Property Investment Thread

[suncowiam]

Hi all,

I wanted to ping others on their experiences with property investment.

Myself, I'm in my early 40s and own two residential rental properties. One is a townhouse and the recent being a duplex. I would like to continue this as we accumulate savings. I can offer some experiences of my own but am very interested from those that have more experience.

@Revoltingest and I started this in another thread and we felt it would best to open it to all.

I've read the benefits of other types of properties like storage and industrial. Just not sure if we want to venture there yet.

Shoot with your own experiences or any questions your might have.

Thanks

 

[Quintessence]

Just so you are aware, by posting your thread in this area, only capitalists can share experiences or ask questions in this area of the forums (in other words, it is not open to all). If this was not your intent, you can ask someone on staff to move the thread. If this was your intent, carry on!

 

[Revoltingest]

Since you're doing residential leasing, I've a question....
Are you familiar with the Federal Lead Law?
It's a potentially dangerous law if not strictly complied with.
Real Estate Disclosure | Lead | US EPA
I recommend that anyone doing business as a landlord, even with only one rental unit,
go thru a real estate licensing course. This will appraise one of the legal basics.
- Disclose when the property was built, & any known lead hazards. (You're not usually required to test.)
- Give the tenant the booklet, Protect Your Family From Lead.
Get signatures to prove they received the above.

 

[Revoltingest]

Just so you are aware, by posting your thread in this area, only capitalists can share experiences or ask questions in this area of the forums (in other words, it is not open to all). If this was not your intent, you can ask someone on staff to move the thread. If this was your intent, carry on!

We discussed it, & thought this is appropriate because it should be for those
interested in real estate leasing, without being sidetracked by capitalism's opponents.
All would be landlords & investors are capitalists, you know.
But of course, the OP is free to move it if he wishes.

And if any commie asks legitimate questions, I'll answer without ratting them out.

 

[suncowiam]

Just so you are aware, by posting your thread in this area, only capitalists can share experiences or ask questions in this area of the forums (in other words, it is not open to all). If this was not your intent, you can ask someone on staff to move the thread. If this was your intent, carry on!

What revolt said. Thanks

 

[suncowiam]

Since you're doing residential leasing, I've a question....
Are you familiar with the Federal Lead Law?
It's a potentially dangerous law if not strictly complied with.
Real Estate Disclosure | Lead | US EPA
I recommend that anyone doing business as a landlord, even with only one rental unit,
go thru a real estate licensing course. This will appraise one of the legal basics.
- Disclose when the property was built, & any known lead hazards. (You're not usually required to test.)
- Give the tenant the booklet, Protect Your Family From Lead.
Get signatures to prove they received the above.

No, I wasn't aware of this. I just recently bought a rental book from bigger pockets and I've got much to do concerning updating our generic lease.

My wife is a paralegal so it's been super useful with her experience with the laws. She can ask all her lawyer buddies not to mention go through are the court processes when needed. She prepares all the documentation and gives us a basis in our legal situation.

It's actually a good combo, me being an engineer and her being in law. I do much of the home repair and additions while she does the more soft stuff.

Thanks for the advice.

How long have you been doing investment properties? Mind me asking your portfolio?

 

[Revoltingest]

No, I wasn't aware of this. I just recently bought a rental book from bigger pockets and I've got much to do concerning updating our generic lease.

My wife is a paralegal so it's been super useful with her experience with the laws. She can ask all her lawyer buddies not to mention go through are the court processes when needed. She prepares all the documentation and gives us a basis in our legal situation.

It's actually a good combo, me being an engineer and her being in law. I do much of the home repair and additions while she does the more soft stuff.

Thanks for the advice.

How long have you been doing investment properties? Mind me asking your portfolio?

Last I checked, it was a $10,000 fine if you get caught not complying with the lead law.

I started buying rental property (student residential) in 1981.
University students are the worst.

 

[Guy Threepwood]

Hi all,

I wanted to ping others on their experiences with property investment.

Myself, I'm in my early 40s and own two residential rental properties. One is a townhouse and the recent being a duplex. I would like to continue this as we accumulate savings. I can offer some experiences of my own but am very interested from those that have more experience.

@Revoltingest and I started this in another thread and we felt it would best to open it to all.

I've read the benefits of other types of properties like storage and industrial. Just not sure if we want to venture there yet.

Shoot with your own experiences or any questions your might have.

Thanks

I'm the same age with some rental property investment- not an expert by any means! but I began looking at urban residential-rental properties, and ended up seeing more opportunity in rural residential...

Much lower purchase price for a start, and much lower taxes, but the rental value is only slightly lower than in the city.

So the direct profit from rent is higher, the property can pay for itself much more quickly, and as far as longer term investment; it's always a gamble but there can be a lot more upside in the land value if/when development expands into the area, also with large rural lots, there is the potential to subdivide

I was tempted with storage also, but you'd basically have lots and lots of small renters, a way bigger headache for collecting the rent I'm thinking- less maintenance issues tho..

 

[Revoltingest]

I'm the same age with some rental property investment- not an expert by any means! but I began looking at urban residential-rental properties, and ended up seeing more opportunity in rural residential...

Much lower purchase price for a start, and much lower taxes, but the rental value is only slightly lower than in the city.

So the direct profit from rent is higher, the property can pay for itself much more quickly, and as far as longer term investment; it's always a gamble but there can be a lot more upside in the land value if/when development expands into the area, also with large rural lots, there is the potential to subdivide

I was tempted with storage also, but you'd basically have lots and lots of small renters, a way bigger headache for collecting the rent I'm thinking- less maintenance issues tho..

The legal liabilities of storage are much less than residential.
And it's much much less work per unit if you're automated.
It's interesting that rural rentals are good where you are.
I don't think that would work for me here.

 

[Guy Threepwood]

The legal liabilities of storage are much less than residential.
And it's much much less work per unit if you're automated.
It's interesting that rural rentals are good where you are.
I don't think that would work for me here.

Good point on liability, the risk depending somewhat on the character of the renter?

Very hard to judge upfront though.

You probably have more experience than me with this, how would you handle a renter that is 3 months behind right now, but otherwise has a good record?

 

[Revoltingest]

Good point on liability, the risk depending somewhat on the character of the renter?

Very hard to judge upfront though.

You probably have more experience than me with this, how would you handle a renter that is 3 months behind right now, but otherwise has a good record?

One can judge a tenant's risk to some extent in advance, but it's always a crap shoot.
Because they're they the consumer & you're the big bad business, the courts treat
them preferentially. And it's their home, where much can go wrong in ways which
make them look pitiful to judges....or the juries they so often request.

 

[Guy Threepwood]

One can judge a tenant's risk to some extent in advance, but it's always a crap shoot.
Because they're they the consumer & you're the big bad business, the courts treat
them preferentially. And it's their home, where much can go wrong in ways which
make them look pitiful to judges....or the juries they so often request.

True, and that makes sense to me to some degree, it is their home, their health and safety, while it's only a financial deal for me

I try to keep a good personal relationship, work with them on rent especially around Christmas when things get tight.. be a 'nice' landlord

but maybe that's one reason I'm not building skyscrapers with my name on therm!

 

[Revoltingest]

True, and that makes sense to me to some degree, it is their home, their health and safety, while it's only a financial deal for me

I try to keep a good personal relationship, work with them on rent especially around Christmas when things get tight.. be a 'nice' landlord

but maybe that's one reason I'm not building skyscrapers with my name on therm!

People skills are crucial in avoiding & curing trouble.

 

[Milton Platt]

Hi all,

I wanted to ping others on their experiences with property investment.

Myself, I'm in my early 40s and own two residential rental properties. One is a townhouse and the recent being a duplex. I would like to continue this as we accumulate savings. I can offer some experiences of my own but am very interested from those that have more experience.

@Revoltingest and I started this in another thread and we felt it would best to open it to all.

I've read the benefits of other types of properties like storage and industrial. Just not sure if we want to venture there yet.

Shoot with your own experiences or any questions your might have.

Thanks

I have bought and sold a few properties, but never rented anything. didn't want the management issues. I have a friend who owns two mobile home parks and he is set for life. He only rents the dirt.
He mows the grass every couple of weeks, pays for water and trash pickup and watches the rent money flow into his bank account. sure, there will be the occasional eviction....but these folks own the mobile homes and they can be very expensive to move. They usually toe the line very quickly. if not, you do not want them in your park anyway.

 

[suncowiam]

Last I checked, it was a $10,000 fine if you get caught not complying with the lead law.

I started buying rental property (student residential) in 1981.
University students are the worst.

Hey, been a bit busy.

Yeah, I can imagine the damage university students can bring. Did you quit your day job and make property investment your sole income?

 

[suncowiam]

I'm the same age with some rental property investment- not an expert by any means! but I began looking at urban residential-rental properties, and ended up seeing more opportunity in rural residential...

Much lower purchase price for a start, and much lower taxes, but the rental value is only slightly lower than in the city.

So the direct profit from rent is higher, the property can pay for itself much more quickly, and as far as longer term investment; it's always a gamble but there can be a lot more upside in the land value if/when development expands into the area, also with large rural lots, there is the potential to subdivide

I was tempted with storage also, but you'd basically have lots and lots of small renters, a way bigger headache for collecting the rent I'm thinking- less maintenance issues tho..

We're trying to keep our investments local due to property management fees. I tend to be paranoid letting others control my assets so I can't get beyond letting other people manage our properties. We are looking to do remote properties since it's much cheaper outside of silicon valley.

 

[suncowiam]

I have bought and sold a few properties, but never rented anything. didn't want the management issues. I have a friend who owns two mobile home parks and he is set for life. He only rents the dirt.
He mows the grass every couple of weeks, pays for water and trash pickup and watches the rent money flow into his bank account. sure, there will be the occasional eviction....but these folks own the mobile homes and they can be very expensive to move. They usually toe the line very quickly. if not, you do not want them in your park anyway.

Are you a flipper?

I don't have the capital to invest in mobile homes. Property in our neck of the wood is crazy high. Renting land sounds much easier to handle than property. Can't see how people can damage land. I've been thinking of possibly doing a land investment for small homes.

 

[Revoltingest]

Hey, been a bit busy.

Yeah, I can imagine the damage university students can bring. Did you quit your day job and make property investment your sole income?

Unfortunately, yes.
Engineering was much more fun.