Redpill me on owning rental properties.
Redpill me on owning rental properties
Read the residential tenancies regulations in your area, if they heavily favor the tenant you shouldn't get involved.
Only good if you're already a richfag.
Living in a mortgaged home, and taking out another mortage for another home purely to rent out and rely on the house price increasing, is usually only feasible in a bubble/australian tax conditions. Even then, in a bubble the only real winners are people that get in early (boomers), and the banks.
It's also a house that people will live in, and not a straight out currency investment like a stock. You have to invest your attention into it's maintenance or pay property management fees.
To reiterate, it's feasible if you're already a richfag, and the environmental conditions are in your favor. Otherwise it's far easier to invest in business and stock.
bullshit my dude
ton of work
one wrong tenant can fuck up your life
tenants rights are too good. dont believe the media. you WILL pay a wife beating non paying heroin junkie 3000 in cash just to get out.
even with the no blacks or mexican rule you can easily get some shit tenants that find ways to make you pay for all kinds of bullshit.
it can easily be a fulltime job level of commitment. hiring a prop mgmt company will fuck your profit up.
bottom line: screen your motherfucking tenants like youre marrying them, cause the law treats them like you are.
Can be great, can be fucking horrendous. I've got an older woman in my building who is slowly dying from cancer, can't pay. Feels bad.
There's a lot of negative in this thread about rental properties, but I think there's no investment on earth that beats it. There's a reason why most people who are millionaires get there with real estate.
However, you have to commit the time to learn the ins and outs, what constitutes a good deal, etc. If you're looking for a hands-off thing, REI is not for you.
niggers mess them up, slim margins that are eaten up on repairs, maintenance and vacancy periods
Breakeven=free appreciating asset
I work for the the richest real estate developer in the country. (3-4x Trump's net worth) and all I do is multi family property management. The goal is to get enough xp to open my own single family property management companies and manage the $4,000/ m houses where I live.
Property management is all about who you're renting to, and how to make them pay for the damage they cause. Literially every single time someone moves out, we clean or replace the carpet, repaint the entire apartment, and hiring a cleaning service all from the security deposit.
Also, buy a fucking house in a market that has almost no demand for buying houses, and super high demand for rental. (Houses near universities) and make sure the students have a guarantor. You can make an extra $500 per month with one house, plus pay down the mortgage
Your first will by far be your hardest. But after 5-10 years you'll probably be desperate to buy another just for tax reasons, so you leverage the first and get a nice ball rolling that'll never stop. Pretty sweet if you're willing to learn the ropes.
Admittedly, it is work, but I'd put it at maybe an hour a week per unit (on average; it does tend to come in bursts), and that's including doing all the accounting and tax stuff.
This. Who cares about rent control and regulations when you can say what goes into the contract? Just shift every goddamn thing onto the tenant. Regular maintenance, paying for the building insurance, paying for the property tax, etc. Soon you'll only be looking at two remaining risks:
1) Not having a tenant, which is entirely on you. Put a decent period of notice in your contract, put in the right to access the property in the last month of the old tenancy and start planning refurbishments or even touring while the old tenant is still there. That way you'll have at most a single month of vacancy.
2) Having a tenant who doesn't pay, which is where the magic of deposits comes in. Set the amount of deposit at period of notice + 1 month. That way if they stop paying you emediately put them on notice and start evicion proceedings and you'll have them out the door before the deposit is used up with zero loss.
Wew lad, you rent to ignorant fucks. My Apartment management attempted this, I sought specific details regarding their actions in order to take them to court, they gave me a 100% refund.
Wear and tear is damage that naturally and inevitably occurs as a result of normal wear or aging
Carpet is given a lifespan of, I believe, 3 or 5 years - so if your carpet is beyond 3 or 5 years old and I spread shit smears all over it, I don't owe you shit.
What is: Fact
Did I write anything to contradict that? By year 5 I have already written-off the carpet and if you think I don't mark-up the rent in appartments that have fancy carpet in them, then *you're* the "ignorant fuck".
Scamming your tenants is rarely worth it. Go big or go home. If you can stack 6 refugees in a single room appartment with mold and take 300 bucks from each - fuck yeah, that's worth it. They're glad *someone* is renting to them and unlikely to rat you out. But making a proper tenant pay extra for wear and tear is silly. Wear and tear is included in the rent you pay.
Maybe I should have said
Just shift every goddamn *legally allowed* thing onto the tenant.
Thought it was self-evident. I'm not sticking my neck out for shitty tenants. Everything nice and proper, tit-for-tat.
It really depends on your local laws. Mine say if I give you an unlimited lease, wear and tear while the contract is running is *your* problem. And by the time you move out I have made more than enough money back to give it an overhaul. But I'll even gladly have my crew replace your shit-smeared carpet inbetween - if you sign off on me hiking rent. Over here rent control only applies to the initial signing. Once you have an unlimited lease you can sign away your legal right to low rent since. The thought is since you don't have to be afraid anymore I could take away your home you can freely choose what rent to pay.
Just shift every goddamn thing onto the tenant
Yeah, the revised wording you offer is more rational.
I was more targeting the 'big wig' you initially replied to i.e.
Literially every single time someone moves out, we clean or replace the carpet, repaint the entire apartment, and hiring a cleaning service all from the security deposit
That's exactly what my experience was and it wont stand up in court, thus only ignorant fucks would let it fly.
Implying I'm ignorant is a bit internet isn't it?
Commercial properties or nothing
This. Who cares about rent control and regulations when you can say what goes into the contract? Just shift every goddamn thing onto the tenant.
Where in the fuck do you live? You cant contract out of residential tenancies regulations, that is the whole purpose of those regulations. I mean, sure, you can put whatever you want in the contract, and it works out if the tenant is stupid enough to believe that the contract is legit, but if a dispute ever escalates to the landlord/tenant regulatory agency they will be going by their rules and not whatever horse shit you made your tenant sign.
Read the rest of the conversation. I don't do crooked shit, but the law allows for tons of leeway in rental contracts (results may vary according to your local laws of course). I determine how long the contract runs, how long the period of notice is, who has to pay for running maintenance (as opposed to replacements) and which documentation has to be made, how large the deposit is, how many people are allowed to live there, whether subleasing is allowed, whether pets are allowed, when night-time is and thus no noise, what the process is for changing anything within the object (walls, colours, outlets, etc), who has to pay insurance, cleaning intervals, what the state has to be when they hand me back the object, what kind of conditions on reimbursements there are, etc, etc. You can basically guarantee that your tenant fucks up. And once you find out, you gracioussly grant him retroactive permission in return for higher rent. Or if he's an asshole about it, you throw him out.
If you write a good contract you can finagle it to where the law is on *your* side. I've said it before in this thread, but it bears repeating: Don't do illegal shit! It's not worth it. Let your idiot tenants run into the pitfalls of the law instead. Mutual agreements are the way to go, 98% of the time.
Slumlord checking in.
Pretty fucking solid advice.
I see why my grandparents sold all 35 of their houses.
People are fucking terrible...
Fuckit. Its good karma if u can afford to let her die there.
I fully plan on getting a nevada corporation so i can live in my shitty little town and rent 20 houses out and kick out degenerate fucks without the whoke town thinking in a slum lord
I have stacks of fucking books and know jist enough to realise there is a shit ton more to lean.
I have started to drool past every apartment complex i see...
At times it can be pretty easy.
Most of my town jumps into a 30 year mortgage without understanding basic finances...
I have began making a killing buying houses and renting them for a year and then selling them to the tennant at inflated "rent to own" prices just so they dont have to deal with a bank
This is good advice.
Snowball that shit and die a very wealthy mostly neet.
This is my dream.
Putting a $400 hot water heater in house #2 tonight after wagecucking for 12 hours...
The struggle better be worth it or i'm gonna just start doing meth or something. To hell with wageslave and then die
Definitely seems like less hassle.
Not the foggiest idea of wtf to charge rent or how they work.
Soon as i retire off single family shithokes i am looking into this
results may vary according to your local laws of course
And that right there is the key point. Some jurisdictions simply do not allow that leeway. I used to manage rental properties for my father in a province where you could do a lot of the things you mentioned in your post. When I moved to another part of the country I considered buying a house with a basement apartment to offset my mortgage, but decided against it after reading this province's regulations. The rules heavily favor the tenant and the landlord has no control over his property whatsoever. The irony of this is that heavy-handed regulation hurts renters and poorfags in the long-term. I'm hardly the only one who is choosing not to get involved in this racket. Developers aren't even building new houses with basement apartments because it's not worth it for your typical homeowner to take on a tenant. New high-density developments are all condos. There are less and less rental units available, and existing landlords are much more strict about who they rent to because if you get a bad tenant they are damn near impossible to get rid of. It's a good example of liberal logic.
tenant rights are too good
Not in my state dude, you get like 3 days to gtfo after nonpayment
To much work. Tenants trash the house(I.e. Dog pees on carpet and doesnt get cleaned up, holes in walls, broken doors, grease covering kitchen) then go months without paying. Renters lie to you and always tell you there sad stories on why they can't pay this month then precede to spend all there money at the casino alcohol fireworks. Eviction takes time and is a pain in the ass to do. You need serious cash to move to higher class rental property where this isn't a big issue. NEVER EVER RENT TO SECTION 8. Renting really shows you the dark side of most people and I've lost a ton of respect for people as a whole
Oh also I have my tenants sign a 22 page contract written by several lawyers which covers my ass in every way shape or form.
In order to be successful in rental based businesses:
Be rich as fuck in the first place
Be the most intimidating /fit/ cunt
Use the cheapest but durable and replaceable items
Do a mini interview to your rental swines
Act nice as long as they pay, if they don't then you have the right to drag their asses out by force (call the police first)
You don't make money. You get equity and a headache dealing with tenants.
After a decade or more you sell and then you make money.
Yes, definitely. A big mutlifamily complex, imagine the goddamn cash flow. And, now I'm looking into flipping homes inside my IRA. If you're in the know, you can create a money monster.
How much to email it to me?
I need this
Don't do it bro.
Rent for 1 year and 1 day then sell if u absolutley have to.
You have to buy, improve, and pay like 30% tax on flipping. IF you sell it.