I don’t regret being a landlord for 8 years but I probably wouldn’t do it again.
I don’t regret being a landlord for 8 years but I probably wouldn’t do it again.
Why would you not regret it? 8 yrs RE has gone nowhere locally. Single digit returns on capital (wasn't levered up). Wish I sold when things were hot in 2014 and didn't have to deal with tenants and showings for 10 years and earned a better return in an index fund.
Aha just gotta time the market right lol
I am user #49Originally posted by rage2
Shit, there's only 49 users here, I doubt we'll even break 100
Now take your poor judgement handling your own money and apply it to your voting skills.This quote is hidden because you are ignoring this member. Show Quote
I rented my first house out while living for free for 6/8 of those years. Every penny of rent I took in was split between my retirement funds and putting equity into the home quicker. It helped my build some wealth quickly in my 20s even if I didn’t make money on the home.This quote is hidden because you are ignoring this member. Show Quote
SmartThis quote is hidden because you are ignoring this member. Show Quote
Money everywhere so go get it!
I am user #49Originally posted by rage2
Shit, there's only 49 users here, I doubt we'll even break 100
.
Last edited by Xamim; 05-31-2023 at 02:09 PM.
This quote is hidden because you are ignoring this member. Show QuoteAlmost 15 years doing this and 2023 is actually looking up that I don't regret being a LL.This quote is hidden because you are ignoring this member. Show Quote
Been lucky, tenants are all kinda long term and not many turnovers and behaved with little damages. Even after all the cost, I would say tenant contributed around 40% to the principle after all costs in that time. That works out to around 4%/year return after all cost and before taxes so far. To shitty part is you kinda have to work for that 4%. Index fund is definitely better.
Going forward if I end the mortgage and at current rent level, I am looking at 5-6% return before taxes. But at least the prop value has gone up a bit.
Last edited by Xtrema; 05-25-2023 at 01:00 PM.
You didn't borrow at all to finance the rental?This quote is hidden because you are ignoring this member. Show Quote
Ask Jordanlotoski or 89coupeThis quote is hidden because you are ignoring this member. Show Quote
I am user #49Originally posted by rage2
Shit, there's only 49 users here, I doubt we'll even break 100
Lived in the house and rented out the rooms or just lived rent free with family/gf while renting the whole house? If its the latter you would've lived rent free either way. Guessing the rental brought in minimal cashflow and mostly just paying down equity. Was the house a 10-12% return on equity? Mostly scenarios it would've still worked out better without dealing with a rental while earning higher returns completely passively.This quote is hidden because you are ignoring this member. Show Quote
WTF does this even mean? How would you have done things different with the benefit of hindsight?This quote is hidden because you are ignoring this member. Show Quote
fyp.This quote is hidden because you are ignoring this member. Show Quote
Savage
15% was wrong. Punched in wrong numbers. Regardless it'll be around 5%.This quote is hidden because you are ignoring this member. Show Quote
I did borrow but the interest is almost not an issue after 2nd renewal.
Again, it's just some stupid Asian diversification investment plan and end up mostly stupid until 2023.
The good thing is other than initial down and time wasted on management, it really didn't cost me much beyond that.
Not become a landlord? Because you know, it's actually a tremendous amount of risk to take on. If your choices are index funds or buying an "investment" property and you think those two things are the same, check your head.This quote is hidden because you are ignoring this member. Show Quote
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You don't know how to calculate your RoR then. A common mistake made by amateur landlords.This quote is hidden because you are ignoring this member. Show Quote
It wasn't an investment property. It was a principal residence that I moved out of because nothing was selling tail end 2014. It was about a 10% ROE for majority of the rental period. More about the wasted time than losing a couple points in returns.This quote is hidden because you are ignoring this member. Show Quote
Believe it or not without knowing the future there's different ways investments can pan out. Only thing we know for sure is the resident infallible hedge fund manager will criticize our judgement while making baseless assumptions.
ultimately that's what you are banking on rightThis quote is hidden because you are ignoring this member. Show Quote
I am user #49Originally posted by rage2
Shit, there's only 49 users here, I doubt we'll even break 100
Putting my house on the market next week and got prices that fluctuated 30% between realtors we interviewed.
Hopefully we’ve found the right price, though I still think we might be low. Does a second story really add 70%+ (in value) to a home? We’re fully renovated but bunagalow Vs. 2 story Houses on same street selling for 70% more than where were listed. Doesn’t make sense to me but I don’t know what people are looking for anymore
Still index fund is better.This quote is hidden because you are ignoring this member. Show Quote
$60K on Dow in 2010 now worth $180K
$60K down + $45K in principle (after tax) + $60K in appreciation after closing cost = $165K
That's said, it's just another asset that you don't really have to worry about US politics to a degree. (like playing chicken with that stupid debt ceiling every few years).
Large bungalow are hot with empty nesters that are having problem with stairs. Seniors keep snatching them up quick in my hood.This quote is hidden because you are ignoring this member. Show Quote
They are usually last home before they have to go to assisted living.
Last edited by Xtrema; 05-25-2023 at 01:54 PM.
We sold ours in the SW and got $35k over our asking price. That was about 2 months ago though.This quote is hidden because you are ignoring this member. Show Quote