Anyone here a landlord?

[bleys]

I would do it in a heartbeat.. the goal isn't to make money right away. if that was the case everyone would do it.

you have an asset. be patient about finding your tenant.

I don't know what area you are located in, but the Raleigh area is flooded with people looking for a place to rent. FLOODED! if it's anything like that where you are at, you should be able to find someone who gives you a great feeling.

[Hairless Cat]

That's why it use to be an OK investment. But property values aren't rising now and won't for the foreseeable future.

my certificates of deposit are only making 1% and I see the stock market as a big risk. Even if the market doesnt recover, I figure if the tenants essentially pay the mortgage off Ill still be way ahead.

Im in the Brunswick County area - near the beaches and Southport.

[thefuzz]

I have a friend that started with 1, and over the last 10 years has increased the number of homes he rents out to 72.

He has paid quite a few of them off, and now all of that rent is going toward paying off the ones with the highest interest rates. He does however pay himself his per hour fee for dealing with the homes...bookwork, phone calls from property managers, etc.

Within 17 years he will have them all paid off. Think about that retirement plan.

[thefuzz]

my certificates of deposit are only making 1% and I see the stock market as a big risk. Even if the market doesnt recover, I figure if the tenants essentially pay the mortgage off Ill still be way ahead.

Im in the Brunswick County area - near the beaches and Southport.

At some point you need to speak with me. I am in real estate, and in Brunswick County.

[Hawk]

paying them off really isn't good...you want that interest and expenses etc. but he's certainly sitting on a poo load of money when he wants it.

[thefuzz]

paying them off really isn't good...you want that interest and expenses etc. but he's certainly sitting on a poo load of money when he wants it.

He is doing it as a business, not really a personal income type thing.

In the end he wants to be bringing in 25-35K per month from all of the houses, with the remaining 35K going back into the homes. (keeping them in good order, taxes, reserves, etc.)

[Davidson Deac II]

I have known some people that make money on it, but you have to be patient, and have the ability to be an ass when necessary.

A friend at work takes run down houses, fixes them up and sells them to people with not so good credit. He reqires a high down payment, then when they don't pay, he keeps all the payments and the down payment, repo's the house and does it all over again.

[pantherfan49]

I do this with my old house and I pray to Homer the Home Depot mascot that the AC units keep running.

cwg I have an AC guy that will replace the whole outside unit and inside air handler for 3k or less (in cash). If the unit goes out, keep that in mind.

[pantherfan49]

I would do it in a heartbeat.. the goal isn't to make money right away. if that was the case everyone would do it.

you have an asset. be patient about finding your tenant.

I don't know what area you are located in, but the Raleigh area is flooded with people looking for a place to rent. FLOODED! if it's anything like that where you are at, you should be able to find someone who gives you a great feeling.

That has everything to do with people not being able to qualify for a mortgage--- and I don't see that improving. So there will be a steady supply of tenants in the next few years.

To those of you that follow the "tenants will pay off the mortgage" line of thinking, just remember that on a 30 year mortgage, you are paying 70%+ in interest for like the first 10 years on the mortgage. Rental properties are a very long-term investment.

[Hairless Cat]

pantherfan49 -

just wondering - If I could hypothetically make a 25% down payment on a $100,000 mortgage for a balance of $75,000, would that benefit me more than only making a 10% down payment if the bank would let me get away with that? Or does it simply depend on what the interest rates do?

[Hawk]

interest rates only in my opinion....not sure though the rules down there. up here there are extra fees associated with mortgages that have down payments less than 25%. In my opinion, if you have the credit space, you shouldn't really care about the size of the mortgage, essentially, bigger is better as long as you have renters. but again, that benefits the rules here as far as tax breaks etc.

[RWatson43]

If you like dealing with a lot of not so great people and cleaning up crap when they leave go for it. The main goal is to sell it 10-20 years from now and make a profit off the the house, not the rent. If you get it in a nice neighborhood your outcome may be a little better. Just know that it only takes one bad tenant to make life miserable. I do not own rentals for a reason, I deal with them on a daily basis as a Code Enf Officer. They don't own cause they can't afford a mortgage or cause they know it is not theirs and will treat it w/o respect. If you do end up getting a rental property do your homework on the prospective tenant, make it clear no rent = eviction no questions asked. Also be prepaired to get letters from people like me with all the rules they break or when they complain that you never fix anything.

[bleys]

interest rates only in my opinion....not sure though the rules down there. up here there are extra fees associated with mortgages that have down payments less than 25%. In my opinion, if you have the credit space, you shouldn't really care about the size of the mortgage, essentially, bigger is better as long as you have renters. but again, that benefits the rules here as far as tax breaks etc.

universal healthcare is a bitch..............

[pantherfan49]

pantherfan49 -

just wondering - If I could hypothetically make a 25% down payment on a $100,000 mortgage for a balance of $75,000, would that benefit me more than only making a 10% down payment if the bank would let me get away with that? Or does it simply depend on what the interest rates do?

You have to pay PMI if you make less than a 20% down payment.