Anybody here have rental properties?

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Le Chuck:
I own a rental property. Use a management company. Home is in the $200k-$250K range with rent at a solid $1,500/month in rural Alabama. No issues finding tenants. This past year I took a loss but saw it all back on my taxes. This current year I should break even or owe a bit as we just refi'd. I'm having someone else build my savings, it's great.

When I was in highschool my mom owned about 35 properties in town with several of those being multi-unit apartment complexes. Worked daily doing upkeep for several years - we only hired out for the boiler at the big apartment unit. Everything else we did ourselves. Great training, might do that again after I retire from the Army.

Now they just own a few homes, life got in the way and then needed to get out of the market for other priorities. Luckily my Dad has a separate income so it wasn't an issue getting out in a hurry.

dkersten:

--- Quote from: pbj on April 03, 2017, 12:15:15 pm ---Nobody beats the market long term.

--- End quote ---
Words to live by. There is no reliable get rich quick method, and I'm not suggesting there is. What I'm saying is there are really only three ways to invest money and make a return greater than inflation. Stocks/Bonds, Real Estate, and Business. And a GOOD investment would yield 10% annually over time. If you can find something that yields better than that over a long period of time, jump all over it. Or perhaps the better advice would be to run, because like PBJ said, nobody beats the market long term. If there are legal means to infallibly make better than 10% annually over time, it's the billionaires that know about it and they aren't talking.

If you are going to go the income property route, don't jump in based on advice on an arcade forum (not that there isn't some solid advice here). Just about every city has some kind of real estate investor's group. Join it. Network. Learn. Pay more attention to what challenges others have faced than to what successes they have had, because chances are they are exaggerating their successes (or simply not sharing them). Then use what you learn to make your first investment. Some day you will know enough to spot the investments that can really pay off, and then you can leverage what you have to jump on it. That is, if you still have a taste for it.

danny_galaga:

I have one. Rented it out until recently. In Australia, there is a quirky negative gearing 'loophole', whereby you can claim not just all regular expenses, but if you are LOSING money on it, you can claim the cost of the loan as well. Therefore, if you get an interest only loan, and put just enough deposit on it that you are only losing a small amount of money, you get quite a bit back on tax. The big reason to do it though is to get your income down a notch on the tax bracket so you pay less tax. Ive NEVER earnt enough to BE in that tax bracket anyway! I kinda did it just to say I've done it. Now the banks are cracking down on investment loans because the market is heating up too much (it makes me cry when I see the prices of property in the US- you could buy a veritable MANSION staeside for the price of a 2 bedroom apartment here!). And my tenants moved out, and I figured I might as well make it an honest enterprise, get a 'real' mortgage and move in.

This doesn't help you any, but just thought I'd mention it in passing ;D

RayB:
TL;DR
Did anyone mention insurance? I would imagine you need a whole different type of insurance.

menace:
Re: insurance--as long as you disclose what you are doing then its not much different. The exception being student rentals--they charge a premium for those.

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