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View Poll Results: % of NW in rental
no rentals 74 69.16%
up to 25% of total NW 22 20.56%
up to 50% of total NW 9 8.41%
up to 75% of total NW 2 1.87%
up to 100% of total NW 0 0%
Voters: 107. You may not vote on this poll

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Old 11-09-2013, 05:10 AM   #21
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I don't want the hassle from having to deal with renters whether they are responsible people or not. It's too much like having a job and working even if I have an agent handling it.

Cheers!
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Old 11-09-2013, 05:53 AM   #22
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Originally Posted by Rambler View Post
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
Quote:
Originally Posted by Fishingmn View Post

In my 3+ years of being a landlord I've never had any bad tenants. One late payment which was paid within a few extra days with a late fee. The biggest hassle is when tenant moves out and finding someone new but that's manageable. I maybe get 1-2 calls a quarter about an issue that needs to be addressed but that's no big deal to me. I will hire a PM in a few years to take those calls and manage finding tenants.
So, is the defining difference in these two experiences that old saw, location, location, location?
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Old 11-09-2013, 05:56 AM   #23
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Originally Posted by LandlordInvestor View Post
I would be curious to see a poll of what percent of your retirement spend level are you anticipating your rental portfolio will replace.? This is what I keep calculating....and running through my calculators. As our rental portfolio increases the $ portfolio amount that i need to save decreases.
Our one rental will provide <10% of our FIRE income, and is <25% of our NW.

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I don't want the hassle from having to deal with renters whether they are responsible people or not. It's too much like having a job and working even if I have an agent handling it.
I use a prop mgr for our one rental because I'm an absentee landlord. Although it costs 10% of rental income, I'm satisfied with the arrangement and it takes almost none of my time. The property also provides ~4% ROI, which is acceptable.
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Old 11-09-2013, 06:50 AM   #24
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We're 3/4 rentals .... just couldn't help myself when SF homes were selling at auction for 33 cents on the dollar.

When you've been doing something long enough there are no surprises. Take care of the problems I want to ... hire out the ones I don't.
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Old 11-09-2013, 06:53 AM   #25
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Originally Posted by Rambler View Post
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.....
R
I did the same and for the same reasons...put the profits in the stock market...BAC specifically....and lost the majority of it , and other than putting it all in BAC, I'd do it again!

I still own one property but it is an office condo....and a solid 8% a year return even with any repair/up keep!
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Old 11-09-2013, 06:54 AM   #26
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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.
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Old 11-10-2013, 08:32 AM   #27
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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%.
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Old 11-10-2013, 09:33 AM   #28
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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.
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Old 11-10-2013, 09:57 AM   #29
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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.
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Old 11-10-2013, 12:18 PM   #30
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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.
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Old 11-10-2013, 02:29 PM   #31
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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
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Old 11-10-2013, 02:48 PM   #32
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Originally Posted by Rambler View Post
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
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Old 11-11-2013, 09:40 AM   #33
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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?
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Old 11-11-2013, 02:53 PM   #34
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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.
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Old 11-11-2013, 04:02 PM   #35
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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!
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