Rental Property

[Grape]

you act like houses automatically come with tennants that actually pay their rent, or don't call the city to get the house condemned because they are fucking broke and can't pay rent. Empty rent houses still require, taxes, insurance, yard maintenence not to mention if for some fucked up reason you actually take out a loan to buy rental property. I'm telling you, i've seen it all, it doesn't make money

[347Mike]

Most people don't have positive cash flow on investment properties (unless they pay cash for them). Any of you that own them currently care to comment on that?

I am curious as well. They must REALLY trash the place to have to pay $6,000 a year to fix up the place just to make it look presentable. This is why I asked if they received a deposit. I would figure that would offset some of $6,000 but I may be wrong. I think it may also be with the clientel he is bringing in with the 100,000 or less house.

[Grape]

I am curious as well. They must REALLY trash the place to have to pay $6,000 a year to fix up the place just to make it look presentable. This is why I asked if they received a deposit. I would figure that would offset some of $6,000 but I may be wrong. I think it may also be with the clientel he is bringing in with the 100,000 or less house.

1 A/C unit could take a shit.......whole year's profit wiped the fuck out.

[347Mike]

you act like houses automatically come with tennants that actually pay their rent, or don't call the city to get the house condemned because they are fucking broke and can't pay rent. Empty rent houses still require, taxes, insurance, yard maintenence not to mention if for some fucked up reason you actually take out a loan to buy rental property. I'm telling you, i've seen it all, it doesn't make money

I am not acting like anything. I made this thread to inquire.

Taxes, insurance is rolled into an escrow account like I mentioned earlier and compared to other properties in my area I would be able to list for 300-400 more than what I pay monthly. Not sure if that is a lot or not but then again that is why I am asking.

[Grape]

I am not acting like anything. I made this thread to inquire.

Taxes, insurance is rolled into an escrow account like I mentioned earlier and compared to other properties in my area I would be able to list for 300-400 more than what I pay monthly. Not sure if that is a lot or not but then again that is why I am asking.

see the post directly above yours

[347Mike]

1 A/C unit could take a shit.......whole year's profit wiped the fuck out.

Insurance? My house is only a few years old. I don't see anything major blowing up, and again I would have insurance.

[Unicorn Jeff]

Insurance? My house is only a few years old. I don't see anything major blowing up, and again I would have insurance.

Insurance might take care of it? Hell we had two new AC units put in a year ago, one year later poof mother fucker goes out. My mom threatened them to give us a new one for free, which they ended up doing.

[Grape]

Insurance? My house is only a few years old. I don't see anything major blowing up, and again I would have insurance.

sounds like you have it figured out, i will sell you a rent house with a 7 year tennant if you'd like, last one i have left. He's a single man also so you don't have to worry about the weekly calls to the plumber to snake the drain for tampons

[347Mike]

sounds like you have it figured out, i will sell you a rent house with a 7 year tennant if you'd like, last one i have left

I don't plan on buying anything additional unless it is the house I am living in.

[SMKR]

They must tear shit up to a whole other level. If my math is right that is 6,000 a year for each house.... I am expecting to make some money off of this. I don't want to be stuck breaking even. Are there any precautionary steps you can do to see their living habbits? I know you probably wouldn't ask them straight out but can you meet them at their place or anything of the sort?

I am very weird when it comes to things I own and I think if I knew someone was tearing my place to shit I would freak ultimately in affecting my attitude towards them. Everyone has wear and tear but straight up trashing it would be nuts.

You don't have to answer this if you don't want to but how much over your current payment are you charging?

Maybe it's just me, and my luck, but every tenant that has had to move out Ive had to R&R carpet, re-paint, patch sheet rock, bomb for fleas, bomb for bedbugs, just the most "WTF" stuff I can imagine. We as owners know how to properly take care of things. Renters dont have that ownership mentality and treat things like it is made out of iron and can last 1000 years.

Like in my first house, I put nice curtains, nicer carpet, etc. Well, fuck that. Now I put run of the mill carpet, basic blinds, etc and if they want something nicer, by all means they are welcome to.

I am charging $500/mos over my mortgage payments so not much profit. Factor in all the repairs and my goal right now is just to break even.

My parents have 6 rent houses and they too said it took a bit to get going, but now after 24 years the tenants have paid the homes all off and their cash flow is much better not having a monthly mortgage payment. Like one home they bought for $23,000 in 1979, has earned them roughly $162,000 in rental income.

[SMKR]

Most people don't have positive cash flow on investment properties (unless they pay cash for them). Any of you that own them currently care to comment on that?

I will attest to that. Having purchased 30-40 year old homes has really cost me money when it comes to repairs. And here is another thing. If you repair something, repair it right. Dont skimp on repairs for a rental property. Granted it has added to my repair costs to ensure it was done right with the best quality material, but that will pay dividends down the road. In the last few years I have had to repair plumbing, central heat/air, roofs, water heaters, etc so hopefully once these big ticket items are all done I can see my rental deposit account start to grow vs. out as fast as it came in.

[Broncojohnny]

I am of the opinion that there are much easier ways to make a buck.

[347Mike]

I am of the opinion that there are much easier ways to make a buck.

I don't mind exploring all possibilities though.

[jw33]

There are also tax benifits to owning a rent house. From what I can tell it's great way to lower your income (that sounds totally fucked up) especially when you make repairs. Granted it's not always a rose garden, but I bet depending on the sitiation it's not too bad if you do your homework. A lot of pretty decent folks are hanging out there renting right now because of the mortgage requirements. If you have a 900sqft shack and rent it out to biker gang members who cook meth, you may have issues in the future.

[SMKR]

There are also tax benifits to owning a rent house. From what I can tell it's great way to lower your income (that sounds totally fucked up) especially when you make repairs. Granted it's not always a rose garden, but I bet depending on the sitiation it's not too bad if you do your homework. A lot of pretty decent folks are hanging out there renting right now because of the mortgage requirements. If you have a 900sqft shack and rent it out to biker gang members who cook meth, you may have issues in the future.

yes, the write-offs are a positive- if you want to call them that.