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Many of my senior friends... some quite senior as one that has lived in her historic register Alameda California Queen Ann home for 60 years... have rental property... most live on premise with either a Duplex, Triplex or Fourplex...
The rental is their hedge against inflation and has been spot on as anyone that knows Bay Area Real Estate and Rents...
Many years ago an older retired friend told me as a teen... the secret to a secure retirement is to have 5 units of income property... and the beauty is rental property can be insured against loss and can be borrowed against... plus there are also tax benefits.
Rental property is where your tenant works so you don't have to.
Rental property is where your tenant works so you don't have to.
Form your lips to God's ears...
The last 3 hours I was ankle deep in poop... my tenant's grandchild flushed an action figure in the toilet and all the kids kept using it... what a mess... had to pull the toilet which is a 4 bolt and carry it outside and flip it to get the action figure out and it did not come out easily...
Also have a full service van with that is full of maintenance and repair supplies... just my Sparton 300 Sewer Auger cost 3k and it is getting heavier each year to maneuver...
The only way I know not having to work is to sell... then my tenants... some going back to the late 80's would be out... by the way... the tenant with the mess moved in 27 years ago.
Residential Rental property is a second job... phone rings anytime day or night and 7 days a week... and is exactly why many jump on the chance to cash out in an up economy.
It is also an investment that is a hedge against inflation, has tax benefits and appreciates with the right management...
Rental property is where your tenant works so you don't have to.
real estate is a profession and job just as any other job. doesn't it look like someone who owns a store just opens the door and people hand them profits , especially if they hire a minimum wage worker to work that store .
some folks work with their hands ,some with their minds and others with their money but it is all work.
even investing in stocks can be work if you take it to a professional level as a trader.
the fact is you do for a living what anyone can do off the street and because off that fact you get paid little for it and while you don't see it that is your own doing . there are master chef's doing the same cooking you are but on a more skillful level doing what others can't and are earning big dollars because of it..
the fact is successful people work smarter than you and earn a lot more for it and that is whether using their hands , mind or money.
people earn decent money doing the things others cannot do or won't do for themselves no matter what it is.
when we had the house in PA. the cesspool guy made a fortune.
burger flippers and someone who pours coffee will never make a decent living no matter how hard they work. it is something anyone can do . not everyone can be a master chef or buy ,manage and own rentals.
Last edited by mathjak107; 04-28-2015 at 03:14 AM..
The last 3 hours I was ankle deep in poop... my tenant's grandchild flushed an action figure in the toilet and all the kids kept using it... what a mess... had to pull the toilet which is a 4 bolt and carry it outside and flip it to get the action figure out and it did not come out easily...
Also have a full service van with that is full of maintenance and repair supplies... just my Sparton 300 Sewer Auger cost 3k and it is getting heavier each year to maneuver...
The only way I know not having to work is to sell... then my tenants... some going back to the late 80's would be out... by the way... the tenant with the mess moved in 27 years ago.
Residential Rental property is a second job... phone rings anytime day or night and 7 days a week... and is exactly why many jump on the chance to cash out in an up economy.
It is also an investment that is a hedge against inflation, has tax benefits and appreciates with the right management...
You're Mike Rowe? I saw that show.
But yeah, I've known some landlords and I've heard some real horror stories.
Fortunately, the vast majority of stories are much better.
real estate is a profession and job just as any other job. doesn't it look like someone who owns a store just opens the door and people hand them profits , especially if they hire a minimum wage worker to work that store .
some folks work with their hands ,some with their minds and others with their money but it is all work.
even investing in stocks can be work if you take it to a professional level as a trader.
the fact is you do for a living what anyone can do off the street and because off that fact you get paid little for it and while you don't see it that is your own doing . there are master chef's doing the same cooking you are but on a more skillful level doing what others can't and are earning big dollars because of it..
the fact is successful people work smarter than you and earn a lot more for it and that is whether using their hands , mind or money.
people earn decent money doing the things others cannot do or won't do for themselves no matter what it is.
when we had the house in PA. the cesspool guy made a fortune.
burger flippers and someone who pours coffee will never make a decent living no matter how hard they work. it is something anyone can do . not everyone can be a master chef or buy ,manage and own rentals.
And when 'too many' people try to enter a field, the people already in that field use government to keep out competition. e.g. lawyers
The last 3 hours I was ankle deep in poop... my tenant's grandchild flushed an action figure in the toilet and all the kids kept using it... what a mess... had to pull the toilet which is a 4 bolt and carry it outside and flip it to get the action figure out and it did not come out easily...
Also have a full service van with that is full of maintenance and repair supplies... just my Sparton 300 Sewer Auger cost 3k and it is getting heavier each year to maneuver...
The only way I know not having to work is to sell... then my tenants... some going back to the late 80's would be out... by the way... the tenant with the mess moved in 27 years ago.
Residential Rental property is a second job... phone rings anytime day or night and 7 days a week... and is exactly why many jump on the chance to cash out in an up economy.
It is also an investment that is a hedge against inflation, has tax benefits and appreciates with the right management...
One way to do it might be to get into NNN commercial properties, where the tenants/business owners basically pay for everything and are reasonable for fixing everything.
Yields might be lower though.
Selling your properties and then 1031 exchanging into a commercial. Not sure if you have considered that.
It seems to be a good end goal for someone that wants a more hands off approach ,but still benefit from cash flow and appreciation.
And when 'too many' people try to enter a field, the people already in that field use government to keep out competition. e.g. lawyers
Kind of like you are seeing with services like Uber /Lyft with the taxi cab companies.
I noticed too when something is new it can be relatively easy to make money, but then when more people jump in the profits go down.
Look at graphic design, it used to be something that you could get paid a lot for , but now people are designing logos for $5 on Fiverr.com for example. Of course some people still make good money with it, but those are more the superstars that have an established brand.
In the early days of eBAY it was easier because there weren't as many competitors , and the large companies or factories didn't even have it on their radar. Now all the big brands are on there, or factories in china selling direct.
One can still make money on there, but it's harder for sure.
One way to do it might be to get into NNN commercial properties, where the tenants/business owners basically pay for everything and are reasonable for fixing everything.
Yields might be lower though.
Selling your properties and then 1031 exchanging into a commercial. Not sure if you have considered that.
It seems to be a good end goal for someone that wants a more hands off approach ,but still benefit from cash flow and appreciation.
I've been transitioning to commercial since 2000... all are NNN.
It is a different world for sure and I can see a day where I will be out of Residential Rentals.
A big part of the difference has been the on-slot of new residential only laws.. from Rent Control, Rent Arbitration Board, Just Cause Eviction Ordinances, Section 8 changes etc... business to business is much less complicated.
My core remaining residential rentals are 90% local... within 10 minutes and all but one were acquired in the 80's when many were fleeing the city...
I've been transitioning to commercial since 2000... all are NNN.
It is a different world for sure and I can see a day where I will be out of Residential Rentals.
A big part of the difference has been the on-slot of new residential only laws.. from Rent Control, Rent Arbitration Board, Just Cause Eviction Ordinances, Section 8 changes etc... business to business is much less complicated.
My core remaining residential rentals are 90% local... within 10 minutes and all but one were acquired in the 80's when many were fleeing the city...
Interesting, what city is this in?
I know in L.A , rent control is a big issue. It's crazy that you look at the properties for sale and they are sky high,but they will have tenants pay half the market rent.
Then people are surprised when landlords want to rent out on sites like AirBNB or want to redevelop their buildings or convert to condos.
Why would a landlord want to subsidize their renters at their own expense? It just doesn't make sense.
Also when landlords to "kick out" their tenants...in L.A they have to pay huge 'relocation fees' tens of thousands of dollars!...after they paid below market rent all those years!
Sadly too many people don't understand the economics of real estate or anything...and just view it as "greedy landlords"...
It's the same people that think small businesses can pay unskilled employees $15 and not suffer (close up business, cut hours,etc).
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