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 TheBandit
Infidel
Registered: 03/04/08
Posts: 1,655
Last seen: 2 years, 7 months
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 Thinking about becoming a landlord. 
#12191920 - 03/12/10 08:13 PM (3 years, 2 months ago) |
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My wife and I (as well as our baby as of next month! yay soon to be father) live in a house on a property that has 3 other homes on it.
They each have their own yard, and parking area.
Our current rent is $800 per month, and I'm assuming the other tenants pay around the same.
The entire property however is for sale at $300k.
I used a mortgage calculator and that comes to around 1200 per month for all the properties combined.
Plus the down payment of $60,000.
My question to all of you is what I need to learn before becoming a landlord, and if there is any classes I should take at the local community college, and so on.
It seems like a great investment, and I'm willing to learn what I need to learn to take part in this endeavor.
Any experienced feedback is much appreciated!
Thank you for reading, and after I return from enjoying my dinner I will respond to any replies!
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[quote]RogerRabbit said:
Ah, that explains it. Typical know-it-all noob. We get a few thousand just like you register here every year. They try a few grows, fail miserably and then after a few months or one bad trip, go back to sniffing glue, never to be seen again.
We have a basic pf tek that's idiot proof enough for noobs to get fucked up with their friends.
Mycologists on the other hand grow for the love of growing. They want to experiment with various species, substrates, and fruiting environments. They'll move on to isolate strains, attempt hybridization, and in general treat cultivation as an artform, rather than a chore that must be performed as a means to an end. They'll work twice as hard for a ten percent gain, just for the love of perfection. These are the ones who will isolate strains, not the dumb fucks who treat mushrooms as a drug, or even worse, a pathogen, as if mushrooms cause disease.
RR [/quote]
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 desertturtle
not like the others
Registered: 06/15/07
Posts: 417
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Re: Thinking about becoming a landlord. [Re: TheBandit]
#12192055 - 03/12/10 08:46 PM (3 years, 2 months ago) |
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Most importantly you would want an attorney's help to help make the lease/other paperwork airtight.
You could also save a lot of money by having plumbing/electrical/painting/maintenance skills.
Insurance.
Don't take my post too seriously, I just wanted to respond.
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TheBandit
Infidel
Registered: 03/04/08
Posts: 1,655
Last seen: 2 years, 7 months
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Re: Thinking about becoming a landlord. [Re: desertturtle]
#12192715 - 03/12/10 11:15 PM (3 years, 2 months ago) |
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hm.
not terrible advice. 
anyone else like to chip in?
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[quote]RogerRabbit said:
Ah, that explains it. Typical know-it-all noob. We get a few thousand just like you register here every year. They try a few grows, fail miserably and then after a few months or one bad trip, go back to sniffing glue, never to be seen again.
We have a basic pf tek that's idiot proof enough for noobs to get fucked up with their friends.
Mycologists on the other hand grow for the love of growing. They want to experiment with various species, substrates, and fruiting environments. They'll move on to isolate strains, attempt hybridization, and in general treat cultivation as an artform, rather than a chore that must be performed as a means to an end. They'll work twice as hard for a ten percent gain, just for the love of perfection. These are the ones who will isolate strains, not the dumb fucks who treat mushrooms as a drug, or even worse, a pathogen, as if mushrooms cause disease.
RR [/quote]
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badchad
Mad Scientist
Registered: 03/02/05
Posts: 9,145
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Re: Thinking about becoming a landlord. [Re: desertturtle]
#12192717 - 03/12/10 11:15 PM (3 years, 2 months ago) |
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I'd take a peak at the finances again. I think you'd be stretching to get 300k for $1200/month (more like $1600).
As a landlord, my guess is that the majority of the expenses come in upkeep. Fixing people's crap. If you can't do it, don't be a landlord.
I'm looking at houses now. Little things add up to huge expenses. New roof: 8-12k. New hot water heater: 3k or so.
If I were a tenant, I'd be calling YOU to take care of such things.
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...the whole experience is (and is as) a profound piece of knowledge. It is an indellible experience; it is forever known. I have known myself in a way I doubt I would have ever occurred except as it did.
Smith, P. Bull. Menninger Clinic (1959) 23:20-27; p. 27.
...most subjects find the experience valuable, some find it frightening, and many say that is it uniquely lovely.
Osmond, H. Annals, NY Acad Science (1957) 66:418-434; p.436
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TheBandit
Infidel
Registered: 03/04/08
Posts: 1,655
Last seen: 2 years, 7 months
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Re: Thinking about becoming a landlord. [Re: badchad]
#12192869 - 03/12/10 11:43 PM (3 years, 2 months ago) |
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What about hiring property management?
they would take a fee from my rent, and they would have to deal with most of the accounting, and the tenants.
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[quote]RogerRabbit said:
Ah, that explains it. Typical know-it-all noob. We get a few thousand just like you register here every year. They try a few grows, fail miserably and then after a few months or one bad trip, go back to sniffing glue, never to be seen again.
We have a basic pf tek that's idiot proof enough for noobs to get fucked up with their friends.
Mycologists on the other hand grow for the love of growing. They want to experiment with various species, substrates, and fruiting environments. They'll move on to isolate strains, attempt hybridization, and in general treat cultivation as an artform, rather than a chore that must be performed as a means to an end. They'll work twice as hard for a ten percent gain, just for the love of perfection. These are the ones who will isolate strains, not the dumb fucks who treat mushrooms as a drug, or even worse, a pathogen, as if mushrooms cause disease.
RR [/quote]
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badchad
Mad Scientist
Registered: 03/02/05
Posts: 9,145
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Re: Thinking about becoming a landlord. [Re: TheBandit]
#12194060 - 03/13/10 08:02 AM (3 years, 2 months ago) |
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You could do property management, it'll just cut into your profits. I have no idea how much. Even then though, you're still footing the bills for repairs, and ultimately dealing with tenants. Look into it.
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...the whole experience is (and is as) a profound piece of knowledge. It is an indellible experience; it is forever known. I have known myself in a way I doubt I would have ever occurred except as it did.
Smith, P. Bull. Menninger Clinic (1959) 23:20-27; p. 27.
...most subjects find the experience valuable, some find it frightening, and many say that is it uniquely lovely.
Osmond, H. Annals, NY Acad Science (1957) 66:418-434; p.436
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Groovy Grant
Registered: 08/01/00
Posts: 6,599
Loc: TX 
Last seen: 3 months, 18 days
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Re: Thinking about becoming a landlord. [Re: TheBandit]
#12194081 - 03/13/10 08:19 AM (3 years, 2 months ago) |
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Badchad is right. The mortgage will most likely be more than $1,200, and will near $2,000 a month if you also include RE taxes and homeowner's insurance. You'll also need to get renter's permits, and insurance to cover the buildings if your tenants burn it down.
The property management company would be a waste. Are you planning on living one of these four units? If so, they aren't going to call the property management company, but knock on your door every time something is wrong. So you'll be paying for a manager, but still taking all the nuisances.
This isn't so say you couldn't make it work. Real property has so nice potential, eventually if the property's are well kept, it could be pretty nice passive income. Also, you'll be able to itemize the expenses, claiming the interest on the mortgage, as well as some sq. ft. in your place as an office, etc. So it may help with your taxes, but I'd look into tax law on rental income. I'd imagine it's taxed at a marginal rate.
Good luck to you! Sounds very exciting, but don't over extend yourself with a new baby and a massive project!
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<3<3DowntroddenInDC <3<3
<3<3 Texas Jobs <3<3
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zappaisgod
horrid asshole
Registered: 02/11/04
Posts: 42,300
Last seen: 15 minutes, 13 seconds
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Re: Thinking about becoming a landlord. [Re: Groovy Grant]
#12194624 - 03/13/10 01:29 PM (3 years, 2 months ago) |
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I believe he was basing his mortgage calculation on financing $240,000. Regardless:
1. Do not for one second assume anything about the other leases. Read them. Demand financials for the last 5 years.
2. Always figure a 2 month per year vacancy and a 1 month per year maintenance. The maintenance could well be more depending on the condition. You WILL inspect all structures carefully.
3. The taxes are a matter of public record. Look them up yourself and don't take anyone's word for it.
4. Bid anonymously
5. Consult a lender regarding financing. Your mortgage calculator is bullshit and there are different rules for non-owner occupied RE.
6. After you have done all that consult a professional tax adviser.
7. Don't ever forget that by investing the $60,000 you are forfeiting the income it could be earning by its own fat self and that you are seriously eroding your liquidity.
8. Do not invest your last nickel in this. Make sure you still can cover expenses in case of medium disaster. Buy insurance against job loss, etc.
9. Do not use friends for any kind of professional advice. Pay somebody. Then you can sue them if they fuck up. It's a kind of insurance.
Then, go for it.
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Groovy Grant
Registered: 08/01/00
Posts: 6,599
Loc: TX
Last seen: 3 months, 18 days
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Re: Thinking about becoming a landlord. [Re: zappaisgod]
#12194776 - 03/13/10 02:03 PM (3 years, 2 months ago) |
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Great advice Zappa! The friends and advice thing is great!
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<3<3DowntroddenInDC <3<3
<3<3 Texas Jobs <3<3
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LunarEclipse
Mr. Dogma Free
Registered: 10/31/04
Posts: 10,688
Loc: The Hand
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Re: Thinking about becoming a landlord. [Re: zappaisgod]
#12201825 - 03/14/10 07:26 PM (3 years, 2 months ago) |
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Quote:
zappaisgod said:
I believe he was basing his mortgage calculation on financing $240,000. Regardless:
1. Do not for one second assume anything about the other leases. Read them. Demand financials for the last 5 years.
2. Always figure a 2 month per year vacancy and a 1 month per year maintenance. The maintenance could well be more depending on the condition. You WILL inspect all structures carefully.
3. The taxes are a matter of public record. Look them up yourself and don't take anyone's word for it.
4. Bid anonymously
5. Consult a lender regarding financing. Your mortgage calculator is bullshit and there are different rules for non-owner occupied RE.
6. After you have done all that consult a professional tax adviser.
7. Don't ever forget that by investing the $60,000 you are forfeiting the income it could be earning by its own fat self and that you are seriously eroding your liquidity.
8. Do not invest your last nickel in this. Make sure you still can cover expenses in case of medium disaster. Buy insurance against job loss, etc.
9. Do not use friends for any kind of professional advice. Pay somebody. Then you can sue them if they fuck up. It's a kind of insurance.
Then, go for it.
10. Never rent to relatives or friends.
11. Small pets CONSIDERED.
12. If you really had to ask for advice about becoming a landlord on the Shroomery  and really have a young child then I would say NO WAY you aren't ready
13. See 12.
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Don't submit to dogma.
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TheBandit
Infidel
Registered: 03/04/08
Posts: 1,655
Last seen: 2 years, 7 months
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Re: Thinking about becoming a landlord. [Re: LunarEclipse]
#12203203 - 03/14/10 11:33 PM (3 years, 2 months ago) |
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Quote:
LunarEclipse said:
Quote:
zappaisgod said:
I believe he was basing his mortgage calculation on financing $240,000. Regardless:
1. Do not for one second assume anything about the other leases. Read them. Demand financials for the last 5 years.
2. Always figure a 2 month per year vacancy and a 1 month per year maintenance. The maintenance could well be more depending on the condition. You WILL inspect all structures carefully.
3. The taxes are a matter of public record. Look them up yourself and don't take anyone's word for it.
4. Bid anonymously
5. Consult a lender regarding financing. Your mortgage calculator is bullshit and there are different rules for non-owner occupied RE.
6. After you have done all that consult a professional tax adviser.
7. Don't ever forget that by investing the $60,000 you are forfeiting the income it could be earning by its own fat self and that you are seriously eroding your liquidity.
8. Do not invest your last nickel in this. Make sure you still can cover expenses in case of medium disaster. Buy insurance against job loss, etc.
9. Do not use friends for any kind of professional advice. Pay somebody. Then you can sue them if they fuck up. It's a kind of insurance.
Then, go for it.
10. Never rent to relatives or friends.
11. Small pets CONSIDERED.
12. If you really had to ask for advice about becoming a landlord on the Shroomery and really have a young child then I would say NO WAY you aren't ready
13. See 12.
i have the money, and i have the time.
that alone says i'm ready.
i use the shroomery as my one stop shop.
philosophy, cultivation, pubbin, etc.
--------------------
[quote]RogerRabbit said:
Ah, that explains it. Typical know-it-all noob. We get a few thousand just like you register here every year. They try a few grows, fail miserably and then after a few months or one bad trip, go back to sniffing glue, never to be seen again.
We have a basic pf tek that's idiot proof enough for noobs to get fucked up with their friends.
Mycologists on the other hand grow for the love of growing. They want to experiment with various species, substrates, and fruiting environments. They'll move on to isolate strains, attempt hybridization, and in general treat cultivation as an artform, rather than a chore that must be performed as a means to an end. They'll work twice as hard for a ten percent gain, just for the love of perfection. These are the ones who will isolate strains, not the dumb fucks who treat mushrooms as a drug, or even worse, a pathogen, as if mushrooms cause disease.
RR [/quote]
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Statisticons_win
Stranger
Registered: 03/20/09
Posts: 2,372
Last seen: 5 months, 3 days
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Re: Thinking about becoming a landlord. [Re: TheBandit]
#12205381 - 03/15/10 12:16 PM (3 years, 2 months ago) |
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don't listent o loonereclipse.
scared money doesn't make money.
Just cross your t's and dot your i's.
find a good lawyer. Play the game, play it fully engaged.
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LunarEclipse
Mr. Dogma Free
Registered: 10/31/04
Posts: 10,688
Loc: The Hand
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Quote:
Statisticons_win said:
don't listent o loonereclipse.
scared money doesn't make money.
Just cross your t's and dot your i's.
find a good lawyer. Play the game, play it fully engaged.
Be the ball, hit it hard. Hit it often.
A stitch in time saves Nine.
"Find a Good Lawyer". 
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Don't submit to dogma.
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Statisticons_win
Stranger
Registered: 03/20/09
Posts: 2,372
Last seen: 5 months, 3 days
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Re: Thinking about becoming a landlord. [Re: LunarEclipse]
#12211461 - 03/16/10 10:34 AM (3 years, 2 months ago) |
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lawyers and money go together like guns and coke. Didn't you know?
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LunarEclipse
Mr. Dogma Free
Registered: 10/31/04
Posts: 10,688
Loc: The Hand
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Re: Thinking about becoming a landlord. [Re: TheBandit]
#12211484 - 03/16/10 10:42 AM (3 years, 2 months ago) |
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Quote:
TheBandit said:
Quote:
LunarEclipse said:
Quote:
zappaisgod said:
I believe he was basing his mortgage calculation on financing $240,000. Regardless:
1. Do not for one second assume anything about the other leases. Read them. Demand financials for the last 5 years.
2. Always figure a 2 month per year vacancy and a 1 month per year maintenance. The maintenance could well be more depending on the condition. You WILL inspect all structures carefully.
3. The taxes are a matter of public record. Look them up yourself and don't take anyone's word for it.
4. Bid anonymously
5. Consult a lender regarding financing. Your mortgage calculator is bullshit and there are different rules for non-owner occupied RE.
6. After you have done all that consult a professional tax adviser.
7. Don't ever forget that by investing the $60,000 you are forfeiting the income it could be earning by its own fat self and that you are seriously eroding your liquidity.
8. Do not invest your last nickel in this. Make sure you still can cover expenses in case of medium disaster. Buy insurance against job loss, etc.
9. Do not use friends for any kind of professional advice. Pay somebody. Then you can sue them if they fuck up. It's a kind of insurance.
Then, go for it.
10. Never rent to relatives or friends.
11. Small pets CONSIDERED.
12. If you really had to ask for advice about becoming a landlord on the Shroomery and really have a young child then I would say NO WAY you aren't ready
13. See 12.
i have the money, and i have the time.
that alone says i'm ready.
i use the shroomery as my one stop shop.
philosophy, cultivation, pubbin, etc.
sorry pal having the money and time doesn't make you ready to be a landlord. it just means you have the means to buy a property.
i could go buy a bunch of car fixing tools and open up a car fixing shop but until i learn how to fix cars i will have to hire a mechanic to do my work. likewise if you are the type that can't fix houses for the most part you shouldn't be a landlord. granted there are times when you have to hire a plumber or electrician (sometimes it's the law for a rental) but otherwise you better be mr. fixit.
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Don't submit to dogma.
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Statisticons_win
Stranger
Registered: 03/20/09
Posts: 2,372
Last seen: 5 months, 3 days
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Re: Thinking about becoming a landlord. [Re: LunarEclipse]
#12211539 - 03/16/10 11:05 AM (3 years, 2 months ago) |
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Quote:
LunarEclipse said:
Quote:
TheBandit said:
Quote:
LunarEclipse said:
Quote:
zappaisgod said:
I believe he was basing his mortgage calculation on financing $240,000. Regardless:
1. Do not for one second assume anything about the other leases. Read them. Demand financials for the last 5 years.
2. Always figure a 2 month per year vacancy and a 1 month per year maintenance. The maintenance could well be more depending on the condition. You WILL inspect all structures carefully.
3. The taxes are a matter of public record. Look them up yourself and don't take anyone's word for it.
4. Bid anonymously
5. Consult a lender regarding financing. Your mortgage calculator is bullshit and there are different rules for non-owner occupied RE.
6. After you have done all that consult a professional tax adviser.
7. Don't ever forget that by investing the $60,000 you are forfeiting the income it could be earning by its own fat self and that you are seriously eroding your liquidity.
8. Do not invest your last nickel in this. Make sure you still can cover expenses in case of medium disaster. Buy insurance against job loss, etc.
9. Do not use friends for any kind of professional advice. Pay somebody. Then you can sue them if they fuck up. It's a kind of insurance.
Then, go for it.
10. Never rent to relatives or friends.
11. Small pets CONSIDERED.
12. If you really had to ask for advice about becoming a landlord on the Shroomery and really have a young child then I would say NO WAY you aren't ready
13. See 12.
i have the money, and i have the time.
that alone says i'm ready.
i use the shroomery as my one stop shop.
philosophy, cultivation, pubbin, etc.
sorry pal having the money and time doesn't make you ready to be a landlord. it just means you have the means to buy a property.
i could go buy a bunch of car fixing tools and open up a car fixing shop but until i learn how to fix cars i will have to hire a mechanic to do my work. likewise if you are the type that can't fix houses for the most part you shouldn't be a landlord. granted there are times when you have to hire a plumber or electrician (sometimes it's the law for a rental) but otherwise you better be mr. fixit.
you obviously don't know what the fuck you are talking about. My landlord owns two apartment buildings and five houses. he doesn't do shit, and still c.r.e.a.m.s.
before he even buys the house he should have a professional he trusts examine the structural integrity. Then he should find tradesmen with honorable reps and build lasting relationships with them. He doesn't have to be a jack-of-all trades to be a successful landlord.
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Stonehenge
enthusiast
Registered: 06/20/04
Posts: 3,777
Loc: S.E.
Last seen: 33 minutes, 58 seconds
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GG and zap seem to have the best advice here. You have to make the purchase contingent on passing a professional inspection. That alone will probably cost over 1k but don't skimp on it. Before you get that far go down to the local courthouse and look up any liens, assessments, judgements etc that might be owed on it. Look at the yearly taxes. Get a quote on insurance. Get all your ducks in a row before you make an offer. And don't be afraid to offer way less than they are asking. Don't let your heart get set on one property, they will always disappoint you. Look at others and you may find a better deal. Offer way low and they may make a counter offer just a little higher. Or you can offer more later on. You can't offer high and then go down after you realize your mistake.
On the plus side, if you are living there you can get a break on financing and if you close soon you will get a rebate from the govt. You will get a break on taxes by being an owner occupant, but just on the part you are living in. Still, every little break helps.
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“A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves largesse from the public treasury. From that moment on, the majority always votes for the candidates promising the most benefits from the public treasury with the result that a democracy always collapses over loose fiscal policy, always followed by a dictatorship.” (attributed to Alexis de Tocqueville political philosopher Circa 1835)
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LunarEclipse
Mr. Dogma Free
Registered: 10/31/04
Posts: 10,688
Loc: The Hand
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Re: Thinking about becoming a landlord. [Re: Stonehenge]
#12217315 - 03/17/10 09:37 AM (3 years, 2 months ago) |
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Quote:
Stonehenge said:
GG and zap seem to have the best advice here. You have to make the purchase contingent on passing a professional inspection. That alone will probably cost over 1k but don't skimp on it. Before you get that far go down to the local courthouse and look up any liens, assessments, judgements etc that might be owed on it. Look at the yearly taxes. Get a quote on insurance. Get all your ducks in a row before you make an offer. And don't be afraid to offer way less than they are asking. Don't let your heart get set on one property, they will always disappoint you. Look at others and you may find a better deal. Offer way low and they may make a counter offer just a little higher. Or you can offer more later on. You can't offer high and then go down after you realize your mistake.
On the plus side, if you are living there you can get a break on financing and if you close soon you will get a rebate from the govt. You will get a break on taxes by being an owner occupant, but just on the part you are living in. Still, every little break helps.
As to getting your "rebate from the govt" for owner occupied property that is true but does it apply if purchased as a package with rental property? Even a portion as you mention? I would doubt it but a good question for an accountant or the IRS.
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Don't submit to dogma.
Edited by LunarEclipse (03/17/10 10:03 AM)
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Stonehenge
enthusiast
Registered: 06/20/04
Posts: 3,777
Loc: S.E.
Last seen: 33 minutes, 58 seconds
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Re: Thinking about becoming a landlord. [Re: LunarEclipse]
#12218451 - 03/17/10 02:34 PM (3 years, 2 months ago) |
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LE, i heard that it does. But they only figure the rebate on the portion that you live in. Max of 8k, you must have never bought a house before or if you did, you must have lived in it 3 of the last 5 years. If it's your second time buying a house you get a max of 6.5k. The rules are very complicated. Definitely look into it. Even if a govt agent tells you something they might be wrong.
I think i'm done buying r/e until after 4-30. Thats when the current round of rebates end. There should be less buyers and more bargains then. Of course i wont turn down any great deals before then but they will have to be very good.
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“A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves largesse from the public treasury. From that moment on, the majority always votes for the candidates promising the most benefits from the public treasury with the result that a democracy always collapses over loose fiscal policy, always followed by a dictatorship.” (attributed to Alexis de Tocqueville political philosopher Circa 1835)
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LunarEclipse
Mr. Dogma Free
Registered: 10/31/04
Posts: 10,688
Loc: The Hand
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Re: Thinking about becoming a landlord. [Re: Stonehenge]
#12219375 - 03/17/10 05:15 PM (3 years, 2 months ago) |
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Quote:
Stonehenge said:
LE, i heard that it does. But they only figure the rebate on the portion that you live in. Max of 8k, you must have never bought a house before or if you did, you must have lived in it 3 of the last 5 years. If it's your second time buying a house you get a max of 6.5k. The rules are very complicated. Definitely look into it. Even if a govt agent tells you something they might be wrong.
I think i'm done buying r/e until after 4-30. Thats when the current round of rebates end. There should be less buyers and more bargains then. Of course i wont turn down any great deals before then but they will have to be very good.
Govt agent might be wrong? Sounds serious.
Got a pal waiting on ur cherished hoped for rebate portion of a stanky tax cruddit. They didn't have good answers either.
BTW all you wannabe landlords you think you get money for non owner occupied you betta be GOOD Cruddit...
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Don't submit to dogma.
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zappaisgod
horrid asshole
Registered: 02/11/04
Posts: 42,300
Last seen: 15 minutes, 13 seconds
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Re: Thinking about becoming a landlord. [Re: LunarEclipse]
#12235844 - 03/20/10 10:37 AM (3 years, 2 months ago) |
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Quote:
LunarEclipse said:
likewise if you are the type that can't fix houses for the most part you shouldn't be a landlord. granted there are times when you have to hire a plumber or electrician (sometimes it's the law for a rental) but otherwise you better be mr. fixit.
I disagree with this very much. The reason I don't do my own landscaping is not because I can't mow a lawn. It's because I can better utilize my time and skills. There are thousands upon thousands of rich landlords who've never touched a tool in their lives. There are also lots of handy schmucks who lose money because they fail to perform due diligence. A savvy business head is worth a lot more than proficiency with a hammer or wrench.
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LunarEclipse
Mr. Dogma Free
Registered: 10/31/04
Posts: 10,688
Loc: The Hand
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Re: Thinking about becoming a landlord. [Re: zappaisgod]
#12236100 - 03/20/10 12:03 PM (3 years, 2 months ago) |
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Quote:
zappaisgod said:
Quote:
LunarEclipse said:
likewise if you are the type that can't fix houses for the most part you shouldn't be a landlord. granted there are times when you have to hire a plumber or electrician (sometimes it's the law for a rental) but otherwise you better be mr. fixit.
I disagree with this very much. The reason I don't do my own landscaping is not because I can't mow a lawn. It's because I can better utilize my time and skills. There are thousands upon thousands of rich landlords who've never touched a tool in their lives. There are also lots of handy schmucks who lose money because they fail to perform due diligence. A savvy business head is worth a lot more than proficiency with a hammer or wrench.
Got a link to all those "thousands and thousands of rich landlords who've never touched a tool in their lives"? Cause frankly I think that is BS. Not to say most landlords should attempt major remodels on their own, but most landlords can turn a screwdriver or a wrench. If you can't fix minor stuff that is expensive to have done by others (leaky toilets, faucets, replacing light switches and fixtures, etc) you will be losing money to the plumbers and electricians.
Not sure why some of you folks seem to think that property purchasing and landlording is such a profitable business that you can do it without being thrifty with repairs and maintenance but that is nonsense. The other realty is that if you haven't done various work yourself you really won't even know how much it should cost or what should be involved which is really a recipe to get hosed by some contractor.
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Don't submit to dogma.
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Stonehenge
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Re: Thinking about becoming a landlord. [Re: LunarEclipse]
#12236171 - 03/20/10 12:24 PM (3 years, 2 months ago) |
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I think you are both right. I lean toward the thrifty side and try to do my own work on a lot of things. It depends on how much time you have on your hands. Trades people often make $30 to $100 an hour or more. If you can do it yourself you save that amount. That is if you have the tools and the know how. A handy man can get in over his head very quickly sometimes. Doing something wrong the first time can cost you double to have someone come in and do it right after you botched it.
I do minor repairs around my own home but when the roof needs replacing, i call professionals and get bids. Why should i do my own painting when i can pick and choose from out of work construction people who will gladly take $10 an hour or less? It depends on what your time is worth. If you are making $30 an hour or more and the pro wants about that much, he has the tools and expertise and you don't. Let him do it. If you are out of work or have lots of free time and love doing it, then its different. I mow my own lawn because its good exercise. Why pay for an exercise class when i get the same workout for free and save money?
The smarts in making good business decisions can pay hundreds of dollars an hour. There are lots of people who work hard their whole lives and end up with nothing so hard work is not the magic answer.
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“A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves largesse from the public treasury. From that moment on, the majority always votes for the candidates promising the most benefits from the public treasury with the result that a democracy always collapses over loose fiscal policy, always followed by a dictatorship.” (attributed to Alexis de Tocqueville political philosopher Circa 1835)
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Bokonon
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Re: Thinking about becoming a landlord. [Re: TheBandit]
#12236316 - 03/20/10 12:54 PM (3 years, 2 months ago) |
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If the other properties all pay $800 a month, I say go for it. If they are, the mortgage could be as high as $2400 really without changing your current outgoings. It doesn't really matter if you're still paying out every month if you think of it as enforced savings.
Do you think your current house is the one you want to raise your kid in? Even if it isn't I still think it sounds like a good idea but if you're already planning on staying there for a considerable time, you may as well engineer the situation so you're getting paid for it.
In terms of contracts etc, Staples (in the UK at least) does pre-made standard letting contracts that you just fill in the details on.
My parents have done this a few times and it's a lot of money just to lay out initially on deposits/surveys/legal but it's a pretty safe investment once it's going.
Obviously safety of investment depends on accuracy of what you've said, if the property is a steal, rent arrangements etc.
Also I have no idea about housing market over there atm, just that I'd jump at the chance in a similar situation over here.
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Statisticons_win
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Re: Thinking about becoming a landlord. [Re: LunarEclipse]
#12236925 - 03/20/10 03:15 PM (3 years, 2 months ago) |
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consider opportunity costs.
If my time is worth 1 hundred dollars an hour doing A(job), then doing b(job) which I could pay a man to do for twenty five dollars an hour costs me how much?
Start using your head. Stop giving advice about things you nothing about.
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zappaisgod
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Re: Thinking about becoming a landlord. [Re: LunarEclipse]
#12237011 - 03/20/10 03:32 PM (3 years, 2 months ago) |
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Quote:
Got a link to all those "thousands and thousands of rich landlords who've never touched a tool in their lives"?
Are you serious? Have you ever lived more than five miles from a turnip farm? NYC is loaded with apartmnt buildings owned by thousands of businessmen who can't operate anything heftier than a pen. The same holds for any large town. In my town, a few thousand people, we have several landlords I know personally who couldn't fix a doorknob. They're minting money and have been for decades.
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Bokonon
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Re: Thinking about becoming a landlord. [Re: LunarEclipse]
#12245378 - 03/21/10 11:47 PM (3 years, 2 months ago) |
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Quote:
Got a link to all those "thousands and thousands of rich landlords who've never touched a tool in their lives"?
Sunday Times richlist- property millionaires
Forbes richlist- some equally filthy rich americans.
Edited by Bokonon (03/21/10 11:49 PM)
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luvdemshrooms
Two inch dick..but it spins!?
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Re: Thinking about becoming a landlord. [Re: LunarEclipse]
#12250782 - 03/22/10 09:06 PM (3 years, 2 months ago) |
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Quote:
LunarEclipse said:Never rent to relatives or friends.
While most of what you write is some of the most ridiculous stuff I have seen, the above is something that most (if not all) landlords should tattoo on their foreheads where they will see it every day.
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“In politics, few talents are as richly rewarded as the ability to convince parasites that they are victims. Welfare states on both sides of the Atlantic have discovered that largesse to losers does not reduce their hostility to society, but only increases it. Far from producing gratitude, generosity is seen as an admission of guilt, and the reparations as inadequate compensation for injustices – leading to worsening behavior by the recipients.
Thomas Sowell
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iluvfungi
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Re: Thinking about becoming a landlord. [Re: TheBandit]
#12252033 - 03/23/10 12:27 AM (3 years, 1 month ago) |
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Couple variables to factor in.
#1 Location of Property
#2 Condition of Property
#2.1 Maintenance of the Property
= Value of the Property.
Regardless of the Value of Property, you want to keep a mid to high level of customer service, which includes maintenance. Even if a place is a dump, you can have several handymen on call or just hire one full time.
Most people that do property management fall into two categories; either they manage the singular property themselves or they are a property manager of several locations. Depending on the size of the single location or variety of properties and condition they are in determines the level of maintenance required.
Obviously you would want to access the major maintenance items, such as a roof. When you do any upgrades to a house or property, expense them over 10 years for major maintenance; painting, roofs, water heater, new pipes, etc.
You must abide by the local laws according to your area. Example, you must paint the interior of the residence every couple years.
You have a lot of reading to do in that area. Basic's are property value, estimated repairs required in the next ten year period. Do your homework and balance the entire thing out for 10 years, and be sure to have a good chunk of credit available for the unexpected. Your business should remain viable regardless of hardships. Don't be a fool and start a business without researching, creating a hard business plan and the motivation to keep it going.
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LunarEclipse
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Re: Thinking about becoming a landlord. [Re: luvdemshrooms]
#12258299 - 03/23/10 11:10 PM (3 years, 1 month ago) |
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Quote:
luvdemshrooms said:
Quote:
LunarEclipse said:Never rent to relatives or friends.
While most of what you write is some of the most ridiculous stuff I have seen, the above is something that most (if not all) landlords should tattoo on their foreheads where they will see it every day.
Wow for the most part I think your posts sux hard but in this case I think you are on to something. Funny you would rank my posts about the same as I would rank your posts. All good.
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Don't submit to dogma.
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LunarEclipse
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Re: Thinking about becoming a landlord. [Re: zappaisgod]
#12258324 - 03/23/10 11:15 PM (3 years, 1 month ago) |
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Quote:
zappaisgod said:
Quote:
Got a link to all those "thousands and thousands of rich landlords who've never touched a tool in their lives"?
Are you serious? Have you ever lived more than five miles from a turnip farm? NYC is loaded with apartmnt buildings owned by thousands of businessmen who can't operate anything heftier than a pen. The same holds for any large town. In my town, a few thousand people, we have several landlords I know personally who couldn't fix a doorknob. They're minting money and have been for decades.
Wow big inherited money doesn't have a clue on how to run it. What a surprise. That's your version of "owned"? LOL
Couldn't fix a doorknob but are one.
Thanks for the laugh I wouldn't fix their pipes either.
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Don't submit to dogma.
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LunarEclipse
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Re: Thinking about becoming a landlord. [Re: Stonehenge]
#12262198 - 03/24/10 02:24 PM (3 years, 1 month ago) |
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Quote:
Stonehenge said:
I think you are both right. I lean toward the thrifty side and try to do my own work on a lot of things. It depends on how much time you have on your hands. Trades people often make $30 to $100 an hour or more. If you can do it yourself you save that amount. That is if you have the tools and the know how. A handy man can get in over his head very quickly sometimes. Doing something wrong the first time can cost you double to have someone come in and do it right after you botched it.
I do minor repairs around my own home but when the roof needs replacing, i call professionals and get bids. Why should i do my own painting when i can pick and choose from out of work construction people who will gladly take $10 an hour or less? It depends on what your time is worth. If you are making $30 an hour or more and the pro wants about that much, he has the tools and expertise and you don't. Let him do it. If you are out of work or have lots of free time and love doing it, then its different. I mow my own lawn because its good exercise. Why pay for an exercise class when i get the same workout for free and save money?
The smarts in making good business decisions can pay hundreds of dollars an hour. There are lots of people who work hard their whole lives and end up with nothing so hard work is not the magic answer.
Hey good post Stone kudos to you. And I agree hire someone if they are willing to do a better job at something you would not be willing to do at that price. I cut a lot of grass like you say good exercise I wear ear protection and just push that thing. Others may say screw that lawn mowing I could understand that as well. I happen to not mind fixing leaky faucets and repairing toilets cause well it ain't rocket science and to pay someone top dollar (if you can find them what a freaking racket) seems silly
It's all about your comfort level as a landlord you better learn to grin and bear it. In a down housing market you are losing $$ every month. Grit ur teeth.
And really, you have folks chomping at the bit to paint ur place for $10 an hour? Tweakers and you lose your fixtures?
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Don't submit to dogma.
Edited by LunarEclipse (03/24/10 02:30 PM)
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Bokonon
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Re: Thinking about becoming a landlord. [Re: LunarEclipse]
#12262307 - 03/24/10 02:43 PM (3 years, 1 month ago) |
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I know a fair few people who are landlords who just own the house and let a management company do everything else. Lots of successful professionals have the money to buy to let without ever having to fix anything up.
I appreciate that your way works for you but there are plenty of people for whom it is just not economical for them to fix up a house or cut a lot of grass when they can earn £500 an hour themselves and pay someone else £20 an hour to do the manual labour.
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Stonehenge
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Re: Thinking about becoming a landlord. [Re: LunarEclipse]
#12262617 - 03/24/10 03:22 PM (3 years, 1 month ago) |
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Bok, that's true, around here they get 10% of the rent for collecting it plus they charge what the repair guy wants plus a little extra. Thats good if you want to be an absentee landlord or just can't be bothered.
"£500 an hour"
Lets see, that's 20,000 quid a week based on 40 hours x the exchange rate is about $30k a week or over $1.5m a year. Not too many people drawing down a salary like that but there are a few. Lucky dogs. For them if they can pay a management company and make an acceptable percentage return, it may be a good investment.
"Hey good post Stone kudos to you."
Thanks very much, LE
And yeah, if something is good exercise or you just like doing it then why pay someone? Yes, in my area there are lots of people anxious to work for $10 an hour. Skilled tradesmen want $20 if they have tools, lots of experience and a truck but even then they are saying pretty please about the $20. Unemployment is officially around 10% and after you scrape away the govt lies, it's closer to 15% and in some areas higher than that.
I have a girl come in once a week who cleans the place and you would not believe what else she does all for $10 an hour. If i advertised for painting for $10 i'd have to pick and choose from a multitude who wanted to do it. I put in an ad in craigs list for workmen and after a few hours i had over 40 responses and canceled the ad. And that was for skilled work.
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“A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves largesse from the public treasury. From that moment on, the majority always votes for the candidates promising the most benefits from the public treasury with the result that a democracy always collapses over loose fiscal policy, always followed by a dictatorship.” (attributed to Alexis de Tocqueville political philosopher Circa 1835)
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zappaisgod
horrid asshole
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Re: Thinking about becoming a landlord. [Re: LunarEclipse]
#12263045 - 03/24/10 04:11 PM (3 years, 1 month ago) |
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Quote:
LunarEclipse said:
Quote:
zappaisgod said:
Quote:
Got a link to all those "thousands and thousands of rich landlords who've never touched a tool in their lives"?
Are you serious? Have you ever lived more than five miles from a turnip farm? NYC is loaded with apartmnt buildings owned by thousands of businessmen who can't operate anything heftier than a pen. The same holds for any large town. In my town, a few thousand people, we have several landlords I know personally who couldn't fix a doorknob. They're minting money and have been for decades.
Wow big inherited money doesn't have a clue on how to run it. What a surprise. That's your version of "owned"? LOL
Couldn't fix a doorknob but are one.
Thanks for the laugh I wouldn't fix their pipes either.
What's this doorknob obsession with you? Recently sit on one? You said something stupid. I proved it was stupid. Get over it.
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LunarEclipse
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Posts: 10,688
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Re: Thinking about becoming a landlord. [Re: zappaisgod]
#12263738 - 03/24/10 05:54 PM (3 years, 1 month ago) |
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Quote:
zappaisgod said:
Quote:
LunarEclipse said:
Quote:
zappaisgod said:
Quote:
Got a link to all those "thousands and thousands of rich landlords who've never touched a tool in their lives"?
Are you serious? Have you ever lived more than five miles from a turnip farm? NYC is loaded with apartmnt buildings owned by thousands of businessmen who can't operate anything heftier than a pen. The same holds for any large town. In my town, a few thousand people, we have several landlords I know personally who couldn't fix a doorknob. They're minting money and have been for decades.
Wow big inherited money doesn't have a clue on how to run it. What a surprise. That's your version of "owned"? LOL
Couldn't fix a doorknob but are one.
Thanks for the laugh I wouldn't fix their pipes either.
What's this doorknob obsession with you? Recently sit on one? You said something stupid. I proved it was stupid. Get over it.
Wake Up the OP was/is "thinking about becoming a landlord" and not "I'm a dumb rich turd who inherited money but I let my property manager/plumber/electrician you name it do me hard doesn't matter I live in Westchester NY I Matter" get over it Zap a finished and stupid attempt at business is different from starting your own. Sorry I tried to help someone on here improve themselves my 20 years of landlording obviously wasted. At least on you. Hopefully someone with at least marginal intelligence understands that to save money is to make money. Ben Franklin knew that a penny saved is a penny earned. Geez pay that plumber if you feel so strongly. Their butt crax and bitchin about this and that ain't worth it to me. Kind of like discussing this with you Zap. Hell all I did was express my experienced opinion on the matter but you wanted to critique my comments. Well Fuck That.
Edited by LunarEclipse (03/24/10 06:06 PM)
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Bokonon
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Re: Thinking about becoming a landlord. [Re: LunarEclipse]
#12265338 - 03/24/10 09:35 PM (3 years, 1 month ago) |
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I think he was just trying to show your world view isn't the only one.
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zappaisgod
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Re: Thinking about becoming a landlord. [Re: LunarEclipse]
#12268171 - 03/25/10 09:58 AM (3 years, 1 month ago) |
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You seem to have the foolish notion that you have to be a handyman to be a landlord. Or inherit vast wealth. Neither is required to be a landlord or a builder as can be shown by thousands upon thousands who have done it other ways.
Let me put this to you. Someone is a successful business person who makes hundreds of dollars an hour. Call him a doctor or lawyer or super duper computer tech. He decides he wants to own real estate. If the pipes break or a cabinet door falls off, should he abandon his day job to perform a menial task? Of course not. Many people just like that successfully invest in real estate as landlords. It would be monumentally stupid of them to sacrifice higher earnings to save pennies on micro managing their real estate. I pay experts to do the things I am not expert in and make more money than I could save by doing the things I am expert in. Do you mow the fucking lawn on your properties? If so you must have absolutely no other earning capability.
How stunningly narrow minded you are. "I did it this way so that is the only way it can be done." Very small.
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LunarEclipse
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Re: Thinking about becoming a landlord. [Re: Stonehenge]
#12268269 - 03/25/10 10:35 AM (3 years, 1 month ago) |
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Quote:
Stonehenge said:
Bok, that's true, around here they get 10% of the rent for collecting it plus they charge what the repair guy wants plus a little extra. Thats good if you want to be an absentee landlord or just can't be bothered.
"£500 an hour"
Lets see, that's 20,000 quid a week based on 40 hours x the exchange rate is about $30k a week or over $1.5m a year. Not too many people drawing down a salary like that but there are a few. Lucky dogs. For them if they can pay a management company and make an acceptable percentage return, it may be a good investment.
"Hey good post Stone kudos to you."
Thanks very much, LE
And yeah, if something is good exercise or you just like doing it then why pay someone? Yes, in my area there are lots of people anxious to work for $10 an hour. Skilled tradesmen want $20 if they have tools, lots of experience and a truck but even then they are saying pretty please about the $20. Unemployment is officially around 10% and after you scrape away the govt lies, it's closer to 15% and in some areas higher than that.
I have a girl come in once a week who cleans the place and you would not believe what else she does all for $10 an hour. If i advertised for painting for $10 i'd have to pick and choose from a multitude who wanted to do it. I put in an ad in craigs list for workmen and after a few hours i had over 40 responses and canceled the ad. And that was for skilled work.
If I could find a girl to polish my doorknobs at $10 an hour that would be well worth it. I could see you getting swamped with calls from "workmen", the hard part is finding a good one.
OK now I will make an admission that may seem to fly in the face of my normal thinking do as much as you can yourself. I pay a property manager to find tenants and collect the rent! Negotiated down to 8% from 10% hey 2% is 2%. The reasons for this are several. The main one is that they find qualified tenants and I don't have to deal with that aspect. Answering all those calls from largely unqualified people asking a lot of questions starting with "where is that house at?" just doesn't make my day.
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Don't submit to dogma.
Edited by LunarEclipse (03/25/10 10:38 AM)
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zappaisgod
horrid asshole
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Re: Thinking about becoming a landlord. [Re: LunarEclipse]
#12268877 - 03/25/10 12:59 PM (3 years, 1 month ago) |
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So you pay people to do the part you don't do well, i.e. the job of an agent. Many real estate agents own rental property. They can't fix anything themselves. But to extend your reasoning regarding handiness you shouldn't own property because you can't find qualified tenants.
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LunarEclipse
Mr. Dogma Free
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Re: Thinking about becoming a landlord. [Re: zappaisgod]
#12269030 - 03/25/10 01:36 PM (3 years, 1 month ago) |
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Quote:
zappaisgod said:
So you pay people to do the part you don't do well, i.e. the job of an agent. Many real estate agents own rental property. They can't fix anything themselves. But to extend your reasoning regarding handiness you shouldn't own property because you can't find qualified tenants.
You sure make a lot of assumptions and want to debate me personally. OK whatever. I have found many qualified tenants over the many years of doing rentals never had to officially evict anyone. Which I think is a good thing. I keep trying to agree with you on some level that you should sub out that portion of this which you dont like or which is more profitable to do so but you want to argue. Such is your nature its ok.
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Don't submit to dogma.
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zappaisgod
horrid asshole
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Re: Thinking about becoming a landlord. [Re: LunarEclipse]
#12269404 - 03/25/10 02:41 PM (3 years, 1 month ago) |
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Oh, OK. I seem to recall you telling the guy not to get in the business if he isn't handy and then questioning my assertion that lots of non-handy people are successful landlords.
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Stonehenge
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Re: Thinking about becoming a landlord. [Re: LunarEclipse]
#12269568 - 03/25/10 03:11 PM (3 years, 1 month ago) |
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As has been said, it comes down to what you do well and how much your time is worth vs paying someone else to do it. Another factor is laziness. If you are capable of doing it and your time is worth only $15 an hour but you hate the job you might want to pay someone else $30 an hour or more just to spare you the burden. If its a choice between working your ass off and making more money or having lots of leisure and making less but enough, many will choose the life of leisure.
I happen to be good at interviewing people. One of the keys to selecting tenants is doing a credit and background check. You can get a credit check done for $25 or less and the criminal check you can do on the net. I always use to demand first last and security. I still think its a good idea but someone with a great credit rating, lets say 700 or higher, you can give them some slack. OTOH, someone with a poor rating, under 550 with an eviction on their record, you give them no slack what so ever and the security deposit will be high. If i take them at all.
8% does not sound like a lot but that is considered a great return on your money these days. So if the rents plus rises in property value gives you a return over the next 5 years of only 12%, then the 8% you handed over brings it down to 4%. Now if property stays flat or drops before it rises, you might easily lose money whereas keeping the 8 or 10% for yourself means a decent profit. You are taking a risk plus doing a fair amount of work just in buying it and fixing it up plus maintenance. You can get close to 4% on cd's, why take a risk and make less than that? I want it all, baby. Plus they are not going to find a tenant for you and take only 8%. Maybe if you have a tenant in place they might. Then it costs you 8% for them to collect the rent. What if they run off with it?
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“A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves largesse from the public treasury. From that moment on, the majority always votes for the candidates promising the most benefits from the public treasury with the result that a democracy always collapses over loose fiscal policy, always followed by a dictatorship.” (attributed to Alexis de Tocqueville political philosopher Circa 1835)
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Bokonon
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Re: Thinking about becoming a landlord. [Re: zappaisgod]
#12270178 - 03/25/10 04:40 PM (3 years, 1 month ago) |
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Quote:
zappaisgod said:
Oh, OK. I seem to recall you telling the guy not to get in the business if he isn't handy and then questioning my assertion that lots of non-handy people are successful landlords.
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luvdemshrooms
Two inch dick..but it spins!?
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Re: Thinking about becoming a landlord. [Re: TheBandit]
#12270441 - 03/25/10 05:15 PM (3 years, 1 month ago) |
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I'm a landlord and can do all the repairs you can dream up, including replacing rotten sills.
What you will never see...... is a paintbrush in my hand. Nor will I sully myself with joint compound.
Just remember, nice landlords finish last (and stressed). Doesn't mean you have to be a prick but neither should you let your tenants get away with anything the lease prohibits.
If you're going to manage the buildings yourself, living on premises (or right nearby) will help prevent a great many problems.
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“In politics, few talents are as richly rewarded as the ability to convince parasites that they are victims. Welfare states on both sides of the Atlantic have discovered that largesse to losers does not reduce their hostility to society, but only increases it. Far from producing gratitude, generosity is seen as an admission of guilt, and the reparations as inadequate compensation for injustices – leading to worsening behavior by the recipients.
Thomas Sowell
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LunarEclipse
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Registered: 10/31/04
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Loc: The Hand
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Re: Thinking about becoming a landlord. [Re: Stonehenge]
#12271085 - 03/25/10 06:58 PM (3 years, 1 month ago) |
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Quote:
Stonehenge said:
As has been said, it comes down to what you do well and how much your time is worth vs paying someone else to do it. Another factor is laziness. If you are capable of doing it and your time is worth only $15 an hour but you hate the job you might want to pay someone else $30 an hour or more just to spare you the burden. If its a choice between working your ass off and making more money or having lots of leisure and making less but enough, many will choose the life of leisure.
I happen to be good at interviewing people. One of the keys to selecting tenants is doing a credit and background check. You can get a credit check done for $25 or less and the criminal check you can do on the net. I always use to demand first last and security. I still think its a good idea but someone with a great credit rating, lets say 700 or higher, you can give them some slack. OTOH, someone with a poor rating, under 550 with an eviction on their record, you give them no slack what so ever and the security deposit will be high. If i take them at all.
8% does not sound like a lot but that is considered a great return on your money these days. So if the rents plus rises in property value gives you a return over the next 5 years of only 12%, then the 8% you handed over brings it down to 4%. Now if property stays flat or drops before it rises, you might easily lose money whereas keeping the 8 or 10% for yourself means a decent profit. You are taking a risk plus doing a fair amount of work just in buying it and fixing it up plus maintenance. You can get close to 4% on cd's, why take a risk and make less than that? I want it all, baby. Plus they are not going to find a tenant for you and take only 8%. Maybe if you have a tenant in place they might. Then it costs you 8% for them to collect the rent. What if they run off with it?
8% is a lot But if you can deduct it which you can and IF you actually do get a good tenant well 8% is a month a year. Imagine if you have ur place vacant or worse have some slaka in there not paying rent 8% will be a deal vs actually having a paying qualified tenant.
But ultimately folks Did you Make Money being a landlord? Was it worth it? People are a pain can you even imagine if you had to rent to someone like Zappa? Next thing you know you are in court being sued for no good reason.
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Don't submit to dogma.
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Stonehenge
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Re: Thinking about becoming a landlord. [Re: luvdemshrooms]
#12271181 - 03/25/10 07:11 PM (3 years, 1 month ago) |
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Quote:
8% is a lot But if you can deduct it which you can and IF you actually do get a good tenant well 8% is a month a year. Imagine if you have ur place vacant or worse have some slaka in there not paying rent 8% will be a deal vs actually having a paying qualified tenant.
But ultimately folks Did you Make Money being a landlord? Was it worth it? People are a pain can you even imagine if you had to rent to someone like Zappa? Next thing you know you are in court being sued for no good reason.
LOL! yeah, you don't want any jerky tenants. But the service is not going to do anything for you you can't do for yourself. They are likely to grab any tenant to get the 10% or whatever they make. If they guarantee no vacancies i'll pay them myself but no one will do that for you. You have your own best interests at heart and will not take a questionable tenant so you will have less vacancies and non payers.
Really though, if they have good credit the last thing they want to do is mess it up with an eviction and judgment against them. Someone with super credit like over 750 i might let them in with just the first months rent and no security. A jerk will hose you no matter what. You might be lucky to make 8 or 10 percent on your investment after taxes, ins, maintenance and so on. Why hand it over to someone who basically just cashes the rent check and takes out their end?
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“A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves largesse from the public treasury. From that moment on, the majority always votes for the candidates promising the most benefits from the public treasury with the result that a democracy always collapses over loose fiscal policy, always followed by a dictatorship.” (attributed to Alexis de Tocqueville political philosopher Circa 1835)
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LunarEclipse
Mr. Dogma Free
Registered: 10/31/04
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Loc: The Hand
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Re: Thinking about becoming a landlord. [Re: Stonehenge]
#12271226 - 03/25/10 07:17 PM (3 years, 1 month ago) |
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Quote:
Stonehenge said:
Quote:
8% is a lot But if you can deduct it which you can and IF you actually do get a good tenant well 8% is a month a year. Imagine if you have ur place vacant or worse have some slaka in there not paying rent 8% will be a deal vs actually having a paying qualified tenant.
But ultimately folks Did you Make Money being a landlord? Was it worth it? People are a pain can you even imagine if you had to rent to someone like Zappa? Next thing you know you are in court being sued for no good reason.
LOL! yeah, you don't want any jerky tenants. But the service is not going to do anything for you you can't do for yourself. They are likely to grab any tenant to get the 10% or whatever they make. If they guarantee no vacancies i'll pay them myself but no one will do that for you. You have your own best interests at heart and will not take a questionable tenant so you will have less vacancies and non payers.
Really though, if they have good credit the last thing they want to do is mess it up with an eviction and judgment against them. Someone with super credit like over 750 i might let them in with just the first months rent and no security. A jerk will hose you no matter what. You might be lucky to make 8 or 10 percent on your investment after taxes, ins, maintenance and so on. Why hand it over to someone who basically just cashes the rent check and takes out their end?
Well from my experience the property manager gets good tenants cause bad tenants don't bother applying. They know better. But the main thing is that I don't have to dick with that portion or face any potential liability for whatever. It's frankly a load off my mind and in the long run I do think money well spent. I make it up by shit like fixing leaky toilets easy to do and so profitable.
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LunarEclipse
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Re: Thinking about becoming a landlord. [Re: Bokonon]
#12271547 - 03/25/10 08:06 PM (3 years, 1 month ago) |
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Quote:
Bokonon said:
Quote:
zappaisgod said:
Oh, OK. I seem to recall you telling the guy not to get in the business if he isn't handy and then questioning my assertion that lots of non-handy people are successful landlords.
Right right real estate goes up every year buy buy buy being a landlord is easy renters are great and I won't
COME IN UR MOUTH
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Edited by LunarEclipse (03/25/10 08:11 PM)
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Raw
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Registered: 03/23/10
Posts: 1,419
Loc: USA West Coast
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Re: Thinking about becoming a landlord. [Re: LunarEclipse]
#12271589 - 03/25/10 08:11 PM (3 years, 1 month ago) |
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My 2 cents is...
Any property could make you money as long as you have time for it and are nearby. Then it can be profitable cuz you can do a lot of the work and it can be a lot of paperwork too like fighting property taxes that are unreasonable.
It is a lot of work...
And it ties you down to a certain area...
You have to be there...
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LunarEclipse
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Re: Thinking about becoming a landlord. [Re: Raw]
#12271823 - 03/25/10 08:40 PM (3 years, 1 month ago) |
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Quote:
Raw said:
My 2 cents is...
Any property could make you money as long as you have time for it and are nearby. Then it can be profitable cuz you can do a lot of the work and it can be a lot of paperwork too like fighting property taxes that are unreasonable.
It is a lot of work...
And it ties you down to a certain area...
You have to be there...
No real estate moves up every year pay that plumber top dollar all landlords are successful.
That's just how it works...
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Stonehenge
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Re: Thinking about becoming a landlord. [Re: LunarEclipse]
#12275671 - 03/26/10 12:06 PM (3 years, 1 month ago) |
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Better yet, keep your money in the bank and watch inflation turn it into wastepaper. We all know inflation is coming. The drunken sailors in congress spending money we don't have will make sure of that. If you take on debt now, in a few years the debt will be wastepaper and you can pay it off with a laugh. 15k will buy an economy car now. In a few years it will cost that much per year for gas.
Better be in a job where you can demand what you think you will be worth because wages are just not going to keep up with inflation. Someone has to pay for the politicians crooked and stupid ways. You don't expect them to pay for it do you? You are elected to pay for it. And you didn't even know you were running for the job. Landlords can charge what they want and if you don't like it, sleep in the street. At least buy your own home to avoid that situation. You can still get a rebate if you sign a deal before 4-30-10.
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“A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves largesse from the public treasury. From that moment on, the majority always votes for the candidates promising the most benefits from the public treasury with the result that a democracy always collapses over loose fiscal policy, always followed by a dictatorship.” (attributed to Alexis de Tocqueville political philosopher Circa 1835)
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LunarEclipse
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Registered: 10/31/04
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Loc: The Hand
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Re: Thinking about becoming a landlord. [Re: Stonehenge]
#12276767 - 03/26/10 02:57 PM (3 years, 1 month ago) |
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Quote:
Stonehenge said:
Better yet, keep your money in the bank and watch inflation turn it into wastepaper. We all know inflation is coming. The drunken sailors in congress spending money we don't have will make sure of that. If you take on debt now, in a few years the debt will be wastepaper and you can pay it off with a laugh. 15k will buy an economy car now. In a few years it will cost that much per year for gas.
Better be in a job where you can demand what you think you will be worth because wages are just not going to keep up with inflation. Someone has to pay for the politicians crooked and stupid ways. You don't expect them to pay for it do you? You are elected to pay for it. And you didn't even know you were running for the job. Landlords can charge what they want and if you don't like it, sleep in the street. At least buy your own home to avoid that situation. You can still get a rebate if you sign a deal before 4-30-10.
Back In The Day (a few years ago) the Banks Said Hallelujah Loan That Money Cheap
I borrowed.
Now they say To Hell With You Landlord Dude.
Good thing to borrow when the money is there now it's not.
OK Zappa you make 100k a year you can always borrow but for us normal folks who might have STINKFOOT
Our Python Boots Too Tight
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Don't submit to dogma.
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zappaisgod
horrid asshole
Registered: 02/11/04
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Re: Thinking about becoming a landlord. [Re: LunarEclipse]
#12276862 - 03/26/10 03:13 PM (3 years, 1 month ago) |
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Money is still cheap. They just aren't lending to bums as much any more. Or at least until Obama forces them to.
If you have a reasonable down payment and a solid balance sheet and prospectus you can still get loans for investment property.
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LunarEclipse
Mr. Dogma Free
Registered: 10/31/04
Posts: 10,688
Loc: The Hand
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Re: Thinking about becoming a landlord. [Re: zappaisgod]
#12278864 - 03/26/10 08:50 PM (3 years, 1 month ago) |
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Quote:
zappaisgod said:
Money is still cheap. They just aren't lending to bums as much any more. Or at least until Obama forces them to.
If you have a reasonable down payment and a solid balance sheet and prospectus you can still get loans for investment property.
Speaking of Prospecting, with the high price of gold and considering what a pain in the ass it is to do landlording, I have decided to become a full time gold miner.
There's Gold In Them Hills!
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Don't submit to dogma.
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zappaisgod
horrid asshole
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Re: Thinking about becoming a landlord. [Re: LunarEclipse]
#12282007 - 03/27/10 12:32 PM (3 years, 1 month ago) |
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My sister is a geologist with a gold mining outfit. I'll hook you up. For a fee. Do you have enough land for a giant arsenic pond?
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LunarEclipse
Mr. Dogma Free
Registered: 10/31/04
Posts: 10,688
Loc: The Hand
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Re: Thinking about becoming a landlord. [Re: zappaisgod]
#12282445 - 03/27/10 02:08 PM (3 years, 1 month ago) |
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Quote:
zappaisgod said:
My sister is a geologist with a gold mining outfit. I'll hook you up. For a fee. Do you have enough land for a giant arsenic pond?
No my land is all tied up with cyanide processing. I could tell you more but would have to kill you first.
I don't want to mine the gold just fine the gold. Apparently there is still alot of it out there if one knows where to look. Buddy of mine met a guy brought in 100K in 8 months last year not too shabby.
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Don't submit to dogma.
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umpatan
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Re: Thinking about becoming a landlord. [Re: TheBandit]
#15121343 - 09/23/11 07:27 AM (1 year, 7 months ago) |
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You will make twice the rent over the cost of the mortgage. You will get ROI even if the value of your home goes to zero.
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