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sorry, my bad!
I think you did a good thing myself, but I am biased. I bought a 5000 sq ft home and rent out the basement which cuts my mortgage in half. The op mentioned he has rentals, so this should be easy for him. The only thing is if he moves is he comfortable with selling or renting long distance.
Just wanted to address this. I do own the rentals, yes. But, a relative of mine does all the property management and handy work. I am by no means handy. All I really do is handle the finances, which is simple, especially since my accountant handles most of it. A couple family members actually rent one of the units from me, so it makes owning them super easy.
I've always viewed rental properties differently than a property I'd own. They just generate cash for me, where with a property I own and live in, I basically pay it instead of having it pay me.
Location: Formerly Pleasanton Ca, now in Marietta Ga
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well it seems you know yourself pretty well so I am sure you will make a wise decision. I've owned and manage rentals for over 30 years. This is the first house I have ever bought for myself. Feels weird not making a cash flow on it.
well it seems you know yourself pretty well so I am sure you will make a wise decision. I've owned and manage rentals for over 30 years. This is the first house I have ever bought for myself. Feels weird not making a cash flow on it.
Exactly how I feel about owning a primary residence. I've decided to keep renting here since I have a good situation. I'll stick with buying rentals.
Location: Formerly Pleasanton Ca, now in Marietta Ga
10,345 posts, read 8,557,056 times
Reputation: 16679
Quote:
Originally Posted by MrJones17
Exactly how I feel about owning a primary residence. I've decided to keep renting here since I have a good situation. I'll stick with buying rentals.
Good luck. I think you are on the right track.
When I moved to Atlanta I could either buy a house cash or buy rentals and rent a place for myself.
I chose to buy rentals and made about $200k in forced equity right off the bat. Then I made almost 40k a year in net income off the rentals while paying rent of 20k a year.
Finally I bought a house because it was a dream home for me and it was cheaper than to rent because I rented out the basement.
I think you are a younger version of me
How AirBnB friendly is the area you're planning to buy in? If I had it to do all over again, I would buy a place where many legitimate folks need a short term rental. These places are booked months in advance in my area. Home owners bring in much more in revenue than they would with a renter. They also get to bypass the landlord/tenant laws, no worries about evicting a tenant who damages the property or can't pay, no fee to a rental agent. I don't know what cut AirBnB gets. You would have to buy in an area that had many schools and business travelers or vacationers and check with the town to find out the zoning laws for that kind of business. I know it is discouraged if someone buys in a home owners association.
Good luck. I think you are on the right track.
When I moved to Atlanta I could either buy a house cash or buy rentals and rent a place for myself.
I chose to buy rentals and made about $200k in forced equity right off the bat. Then I made almost 40k a year in net income off the rentals while paying rent of 20k a year.
Finally I bought a house because it was a dream home for me and it was cheaper than to rent because I rented out the basement.
I think you are a younger version of me
Very nice. My rentals actually do pretty well. They're in small towns in upstate NY, Capital Region area. High rental demand in those areas and the properties are dirt cheap.
Quote:
Originally Posted by 495neighbor
How AirBnB friendly is the area you're planning to buy in? If I had it to do all over again, I would buy a place where many legitimate folks need a short term rental. These places are booked months in advance in my area. Home owners bring in much more in revenue than they would with a renter. They also get to bypass the landlord/tenant laws, no worries about evicting a tenant who damages the property or can't pay, no fee to a rental agent. I don't know what cut AirBnB gets. You would have to buy in an area that had many schools and business travelers or vacationers and check with the town to find out the zoning laws for that kind of business. I know it is discouraged if someone buys in a home owners association.
Haven't looked a whole lot into AirBnB. I live in Raleigh, NC. I don't know if it's as big here as it is in, say, Miami or San Francisco. I also don't know if I want to take on the hospitality side of things. I like rentals because they're very hands off for me.
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