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Acquiring Rental Property

Discussion in 'General' started by Gorilla George, Feb 14, 2020.

  1. HPPT

    HPPT !!!

    He's already moved on from this thread.
     
    Boman Forklift likes this.
  2. eggfooyoung

    eggfooyoung You no eat more!

    Hell he never even made it to page 2! :crackup:
     
    Boman Forklift likes this.
  3. ChemGuy

    ChemGuy Harden The F%@# Up!

    Why da fun ain’t that money in oil company and oil field service stock brah?

    Or CrossFit gyms?

    Or traveling Donkey shows?
     
  4. R Acree

    R Acree Banned

    Or Tesla
     
    Phl218 and rd49 like this.
  5. TurboBlew

    TurboBlew Registers Abusers

    And Im going to guess that company takes more than 50% and pads all expenses. So hopefully your friends houses are appreciating handsomely or his "investment" will become an divestment.
     
  6. ScottyRock155

    ScottyRock155 A T-Rex going RAWR!

    I believe the number is between 15-20%.
     
    Newyork likes this.
  7. R Acree

    R Acree Banned

    If you are paying 50%, you are getting raped.
     
  8. That is the plan. There is one around here that handles stuff like this. I spoke to them a few years ago, so I don't know if the rates have changed. But IIRC, you have to give them something like 5-10% of the rental cost, and they handle everything. I don't even have to meet the tenants, and they don't even have to know my name. The rental company does the interviews, credit checks, handles contracts, collects the rent, etc. If there is an issue with the house, the renters call the agency, not me.

    I am completely out of the picture. But of course, like you said, it costs me some money to do that. But also like you said, with my travel it is the best way to handle it.

    I think the rate depends on if you want guaranteed money or not. I think there are different options. Like I said, don't quote me on the exact numbers, because I cant remember. But I think it is something like 5% is the "normal rate", then if you pay 10%, you are guaranteed your rent money every month...even if nobody is in there. If it isn't rented, then the agency will continue to pay you until they can find a renter. It may be 10% and 15%, or something like that. But there is an option to do that.
     
  9. I agree...hence my last post. I don't plan on having anything to do with it. :D

    We need to figure out something to do, rather than just putting money in savings all the time. I play with the stock market, but i dont have the patience to sit and watch/play with it all the time, do the research, etc that needs to be done to be really good at it.

    I want to reach a point where other people are paying me. The easiest way to do that, is rental property.

    Sure, I may have to dump a lot of cash in the beginning to get it going. But after that, I can start collecting money from other people. The best part is that I own the properties. So I can collect every month for as long as I want, but if I reach a point where we want to say fuck all of it and retire to the Philippines, we can sell it all.
     
  10. That's exactly how I plan on doing it.

    Rather than having multiple houses scattered around, I am looking into purchasing some condos. The ones where 1 large building has 4 apartments in it; something like that.
     
  11. The funny part is, I had actually forgot I made this thread. I just got back from the gym, opened my laptop, and was like "illbedamned". :crackup:
     
    Boman Forklift and brex like this.
  12. See, I have thought about that. The problem with that is I cant actually see it, and I have seen/heard too many horror stories. Id love to just send someone $xk every month and have them manage it/make money. But how can I know they wont call me one day and be like "dude, its gone...sorry...my bad"?

    How do I know they wont decided to take it all and haul ass to Panama (which happened to a guy I used to work with; 2 brothers owned an investment firm in NYC...and after him and about 50 other people had been giving them money for almost 30 years, they took it all and hauled ass...dude had to go back offshore at 70 years old because he had fuckall).

    I would rather go that route of just letting someone else make me money, it is easier. But I don't know how it works and who I can trust. At least with the houses, I can drive by them and be like "That's $500k sitting right there, it is mine".
     
    Last edited: Feb 14, 2020
  13. iagsxr

    iagsxr Well-Known Member

    The couple rentals I've sold, capital gains has taken a lot of the fun out of it.

    Urban markets are different than me out in BFE, but I think if you have actual cash to invest you can do better than rentals with very safe investments.
     
  14. diggy

    diggy Well-Known Member

    ^^^^This... capital gains in un-farking-believable.... Between the taxes and the realtor fees, that is a huge chunk of the appreciation, especially if you're going to hold it for many years. The only way around it is to live in the house for 2 years
     
  15. Str8-Lurkin

    Str8-Lurkin Well-Known Member


    Been there... sold that! Coming up on 2 months of freedom come March! Way more time ride motorcycles now that I'm not dealing with tenants :)

    Did it for 7 yrs. Bough in a buyer's market (low) and sold on a sellers market (high). Lived the places more that 2/5yrs most recent years to avoid capital gain tax and you will be golden.
     
    Last edited: Feb 14, 2020
    cpettit likes this.
  16. zamboiv

    zamboiv Well-Known Member

    I could never picture you as a landlord based on your personality from the beeb. I had a nice family in one and they paid the first day on the month, etc.

    however they will destroy all your shit! Damn near burnt my house down with a bbq fire, etc.

    Build a diversified portfolio of investments and let it grow. Yes you don’t get the leverage that you do via financing the homes but if you pay cash well, you ain’t getting leverage either.
    Best of luck.

    I would only do it again if I bought multiplex but at current valuations and cap rates so low it’s not worth it to me.

    One caveat. I do investments for a living so I spend quite a bit of time looking for opportunity’s all across the spectrum. At this time rentals make zero sense to me.
     
    SuddenBraking and Boman Forklift like this.
  17. TurboBlew

    TurboBlew Registers Abusers

    I just did the #s based on what I rent my houses for and didnt include the taxes or sundry expenses. Around here its 35% min... for rents up to $3,000/month. There are also application fees, etc.

    without knowing the actual #s... its just pissing in the wind. But lets just say $2000/month for rent. So $7200/yr as the base fee.
    Taxes are part of the equation (another unknown) and a management company aint going to bill you at "even steven" for any trades repairs. So out of $24,000... youre easily over $10,000 in expenses on the low end. Thats not even surmissing if theres a mortgage or insurance. Im going to bet the management company also has stipulations about evictions and other legal matters.
     
  18. MELK-MAN

    MELK-MAN The Dude abides...

    leverage .. interest rates are wicked low, and you get to write off the payments. can buy a good number of homes only putting smaller down payments out there, vs paying cash and only buying one.

    I do not suggest buying one rental home, unless you get it for a steal, in which case you should just do what it needs to get it marketable, and flip the fuker for a quick profit. Owning 1 or 2 rentals can be a PITA for those that are not doing this full time, as main source of income. You just don't need the money that badly..

    get a few, get friendly with some handymen to do the minor cleanups to get rented after a move out, if bought in right areas and didn't pay too much to begin with, will have some serious equity in 10+ years.
    Operative words "didn't pay too much" and "bought in right areas".. it ain't for everyone.
     
  19. The Great One

    The Great One Well-Known Member

    For those mentioning capital gains taxes; a 1031 exchange is your best friend.

    @Gorilla George if you're serious about rental properties, get on BiggerPockets.com and spend as much time there as you do the beeb for 6-8 weeks before you do anything. That place has a wealth of information and experience and you will quickly realize whether this is something you want to get into or not.
     
    Gorilla George likes this.
  20. Newyork

    Newyork Dip Mode

    This is the number I keep hearing as well.


    Sent from my iPhone using Tapatalk
     

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