🧟‍♀️ Investment property 101

[sandandsea]

Does anyone have an investment rental property? If so, I have questions.

1. If it was on purpose (not a house that didn’t sell, inherited, etc) how did you decide what to buy?

2. Why did you choose real estate vs other investments?

3. Has it been a good investment for you?

4. How long have you had it?

5. How did you decide where to buy?

6. How much time does it take you to deal with? Do you have a property manager?

We are thinking this could be a good way to diversify but live in a vhcol area and don’t want another property here but would consider having one in another metro area/state. But being a distance landlord seems overwhelming.

[mccallister84]

Feb 1, 2021 15:03:24 GMT -5 sandandsea said:

Does anyone have an investment rental property? If so, I have questions.

1. If it was on purpose (not a house that didn’t sell, inherited, etc) how did you decide what to buy?

2. Why did you choose real estate vs other investments?

3. Has it been a good investment for you?

4. How long have you had it?

5. How did you decide where to buy?

6. How much time does it take you to deal with? Do you have a property manager?

We are thinking this could be a good way to diversify but live in a vhcol area and don’t want another property here but would consider having one in another metro area/state. But being a distance landlord seems overwhelming.

We (my sister and I) were accidental landlords when we bought a condo and then were underwater when she got married. We got lucky with tenants who stayed for six years (after two single year tenants) but we sold when they moved out because it was getting harder and harder for us to manage - full time management is a lot. We were looking at one months rent plus 10% monthly. We weren’t making nearly enough on the property to justify that.

[krystee]

We became accidental landlords, but it made me realize I’d definitely want to go out of state if we become on-purpose landlords. Our property tax in IL is so high that I don’t think you could turn much of a profit without buying in cash.

[Pilsy]

Feb 1, 2021 15:03:24 GMT -5 sandandsea said:

Does anyone have an investment rental property? If so, I have questions.

We have a condo at a 30-unit property. I didn't initially purchase it to be a rental, but we both owned homes when we got together, so we sold one and kept this one as a rental. We could have sold it, so it was a conscious, intentional decision to retain and rent it. 

We chose this particular RE investment because it had great appreciation potential and seemed like a good way to diversify.

It has been a great investment. We have paid off the mortgage and clear a nice amount monthly, after paying taxes and condo fees and contributing to a reserve account. 

We've had it 10 years now. 

The condo is in a spot where I wanted to live in my mid/late 20s. It remains a hot area with young professionals and is close to a medical hub. 

It ebbs and flows. Some months, all I do is deposit a rent check via mobile banking. If something has gone wrong (for example, the freezer there died recently, so I had to deal with appliance repair visits and then purchasing a new one) or it's turning over, there's much more. It probably averages out to an hour/month, even though it's more like nothing for 10 months and a couple months of 6 hours/month.  I am VERY lucky. 

There is a property manager for the entire property, but I deal with them as an owner and trustee, they rarely deal directly with my tenants, but I do lean on them for some things, and they are a great resource if I need a vendor. I also outsource (to an unrelated RE broker) the work of marketing the unit when it turns. They do the showings and background checks for a fee equal to one month's rent. 

[ohgillian]

Feb 11, 2022 9:41:20 GMT -5 malissiabrobst said:

Hello, sandandsea! As an investor, I can tell you that I do comprehensive research about my future investment options, possible losses, and profits before investing in real estate.

Calling suzubell or HRH Queen Dick I to mark the zombie thread and block the bot.

[suzubell]

Feb 11, 2022 10:00:10 GMT -5 ohgillian said:

Feb 11, 2022 9:41:20 GMT -5 malissiabrobst said:

Hello, sandandsea! As an investor, I can tell you that I do comprehensive research about my future investment options, possible losses, and profits before investing in real estate.

Calling suzubell or HRH Queen Dick I to mark the zombie thread and block the bot.

Sorry, I can only moderate on MMM.

[ohgillian]

So sorry! Now that you’ve told me twice, maybe it will stick. Lol. suzubell

[suzubell]

Feb 11, 2022 11:38:05 GMT -5 ohgillian said:

So sorry! Now that you’ve told me twice, maybe it will stick. Lol. suzubell

It’s ok! Just wanted you to know I wasn’t ignoring you. And I totally tried both times 🤣🤣🤣

[brianne428]

1. If it was on purpose (not a house that didn’t sell, inherited, etc) how did you decide what to buy?
It was on purpose. It is a 3 family and I could see that with improvements we could build some equity.

2. Why did you choose real estate vs other investments?
I like things I can see/feel

3. Has it been a good investment for you?
yes

4. How long have you had it?
Purchased in Summer of 2019.

5. How did you decide where to buy?
It is 2 miles down the road from our primary residence so we know the market well.

6. How much time does it take you to deal with? Do you have a property manager?
We self manage so we mow in the summer (1hr/week) and plow in the winter (as needed). In terms of communicating with tenants 90% of the time it's just a text saying thank you for rent and asking if there are any maintenance concerns. Most recently my husband had to spend a few hours rewiring something with a dryer. We rehabbed all 3 apartments and have wonderful tenants in all 3.