Rental properties

King_Martha
King_Martha

Is owning rental properties a decent route to financial independence? Assuming you have a stable job that makes you $200K+ /year, would it be a wise investment to take out at least one new mortgage on a rental property every year for a decade? As soon as you accumulate enough for a down payment, buy a new property. Pay a property management company 8% to deal with the tenants. Even if you're only "breaking even" on a month to month basis, you're essentially building up a bigger and bigger cash flow with each new property, and then in 10 years you will have 10+ houses, worth millions in total, all essentially paid for by strangers.

iluvmen
iluvmen

Retarded idea. OP confirmed boomer

kizzmybutt
kizzmybutt

Yes, it's basically effortless money. Since property values can only go up, you can't lose.

Fuzzy_Logic
Fuzzy_Logic

Go back to your digi-moons, son

Supergrass
Supergrass

REI is one of the best investment vehicles imo. Depreciation, leverage, building equity, just a lot of things no other investment has. Highly recommend.

I think the only draw back is how complicated it can be, difficult to get into because of how overwhelming it is. Buying a house is fucking complicated, getting property managers, quality tenants, etc etc.

But I think it is probably the best investment out there.

Soft_member
Soft_member

I don't go near shitcoins. I made millions off of btc alone, but I missed out on eth. Oh well, I guess I can't catch all the trains. Taking out a bunch of loans on houses and renting them out seems fucking dumb, but that's just me

Poker_Star
Poker_Star

Unless you've cashed out, you haven't made any money.

Skullbone
Skullbone

Well yeah, if you have millions, its fucking dumb. It's a waste of your time. Rental properties are an amazing investment if you're just upper middle class, like a doctor or something. If you're a fucking multi-millionaire, it's not worth your time, but for everyone else it's a relatively low-risk, albeit slow and laborious method of becoming wealthy.

Evilember
Evilember

Retard

SniperGod
SniperGod

I've cashed out 7 figures over the last month and I'm still holding the majority of my coins

BlogWobbles
BlogWobbles

How does one go about cashing out a million dollars nowadays?

StonedTime
StonedTime

Did you cash out? Damn dude. How's life now?

Need_TLC
Need_TLC

Are you going wait until you're in your retirement age before cashing out?

Evil_kitten
Evil_kitten

Cuckbase

My life is pretty good now, considering 4 years ago I was a poorfag. Having money isn't such a big deal to me, but the security of not having to worry about not having it is pretty nice. I'll probably buy a house soon, but I don't have a wife/kids, so I'm not that excited about it. The best thing about money is being able to pay to have your insecurities fixed. Travel is nice too. Everything else is kinda meh

haveahappyday
haveahappyday

DONT DO IT,

everyone i knew who worked in real estate, real estate investment properties, through the 2008 collapse lost all their money and most of their properties.

likme
likme

Wow, so cuckbase will actually pay up, huh. Damn. Did you do it all in one go or in increments? Weren't you scared of your order not going through or coins getting lost/stolen? What have you done about taxes?

Evilember
Evilember

Being a landlord isn't that easy. If something breaks or the tenant has a complaint, you have to fix it. You also have to work to keep the property occupied as often as possible to keep getting rent. You can rent it out long term but short term rentals pay more money, but they take more of your time and effort to find renters constantly. You also have to do basic stuff like clean the house and wash the sheets every time someone moves out, which is pretty often if you rent it short term to make more money. Sure you can pay a company to clean for you, but then that comes out of your profit margins.

If you want to get "passive income" by paying managers and people to do all the work for you, you are probably looking at a profit of only a few hundred dollar per month per property, or even less.

eGremlin
eGremlin

My wife and I have 3 rental properties which we manage ourselves. You'll find that rental management services often just put anyone in, and aren't actually liable for anything.

Landlording can be a real shit. Tenants come in various flavours of hopeless and or destructive. Multiple things break at once, and there's always the temptation to cash up

GoogleCat
GoogleCat

I did it in increments, both the selling and the withdrawing. I wasn't really scared of my coins getting stolen, the majority are kept in cold storage, encrypted and backed up in multiple places. I'm in the US, so I'm just going to suck it up and pay capital gains taxes on the coins at a rate of 15% of the realized profit. It's not worth the hassle of trying to dodge taxes and getting boned in the ass by the irs/ending up on a bunch of lists

Fuzzy_Logic
Fuzzy_Logic

I dont see how you can lose if you are the landlord. The world population is only growing, and people need places to live. Like I said in the OP, it wouldn't be a full time job. I'm a physician. Being a landlord would just be on the side.

Soft_member
Soft_member

It would be bad idea only if you buy property in areas with low economic activity.

happy_sad
happy_sad

Being an illegal slumlord is actually pretty profitable

hairygrape
hairygrape

he thinks doctors aren't multi-millionaires

Lunatick
Lunatick

If you want to get "passive income" by paying managers and people to do all the work for you, you are probably looking at a profit of only a few hundred dollar per month per property, or even less.

Indeed, but like I mentioned in my OP, even if you make zero net profit per month, you still hold the long term investment.

For example, say you had $700,000 cash, which you put down as 20% down-payment on 10 rental properties today. Each one is priced at $350,000 and can generate $3000 per month. Even if the mortgage payment + interest + property manager's fee + insurance + taxes comes out to $3000 per month, you are still profitable in the long term, because after the 15-year mortgages expire and you now own 10 houses, each worth $350,000+++. If you then "cashed out" and sold all the properties that's $3,500,000+++ gross return (probably higher since property tends to appreciate in value). Minus your initial investment of $700,000, you've made ~$2,800,000 net profit in those 15 years. $2,800,000 / 15 years = $187K/year. In other words, you were "making" $187,000/year, but it was inaccessible until the houses paid for themselves.

Now, that was just a thought experiment to prove the concept. In the OP, it's the same exact principle but staggered over a 25 year period instead of 15 years.