Sell apartment buildings or keep forever?

[2cheap2eat]

I have two rental properties myself. My goal is keep them in retirement, honestly just to keep me busy with something to do. If they get to a point where it takes too much time or too much headache, I would sell. Also, if I get old to actively manage, I would sell (maybe sell to my son).

 

[calmloki]

Wow, as a landlord of several single family homes I am amazed by some of the posts that say their rentals have been "no trouble." Seems incredibly lucky. We've been landlords for 45 years and have put on new roofs, A/C systems, water line replacements in homes built in the 80's, etc, a new sewer line on a home built in the fifties, as well as the usual carpet, flooring, water heater, appliance replacements. And used gallons and gallons of paint. My husband is extremely handy and has saved us thousands in repair costs, and I have definitely put in my share of the work also, as well as doing the bookkeeping.



We had a condo unit (won't go that route again) where the tenant accidentally set the place on fire and we were so lucky it didn't hurt anyone or hurt any adjacent units. We had a single family home that also caught fire and luckily no one was hurt there either. Now we are at retirement age and are thinking of selling one per year going forward, but have also considered just keeping them til we die to pass on to the children for them to sell. However, we would definitely need to start spending big bucks on cleaning, repairs, etc that we have been doing ourselves, so maybe it would be better to sell, pay the taxes, and invest elsewhere.



Repairs and liability is what I would be concerned about, going forward, if I were the OP. We are in our upper sixties and [B]what you can do at 60 is very different from what you can do, or feel like doing, when you are close to 70.[/B] Just because you have had few repairs in the past doesn't mean you won't have more going forward as the building ages. That said, we traveled 75 days last year (not consecutive) pre-Covid and were able to manage the properties by phone. This year of course we haven't had the opportunity and not sure when that will happen again! Have been spending a lot of time on one property that is run down, getting it ready to sell. Not sure how much more of that we want to do.



I would be fine getting a property manager to manage, but if we have to pay for all the cleaning and repairs I wonder if it wouldn't be better to sell a home per year and pay the taxes. It's a conundrum. Have also looked into DSTs, though there are definitely fees associated with those, and quite a few DSTs are retail. Retail has taken a bit hit this year.

Of course all the stuff in your first paragraph is just normal. It's the odd stuff that is fun - we had a tenant call me because "somehow" the shutoff valve for the toilet just broke off at the wall. 1/2" water line shooting water across the bathroom. At 11:30 at night. Really don't know how he managed to step(?) on it and snap it off.

DSTs you are finding or have recommendations on please?

 

[Mr. Tightwad]

I suppose some luck is involved. I remember a streak where I went a year and had about 14 plumber visits. I haven't had a plumber come out in the last 3 years though.

The biggest factor in how happy/miserable your life is as a landlord is who you pick as a tenant. Pick wrong and you will suffer.

I'll disclose something else: I've never ran a credit check, asked them to bring a copy of it, verified their income, etc. I ask pertinent questions, observe their responses, and decide amongst the candidates who gets the keys. Again, only one eviction in 28 years. I wouldn't recommend this method to others unless you are confident in your assessment skills. I think it would be a recipe for disaster for most individuals.

 

[corn18]

I suppose some luck is involved. I remember a streak where I went a year and had about 14 plumber visits. I haven't had a plumber come out in the last 3 years though.

The biggest factor in how happy/miserable your life is as a landlord is who you pick as a tenant. Pick wrong and you will suffer.

I'll disclose something else: I've never ran a credit check, asked them to bring a copy of it, verified their income, etc. I ask pertinent questions, observe their responses, and decide amongst the candidates who gets the keys. Again, only one eviction in 28 years. I wouldn't recommend this method to others unless you are confident in your assessment skills. I think it would be a recipe for disaster for most individuals.

So you're just smarter than everyone else that has had problems. Got it.

 

[scottpush]

I suppose some luck is involved. I remember a streak where I went a year and had about 14 plumber visits. I haven't had a plumber come out in the last 3 years though.

The biggest factor in how happy/miserable your life is as a landlord is who you pick as a tenant. Pick wrong and you will suffer.

I'll disclose something else: I've never ran a credit check, asked them to bring a copy of it, verified their income, etc. I ask pertinent questions, observe their responses, and decide amongst the candidates who gets the keys. Again, only one eviction in 28 years. I wouldn't recommend this method to others unless you are confident in your assessment skills. I think it would be a recipe for disaster for most individuals.

I'm very good at picking tenants. But the constant house issues are the biggest pain. And that is just what it is. The biggest luck factor. No way to know any of this up front. All in good neighborhoods. Who would have known.

 

[kgtest]

I put in about 2 hours of yard work a month and collect $4850 in rent. The yard work gives me exercise and vitamin D. When I'm too old to deal with it I'll hire a gardener.

One duplex is valued at a third of my NW. I didn't set out for that to be the case, property values have soared is the reason.

Ole man doesn't put in anytime and he collects ~same$. He has REALLY good tenants, long term. If they can't fix it they ask to buy the part and do it, if thats too much they hire out reasonable work and it comes off the backend of the rent check.

All are paid for, so no cost beyond property tax/insurance. I do think to get to this state, you really work a second job for most of your career, at least the ole man did. Now he is on autopilot, not enough health, time to spend his $$

 

[Fermion]

I just rent out my stocks. I got paid $8,000 last month to rent out $36,000 of a stock. No grass to mow or toilet to unclog!

 

[Winemaker]

The biggest factor in how happy/miserable your life is as a landlord is who you pick as a tenant. Pick wrong and you will suffer.

I'll disclose something else: I've never ran a credit check, asked them to bring a copy of it, verified their income, etc. I ask pertinent questions, observe their responses, and decide amongst the candidates who gets the keys. Again, only one eviction in 28 years. I wouldn't recommend this method to others unless you are confident in your assessment skills. I think it would be a recipe for disaster for most individuals.

In 21 years, I've never ran a credit check either. Most would fail. I check the state magistrate court dockets to see if anyone has a criminal record or has been sued for unpaid bills, rent or evictions. Never had an eviction, but as a supervisor for 35 years for over 5,000 people, you can pretty well recognize an a$$wipe from the start.

Another thing is to not say anything or much after first meeting potential tenants. My units are well maintained, freshly painted, or new carpet installed, they know I mean business. They usually spill their guts after 10 minutes about what kind of issues they have.

I have a checklist to go by that I have used for almost 20 years to prove and show there is no discrimination in anyway.