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Old 05-02-2011, 09:14 PM   #21
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I'd also think I'd be able to deduct some of my travel expenses to Vegas on my taxes which is a nice benefit..
Yes! When we were exiled to San Diego we regularly visited our Hawaii rental. Of course you can't use your same travel expenses to offset both your rent receipts and your poker winnings.

Overall I'd have to conclude that absentee landlording sucks all out of proportion to the profit potential.

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Where I know I am clueless is the operational side of being a landlord. This includes everything from a finding a good real estate agent, to selecting a good property, hiring a property management company, budgeting/ handling repairs etc.
My hangup is knowing how to figure out when the property manager is giving his brother-in-law a place to crash while telling you that the property is vacant. It's also difficult to figure out whether something was really broken in the first place, let alone whether it needed to be fixed or if you paid the proper price. At least you'd have the benefit of being able to drop in unannounced.

One suggestion would be to look as close to a military base as you can get. You may find a better quality of tenant and they'll certainly be more interested in a year's lease.

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Any suggestions on books to read, websites to visit would be appreciated.
I'm intrigued by the archives of this blog (Real Estate Investment Blog | Analysis, technology, resources and more), especially their financial analysis. But they are selling a product.

I got a lot out of these books:
(1) Investing in Real Estate, 4th edition or later, by Andrew McLean & Gary W. Eldred (who's taken over the new editions) and
(2) Landlording by Leigh Robinson (7th edition or later).

Looks like the Hawaii library system has Eldred's 2009 edition in the catalog, so maybe it has some perspective on the Great Recession's real estate crash. The Hawaii library only has the sixth edition of Robinson but it might still give you a good taste of the subject.
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Old 05-03-2011, 03:58 PM   #22
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I am small scale to many on this board but have found mrlandlord.com to have very sane advice
Welcome to MR LANDLORD for free rental forms, management software, real estate books and landlord advice to better manage and lease rental property.

and Nolo was good for state specific lease; applications etc.

By the end of this year I expect to be selling properties which have had two long term tenants (truly a pleasure) and not sure whether I will roll the landlording dice again. Problem is that I cannot identify a better place for $... got my fill of two year high stocks and never really like bonds.
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Old 05-04-2011, 12:07 AM   #23
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Thanks all for all of the suggestions. I look for Eldred's books and I logged onto to Mr Landord which at first glance seems to be what I am looking at. I certainly get in contact with any LV locals before buying anything. I figure it is only fair for the Hawaii advice I've given over the years.

@SamClem
You are exactly right I am at competitive disadvantage to any local investor, plus the many folks who know more about real estate than I do. On the other hand, I am not really competing with them other than finding good deals. I would like to find a non-public REIT or as you suggest a partner that invests in Las Vegas real estate.

However, the real competition isn't other investors it is my/our current crappy investment choices. Stocks are somewhat overpriced and given that 85% of my liquid assets are tied up in them, clearly I don't want more equities. Right now cash offers a negative real returns and bonds and CDs offer <1% real return with the distinct possibilities of going below zero. The investment in startups that I and Nords have been making/investigating aren't paying off. So I figure my choices are precious metals, oil, or real estate. I think Vegas real estate my be the best of these choices.
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Old 05-04-2011, 11:07 AM   #24
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The investment in startups that I and Nords have been making/investigating aren't paying off.
However we're rich in intellectual stimulation, personal fulfillment, and social bonhomie!
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Old 05-04-2011, 01:22 PM   #25
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You two are angels?
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Old 05-04-2011, 02:09 PM   #26
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Clifp - one thing to consider are multi-units... check out duplex, triplex, and quads. Give one unit a partial rent credit and they can keep the place clean, report anything funky, etc. Exit strategy is a little different maybe but they can cashflow a little better at times.
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Old 05-04-2011, 02:32 PM   #27
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You two are angels?
More like sharks without teeth.
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Old 05-04-2011, 02:39 PM   #28
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You two are angels?
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More like sharks without teeth.
I'm not sure. Do you have to make a profit to be considered an angel?
Hawaii Angels

After the last few years it's more of a social club with a stock-picking problem...
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Old 05-05-2011, 02:06 PM   #29
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After the last few years it's more of a social club with a stock-picking problem...
In that case you are getting some real value out of it!
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Old 05-05-2011, 02:08 PM   #30
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Yeah real estate is getting fun again ... just don't think you're getting OUT any time soon. Said on another thread, bought a HUD home last year. Had to pay cash ... no investor funds out there.

Rehab'd it ... realtor says "this is beautiful! I'll start it at 150k!". "Great" I said (I am into it for 100k). 3 weeks later: 140k ... 3 weeks later 130k ... 3 weeks later 120k. Now it's DECEMBER ... time to turn the heat on. So I said to my realtor "you've got 2 weeks to sell this thing ... or I am putting a body it; heat will run me 500/mo". She says "Gee ... 109K?".

2 weeks later I had a renter at 1300/mo. Clearing ~8% on my cash.
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Old 05-05-2011, 02:16 PM   #31
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...2 weeks later I had a renter at 1300/mo. Clearing ~8% on my cash.
Yes there is money to be made but not by flipping. Too bad for the realtors. What is it in your area? 5% of $109K? I don't think so!
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Old 05-05-2011, 03:09 PM   #32
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Yeah real estate is getting fun again ... just don't think you're getting OUT any time soon.
Now is a terrible time to exit. Great time to enter.

Like so many things, lucky timing plays a big role whether you are:

and

or

and
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Old 05-05-2011, 03:17 PM   #33
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Yes there is money to be made but not by flipping. Too bad for the realtors. What is it in your area? 5% of $109K? I don't think so!
Yeah, problem was after her commision, my return was ZERO. Better to rent it and forget about selling for a few years.
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Old 05-06-2011, 10:18 AM   #34
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Lots of people count the selling price rather than the net price. Same as forgetting about all the Saturday trips to Lowes for supplies. Luckily they count the latter activity as a hobby.
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Old 05-06-2011, 10:48 AM   #35
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High quality article about landlording to actually make money in the June 2011 Kiplinger's magazine.

IMO, in no way is this a diversification from passive or relatively passive investments. It rapidly becomes a demanding business.

Ha
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Old 05-06-2011, 12:00 PM   #36
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Lots of people count the selling price rather than the net price. Same as forgetting about all the Saturday trips to Lowes for supplies. Luckily they count the latter activity as a hobby.
Every trip I make to Lowes is a tax-deductible hobby...
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Old 05-06-2011, 02:24 PM   #37
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High quality article about landlording to actually make money in the June 2011 Kiplinger's magazine.
Will the article be online somewhere?
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Old 05-06-2011, 02:51 PM   #38
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See if this link works...

What It Takes to Be a Landlord
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Old 05-06-2011, 03:47 PM   #39
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See if this link works...

What It Takes to Be a Landlord
Worked perfect. Thanks.
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Old 05-07-2011, 12:26 PM   #40
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Every trip I make to Lowes is a tax-deductible hobby...
Have you ever tried to deduct your time? Hiow about gas?
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