Interested in hearing from people who rent out property

[Handlebar Moustache]

Clearly some of us are doing well at this. It’s not for everyone.

Agreed...

I’m on my 12th year. I have 2 single family homes and these have been my best long ball investments. Key points, as have been said before:

-screen and get good tenants
-don’t be an asshole landlord to good tenants. When you find good tenants, make it hard for them to leave because you hook them up right, always. It’s a two way street.
-if you are handy, that will go a long way to keeping your ROI up
-having a handy tenant helps a lot (no nuisance calls; they will improve the house at little to no labor cost)
-do your research; don’t buy a lemon house
-make quality repairs and buy durable stuff
-success may be more difficult in some areas/markets.

Like anything, there are pros and cons. It’s not for everyone.



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[colin450]

I bought a two-family in the town that I live in in 2013. Did exactly what you said, thought about living in the nicer side but I stayed home for a few more years and built a new house that I moved into in December 2016. Maybe I've just had good luck, or maybe it's because I'm away from a city area, but my tenants have never been late or missed a payment.

The house didn't need anything when I bought it. Over the years I've replaced some small things, shower valve, faucet, put in a whole house filter system, sump pump. One tenant who had been there for 15 years previously stayed, and the tenant for the nicer side moved in about a month after I closed on the house. My real estate agent listed it, screened tenants, wrote up the leases.

 

[blownstang4.6]

I'm the one who posted the info about buying a multi unit property. Definitely do it if you could deal with the occasional maintenance and phone calls. I bought my 3 unit while I was still living with my parent. A little over a year later I bought my single family house and spent 9 months renovating it every weekend. My rental covers its own mortgage, insurance, tax, and half of my single family. If my taxes on the rental weren't so high it would almost cover my entire single family. I akso toss in a couple hundred extra dollars a month to pay off my personal residence. I cover repairs in full as they come up. I'm paying $1000/month out of my own pocket to own two properties. The biggest hurdle is saving up the down-payment (25% on a rental property that you don't occupy in order to not pay pts), but since you're living at home that shouldn't be too difficult if you've been pretty adamant about saving.

In my area a single family house as an investment is not a good value unless you get it cheap. On a single family house if rent can cover that entire house then you're doing good. I think it's easier to find a tenant to rent a 3 bedroom apartment for $1300 vs a 3 bedroom house for $2000. If you have 3 similar sized apartments in your property that's $3900 a month.

 

[nxhappy]

anyone play around with airBnB ?

 

[Handlebar Moustache]

anyone play around with airBnB ?

My brother does. That is definitely more of a crapshoot than having a steady renter. He has had good and bad experiences.

 

[PhoenixM3]

and I bet those houses you bought are now worth X3 or even X4 your purchase price. This is why I'm buying a house in FL. I may not rent ...but I know for damn sure in 20 years it will be worth a good amount of money.

anyone play around with airBnB ?

I'm considering it, but I hate people and have too many guns lying around......

 

[Outlaw99]

Ive had 3 rental properties at one time. You can message me with any specific questions you have. Ill answer as best I can.

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[nxhappy]

I'm considering it, but I hate people and have too many guns lying around......

my thing is ...my new home will be my vacation home. As of now, I don't want a 1-2 year renter. Maybe just 1-2 weeks per month, to pay partial mortgage.

 

[velocicaur]

How stressed out are you? How do you deal with stress? Are you expecting any big life changes (wife, kids?)? How is your career? Do you have enough money to coverage the lost rent? What if the A/C dies tomorrow? Can you separate the emotional side from the business side?

You're either cut out for it or you're not and you'll find out in a hurry. Obviously find something that works out financially but you want to have an exit plan too. You should have a way to get out of it and be willing to take the loss that comes with it. "This sucks, time to sell." Real estate agent, taxes, etc.

I would definitely not rent out your new vacation home. It is no longer "your" home when you rent it out. It's a "place" that you use. You have strangers walking around and using your place for half the time. It is a really weird feeling. It's hard to explain unless you have rented out things before. For example, would you rent your car out for the weekend? Do you let other people drive your car? It's not your best buddy either, it could be the responsible 65 year old retired man or 16 year old down the street that will light up your tires all night (similar to AirBNB). If the answer is no, you're not suitable to rent out your house. If you don't "care" about your car and just see it as a car, then it might work out.

 

[Kevins89notch]

anyone play around with airBnB ?

I'm slightly looking to buy a house and some of the ones I'm browsing online are clearly airbnb homes. They are near Disney. Some are importly listed as 6 bedrooms. When I look at the pics, it's a 4 bedroom with bunk beds in 2 rooms. They tend to do theming like one room is pink everything, and the other is blue everything (for kids, aka boys and girls). The garages have pool tables, pingpong, and darts setup. The house comes fully furnished, all couches, beds, etc.

As I typed this, I went and checked and I'm seeing prices like $100-150 a night for the whole house. Seems cheap!