Owning a rental property
- Thread starter RICH17
- Start date
Are you looking at an apartment building for multiple families or just a single town home to buy and rent out to people? We rent out town home from a guy who bought it when the market was high and would lose to much money right now if he tried to sell so he just rents it.
At the end of the day its really about your tenants. Will they destroy the place? Will they pay on time? That is your biggest factor
At the end of the day its really about your tenants. Will they destroy the place? Will they pay on time? That is your biggest factor
Currently looking at properties that I can live at as well as have a rental. And also be a fixer upper. I have a property in mind but its farther than what I would like but its ideal for me. 1.5 acres. two houses. One is two units. other would be for me. But both need major updating. This would be a joint venture investment for my uncle and I and he's a retired contractor that can easily do all of the work. Its in a small town and has tenants already which I had met, but are scary hillbillies 
Most of the complaints I hear from landlords involve tenants. As mentioned, do your background checks and research to find a good tenant. You will be happy you spent the money on the research when you aren't getting wakened every weekend by the renters, neighbors or police calling you about your property.
buy a place for yourself first. rent an extra room to someone you trust. there's not much money to be made especially out in the sticks. you have to deal with getting people to pay rent, fixing what they fuck up and fixing things very quickly ex: HVAC and plumbing issues, or paying a contractor to come out and make repairs ASAP.
get your own stuff, not something you're in on with your uncle. If your or his situation changes, one of you is getting fucked. this is where you're living, not a side venture that the bank can evict and foreclose on without much harm.
get your own stuff, not something you're in on with your uncle. If your or his situation changes, one of you is getting fucked. this is where you're living, not a side venture that the bank can evict and foreclose on without much harm.
Just from an outside looking in thing, you can't even afford to buy yourself a set of $800 wheels because money is tight. I don't feel like you can afford to take on such an investment.
Also, it costs money to manage rental properties, the background checks and credit checks aren't free. Sure, when they destroy the brand new carpeting (just an example) you can keep their deposit, but you're still going to have to buy new stuff. You also have to follow codes for rentals, there's yearly or biyearly inspections that need to be done I think.
Also, it costs money to manage rental properties, the background checks and credit checks aren't free. Sure, when they destroy the brand new carpeting (just an example) you can keep their deposit, but you're still going to have to buy new stuff. You also have to follow codes for rentals, there's yearly or biyearly inspections that need to be done I think.
I have had mixed experiences, but mostly good. WE have rented my condo in carol stream for about 6 years and its working out great. Never had anyone really screw me by not paying and having to deal with an eviction or anything like that. One lady had a couple dogs that fucked some doors up and trashed the carpet, but the carpet needed to get replaced anyway so it wasnt a big deal. Right now I have a Vietnamese woman and her parents in there and they are model tenants. Pay on time, no complaints, sure clean. Hopefully they resign for a year or more.
I plan to keep renting this place till its paid off and then Ill have a nice $200k give or take when I sell it. Plan is to use it to buy a nice ocean worthly sailboat at that time once the kids are in college and just travel the world on it.
I plan to keep renting this place till its paid off and then Ill have a nice $200k give or take when I sell it. Plan is to use it to buy a nice ocean worthly sailboat at that time once the kids are in college and just travel the world on it.
Owning, fixing up, and maintaining a house alone is enough work, to go along with a full-time job. Adding into it maintaining someone else's living space? GTFO of here. If you have a job with flexible hours and/or work from home would definitely help. But if you're on the job for 40+ hours/week, no way. Not enough hours in the day/week.
I helped fixe rentals for about 10 years. This is probably the truth of it.
If you get rentals don't do janky ones. Get nice houses that rent for $$$. It keeps the riff raff out.
Just my .02 cents, I'm in the same boat as Offshore, focus on getting your own place, aren't you already in cahoots with your uncle on the car you drive as it is? I wouldn't want to be involved in rental properties with him as well on top of the car.
Plus as Primalzer mentioned, it's a LOT of work to fix up and get your own house ready to live in, now you'd like to do that plus two places you could rent out to "scary hillbillies" ?!?!? Are you going to evict the scary hillbillies if their background checks turn out badly? Is there any chance of someone renting out in the middle of nowhere other than scary hillbillies?
You quit Menards because it was sucking up too much of your time, I can only imagine working on three homes essentially while working 40+ hours a week.
My house was my parents rental house before I moved into it. They rented it to her cousin thinking family would take care of it..... YEAH right. Come to find out it was like a fucking farm in there, 4 people, 3 dogs, 4 cats, 5 ferrets, etc.... It took me forever to get the place to not reek.
Plus as Primalzer mentioned, it's a LOT of work to fix up and get your own house ready to live in, now you'd like to do that plus two places you could rent out to "scary hillbillies" ?!?!? Are you going to evict the scary hillbillies if their background checks turn out badly? Is there any chance of someone renting out in the middle of nowhere other than scary hillbillies?
You quit Menards because it was sucking up too much of your time, I can only imagine working on three homes essentially while working 40+ hours a week.
My house was my parents rental house before I moved into it. They rented it to her cousin thinking family would take care of it..... YEAH right. Come to find out it was like a fucking farm in there, 4 people, 3 dogs, 4 cats, 5 ferrets, etc.... It took me forever to get the place to not reek.
Cant afford and shouldn't buy are two different things.
That's exactly what I want.
That's the thing. I will be living on site. so yard work is the major thing. I rent now and Brian has come over like once a year for a fix. Yes it sucked for him to have to throw money at it but all in all we've had good luck with the house. Its not like I will be doing something every night. Also we will have to renovate to make them livable (in my eyes). So a lot of the stuff will be new.
The exact place I am looking at has a tenant now. And their rent would cover 3/4 of the mortgage.
Quote:
Originally Posted by ktraver97ss View Post
I plan to keep renting this place till its paid off and then Ill have a nice $200k give or take when I sell it. Plan is to use it to buy a nice ocean worthly sailboat at that time once the kids are in college and just travel the world on it.
That's exactly what I want.
While that's an amazing option and potential look at how long it may take you to achieve that. Are you ok with investing in the property knowing that it will not be paid off for 15-30 years?
Its a long term investment for sure. Unless its really cheap and can be paid off with ease
Originally Posted by ktraver97ss View Post
I plan to keep renting this place till its paid off and then Ill have a nice $200k give or take when I sell it. Plan is to use it to buy a nice ocean worthly sailboat at that time once the kids are in college and just travel the world on it.
That's exactly what I want.
While that's an amazing option and potential look at how long it may take you to achieve that. Are you ok with investing in the property knowing that it will not be paid off for 15-30 years?
Its a long term investment for sure. Unless its really cheap and can be paid off with ease
A lot of people hitting the nail on the head in here Rich
I didn't know you quit Menards already???
You've worked hard to get your credit back and moved up with Jobs
I'd hate to see you do this and it fucks you over
On the other hand it is quite the opportunity for financial freedom
Idk man, tough call, the whole thing doing this with your uncle is what's swaying me to say nope
HK
I didn't know you quit Menards already???
You've worked hard to get your credit back and moved up with Jobs
I'd hate to see you do this and it fucks you over
On the other hand it is quite the opportunity for financial freedom
Idk man, tough call, the whole thing doing this with your uncle is what's swaying me to say nope
HK
I only dedicate a few hours a week to yard work...especially with a fixer-upper, there's going to be shit going wrong needing to be fixed, and shit needing to be done all the time. Especially if you are like me, or others on the board, and can't stand that thing glaring you in the face, looking like shit.
A fixer-upper is enough work on its own without adding in the other dimension of looking after the rental portion. Also especially if you are just starting off, as a first time homeowner. You are going to dump A TON of money into the down payment, leaving you fairly moneyless for a good amount of time. When you start to build your savings back up, is really when you can start to do stuff with the house...but it's very annoying not having any money to do the stuff you want in the beginning.
Take it one step at a time. Adding a rental property is financially risky...especially for a first time homebuyer. Get your budget and finances in order first.
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