Poll: Rental as % of NW

[Fishingmn]

So, is the defining difference in these two experiences that old saw, location, location, location?

I had a strategy going in of buying newer townhouses with the idea that they would attract better clients, have less maintenance since they were newer and no outside maintenance since they were in HOA's. I also do a thorough job of screening tenants, require at least 3x income to rent and don't allow smoking or pets to keep my units in better condition.

All that said, I budget for 1 eviction a year - I'm sure it will happen sometime.

 

[jkern]

I have three rental condo's which is about 22% of my NW. The net after tax return covers 40% of my living expenses. I purchased them about three years ago to create my own small pension (which I didn't have).

The condo's are only 5 to 10 years old and are very low maintenance. I average about 1 call per unit per year. ROI 9%.

 

[martyb]

0% That's not to say I might not pick up a rent house or two sometime in the future, but none at the moment. I seriously considered it years back when I was working as a realtor. I was constantly running across properties that I thought would fit that bill nicely, I just never wanted the additional headache of being a landlord. Now that I'm retiring, maybe that would be a good way to spend a little of my "spare" time.

 

[W2R]

Rental properties sound like a great investment to me but I am not interested in paying a management company to take care of rentals. If managing rentals on my own was as easy as investing in index funds at Vanguard, I would probably have about 25% invested in rental properties.

But it isn't, and I'm retired and have other things to do with my time, so I choose to have zero rentals.

 

[Options]

Rental properties sound like a great investment to me but I am not interested in paying a management company to take care of rentals. If managing rentals on my own was as easy as investing in index funds at Vanguard, I would probably have about 25% invested in rental properties.

But it isn't, and I'm retired and have other things to do with my time, so I choose to have zero rentals.

+1
I'd make an awful landlord, and I'm too afraid I'd hunt down and shoot/maim/hurt someone who destroyed my property.

Currently have enormous equity in place I own outright. Once that's sold (soon) and I downsize substantially, will use REITs for R/E portion of my overall portfolio.

 

[UkGP51]

I have ten properties I think they are about a third of our net worth. We invested about £100,000 in them, and we have an additional £100,000 or so increase in value (the first five are worth more the second five worth slightly less). Our best years rental profit was £27,000, we should get at least £18,000 on a bad year. This is despite paying a management company about 15%. They are our main investment at present but hoping to diversify as I get my lump sum from my pension- should start getting it from January 2014 as I retire aged 52

 

[48Fire]

Used to gave 4 rental properties. Hated the hassle. Sold 'em all. Long time ago, rentals were my intended route to FIRE income. I hated dealing with people who destroyed my homes, and I hated repairing them over and over again. Now I stick with stocks and bonds, with a little bit of REIT thrown in. Likely will never have rentals again.

R

+1 Our experience exactly

 

[Danmar]

Rental real estate too much trouble for me. Managing our own places is enough of a hassle. Retirement is supposed to be less trouble, no?

 

[daylatedollarshort]

We barely keep the house we live in repaired. Just getting bids on routine maintenance and then having it done is time consuming. Rentals sounds like a good investment for many but it isn't my area of expertise. One friend was sued by his tenants and different acquaintances had a murder in their rental. A couple of others have had trouble collecting the rent. Maybe the people I know just aren't great at selecting tenants, but I have no reason to think I would do any better.

We want to to travel so our extra retirement income will be stuff we can do from lap tops.

 

[sheehs1]

Zero here. I've often thought about it. I would have to hire a property manager. Then there are the "ongoing, never to go away" maintenance costs, wear and tear issues, and tenant issues. Not my cup of tea. Speaking of that, I think I will go have one!