Rent houses

[Rez Exelon]

I’ve passed on a couple houses that I should have bought. Should have kept my last two as rentals. Question for you guys. If a guy has say 1-3 vs 5-10, would it be easier to have a property management group handle the houses? Can they get a higher rent price off-setting the percentage they take? It seems the background checks and credit checks they do would be a big benefit.
I think @Johnjennings has 8 the last time we talked. He said three of them got hit in the Shawnee tornado. He didn’t even know which ones and he didn’t worry about it. The PM company took care of everything.

That sounds as much a quality of life question as anything...sometimes it's worth it to pay more to buy the free time. There's also the aspect of a PM company being responsible for following housing laws which I'm sure non-PM people don't know as well.

 

[Steelers Fan]

I've got 3 and manage 10 for a friend of mine. This is not for everyone. The less you know or are capable of, the less you will make and the more you will be taken. As always, knowledge is power. Find good people you can trust, plumbers, electricians, etc. etc. I'm glad I invested in them. They gave me more financial independence, and resources in hard times. They are not for the "I only want to work my 40 hrs guys." There were gut checks along the way. But the properties are the main reason I was able to retire at 57, not my 401K. I have yet to touch the 401k since retirement. Having a couple properties bringing income, always increasing in value and increasing tax deduction capabilities is all a win. Don't put all your eggs in one basket. And as for the naysayers, If your smarter than Warren Buffet or a slew of other billionaires, show me the way. They all have property investment in portfolio.

 

[n423]

I've got 3 and manage 10 for a friend of mine. This is not for everyone. The less you know or are capable of, the less you will make and the more you will be taken. As always, knowledge is power. Find good people you can trust, plumbers, electricians, etc. etc. I

Have a great HVAC guy. Need to find a decent electrician and plumber

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[scott024]

I had 6 cheap rentals. The only people that rented them were people that you had to hound for the rent and treated a home like a trash can. It's amazing how some people can live in filth. They made money, but dealing with dead beats makes it not worth it. I sold them to a friend who has other rentals and does it full time.

 

[n423]

I had 6 cheap rentals. The only people that rented them were people that you had to hound for the rent and treated a home like a trash can. It's amazing how some people can live in filth. They made money, but dealing with dead beats makes it not worth it. I sold them to a friend who has other rentals and does it full time.

I was thinking the cheaper priced rentals homes draw the worst people. I don't know...

Mom rented her old house for a rent-to-own option and worked out good. She had an attorney draw up the contracts.


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[Steelers Fan]

I had 6 cheap rentals. The only people that rented them were people that you had to hound for the rent and treated a home like a trash can. It's amazing how some people can live in filth. They made money, but dealing with dead beats makes it not worth it. I sold them to a friend who has other rentals and does it full time.

I can agree to some degree. A couple of props I manage for a friend tend to draw the lower end. There is only so much you can do with some areas. Only method I have is a little lower price for more apps to choose from and have an extended ready to occupy time. If the right one comes early, It can miraculously be ready quicker. That sucks because you have more down time, no income. But this is not a short term investment. Seems like most that need to dive in quick are trouble and those planning ahead farther are higher quality.

 

[Steelers Fan]

Have a great HVAC guy. Need to find a decent electrician and plumber

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I've had good luck with Robert Baxter Electric. 340-5670. DO NOT USE ROTO ROOTER except for simple clearing and basics. If job gets big get other quotes. Make sure it even needs to get big. They have lied and overcharged.

 

[Hirschkopf]

While growing up in small-town KS, my parents had up to 5 rentals, including two apartments in the basement (not for long), two adjacent homes, and my mom's childhood home. They did not think the cash was worth it and slowly got out of the business.

I wish I'd have bought a small place in Hawaii while stationed there back in the late 80s and let a local management company deal with tenants and upkeep. The appreciation since then and the option of moving back someday would have been nice.

Maybe we need a thread on rental farms? Owing land and renting it (crop share/or cash) seems like a lot less work/worry than homes.

 

[swampratt]

I was thinking the cheaper priced rentals homes draw the worst people. I don't know...

Also, you have to pay for insurance on house and property tax included in monthly costs.

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I have a friend that does not insure his 2 rentals.
They were cheap and bad area but he keeps them rented.

June Tax Sale is coming up.
You can get properties from all counties in Oklahoma got to be there and have cash.
But I think cash only has changed a bit.

 

[XYZ]

I have a buddy who had 20 something rentals when we worked together. Shortly before retiring he started selling them all. He said they were investments and they had matured.