05-04-2024Quote:
You have all read ‘Rich Dad, Poor Dad’, right? I’m getting at the ‘offense’ & ‘defense’ with $$. It can get to the point, that an extra $8000 doesn’t matter, when it just goes into that higher dollar car, or whatever.
Then we can get to life expectancy, one needs to prorate the savings. No need to either save everything for the future that may never come, or blow it all today. BWTHDIK.
I’ve done the rental property thing. It’s a PITA unless you spend a lot time on it or simply hand it over to management company, at which point you can probably get better returns with something else. There’s a million scams out there and a million people posing as contractors who are looking to do no work at max price, if you even can get them to show up.Originally Posted by sourdough44
For most of us, picking up an extra trip is likely the best ‘side hustle’, to make $$ anyway.You have all read ‘Rich Dad, Poor Dad’, right? I’m getting at the ‘offense’ & ‘defense’ with $$. It can get to the point, that an extra $8000 doesn’t matter, when it just goes into that higher dollar car, or whatever.
Then we can get to life expectancy, one needs to prorate the savings. No need to either save everything for the future that may never come, or blow it all today. BWTHDIK.
It takes a lot of work and more than a couple properties to get it to the point where it’s worth the hassle.
And you can get randomly burned. Other landlords on my street all got letters from the city when they imposed a huge new fee on “short term rentals” as well as numerous new city codes that basically made it like running a hotel. It blew up their whole business plan.
Along with random governmental hijinks, rent controls (becoming more of a thing), you can get seriously pinched with property tax increases if there is a large increase in the values.
There’s money to be made, no doubt. But same as those house flipping shows, it’s no where near as easy as they make it look, and there are random pitfalls. You need to spool up to several properties before you can get the margins to hire a quality manager, and until then, it’s a ton of work. In an up market, everyone is chasing the good deals, and there really aren’t any. If you do find one, it probably needs a lot of work, and unless you have trades dialed in, you’re paying retail or doing the work yourself (and eating the note while you’re doing it.)
I bailed out after I saw what they did during COVID. Even with quality properties, a few months without rent will blow up anyone’s business plan. Of course, there are random meltdowns, like in 2008. I had friends that it took 10 years for them to dig themselves out of that hole.
I saw it as a sign and took advantage of the market spike to cash out. My life is much easier. No random calls from the management company, no scam calls offering lowball offers. No tenants trashing your property just because you had to raise the rent to break even with property taxes.
If you’ve got the tolerance deal with it, then by all means, there is money there. Just know what you’re getting into. It’s not just cashing the checks every month until you are several years into the game.
