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Anyone successful with real estate investments?
Old 04-10-2009, 10:12 PM   #1
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Anyone successful with real estate investments?

Any advice for someone whose thinking about renting a home? What have you learned from the process and how do you feel about real estate vs stocks?
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Old 04-11-2009, 12:14 AM   #2
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Quote:
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Any advice for someone whose thinking about renting a home?
My advice would be to run a keyword search for "landlording"...

Quote:
Originally Posted by bank5 View Post
What have you learned from the process and how do you feel about real estate vs stocks?
... and read through at least these threads:
Real Estate (REITs and similar) as an investment
25 and trying to figure out which direction to take...
time to increase allocation to illiquid assets?
Rental property management companies?
Investment Property: Need Advice
Landlording for fun and profit story
Advantages/Disadvantages of rental property?
Landlording
Rental income to FI RE earlier
Rental Property

Moderators, maybe someone will want to finish this up for a FAQ entry.
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Old 04-11-2009, 04:04 AM   #3
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no one can really answer that question as real estate is all about the art of the deal.... most of the money is made based on the buy not on the sell...

the growth we just went thru is very untypical and appreciation is much much slower , its very neighborhood specific..

real este is more about cash flow and in the eralyy years that can be tough to achieve...

having done both i much prefer equities.. in fact i would never be a land lord again once a family real state business is finally fully liquidated now
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Old 04-11-2009, 08:22 AM   #4
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no one can really answer that question as real estate is all about the art of the deal.... most of the money is made based on the buy not on the sell...

....
Interesting. I've never bought real estate but that's the sense I get, mathjak. My former landlord/apt. bldg. owner's sign was removed from my apt. bldg. last week, after he lost some 70+ buildings to foreclosure, rumor has it that there are more to go. The City Attorney wants to run him out of town altogether but that's another story. Does seem like a gamble. In an interview he once described the rush he gets at closings.

Thanks to my research into my former (love that word in this context) landlord's business practices, I never invested in REITs so didn't lose in that sector. Yes, bank5, I also prefer equities, and at the moment am buying indexes.
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Old 04-11-2009, 12:31 PM   #6
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For me, investing in real estate has been a job. It's been a job that has been quite profitable over the last 25 years and has generated enough income to keep us happy and FI for the last 15 or so. Prior to that we both worked and pushed money as well as time into the rentals. We have not been flippers and have invested in problem places that attracted us - run down old homes or multi-units that just (hah!) needed a little vision (and lots of time, effort, money, and engaging personality) (if you are fixing old places, dealing with inspectors, and trying to spend your money to best effect then the skill sets of a procurer or fixer or schmoozer are handy).

We started from pretty much nothing but our natural abilities and now are able to stick about our annual living expenses into savings each year. Turning 60 this year, and am trying to either sell off the properties or train a successor and sell to him. Not the best time to be selling, but it sure is good not to have to sell - we just walked away from a sale on a little rental we own - showing it to two other people this weekend.

With some of our savings we've been making property loans - those have turned out very well thus far and have been free of the tenant interaction that is wearing on me. Should you buy a rental property? Dunno - there are lots of landlord types and ways to run rentals. I will say that it disturbs me much less when i feel i have some control over the performance of my investment. I feel i can influence whether a tenant chooses my clean & happy one bedroom apartment vs. the one maintained by an uncaring landlord down the street. I don't get that happy feeling with my GM or BofA stock - it doubles or halves in value in lockstep with everybody elses GM or BofA.

I'll say, in closing, that i have never seen interest rates like these. I'll also say that a week or so ago i was looking at more property to buy - and i am trying to sell off our stuff!

This is the kind of stuff that attracts me - not from a pure profit motive, but because i like it:
Affordable remote land in United States

Also looked at a 2004 1600sqft 3/2 for $100k which was tempting -
but i'm such a sucker for cheap old weird stuff.
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Old 04-11-2009, 01:14 PM   #7
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Thanks for the information everyone. This is something that I'm always going back and forth on. I bought my house 3 years ago and it's appreciated a fair amount. I'm pretty sure I could get a positive cash flow from renting it out. The downside would be the headaches/added stress from landlording. I'm also not sure we'll we be able to find a second house that we like as much as our first. I'll probably wait another year and then put more consideration into it. I just need to get rid of the voice in my head telling me to take advantage of the financial opportunity.
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Old 04-11-2009, 02:46 PM   #8
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There is a pretty good thread here on it:

Ask me about real estate investing - Two Plus Two Poker Forum

As prices have come down in my area, some properties are starting to look somewhat attractive but I'm not too interested yet as I think prices may come down another 20% in my area.
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Old 04-11-2009, 03:00 PM   #9
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Sometimes the tenants are better than the landlord(me).

New Orleans duplex,. Did ok BUT I recognized early on - I'm not the landlord type so I never traded up or expanded my RE empire.

If you master the skill set and enjoy it - I know people who did rental RE, raw land, and small commercial and poo poo'd my stock investing.

It can be done.

heh heh heh -
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Old 04-11-2009, 04:25 PM   #10
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There is a pretty good thread here on it:

Ask me about real estate investing - Two Plus Two Poker Forum
....
This looks to be a real good link - the answer man spex x reads like he's got real experience. Good example of a different style of landlording - spex x does far more networking than i and has a far more onerous application process. We've both made money.
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Old 04-11-2009, 07:13 PM   #11
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Any advice for someone whose thinking about renting a home? What have you learned from the process and how do you feel about real estate vs stocks?
I have been successfully a lot more than I anticipated. We've bought and sold several homes during the boom but about 3 years ago we started to buy properties at rock bottom prices, fix rent them out. We currently own 14 most of which are rented to section 8 tenants (great program for landlords). Most landlords would not do what we do. We buy single family homes which require minor cosmetics in borderline neighborhoods and rent them out to mostly section 8 tenants. After that, the property is on auto pilot. Monthly payments are wired to our account from section 8 and tenants mail their checks. We only go back to the neighborhood for repair calls; we receive very few of these calls.
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Old 04-13-2009, 12:10 PM   #12
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I bought a 2 family house in 1997 for $325k to diversify. I live in one unit and rent the other. It's worth $500k now (down from a peak of $600k) and I only have a couple of years left on the mortgage. Once that's done the house will produce $15k a year in rent. So I have capital appreciation and income too. It's worked out for me even with the housing crash.
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Old 04-13-2009, 02:57 PM   #13
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Well, my Buddy an ins. guy, owned SF Homes and rented them out
While I, Owned just other TownHomes That I lived in and was on the Board of for yrs.. This gave me inside Control and Cherry picked Potential Renters that had to get approval thru the Board...

My Buddy had some Surprises over the net 20 yrs and not alot of fun, but he managed and got thru them, then he Removed the rental Home off the market, but he offically moved into the place, but actually put 2 of his College kids in it, and after 4 yrs and when they finished College, He then sold it and avoided alot of extra Cap gains Taxes..( doubt can still do that now)...

On the otherhand? I sole my Onw Twnhome and moved into my 1st rental one for a few yrs, then sold it and moved into the Next one for a few yrs and then sold it.. All along avoiding those Cap gains taxes too..ave 4250k on each place and the last one sold for $300k..in o4'.

Just to build up my Retirement Savings along the way.. and it worked out very well.. We then Moved about 60 miles North into Wi. to our Smaller Retirement Home we've been Remodling for past few yrs and here we are..

My Kids each have a Townhome and one now has 2 more as rentals and are following suit.. One is in Brooklyn, NY and owns a Brownstone place with 2 apts. in them( a couple of doors down from the one shown on recent This Old House TV show series ...)...

IF you do it right and not get Careless and can devote a Few Hours a Month? go for it! It will payoff , I'd say at least Double what owning and living in just one home does.. And if you get the Wife & Kids trained to do the work? you can go Play Golf instead...LOL
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Old 04-13-2009, 07:03 PM   #14
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Letj,

Where can I get information on being a provider/contracted with Section 8?

Thanks.
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Old 04-13-2009, 10:11 PM   #15
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Letj,

Where can I get information on being a provider/contracted with Section 8?

Thanks.
Just call your local HUD office. Or just go their web sit. You'll get more than all the information you want.

Good luck.
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Old 05-11-2009, 09:08 PM   #16
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A few warnings about section 8.
1. Not all housing offices are created equal. Some have subpar case managers
2. Screen section 8 tenants just like you would any other tenant. Just because you're getting most of your money from the gov't doesn't mean you can be lax.

With that said I've been using section 8 to fill my rentals for the last 7 years. Even though we live in Texas we're able to manage our rentals in Georgia with no problems.
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Old 05-12-2009, 12:46 PM   #17
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I suggest potential landlords take a look at these pictures:

Inside the Messiest Apartment in Houston. Ever. Ľ Swamplot: Houstonís Real Estate Landscape





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Old 05-12-2009, 12:53 PM   #18
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I suggest potential landlords take a look at these pictures:

Inside the Messiest Apartment in Houston. Ever. Ľ Swamplot: Houstonís Real Estate Landscape





Think Tryan said it wasn't so bad last time these were posted - clean & paint vs. repair. It does happen though - have done dump runs with 3/4 ton of trash from one place - and that's after returning goods to tenant and any of her friends & relatives i could cajole into taking stuff. Not fun though.
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Old 05-12-2009, 01:01 PM   #19
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I want to puke just looking at that.
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Old 05-12-2009, 01:26 PM   #20
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Some of the better off people in our town happen to own the garbage truck franchise. Big money taking care of stuff others don't want to touch.
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