Anyone a landlord here?

Discussion in 'Off-Topic' started by ThatHideousStrength, Apr 27, 2014.

  1. ThatHideousStrength

    ThatHideousStrength Junior Member

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    I was thinking about investing into some property. I was wondering if anyone here does it. The part I'm conflicted about is I'd be buying property up north from me, (City is too expensive). I guess I'm mainly just wondering if it's worth it to you if you do do it.
  2. JZL

    JZL Ministry of Whack

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    The two people I know who do it both have a trusted, reliable maintenance person available to them. One is a former employee who herself was married to someone fairly handy, but even still they have their guy. The other is already in the real estate buz but owns some rental homes on the side. The guy he uses has done some work for me, actually, and is very good.

    My parents owned some rentals when I was a kid and in the end I don't think they thought it was worth the hassle.

    That's my paltry two cents worth.
  3. 86mcss

    86mcss Devouring your Soul

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    my grandfather was retired and owned rental properties. it takes a lot of maintenance and up keep to keep the properties going(i learned a lot helping him fix peoples screw ups).

    people rent for a reason. do not expect them to treat the property as if they own it.
  4. Commissar Smersh

    Commissar Smersh 2020 Staff Member

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    Which is why landlords require a deposit, some times require first and last month rent and charge more than the mortgage.

    My aunt and uncle have several rental properties they own and fix. He's pretty handy and does almost all the work himself, or at least did as he's well into his 70s. He is also realistic and realizes people flake and it's not worth the hassle of an eviction sometimes.
  5. mistawiskas

    mistawiskas kik n a and takin names

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    This is what I've ended up doing for a living after the housing market crash. The secret, when you buy, is to know what is fixable and what is not.
    Almost anything can be fixed up for a price with the exception of too much 'stupid'. "You just can't fix stupid"
    I turn down work when there's been too many decades of deferred maintenance or bad enough home owner/tenant repairs because nobody's going to be happy
    with either the price or the outcome.
    The biggest mistake I see, is an owner will not put anything aside for repairs. They think that all money coming in is profit. Not so. As with any business, 50 cents on the dollar needs to be ear-marked for repairs and maintenance. The security deposit doesn't even come close to paying for the state mandated repairs on each turn-over. In California, it is required to paint between each tenant. Depending on the place, that could be more than the security deposit in itself. It's wise to check state regulations regarding owner responsibilities before embarking into the world of being a landlord. You can't just buy a place and rent it out.......well, you can but you'll end up getting sued by those who view
    the landlord/tenant act as an income opportunity. Professional property managers are the only way to go. It costs, but every legal thing as well as rent collections and repairs
    are part of their services.
  6. Miller

    Miller Tweak Guru

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    I own a property investment company me and my partner started last year. We have 3 units. and are looking to get acquiring another 3 this year. We buy properties that need renovation for dirt cheap and renovate them, rent them out. First one we bought for 25,000, stuck 10k into it and currently are getting 1100 a month. the next one is still getting renovated, but I picked it up for 20k and going to dump 20k into it to get it going.

    It's hard, consumes a lot of time. expensive. the key is to get good tenants. The easiest way is to hire a property manager, who will take 5% off the monthly rent. Also no one is going to give you a loan for a rental property these days you have to go in with cash.
  7. Miller

    Miller Tweak Guru

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    The more you can do yourself, the more profitable you will be. My partner handles the business end, finding tenants, paperwork etc and I handle the renovations/maintenance. we do 100% of everything ourselves. When shopping for properties you want to look for a cap rate of at least 10%, we aim for a 30% cap rate. (cap rate is annual net operating income / total investment) and a 3 year return on investment.
  8. ThatHideousStrength

    ThatHideousStrength Junior Member

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    Thanks y'all.

    Miller, where do you rent these out? In the Mukwonago WI area? How do you determine if an area has renters? Do you have times where a house isn't rented out?

    I expect there will be expenses and not all profit. I just have a lot of money laying around not doing anything, if I can take 20K down on a house and pull in 1,000 a month (not counting expenses), I think that would be a decent stream of cash.

    Are you sure no one will give a loan for rental? I'll start looking into that.
  9. Miller

    Miller Tweak Guru

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    Both are in Milwaukee, Mukwonago and Waukesha are too expensive. Every area has renters. Zillow is a good resource to see what apartments are going for. Yea my finished property isn't rented out at the moment, but I've had over 200 inquiries on it in 2 weeks. My previous tenants trashed it a little and the neighbors stole my brand new appliances, you ready for that, haha!

    Start by trying to get a loan if you don't have the cash. another way to get started is to buy a dueplex and live in one of the units...
  10. mistawiskas

    mistawiskas kik n a and takin names

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    Yup.....my owners buy a lot of appliances, carpets, vinyl, laminate, window glass, window screens and paint. When you deal with renters, you'll get to experience just how much a pig
    people can be. Then, on top of that, there are the vandals to contend with.
  11. nidex

    nidex Hood Rich

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    Addresses? Or at least cross streets? I'm on Palmer & Garfield :[
  12. Miller

    Miller Tweak Guru

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    93rd and Silver Spring, just rented it out. next on the list is 3rd and Lapham.
  13. nidex

    nidex Hood Rich

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    93rd and Silver Spring, don't tell me it's one of those 4 unit buildings, the tan brick ones (I think - been awhile since I was over there)?
    3rd and Lapham is a good investment because as the hipsters and fags move farther south/southwest the property value will go up.
  14. Miller

    Miller Tweak Guru

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    a few blocks from those, it's just a single family house.