How many are Real Estate investors/landlords?

[Onward]

I checked several of the boxes, though none of them are what got me to FIRE.

Good ol' index mutual funds and ETFs did that.

[kevdude]

Quote:

Originally Posted by njhowie If you are a landlord, are all your tenants continuing to pay in full or have any of them stopped paying and essentially squatting on your dime at this time? Are you experiencing any cash flow issues as a result of tenants not paying and inability to evict them due to moratoriums in place?

We have 20 tenants (residential) and all have paid to date, so no cash flow issues. We feel very fortunate as this is our primary source of income.

[kevdude]

Quote:

Originally Posted by bearkeley We are down to 4 SFHs, a vacation rental on the beach in Florida and 3 DSTs. Thankfully, all our tenants are paying on time. There is a chance that our snowbirds may cancel for the winter, but that would work out well for our winter travel plans. Goal would be to do a 1031 on all except the condo into DSTs.

berkeley - what types of properties are you invested in and what types of returns are you getting? I'm thinking about going this route in the near future.

[ut2sua]

We have 4 SFHs. No payment issues so far. I am glad we made the tough decision to buy the 1st rental years ago. Negative cash flow at the time and lots of work starting out. We later learned to delegate all the work to a property management company. We effectively spend close to zero time dealing with rental issues now which is great. DW refuses to get out of the rental business. It a great way to further diversify our porfolio, but it confuses the heck out of me when I tried to evaluate my own portfolio for retirement purpose because my asset allocation has different vocabulary than a typical stock/bond/cash porfolio. My porfolio is stock/bond/RE/cash and the RE changes all the other numbers. Right now, net income is only 2.5% of RE value, but I will assume appreciation will be another 2.5% (not guarantee of course) for a net return of 5%. Below the average return of ~10% for stock, but I am fine with that.

[NgineER]

We have three duplexes, one triplex and one triplex under renovation. All in all we have 10 units for rent, all paying in full and all tenants are employed. We have had three turnovers since Covid-19 started to make noise in March. We are not implementing any rent increases this year to existing tenants. New leases have seen rent increases.

[Aerides]

Quote:

Originally Posted by calmloki Really have no idea what percentage of the early retirement crowd are invested in real estate other than their home - so here's an attempt at a poll. Feel free to check as many of the options as apply and if you gotta then fill us in on why your choices are the best in the whole wide world - for you. This is a chance for us real estate junkies who don't know where to put our investment in Firecalc to see that there are a few property mavens out there.

Your poll offers no option for "no RE other than my home" so you won't get an idea of the percent of the crowd as a whole. You are only going to get a picture of the sub-categories within the Real Estate crowd. If you want to add an option, just ask any mod.

[JoeWras]

Quote:

Originally Posted by Aerides Your poll offers no option for "no RE other than my home" so you won't get an idea of the percent of the crowd as a whole. You are only going to get a picture of the sub-categories within the Real Estate crowd. If you want to add an option, just ask any mod.

Yes, I searched for this. I recently dumped my REITs so I'm officially in "no RE other than my home"

[Winemaker]

WE have a 4 unit apartment building, a duplex, and a SFH, all are up to date on rent except 1. They owe $100, because their car needed some work, will get that on Thursday.

[ERD50]

Quote:

Originally Posted by Aerides Your poll offers no option for "no RE other than my home" so you won't get an idea of the percent of the crowd as a whole. You are only going to get a picture of the sub-categories within the Real Estate crowd. ...

Yes, from the OP: "Really have no idea what percentage of the early retirement crowd are invested in real estate other than their home - so here's an attempt at a poll."


And at this time 46 entries and this wasn't asked beforehand? OP, you need a denominator for a %, you only have the numerator. And of course, only of those who chose to answer, so there's really no way to tell if it is representative or not.

But I got a chuckle out of the Woody Allen clip!

-ERD50

[JoeWras]

Quote:

Originally Posted by ERD50 And at this time 46 entries and this wasn't asked beforehand? OP, you need a denominator for a %, you only have the numerator. And of course, only of those who chose to answer, so there's really no way to tell if it is representative or not.

I saw it yesterday, but didn't want to complain. Didn't want to sound too much like an engineer. You know what I mean, ERD50. I figured we could keep our engineer talk over on the generator thread.

So I waited for someone more level headed like Aerides kindly ask.

[BeachOrCity]

Quote:

Originally Posted by njhowie If you are a landlord, are all your tenants continuing to pay in full or have any of them stopped paying and essentially squatting on your dime at this time? Are you experiencing any cash flow issues as a result of tenants not paying and inability to evict them due to moratoriums in place?

Answers to this will vary widely by locality. Some localities have in effect declared a "rent holiday" with long lasting eviction and late fee moratoriums.
Sadly, other than the undocumented immigrants, most everyone gets around 50K annualized per working adult right now. So the ability to pay is hardly a factor for most (at present).

I am an investor in an apartment building near sacramento. Decent place with 2-3 bedroom apartments renting for 1800-2300/mo. Over 10% of the tenants are taking advantage of the california rent holiday. These tenants have decided that the minimal impact on their credit of a skip rent during a pandemic is worth it to basically save about 25K in a years rent which is how long they expect it to take to get them out.

It hasn't started yet, but the commercial (not freddie / fannie) mortgage securities market is going to be in shambles by the end of the year. Hotels, retail, office and some apartments (not nearly all) will all be seriously delinquent.

[ERD50]

Quote:

Originally Posted by JoeWras I saw it yesterday, but didn't want to complain. Didn't want to sound too much like an engineer. You know what I mean, ERD50. I figured we could keep our engineer talk over on the generator thread. So I waited for someone more level headed like Aerides kindly ask.

And of course it isn't "complaining" . Like my T-Shirt says "I'm not arguing, I'm explaining why I'm right!".

-ERD50

[calmloki]

Quote:

Originally Posted by Aerides Your poll offers no option for "no RE other than my home" so you won't get an idea of the percent of the crowd as a whole. You are only going to get a picture of the sub-categories within the Real Estate crowd. If you want to add an option, just ask any mod.

Yes please, I would like to add another option at this point so that people who don't have any real estate other than their homes can vote. If you can make it so I'd appreciate it, or point me in an appropriate direction to do so.

[WhiskyDave]

Own a SFH, Vacation lake rental, and separate boat slip rental.

All paid up with no issues other than the SFH asking for a 1 month 30% rent reduction in April due to a layoff...I value good paying long term tenants, so I accepted their request with no issues.

Appreciation is still also good during COVID with all 3 rentals paper valuation increasing.

[Rex]

We own a vacation property that we also rent for short term stays.....so I checked two boxes:

"Vacation property that appreciates"
&
"B&B, AirBnB, VRBO owner"

Had it 10 years and the value is up 50% and the vacation rentals cover operating expenses and improvements......fingers remain crossed.....the appreciation only matters at the closing table but it's also been fun to use it and have other people pay/subsidize our vacations.

[bearkeley]

Quote:

Originally Posted by kevdude berkeley - what types of properties are you invested in and what types of returns are you getting? I'm thinking about going this route in the near future.

We really wanted to invest partially in student housing...boy are we glad we listened to the advice of our agent! We have some invested in a hospital (Kansas City University System as our tenants), a warehouse distribution (Pepsi as our tenant) and a multi-family55+ .

Key things we like about DST is the ability to diversify a SFH rental investment and still do a 1031. It’s not for everyone because you won’t have control but if you select good investments, it works well!

[JoeWras]

Quote:

Originally Posted by ERD50 . Like my T-Shirt says "I'm not arguing, I'm explaining why I'm right!".

So true.

OK, I voted "None" now that the survey has the choice.

I had REITs, but I don't like where the commercial mall market is going.

I had vacant land as an investment (gifted from parents), but ended up selling it at a LOSS from the original 1983 price. Yes, there is such a thing as Florida swamp land.

I am very handy and considered getting fixer upper and renting it, but both my neighbor and a buddy do this and all they do is bitch about it, go to court, etc.

So, right now, I'm out.

[CaliKid]

Quote:

Originally Posted by BeachOrCity Answers to this will vary widely by locality. Some localities have in effect declared a "rent holiday" with long lasting eviction and late fee moratoriums. Sadly, other than the undocumented immigrants, most everyone gets around 50K annualized per working adult right now. So the ability to pay is hardly a factor for most (at present). I am an investor in an apartment building near sacramento. Decent place with 2-3 bedroom apartments renting for 1800-2300/mo. Over 10% of the tenants are taking advantage of the california rent holiday. These tenants have decided that the minimal impact on their credit of a skip rent during a pandemic is worth it to basically save about 25K in a years rent which is how long they expect it to take to get them out. It hasn't started yet, but the commercial (not freddie / fannie) mortgage securities market is going to be in shambles by the end of the year. Hotels, retail, office and some apartments (not nearly all) will all be seriously delinquent.

That's sad. My rentals are not in California and thus far have had no problems. I am sorry you are having a 10% problem. That's higher than any other investors I have talked to. I do wish California tried to balance things a little bit between landlord and tenants. Good luck!

[unclemick]

Quote:

Originally Posted by Onward I checked several of the boxes, though none of them are what got me to FIRE. Good ol' index mutual funds and ETFs did that.

Scratch the ETF's. Now some ETF"s hobby wise -aka 'a few good stocks.' Grin. In my 27 year trip thru ER - duplex, rental mobile home, REIT's, land and now a farm.

Pretty much down to Farm (CRP), 20 acres of timberland and a few vacant lots that didn't sell with the last house.

Heh heh heh - yes index funds are far and away the big dog on the porch.

[Onward]

Quote:

Originally Posted by unclemick index funds are far and away the big dog on the porch.

But ... they're only "paper" assets!

Robert Kyosaki told me so.