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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%
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Poll: Rental as % of NW
Old 11-08-2013, 03:50 PM   #1
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Poll: Rental as % of NW

A recent CNN article mentioned that 27% of those retiring before 62 have rental properties.

Just want to check the stat here. Please use equities in the rental for the poll.

I have about 15% of my NW in rental properties. All SFH in good areas that I could downsize into some day. I do have a piece of land, but I don't count that as rental.
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Old 11-08-2013, 03:57 PM   #2
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<10%

I cannot vote in your poll because you have only specific options, none of which apply. Perhaps you could redesign you poll with ranges?

Don't forget to include an option for >100% for those who are highly leveraged!
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Old 11-08-2013, 04:02 PM   #3
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Don't know how to update the poll. I should say upto %, instead of just a single %.
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Old 11-08-2013, 04:11 PM   #4
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Not only no rentals, but we sold our home and are not renting a condo. We will probably buy something in the next 12 months...no rush though.
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Old 11-08-2013, 05:07 PM   #5
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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.
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Old 11-08-2013, 05:09 PM   #6
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The closest is a few publically traded REITs. And they are less than 2% of our portfolio.
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Old 11-08-2013, 05:36 PM   #7
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It's close to 1/3 of NW for me but it will decline somewhat in the future. Long term, my goal is to have ~1/4 of our income covered by rentals, ~1/4 by equity dividends, ~1/4 by interests on bonds and CDs, and ~1/4 by a yet TBD source (annuity, farm income, part-time work, SS later on, etc...).
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Old 11-08-2013, 06:01 PM   #8
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Thanks for modifying the poll options. I have now voted. Long term, my goal is to have ~25% of living expenses covered by rental income.
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Old 11-08-2013, 06:55 PM   #9
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About one half of my NW is in rental real estate. It provides about half of our living expenses.
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Old 11-08-2013, 07:00 PM   #10
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Numbers is hard. According to the property tax "True Cash value" about 52% of our assets are rental. According to a bit more realistic assessment of sale value maybe 48%? If we did sell the cash in pocket after taxes and expenses might be 30% of our total assets.
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Old 11-08-2013, 07:06 PM   #11
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That's amazing to me that 27 percent of early retirees have rental property--I know only one person in real life who owns any.
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Old 11-08-2013, 07:10 PM   #12
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That's amazing to me that 27 percent of early retirees have rental property--I know only one person in real life who owns any.
There might be others who may not wish to share that information with you. Real estate investors are sometimes assumed to be unscrupulous slum landlords even if the opposite is true.
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Old 11-08-2013, 07:11 PM   #13
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There might be others who may not wish to share that information with you. Real estate investors are sometimes assumed to be unscrupulous slum landlords even if the opposite is true.
Oh, the one I know would definitely fit that description
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Old 11-08-2013, 07:14 PM   #14
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Us - none. DS works in Africa and last year turned his house into rental using an agency, as it is in city ~1 hour away from us and I didn't want to hassle with it. So far no problems but it gives me the willies. I just do not like dealing with people in situations like this; that's one of the reasons I left the w*rkplace. Just don't like dealing with conflicts.
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Old 11-08-2013, 07:23 PM   #15
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We have two rental homes that we inherited a couple of years ago. Nice middle to upper middle class neighborhoods, about 25 years old. Due to their age, profit is eaten up by maintenance. But they have held their value.
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Old 11-08-2013, 07:44 PM   #16
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We have a rental detached granny flat. It's well under 25% of our net worth and can't legally be subdivided and sold separate from our primary home. We're renting to a niece right now and charging under market rent. It will cover about 25% of our retirement income when we rent it to non-family. We didn't build it for investment.... We built it for elder care... And it served our family well. Rental income is bonus.
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Old 11-08-2013, 09:18 PM   #17
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I have 10 rental properties which is around 40% of NW (all smaller townhouses). They kick off about 55% of what we need to retire so they make up a significant future income stream. I call them my personal pension since I don't have one.

Without them my FIRE Calc numbers wouldn't work nearly as well. They conservatively kick out about 8-10% return each and rents should grow with inflation. They've also appreciated significantly in the past 2 years but I really don't count that since I intend to hold them long-term.
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Old 11-08-2013, 11:23 PM   #18
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I own a 2 family. I live upstairs and rent out the ground floor apartment which would be worth $250k if I sold it as a condo.
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Old 11-08-2013, 11:59 PM   #19
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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.

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Old 11-09-2013, 05:54 AM   #20
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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
My outlook would probably be different regarding rentals if I had your experience.

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.
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