other units.
Very hands off with regular income that requires no input in exchange of a lower cash flow.
I’m kinda curious what our resident RE vets budget to put aside of each payment for a repairs/vacancy/renovations fund.
Or what they put aside before cash flow became diversified enough that you could essentially fund a major repair of one unit off the cuff with proceeds of other units.
This post was edited on 2/22/18 at 1:01 am
Posted on 2/22/18 at 7:56 am to Volvagia
quote:
Fundrise.
Have you invested in this? How did it turn out?
Posted on 2/22/18 at 8:00 am to anewguy
Congratulations on your first rental!! I've been a landlord most of my life.
The key to success is tenant selection. A good tenant will keep headaches to a minimum.
I just finished repainting and updating a house that a ten year tenant moved out of. She just bought her own place, and paid me more in rent that I paid for the house.
The key to success is tenant selection. A good tenant will keep headaches to a minimum.
I just finished repainting and updating a house that a ten year tenant moved out of. She just bought her own place, and paid me more in rent that I paid for the house.
Posted on 2/22/18 at 9:38 am to stout
Your responses are a little broad and somewhat misleading. First of all, OP has shown no indication that he should have anything to do with owning commercial/industrial property. That is a completely different beast than purchasing a rental house. Lower value commercial/industrial properties are much more susceptible to long periods of 100% vacancy and experienced brokers can/will rip any slight ignorance to shreds. You also mention the "2 AM phone calls" as a reason not to own residential real estate? You can own residential real estate without being the property manager.
I'm not saying owner-financing is a bad idea, it is definitely a strategy that can work. However, I'm questioning that it is some sure-fire strategy. I question the return you're getting on a higher cash outlay than purchasing properties. I question whether it accounts for giving up control of a property that you may have to repossess. I question whether the strategy accounts for a lack of any equity reversion.
I'm not saying owner-financing is a bad idea, it is definitely a strategy that can work. However, I'm questioning that it is some sure-fire strategy. I question the return you're getting on a higher cash outlay than purchasing properties. I question whether it accounts for giving up control of a property that you may have to repossess. I question whether the strategy accounts for a lack of any equity reversion.
This post was edited on 2/22/18 at 10:21 am
Posted on 2/22/18 at 10:34 am to kjntgr
Buy multi-family properties. More units = more rent coming in. And if one unit becomes vacant or one tenant gets behind on rent, you've got rent from other unit(s) coming in so you aren't having to dip into your own funds to pay the mortgage that month.
Posted on 2/22/18 at 11:23 am to yellowhammer2098
quote:
Your responses are a little broad and somewhat misleading.
Broad? Perhaps but misleading? Nah. My first response was obviously a little tongue in cheek.
I did clarify that residential rentals work for some but not for me personally. Everyone needs to do their own research and determine what works for them. Everyone has different ways of approaching investments such as different return expectations, different risk tolerance, etc. I'm pretty pragmatic in my approach overall but my risk tolerance is a lot higher than most people so I do tend to gamble some.
quote:
Lower value commercial/industrial properties are much more susceptible to long periods of 100% vacancy and experienced brokers can/will rip any slight ignorance to shreds
Not to sound conceited but I probably have as much if not more experience than a lot of brokers so again it is something I am confident I can navigate. I used to be a broker FWIW.
quote:
You also mention the "2 AM phone calls" as a reason not to own residential real estate? You can own residential real estate without being the property manager.
Been there, done that, have the t shirt. My experience wasn't great. Not saying it doesn't work for some but the numbers don't make sense to me based on the service, or in my case lack thereof, you get. At that point you might as well do what was recommended earlier and invest in a REIT. Again, that's just my opinion.
quote:
However, I'm questioning that it is some sure-fire strategy.
That's great because I never said it was "sure-fire". Everything has negatives and positives. OP would be doing himself a disservice if he didn't explore all options when it comes to RE investing. For me personally I feel there is a lot more upside to the owner finance model vs rental model.
This post was edited on 2/22/18 at 11:47 am
Posted on 2/22/18 at 11:35 am to stout
I was feeling argumentative this morning so some of what I said was probably too harsh. I'm sure you have a ton of experience, it definitely sounds that way. However, the OP is looking for advice for him. Telling somebody with zero real estate experience they should invest in commercial properties is bad advice, IMO (unless it is a high net worth individual looking at long term STNL).
This post was edited on 2/22/18 at 11:36 am
Posted on 2/22/18 at 11:49 am to stout
quote:
The repair on the A/C at 2AM is another reason to owner finance. The repairs and maintenance fall on the "owner" and not you yet you still collect funds equal to or greater than rent. You also get a sizeable down payment to offset your initial out of pocket cost to obtain the property.
Aren't things like A/C the responsibility of tenants in commercial rentals? My friend that rented out a strip mall he owned told me this, I couldn't believe it.
Posted on 2/22/18 at 12:00 pm to anewguy
I have, but far too short a time for me to give an assessment to share with others.
I’ll say though that I like what they are selling enough to put aside more than just play money, and I have a monthly auto invest set up.
I’ll say though that I like what they are selling enough to put aside more than just play money, and I have a monthly auto invest set up.
Posted on 2/22/18 at 12:14 pm to barry
quote:
Aren't things like A/C the responsibility of tenants in commercial rentals? My friend that rented out a strip mall he owned told me this, I couldn't believe it.
in a triple net lease, yep
Posted on 2/22/18 at 1:49 pm to kjntgr
Congrats OP!
I own 3 single family homes, and i'm about to purchase #4 in September. I love it, but I also have a full time job.
As it was previously stated, tenant screening is key. That can make or break you. I have finally given into using Prop Mgmt, bc it really wasn't a "passive" investment if I was managing it myself.
Enjoy
Let me know if you have any specific questions.
www.biggerpockets.com is a great site
I own 3 single family homes, and i'm about to purchase #4 in September. I love it, but I also have a full time job.
As it was previously stated, tenant screening is key. That can make or break you. I have finally given into using Prop Mgmt, bc it really wasn't a "passive" investment if I was managing it myself.
Enjoy
Let me know if you have any specific questions.
www.biggerpockets.com is a great site
Page 1 of 2
Popular
Back to top
Follow TigerDroppings for LSU Football News