Join Early Retirement Today
View Poll Results: RE moguls represent! How many are rental owners?
I have owned rental real estate. 30 32.61%
I currently own rental real estate. 69 75.00%
I self manage. 35 38.04%
Rentals are my primary source of income. 7 7.61%
Multiple Choice Poll. Voters: 92. You may not vote on this poll

Reply
 
Thread Tools Display Modes
How many have rental real estate?
Old 08-29-2014, 10:02 AM   #1
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
calmloki's Avatar
 
Join Date: Jan 2007
Location: Independence
Posts: 7,271
How many have rental real estate?

I know a certain number here have rentals, but wonder at the percentage. I feel kind of like an outlier, as we got started buying ratty old places that we thought were cool and then had to make them pay for themselves, which resulted in a collection of rentals that ended up being our livelihood sans other meaningful employ for me. We now have a manager for most of the time, but the rentals continue to be our main repository of wealth and a primary funder of our annual income.
calmloki is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 08-29-2014, 10:15 AM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Mar 2003
Posts: 18,085
Um, no option in the poll for "never owned a rental?"
__________________
"All animals are equal, but some animals are more equal than others."

- George Orwell

Ezekiel 23:20
brewer12345 is offline   Reply With Quote
Old 08-29-2014, 10:23 AM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Amethyst's Avatar
 
Join Date: Dec 2008
Posts: 12,566
I'd be interested in how many people own/have owned rentals and, like Loki himself, made or are making a profit.

Amethyst
__________________
If you understood everything I say, you'd be me ~ Miles Davis
'There is only one success – to be able to spend your life in your own way.’ Christopher Morley.
Even a blind clock finds an acorn twice a day.
Amethyst is offline   Reply With Quote
Old 08-29-2014, 10:25 AM   #4
Moderator Emeritus
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 47,468
Quote:
Originally Posted by brewer12345 View Post
Um, no option in the poll for "never owned a rental?"
How about "Never owned a rental and never will, if I have anything to say about it!" ?

Taking care of my own house is more than enough work of that type, for me.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.

Happily retired since 2009, at age 61. Best years of my life by far!
W2R is offline   Reply With Quote
Old 08-29-2014, 10:35 AM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2006
Posts: 11,401
In 2007 and 2008 I purchased three rental properties, my goals being to reduce portfolio risk by investing in noncorrelated assets, and to build a stable income stream for the long term. My properties are professionally managed. While this reduces profits it makes my life easier. I have paid off one mortgage and expect to pay off the next within 5 years. When all the mortgages have been paid off, the resulting income stream will cover about 30% of my lifestyle expenses. Cash flow has been positive since the first mortgage was paid off. During the 2008-09 market crash, income from my rental properties was the only sector that stayed stable. That reassurance helped me to get a good night's sleep.
Meadbh is offline   Reply With Quote
Old 08-29-2014, 10:36 AM   #6
Dryer sheet wannabe
 
Join Date: Aug 2014
Location: Austin
Posts: 20
Rentals work pretty good for me and I have a low tolerance for hassle.

I get a manager. Good managers have handymen who do more for less and only charge you cost. Realtors or managers (usually the same) will charge you 75% of one month to find a replacement tenant when needed and negotiate a lease - my instructions are to lean toward a more aggressive (lower) rate for a good quality (credit score) tenant IF we can get a 2 year lease. Anything needs doing they do it, charge me. The tenants never meet me. I pay him 8% of the rent for this service which makes it almost completely hassle free.

I modeled a vacant month a year, a reasonable maintenance budget (I told him I'm willing to pay to keep the place in very good condition), property taxes, insurance and management fees and I net 3% of the value of the house per year (no mortgage) and things have been going according to plan.

If you consider real estate and rental prices generally track inflation, that can be viewed as a 3% real return as opposed to 3% nominal which makes a huge difference. Also in practice so far after 5 years or so I am seeing vacancy more like 1 month every 2 or 3 years.
GregfromTexas is offline   Reply With Quote
Old 08-29-2014, 10:52 AM   #7
Thinks s/he gets paid by the post
38Chevy454's Avatar
 
Join Date: Sep 2013
Location: Cincinnati, OH
Posts: 4,344
Past owner of 2 rental properties. I self-managed the first when younger approx 20 years ago, then prop mgr for second since I was out of the area. First was a 4-plex unit, and a lot of hassles being an old converted house in the older lower income downtown area. Good positive cashflow and nice tax help. Also takes time and effort to keep up on repairs and turnover. Second was single family home and it was less turnover and stable, just some repairs. I could have self-managed but was out of area (~1100 miles). This was negative cash flow.

All I can say is glad to be out of the rental business, invest now in normal brokerage and hassle free accounts.
__________________
The problem isn't artificial intelligence, it's natural stupidity.

You can't spend yourself to prosperity.

Semi-Retired 7/1/16: working part-time (60%) for now [4/24/17 changed to 80%]
Retired Aug 2, 2017; age 53
38Chevy454 is offline   Reply With Quote
Old 08-29-2014, 12:41 PM   #8
Full time employment: Posting here.
VaCollector's Avatar
 
Join Date: May 2007
Posts: 549
I voted "have owned", "currently owned" and "self manage".

Have owned residential rentals that were self managed and a real PITA

I did not make a dime on them other than thru appreciation and was extremely happy when I got out of them….

I currently own a small office condo that is self managed and I have had absolutely no problems with…and could actually rent more space if I had it!
VaCollector is offline   Reply With Quote
Old 08-29-2014, 12:42 PM   #9
Thinks s/he gets paid by the post
Senator's Avatar
 
Join Date: Feb 2014
Location: Williston, FL
Posts: 3,925
I have 24 rentals, and manage another one for a friend. And I work full time (for just a while longer). They are 5-fourplexes, and 2-duplexes. Both duplexes are paid off, and 2-fourplexes are paid off. The fourplexes are in a Class 'A' area of town. Duplexes are Class C+.

I do my own management and maintenance. It keeps me busy, but I make ~150% of my full time job salary in them. I hope to quit my full time job in 2016 and get back to half days (12 hours).

They will be my only income for a few years, and I will let my $1M portfolio grow until I am ~65. Then start a small pension, use investment funds, probably look at selling some of the rentals.
__________________
FIRE no later than 7/5/2016 at 56 (done), securing '16 401K match (done), getting '15 401K match (done), LTI Bonus (done), Perf bonus (done), maxing out 401K (done), picking up 1,000 hours to get another year of pension (done), July 1st benefits (vacation day, healthcare) (done), July 4th holiday. 0 days left. (done) OFFICIALLY RETIRED 7/5/2016!!
Senator is offline   Reply With Quote
Old 08-29-2014, 12:48 PM   #10
Thinks s/he gets paid by the post
NYEXPAT's Avatar
 
Join Date: Jul 2009
Location: Miraflores,Peru
Posts: 1,992
We have a vacation rental in a year round tourist area that provides my wife an income about 3x her job income. Years ago, a rental would pay itself off in 3-5 years, but as prices have risen 300% since 2007, it is no longer possible. For me, the best part (besides no hassles) is meeting new people from around the world every week. When the Ukraine crisis first broke out I had people (over about 3 weeks) from both the Ukraine and Russia and got a very good perspective on the crisis that later made money for me in the markets.
NYEXPAT is offline   Reply With Quote
Old 08-29-2014, 01:18 PM   #11
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Amethyst's Avatar
 
Join Date: Dec 2008
Posts: 12,566
Rental property gave me PTSD. Seriously, I still have nightmares that the rental townhouse and tenants are coming to get me.

Amethyst
__________________
If you understood everything I say, you'd be me ~ Miles Davis
'There is only one success – to be able to spend your life in your own way.’ Christopher Morley.
Even a blind clock finds an acorn twice a day.
Amethyst is offline   Reply With Quote
Old 08-29-2014, 01:31 PM   #12
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
calmloki's Avatar
 
Join Date: Jan 2007
Location: Independence
Posts: 7,271
Quote:
Originally Posted by brewer12345 View Post
Um, no option in the poll for "never owned a rental?"
You know brew, that right there would have been a brilliant addition to the poll. Guess the poll as it stands will just garner the number in the landlord crowd rather than yielding a meaningful percentage of ER members. Making the poll multiple choice also makes for wonky numbers - not really a well thought out attempt.
calmloki is offline   Reply With Quote
Old 08-29-2014, 01:43 PM   #13
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
JoeWras's Avatar
 
Join Date: Sep 2012
Posts: 11,701
I'm in the process of looking for new insurance (changing companies). During the application for umbrella coverage, I was asked probing questions about "other properties, including rentals" that I might have. (I don't have any.)

I don't know what this would do to my umbrella, but I'm just curious about the questioning.

So I ask you landlords: do you have an umbrella? If so, did it go up as a landlord? Or do you somehow make this a business or LLC side project?

Aside from inherited PSTD (after seeing what my grandmother went through), these legal entanglements are one reason I've stayed away.
JoeWras is offline   Reply With Quote
Old 08-29-2014, 01:54 PM   #14
Moderator
MBAustin's Avatar
 
Join Date: Jul 2010
Posts: 7,913
For all of you rental property owners - do your kids a favor and give them a choice as to whether or not they will be passed down. My parents owned some rental property in our small hometown (the house my mother grew up in, the house we grew up in, and an assortment of small houses and duplexes that my mother's father had bought over the years). Real estate values and rents there are extremely low (I think most of the houses rented for <$100/month about 10 years ago). My sister managed the properties and about 8 years ago we both agreed they were more hassle than they were worth so she started selling them. We ended up donating a couple of them and still have one we can't seem to get rid of. A royal pain in the you-know-where. Wish Dad had sold them years ago.
__________________
"One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute." William Feather
----------------------------------
ER'd Oct. 2010 at 53. Life is good.
MBAustin is offline   Reply With Quote
Old 08-29-2014, 02:16 PM   #15
Recycles dryer sheets
jetpack's Avatar
 
Join Date: Aug 2013
Posts: 437
I have 4 units. Pain on the butt. Currently rehabbing a unit that had a bad tenant. Trying to sell one property, and get out of it.


Sent from my iPhone using Early Retirement Forum
jetpack is offline   Reply With Quote
Old 08-29-2014, 02:25 PM   #16
Thinks s/he gets paid by the post
 
Join Date: Mar 2009
Posts: 2,975
I'll stick to my REIT index fund. Lower returns but I'm spending my Friday afternoon enjoying a cold one at the dock, not worrying about the month end rental payments.
__________________
Took SS at 62 and hope I live long enough to regret the decision.
foxfirev5 is offline   Reply With Quote
How many have rental real estate?
Old 08-29-2014, 02:49 PM   #17
Moderator Emeritus
 
Join Date: May 2007
Posts: 12,890
How many have rental real estate?

I am getting out of the landlording business. My experience as a landlord has not been bad at all - so far. But there are several factors that make me revisit my decision to own rental properties. First, we are now long distance landlords due to moving for DW's job in 2012. We have a local property manager, but I think that communication is lacking and I often feel out of the loop. Second, the net yield on investment is lower than expected (around 3%). I can get a comparable yield on more liquid and maintenance-free investments.
FIREd is offline   Reply With Quote
Old 08-29-2014, 02:55 PM   #18
Moderator
sengsational's Avatar
 
Join Date: Oct 2010
Posts: 10,622
I had two concurrently in two different places (and I lived in a third place). Self managed (but rented to my sister in one case).

I DANCED (and jingled my very light key ring) when I got rid of both of them!

One was a previous residence (didn't sell because a down market), and the other one was to keep my auntie from ending up on the street after her husband died. Although I doubled my money on both places, I was super happy to be free of them.
sengsational is offline   Reply With Quote
Old 08-29-2014, 04:48 PM   #19
gone traveling
 
Join Date: Sep 2013
Posts: 1,248
Quote:
Originally Posted by brewer12345 View Post
Um, no option in the poll for "never owned a rental?"
That is probably most of us would use it.

I am scared of Lead Paint poisoning, eviction, lawsuits, tenant rights. But if one has stomach for it there are money in it.
eta2020 is offline   Reply With Quote
Old 08-29-2014, 05:18 PM   #20
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
clifp's Avatar
 
Join Date: Oct 2006
Posts: 7,733
I got a new property manager this month for my (now down to two) rental properties.
I think the 3rd time is a charm..

However if you had posted this poll last month. I would have wanted this choice.
"Currently own rental properties, but can wait to sell the suckers and take my profits".
clifp is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
39 yr old hoping to rely on rental real estate for ER income sunsnow Hi, I am... 20 11-17-2011 05:31 AM
Rental Real Estate jkern FIRE and Money 43 05-07-2011 06:16 PM
Real Estate Agent in Down Real Estate Market TromboneAl Other topics 4 06-09-2007 10:20 AM
pitfalls of rental real estate mathjak107 FIRE and Money 27 03-18-2006 06:34 AM
book suggestions on buying rental real estate? madrone FIRE and Money 27 01-27-2006 12:20 PM

» Quick Links

 
All times are GMT -6. The time now is 01:30 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.