Lance wrote:I'm referring to buying houses and renting them out.
A friend was telling me that he just bought a house that he plans to rent out....even though he is paying a mortgage on the condo that he lives in. His plan is to buy a few more houses eventually. He crunched the numbers and they look good on paper but there seems to be a lot of hassle involved (dealing with annoying tenants, kicking out deadbeat tenants, repairs, being on call 24/7, dealing with paperwork, etc). Has anyone here tried this? I'm wondering if is still a good long term investment. I know another guy who started in the 80s who recently got out because taxes/insurance keep going up and tenants aren't as reliable as they used to be.
My family invested in property and it was the best we could have done. It was my idea too
I'll explain some more. We had a sum of money that we had to put somewhere. Well, banks don't give you shit, the stock market is a bubble, so what option do you have?
My advice is this: Look for something that will get you a gross yield of around 8%. 5% is the minimum. If you simply get 5%, I'd bail. Yield is amount of rent money divided by price of real estate. Look for repossessed properties if you can and use a team of people to restore the place if you have to and/or can afford it. And get a property management to deal with tenants. Seriously. It's worth the money. As long as they are good. Don't be afraid to try different ones before giving it up. And there's plenty of horror stories about bad tenants but you never hear anything about the good ones cuz they don't give you any interesting stories to tell.
In the long term I definitely plan on adding 1 or 2 properties.
May be worth saying that any "property taxes" are paid by the tenant, not the landlord, in my country.
My opinion? It's the ticket to freedom.
Narrator: I can't get married, I'm a 30 year old boy.
Tyler Durden: We're a generation of men raised by women. I'm wondering if another woman is really the answer we need.