Author Topic: Real Estate Ty-cats  (Read 2404 times)

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Offline Kat Kid

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Re: Real Estate Ty-cats
« Reply #25 on: July 25, 2018, 03:20:06 PM »
listen to rick daris.
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Offline sys

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Re: Real Estate Ty-cats
« Reply #26 on: July 25, 2018, 03:29:01 PM »
analyze on cap rate, not roi.
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Offline 8manpick

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Re: Real Estate Ty-cats
« Reply #27 on: July 25, 2018, 03:29:34 PM »
Even in the optimal $5000/year scenario, wouldn't it be a better use of time to pick up some weekend shifts at Home Depot?
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Offline DaBigTrain

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Re: Real Estate Ty-cats
« Reply #28 on: July 25, 2018, 03:35:05 PM »
Why not just buy some land instead, less maintenance.  If it gets all covered in weeds and stuff you just burn it down and let it grow back nice again.

Offline Dr Rick Daris

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Re: Real Estate Ty-cats
« Reply #29 on: July 25, 2018, 03:38:43 PM »
Even in the optimal $5000/year scenario, wouldn't it be a better use of time to pick up some weekend shifts at Home Depot?

best advice yet. i'll offer a second option though. invest that 40k in a low cost index fund of some sort and then start a garden.

Offline wetwillie

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Re: Real Estate Ty-cats
« Reply #30 on: July 25, 2018, 03:43:14 PM »
Hi Rick,

Real Estate novice here.  It’s pretty common to have 0% vacancy rates in your cash flow assumptions right?


ww
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Offline Dr Rick Daris

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Re: Real Estate Ty-cats
« Reply #31 on: July 25, 2018, 03:52:19 PM »
Hi Rick,

Real Estate novice here.  It’s pretty common to have 0% vacancy rates in your cash flow assumptions right?


ww

oh definitely. especially in situations where you also aren't including taxes, insurance, are miscalculating the monthly mortgage payment while simultaneously assuming that someone is going to advertise the place, collect rent and fix all the crap that goes wrong with it for twenty eight dollars a month then i'd argue it's almost standard. basically 0% vacancy rates as far as the eye can see.

Offline catastrophe

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Re: Real Estate Ty-cats
« Reply #32 on: July 25, 2018, 04:14:30 PM »
And I don't understand you point about the maintenance being an issue.  Why should it take that much of your time if you're already paying a property manager?

 :impatient:

Offline catastrophe

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Re: Real Estate Ty-cats
« Reply #33 on: July 25, 2018, 04:31:09 PM »
analyze on cap rate, not roi.

I've actually heard IRR is probably your best bet, especially if you want to compare it to returns on stocks and such.

Offline Rage Against the McKee

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Re: Real Estate Ty-cats
« Reply #34 on: July 25, 2018, 04:57:29 PM »
I would take that money and buy a hobby farm instead. Cows are much easier to deal with than shithead renters, and you get the joy of slaughtering and eating them at the end of their lease.

Offline WonderMeal

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Re: Real Estate Ty-cats
« Reply #35 on: July 25, 2018, 05:43:54 PM »
I have one rental property and have had good luck with it. I also feel bad that everyone is piling on poor catastrophe for not already being a property baron, so AMA!

My tips:
-Buy a house (preferably with multiple units) right before property values and rents skyrocket. That's my #1 tip.
-Living close to the house is a good idea. Can walk over to fix piddly stuff.
-Having a property manager usually doesn't make sense if you're just renting out one unit.
-Do everything online--Paypal/Venmo rent, Google Doc lease, Google Form application, post on Zillow/Craigslist/etc. Makes life way easier, especially when tenants turn over.
-Always always always contact the previous landlord before renting to someone. Ask a few simple questions (are they clean? do they pay rent on time? would you rent to them again?) and you should learn everything you need to know.
-If you don't have a kid to mow the lawn, write into the lease that they need to mow the lawn.
-Be a good landlord. Always give 24 hours notice before you go over. Fix stuff (or better yet--pay to get stuff fixed) quickly. Then give your tenants a referral bonus if they find your next tenant.
-Hire someone to do your taxes.

Offline sys

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Re: Real Estate Ty-cats
« Reply #36 on: July 25, 2018, 06:07:51 PM »
analyze on cap rate, not roi.

I've actually heard IRR is probably your best bet, especially if you want to compare it to returns on stocks and such.

i would not compare to stocks writ large.  compare to reits, look at cap rates, leverage and cost of capital.
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Offline wetwillie

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Re: Real Estate Ty-cats
« Reply #37 on: July 25, 2018, 06:12:27 PM »
I have one rental property and have had good luck with it. I also feel bad that everyone is piling on poor catastrophe for not already being a property baron, so AMA!

My tips:
-Buy a house (preferably with multiple units) right before property values and rents skyrocket. That's my #1 tip.
-Living close to the house is a good idea. Can walk over to fix piddly stuff.
-Having a property manager usually doesn't make sense if you're just renting out one unit.
-Do everything online--Paypal/Venmo rent, Google Doc lease, Google Form application, post on Zillow/Craigslist/etc. Makes life way easier, especially when tenants turn over.
-Always always always contact the previous landlord before renting to someone. Ask a few simple questions (are they clean? do they pay rent on time? would you rent to them again?) and you should learn everything you need to know.
-If you don't have a kid to mow the lawn, write into the lease that they need to mow the lawn.
-Be a good landlord. Always give 24 hours notice before you go over. Fix stuff (or better yet--pay to get stuff fixed) quickly. Then give your tenants a referral bonus if they find your next tenant.
-Hire someone to do your taxes.

Does your property positive cash flow each month?
Did you use financing to purchase the property?
How often (months rented/ months available to rent) would you say your property has a tenant?
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Offline puniraptor

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Re: Real Estate Ty-cats
« Reply #38 on: July 25, 2018, 06:14:24 PM »
my tenants are catpissing dirtmonster hoardebeasts and i want them to live in my house as long as possible so i dont have to repair it to get a new renter.

Offline mocat

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Re: Real Estate Ty-cats
« Reply #39 on: July 25, 2018, 06:53:56 PM »
is wondermeal the guy from the credit card thread who like runs a gift card mileage churn scam or something

Offline WonderMeal

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Re: Real Estate Ty-cats
« Reply #40 on: July 25, 2018, 10:05:54 PM »
Does your property positive cash flow each month?
Did you use financing to purchase the property?
How often (months rented/ months available to rent) would you say your property has a tenant?

1) Yes. It's a multi-family home. We generate cash flow of >$1000 each month.
2) We bought the house to live in originally, now rent out both sides. It definitely helped us buy our current house--not sure we would have qualified without the extra income.
3) Since we purchased the property, it has had a tenant/tenants 92% of the time. Pretty standard for the area we're in.

I would take that money and buy a hobby farm instead. Cows are much easier to deal with than shithead renters, and you get the joy of slaughtering and eating them at the end of their lease.

Hobby farm sounds way more fun.

is wondermeal the guy from the credit card thread who like runs a gift card mileage churn scam or something
I am very saddened to hear that mocat A) thinks I manufacture spend like some sort of monster, and II) doesn't remember me at all, even though we both love Martavious with all of our hearts.

Offline mocat

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Re: Real Estate Ty-cats
« Reply #41 on: July 25, 2018, 10:36:28 PM »
Sorry wm, it must have been that weirdo rams

Offline Fake Sugar Dick (WARNING, NOT THE REAL SUGAR DICK!)

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Re: Real Estate Ty-cats
« Reply #42 on: July 25, 2018, 10:46:53 PM »
You're going to feel really silly when I get to step 6 of this plan.

Considering you think someone will manage your property for $28 month and you didn’t consider taxes or insurance I’m not holding my breath.

Bingo.
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Offline catastrophe

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Re: Real Estate Ty-cats
« Reply #43 on: July 26, 2018, 08:45:59 AM »
I’m sure you already feel silly that FSD is on your side.

Offline ChiCat

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Re: Real Estate Ty-cats
« Reply #44 on: July 26, 2018, 09:06:34 AM »
Are you looking at doing this in MHK?

Offline catastrophe

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Real Estate Ty-cats
« Reply #45 on: July 26, 2018, 09:15:46 AM »
Texas. Likely DFW area but I’m flexible. If I have success I’d like to get a place in MHK so I can write off travel whilst catching a football game, but I don’t think that market is  as good for investing overall.

Offline Dlew12

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Re: Real Estate Ty-cats
« Reply #46 on: July 26, 2018, 09:28:57 AM »
My dad used to rent some properties.  He would echo Rick's sentiments.  Not worth it.

But hey look at this blog with the summer's hottest (non-pit) thread being about investment strategies.  8 years ago this thread would've been about icing eachother.  we've grown up so much.


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Offline catastrophe

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Re: Real Estate Ty-cats
« Reply #47 on: July 26, 2018, 09:46:17 AM »
For real, though.  Has anyone actually used a property management company to focus on the leasing, rent collection, coordinating repairs, etc.?  This is a must for me.  This whole money-making scheme is DOA if that doesn't work.  I've heard folks with good property management companies only need to spend 1-2 hours a month on a property, but this has admittedly come mostly from people trying to sell turnkey properties.

Offline mocat

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Re: Real Estate Ty-cats
« Reply #48 on: July 26, 2018, 09:50:24 AM »
i think OP just wants someone to tell him to do it

Offline catastrophe

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Re: Real Estate Ty-cats
« Reply #49 on: July 26, 2018, 09:51:53 AM »
Or numbers to convince me otherwise.  Sass is fantastic message board currency, but will not move the needle on where this guy's money goes.