Luck_Club
Full time employment: Posting here.
- Joined
- Dec 5, 2016
- Messages
- 733
Work is a common concern and theme among the real estate investors and non-real estate investors alike. Real Estate investing is considered a passive activity by the IRS. Many I included would disagree. It is another chore on the to do list. This is how I consider the time commitment on rental properties:
Acquiring a property is the largest of the time investments required. As some have said you need to kiss a lot of frogs to find a prince. No where is that more true then buying investment real estate. I estimate that the finding portion of real estate investing may require upwards of 100 to 400 hours of time. that includes looking through ads, driving bye the place, viewing, submitting offers, arranging finances and insurance, closing etc. I view that as a passive hobby, and discount it greatly.
The second largest time commitment is the initial repairs. This can be upwards of 320-480 hours depending on the condition and how much you are subbing out. For those that can get paid around the clock god bless em. But most people in the real world run out of billable hours long before they run out of week, so this mainly eats into free time. Tough on those who have long commutes and rigid hours. They will probably need to sub out most of the work, which will cost more and diminish your returns.
Once it is repaired and sort of on auto pilot you are talking normal tenant turn over and repairs between and during tenancies. This can be very minimal during tenancy, with the biggest time commitment occurring during a turnover. The typical time is less than 20-40 hours total depending on painting.
Acquiring a property is the largest of the time investments required. As some have said you need to kiss a lot of frogs to find a prince. No where is that more true then buying investment real estate. I estimate that the finding portion of real estate investing may require upwards of 100 to 400 hours of time. that includes looking through ads, driving bye the place, viewing, submitting offers, arranging finances and insurance, closing etc. I view that as a passive hobby, and discount it greatly.
The second largest time commitment is the initial repairs. This can be upwards of 320-480 hours depending on the condition and how much you are subbing out. For those that can get paid around the clock god bless em. But most people in the real world run out of billable hours long before they run out of week, so this mainly eats into free time. Tough on those who have long commutes and rigid hours. They will probably need to sub out most of the work, which will cost more and diminish your returns.
Once it is repaired and sort of on auto pilot you are talking normal tenant turn over and repairs between and during tenancies. This can be very minimal during tenancy, with the biggest time commitment occurring during a turnover. The typical time is less than 20-40 hours total depending on painting.