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Suggestions on a basics/for dummies/intro book on rental properties
Posted on 2/7/25 at 9:39 am
Posted on 2/7/25 at 9:39 am
I am considering the idea of purchasing a small home or condo/townhome to rent out. I am completely ignorant and uninformed on the topic and don't want to just go in blind so I'd like to read a 101 type book to walk me through the basics. A google search provides the same high level things from one site to another (hire a management company, the 1% rule, etc). but I want something a bit more in depth. I'm not looking for an encyclopedic super deep dive into all the nuances, just something for beginners to get going. As to why I would want to do this considering I know nothing at all about the subject it's 2 fold:
1) I've never made a high salary and never will, so the idea of having a little extra money coming in monthly is appealing
2) I like the concept of building equity in something that I can turn around 10-20 years down the road and sell at a profit
But mainly it's #1.
1) I've never made a high salary and never will, so the idea of having a little extra money coming in monthly is appealing
2) I like the concept of building equity in something that I can turn around 10-20 years down the road and sell at a profit
But mainly it's #1.
6
Posted on 2/7/25 at 10:00 am to WG_Dawg
I'll tell you one thing, this past 2 years has been getting hard. Insurance rates have been climbing 8-10% year for almost all my properties. Where I am, I can't exactly keep up with increasing rents 8-10% a year. My cashflow has been getting squeezed.
Look into biggerpockets for their books. They're pretty good for the basics.
Look into biggerpockets for their books. They're pretty good for the basics.
This post was edited on 2/7/25 at 11:04 am
Posted on 2/7/25 at 12:01 pm to WG_Dawg
Super easy. Take in more rent than you spend on the property.
This post was edited on 2/7/25 at 12:02 pm
Posted on 2/7/25 at 12:06 pm to WG_Dawg
quote:
1) I've never made a high salary and never will, so the idea of having a little extra money coming in monthly is appealing
It will get eaten up. in maintenance costs. I don't even consider the cash flowing income as income really. I don't factor it into the budget at all. It's a long term game with rentals and honestly think to make it worth the while you really need several. It's an appreciation game too.
Condo financing is much harder to get than it is on a townhouse.
Your number 2 bullet is where the payoff is.
I've yet to turn a profit in 3ish years on them. It's a tax shelter for me right now more than anything.
Posted on 2/7/25 at 12:07 pm to b-rab2
quote:
I'll tell you one thing, this past 2 years has been getting hard. Insurance rates have been climbing 8-10% year for almost all my properties. Where I am, I can't exactly keep up with increasing rents 8-10% a year. My cashflow has been getting squeezed.
This. At the prices and rates today, nothing really cash flows. And if it does, it's peanuts.
quote:
Look into biggerpockets for their books. They're pretty good for the basics.
That site is overwhelming imo.
I also wouldn't get into it without a solid income.
Posted on 2/7/25 at 3:37 pm to Billy Blanks
quote:
It will get eaten up. in maintenance costs. I don't even consider the cash flowing income as income really. I don't factor it into the budget at all. It's a long term game with rentals and honestly think to make it worth the while you really need several. It's an appreciation game too.
In general for your smallest/crappiest rental what are you left over with monthly after all required expenses?
Posted on 2/7/25 at 5:01 pm to WG_Dawg
I’m getting around $250,000 and thinking about rental houses, condos, short term, long term. Any advice is appreciated.
Posted on 2/7/25 at 5:36 pm to Billy Blanks
quote:
nothing really cash flows. And if it does, it's peanuts.
What's peanuts to some may be just fine to me.
quote:
also wouldn't get into it without a solid income.
This is why I want to read on the subject, so I can learn exactly what to expect and be in store for.
Posted on 2/7/25 at 6:06 pm to WG_Dawg
quote:
In general for your smallest/crappiest rental what are you left over with monthly after all required expenses?
My worst one cash flows $250 a month. The others are $600-$1000 monthly.
3 water heaters, 2 full hvac units, 4 dishwashers. Then just here and there small things.
I’m still glad I have them but I don’t view them as a monthly income producer.
Posted on 2/7/25 at 7:45 pm to Billy Blanks
quote:
nothing really cash flows.
I have four rentals that bring in $7500 a month. Not enough to quit working but nice passive income.
Posted on 2/7/25 at 8:33 pm to Billy Blanks
quote:
It will get eaten up. in maintenance costs. I don't even consider the cash flowing income as income really. I don't factor it into the budget at all. It's a long term game with rentals and honestly think to make it worth the while you really need several. It's an appreciation game too.
This.
We bought two condos at damn near the market bottom after 2008 and even at a great entry point and low rates were getting squeezed by taxes, insurance, the note, maintenance and turnover costs. We projected going red in the one year due to tax increases and sold one to pay off the other - which cost us some further appreciation but it is nice to own one free and clear.
But even with that, the longer you hold the more shite you have to replace. Ours has a new roof, water heater, hvac, range, etc….and we had to replace the floors this last turnover. It seems like as soon s the rental account builds up some cash something else has to be fixed.
It’s turned out to be a great long term investment but it is NOT and ATM.
This post was edited on 2/7/25 at 8:35 pm
Posted on 2/7/25 at 10:26 pm to The Pickwick
quote:
nothing really cash flows.
You missed this partquote:
At the prices and rates today
I have four rentals that bring in $7500 a month. Not enough to quit working but nice passive income.
I'm referring to deals on the market today. Not whenever you bought them.
quote:
but nice passive income.
Real estate investing isn't passive.
This post was edited on 2/7/25 at 10:28 pm
Posted on 2/7/25 at 10:31 pm to Billy Blanks
quote:
Real estate investing isn't passive.
I honestly put in less than 10 hours a year total on all my properties.
quote:
I'm referring to deals on the market today. Not whenever you bought them.
There are still deals out there to be had.
Posted on 2/7/25 at 10:35 pm to The Pickwick
quote:
There are still deals out there to be had.
What years and rates did you buy your 4 rentals?
What's the most recent purchase?
Posted on 2/8/25 at 12:13 am to The Pickwick
quote:
honestly put in less than 10 hours a year total on all my properties.
Found the slumlord
I have almost 20 doors now. I spend a shite ton of time managing the properties, making repairs, etc. Rates are insane and insurance/property taxes are nuts. There are still some deals but the only deals will be off market and properties where the owners are in financial distress or the properties are very old and need a ton of work.
This post was edited on 2/8/25 at 12:15 am
Posted on 2/8/25 at 6:17 am to Billy Blanks
quote:
What years and rates did you buy your 4 rentals?
What's the most recent purchase?
Bought my least one in early 2024, about a year ago. It was a house that had been tied up in succession and needed a lot of updating. Made an offer and spent about 7 months redoing the house. Paid a little less that 150 for the house and probably put in 100 in the remodel. Currently getting $2500 a month. Have not got the house appraised after finishing the work and I’m sure “the rental experts” will say that I should be fetching more in rent but I’m happy with that deal.
Paid cash for all of them. Well the first one was my original first home and when I moved out, I just used it as a rental. That was in 2016. That one brings in the highest amount of rent and will be paid off in June of this year.
This post was edited on 2/8/25 at 6:33 am
Posted on 2/8/25 at 6:25 am to TheOcean
quote:
I spend a shite ton of time managing the properties, making repairs
When I have a turnover, I usually update the house (paint, floors, countertops if needed, service, repair or replace AC units etc) to make sure it’s in tip top shape. I can’t tell you the last time I got a call from a tenant stating the house needed attention. It has happened before but it’s not very often at all.
Having “higher end” properties and really being selective on who you put into the house as a tenant really helps out on the time you have to invest managing the property.
Posted on 2/8/25 at 6:52 am to WG_Dawg
Might consider reading the communist manifesto by carl Marx.
Im only half joking.
Im 1000% for Trump and DOGE but if the Biden administration showed us anything, it showed us how quickly they can destroy shite.
Im only half joking.
Im 1000% for Trump and DOGE but if the Biden administration showed us anything, it showed us how quickly they can destroy shite.
Posted on 2/8/25 at 7:19 am to TheOcean
I've enjoyed and appreciated all the replies but uh...any book suggestions? Lol
I see the prevailing opinion is "not a good time, it's not worth it" but I'd like to do the research and come to that conclusion myself.
I see the prevailing opinion is "not a good time, it's not worth it" but I'd like to do the research and come to that conclusion myself.
Posted on 2/8/25 at 7:38 am to WG_Dawg
Almost all the books will tell you that for a deal to make sense, you need to get rental income of 1% of the amount invested into the property or even 1% of what the property is worth.Those all very hard to find right now.
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