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Old 05-11-2018, 10:44 AM
 
2,475 posts, read 2,731,950 times
Reputation: 1095

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I would like to ask a question of anyone who has actually owned a house for the purpose of renting it out for extra income. I have a friend who is thinking of doing just that. I have never owned any kind of property - never even wanted to; so, I am not one to talk intelligently about doing this. If you have ever done this, did you feel it was worth the expense and extra work? What kind of luck did you have getting good, reliable renters?

Thank you.
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Old 05-11-2018, 10:50 AM
 
Location: Formerly Pleasanton Ca, now in Marietta Ga
4,114 posts, read 3,407,695 times
Reputation: 5648
For me it is worth it, for 90 percent on the people on cd they will tell you it's not worth it
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Old 05-11-2018, 10:56 AM
 
Location: midvalley Oregon and Eastside seattle area
2,941 posts, read 1,354,278 times
Reputation: 2438
Yes, worth it. We own quality property, careful screening, low maintence. High down payment means that our nut is smaller. We want the cash flow and depreciation. income is inflation adjusted. We intend to pass properties to heirs. Rental incomes are in combination with GLWB annuities, small pension, SS and investment stock accounts. Seattle area. We/son do management-it's his future inherirance. See your tax professional.

Last edited by leastprime; 05-11-2018 at 11:12 AM..
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Old 05-11-2018, 11:00 AM
Status: "Cats know. Cats always know." (set 12 hours ago)
 
Location: Pennsylvania
15,573 posts, read 9,599,238 times
Reputation: 26034
I too think it's worth it.

I have someone who manages it for me. She takes 10$%-worth it to me as she advertises, screens, and shows and tenants call her with problems.

It's not a short term investment tho'. I've had it 20 yrs this summer. I know what's been done, what will need to be done soon.

Yes, there's surprises. A couple of yrs ago I lost money but for that year only. Over-all, I make about $5,000/yr on it ( 2 apartments).
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Old 05-11-2018, 11:12 AM
 
2,475 posts, read 2,731,950 times
Reputation: 1095
Thank you all. I really am surprised that there are no no's. As a life-long renter myself, I have seen so much of the other side in come-and-go renters who tear up a place and walk out that I really expected that. PAhippo, I like your idea of using a manager. Takes a lot of the problems off your hands.

Looks like I'll encourage her and add PAhippo/s idea. Plus the screening. It's not a burden I'd ever want. But that's me. Thanks again.
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Old 05-11-2018, 11:48 AM
 
Location: The Triad (NC)
26,875 posts, read 57,924,091 times
Reputation: 29302
Quote:
Originally Posted by Hazel W View Post
...did you feel it was worth the expense and extra work?
For most... landlording is a business that's available or where circumstances have forced it.

Staying in it or going deeper into it with add'l properties?
If you have the right temperment...

Quote:
What kind of luck did you have getting good, reliable renters?
It's not about luck. It's about having a reasonable standard and then sticking to it.

Tell your friend to spend a few hours in 'rent court' there
and if still interested to be sure they have a solid lease known to work THERE.
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Old 05-11-2018, 12:36 PM
 
2,475 posts, read 2,731,950 times
Reputation: 1095
Quote:
Originally Posted by MrRational View Post
For most... landlording is a business that's available or where circumstances have forced it.

Staying in it or going deeper into it with add'l properties?
If you have the right temperment...


It's not about luck. It's about having a reasonable standard and then sticking to it.

Tell your friend to spend a few hours in 'rent court' there
and if still interested to be sure they have a solid lease known to work THERE.
Thanks. Didn't know we had "rent courts" but I do know what you mean. If she does this, she is a braver soul than I. I like the rental life. Thanks again.
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Old 05-11-2018, 12:56 PM
 
Location: Florida -
8,248 posts, read 10,006,995 times
Reputation: 15113
We have numerous friends who own rental-investment property. Destin, Fl. is also loaded with a thousand condos that pre-retirees buy and rent; pay for via rentals -- and then sell or occupy at retirement.
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Old 05-11-2018, 01:13 PM
 
Location: north narrowlina
741 posts, read 222,612 times
Reputation: 3015
i did and i would never do it again...it was a nightmare.... i had to quickly move to the next state south for cancer treatment, and couldn't be running up there every month.... i hired a guy to manage it while it was for sale..... i had sunk 40 grand into that house, built a garage, landscaping, new roofed deck, gorgeous front porch with the swing, refinished the wide southern pine floors, gutted the bathroom put in new everything... kitchen and bath got new imported ceramic tile floors, stainless appliances, beadboard and shutters for that country look.... and more, but you get the picture.... long story short, the walk in closet i had created from a small bedroom walked out of the house, my $7,000 grand landscaping??? bushes ripped out by a rope attached to a truck bumper, took 5 years to sell that house and took a loss on it. heartbreaking. do not rent a house unless you can watch the tenants like a hawk.
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Old 05-11-2018, 01:22 PM
Status: "Cats know. Cats always know." (set 12 hours ago)
 
Location: Pennsylvania
15,573 posts, read 9,599,238 times
Reputation: 26034
That's what the manager is for. The one I use started by selling real estate and still does a bit but now mainly manages. She also collects the rent so if somebody gets behind she lets them know they are not forgotten.

I would recommend buying a place that has 2 apartments. If/when one is empty, there's still one rent. In almost 20 yrs, there's only been about 3 months total the place has been completely empty.

I will add that having it paid off before retirement is a good thing-a very good thing. I've been tempted a couple of times to buy another but admit to myself I won't live long enough to profit from them. If I'd known then what I know now, I'd plan on one 1 or 2 more places with no mortgage left.
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