U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 02-21-2021, 07:35 AM
 
15,561 posts, read 4,304,739 times
Reputation: 10325

Advertisements

Quote:
Originally Posted by Stripes17 View Post
Especially with todays society leaning towards not paying rent or other obligations because they're strapped (a sad reality), or in some cases because they "don't feel like they have to".

Or the local city has an eviction moratorium because of the pandemic.
Rate this post positively Reply With Quote Quick reply to this message

 
Old 02-21-2021, 08:15 AM
 
Location: Chicago area
17,660 posts, read 9,715,723 times
Reputation: 61275
We're doing a rental flip now. Our last tenants were there for 18 years and we had previous tenants before them. If you were to guess that the house was a wreck you'd be right.

We don't want to rent it again. It's being repaired for resale and there's a difference between rehabbing for tenants and resale.

We've made a ton of money on the house and since it never had a mortgage, it's already paid for itself. Why be greedy? I just want to play the rest of my life. Nearly 20 years of solid, uninterrupted income? I doubt I'll ever be that lucky again.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-21-2021, 08:29 AM
 
Location: Pac. NW
2,575 posts, read 1,996,238 times
Reputation: 4935
Quote:
Originally Posted by animalcrazy View Post

We've made a ton of money on the house and since it never had a mortgage, it's already paid for itself. Why be greedy? I just want to play the rest of my life. Nearly 20 years of solid, uninterrupted income? I doubt I'll ever be that lucky again.
Sounds like it worked out well.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-21-2021, 08:54 AM
 
7,202 posts, read 8,133,039 times
Reputation: 12841
Quote:
Originally Posted by tommy64 View Post
Why would someone buy a house to fix up and sell for a quick buck when they could keep it as a rental and take a slower but steady income, plus any equity capture as any loan principal pays down and values notch up?

The acquisition costs, fix-up costs, closing costs, capital gains tax and risk if anything falls through looks like a short-sighted way to make (in many cases) no more than a General Contractor.

Real wealth is built over time as assets appreciate in value. Rents almost always increase. Real estate is easy to borrow against because of the self-collateralization. How much better does it get? Why would anyone let something so valuable go for a quick hit of cash?

Any thoughts from the flipper crowd?
Because they don't want to deal with being landlords.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-21-2021, 09:07 AM
 
Location: Miami-Jax
7,499 posts, read 8,362,990 times
Reputation: 4561
Quote:
Originally Posted by tommy64 View Post
Why would someone buy a house to fix up and sell for a quick buck when they could keep it as a rental and take a slower but steady income, plus any equity capture as any loan principal pays down and values notch up?

The acquisition costs, fix-up costs, closing costs, capital gains tax and risk if anything falls through looks like a short-sighted way to make (in many cases) no more than a General Contractor.

Real wealth is built over time as assets appreciate in value. Rents almost always increase. Real estate is easy to borrow against because of the self-collateralization. How much better does it get? Why would anyone let something so valuable go for a quick hit of cash?

Any thoughts from the flipper crowd?
1) It depends on the CAP rate. Some places obviously make sense to hold, some are obvious flips.
2) It depends on whose money is in the flip. If they are borrowing or sponsoring the money, it's not really their choice.
3) It depends on their financial situation. Some people need the income from the flip.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-21-2021, 11:24 AM
 
5,452 posts, read 3,369,626 times
Reputation: 4352
Quote:
Originally Posted by tommy64 View Post
Why would someone buy a house to fix up and sell for a quick buck when they could keep it as a rental and take a slower but steady income, plus any equity capture as any loan principal pays down and values notch up?

The acquisition costs, fix-up costs, closing costs, capital gains tax and risk if anything falls through looks like a short-sighted way to make (in many cases) no more than a General Contractor.

Real wealth is built over time as assets appreciate in value. Rents almost always increase. Real estate is easy to borrow against because of the self-collateralization. How much better does it get? Why would anyone let something so valuable go for a quick hit of cash?

Any thoughts from the flipper crowd?


1. If they know the area well and have the people in place to make the repairs they can often flip a distressed property fast.

2. As was mentioned before dealing with renters/repairs can be a major hassle and there's no guarantee about property appreciation.

Last edited by john3232; 02-21-2021 at 11:49 AM..
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-21-2021, 12:11 PM
 
Location: North Idaho
27,102 posts, read 36,474,387 times
Reputation: 58054
Because many tenants are a huge PITA and rentals need someone available 24/7 365 days a year.


Local governments and now federal government are passing laws that are detrimental to landlords.


Some tenants cause their own damage and then sue. It is often an adversarial relationship and many tenants think they are owed big time and have no obligation to take care of themselves or to follow their contract.


Some neighborhoods are teetering on going bad, so it is "get in, get out, take the money and run" before the neighborhood slides into a slum.


Mostly because being a landlord is a lot of work and there is nothing fun about it.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-21-2021, 12:18 PM
 
3,237 posts, read 1,185,276 times
Reputation: 8883
Quote:
Originally Posted by oregonwoodsmoke View Post
Because many tenants are a huge PITA and rentals need someone available 24/7 365 days a year.


Local governments and now federal government are passing laws that are detrimental to landlords.


Some tenants cause their own damage and then sue. It is often an adversarial relationship and many tenants think they are owed big time and have no obligation to take care of themselves or to follow their contract.


Some neighborhoods are teetering on going bad, so it is "get in, get out, take the money and run" before the neighborhood slides into a slum.


Mostly because being a landlord is a lot of work and there is nothing fun about it.
All of this, really nothing to add.

Thread can be closed now LOL.

We have one rental property of sorts (ADU) and extended family rents it so my experience is very small and limited.

If the family member moved out I'd be very very very reluctant to rent to a non-family member.

I've always heard about the prototypical bad tenant, the usual horror stories. What's disturbing me lately is the horror stories we hear from friends who are also "mom & pop" landlords involve tenants who they knew as friends, or who they knew through reliable sources who lived otherwise very normal and respectable lives.

yeah, no.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-21-2021, 12:22 PM
 
Location: Pac. NW
2,575 posts, read 1,996,238 times
Reputation: 4935
Quote:
Originally Posted by oregonwoodsmoke View Post
Because many tenants are a huge PITA and rentals need someone available 24/7 365 days a year.


Local governments and now federal government are passing laws that are detrimental to landlords.


Some tenants cause their own damage and then sue. It is often an adversarial relationship and many tenants think they are owed big time and have no obligation to take care of themselves or to follow their contract.


Some neighborhoods are teetering on going bad, so it is "get in, get out, take the money and run" before the neighborhood slides into a slum.


Mostly because being a landlord is a lot of work and there is nothing fun about it.
So you'll be selling all of yours soon? Sell 'em to ME!
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-21-2021, 02:05 PM
 
3,718 posts, read 1,205,325 times
Reputation: 3251
Local real estate show hosts, informercial types promote this all the time. They are right in that it adds diversity to a real estate portfolio. But the past year is a perfect example of what can go wrong along with bad tenants and capital expense, repairs etc. It's responsibility and more work. But is can be steady income sometimes primary or supplemental.
Rate this post positively Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply

Quick Reply
Message:


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate

All times are GMT -6.

© 2005-2021, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top