Comments on: Is your rental property really as profitable as you think? http://advancedpersonalfinance.com/is-your-rental-property-really-as-profitable-as-you-think/ Moving beyond the basics Wed, 19 Nov 2008 15:22:34 +0000 http://wordpress.org/?v=2.2.2 By: Advanced Personal Finance » Blog Archive » Carnival of Personal Finance #104 http://advancedpersonalfinance.com/is-your-rental-property-really-as-profitable-as-you-think/#comment-243 Advanced Personal Finance » Blog Archive » Carnival of Personal Finance #104 Mon, 11 Jun 2007 16:50:32 +0000 http://advancedpersonalfinance.com/is-your-rental-property-really-as-profitable-as-you-think/#comment-243 [...] donating is the way to go. Falls squarely in my ‘too much trouble’ category along with managing a rental property and credit card [...] […] donating is the way to go. Falls squarely in my ‘too much trouble’ category along with managing a rental property and credit card […]

]]> By: Verena http://advancedpersonalfinance.com/is-your-rental-property-really-as-profitable-as-you-think/#comment-188 Verena Tue, 22 May 2007 21:55:31 +0000 http://advancedpersonalfinance.com/is-your-rental-property-really-as-profitable-as-you-think/#comment-188 Real estate ownership can be very lucrative, and very taxing. My partner and I have owned our 21 unit building for 14 years. Last summer I was offered more than 6x what we paid for it, but we decided to hang on as we are finally starting to reap the benefits. The mortgage will be paid off this year, we are at 100% occupancy, and we have completed all of the major repairs, including having all of the windows replaced, tuckpointing, new roof, all new electricity, new furnaces, etc. It took a long time. I was in my early twenties when we started, next year I will be 40. Whether we keep the building for more than a few years, or sell it, it will be my retirement fund. On the flip side, tenants can be an awful pain, I'd say that 20% of mine do not pay prior to the tenth of the month; one is always a month behind. They complain about broken things (valid, for sure, but does it always have to be in the middle of the night?) and about each other. Thy plug up the sewers like mad (you wouldn't BELIEVE the things we have found in the pipes). In summary, you can make a ton of cash, but you need to be prepared to wait a LONG time for it to start coming in faster than it goes out. You really need to be a good handyperson (paying for a plumber every week will drain you) and you have to be patient with your tenants. If I had to start now - with real estate prices being what they are - I probably would not do it again. Real estate ownership can be very lucrative, and very taxing. My partner and I have owned our 21 unit building for 14 years. Last summer I was offered more than 6x what we paid for it, but we decided to hang on as we are finally starting to reap the benefits. The mortgage will be paid off this year, we are at 100% occupancy, and we have completed all of the major repairs, including having all of the windows replaced, tuckpointing, new roof, all new electricity, new furnaces, etc. It took a long time. I was in my early twenties when we started, next year I will be 40. Whether we keep the building for more than a few years, or sell it, it will be my retirement fund. On the flip side, tenants can be an awful pain, I’d say that 20% of mine do not pay prior to the tenth of the month; one is always a month behind. They complain about broken things (valid, for sure, but does it always have to be in the middle of the night?) and about each other. Thy plug up the sewers like mad (you wouldn’t BELIEVE the things we have found in the pipes). In summary, you can make a ton of cash, but you need to be prepared to wait a LONG time for it to start coming in faster than it goes out. You really need to be a good handyperson (paying for a plumber every week will drain you) and you have to be patient with your tenants. If I had to start now - with real estate prices being what they are - I probably would not do it again.

]]> By: samerwriter http://advancedpersonalfinance.com/is-your-rental-property-really-as-profitable-as-you-think/#comment-182 samerwriter Mon, 21 May 2007 16:05:20 +0000 http://advancedpersonalfinance.com/is-your-rental-property-really-as-profitable-as-you-think/#comment-182 From the blogs I read about real estate investing, I have to agree with you. It sounds like a whole lot of work for not much money. Especially as housing prices have risen (and therefore property taxes as well) over the last several years while rent prices have stayed fairly stagnant. Even renting out a room can be a pain. A friend has a couple tenants living in his basement who are perpetually late on rent. He could evict them, but they're so nice, and she's months pregnant, and the rent check is always just around the corner. From the blogs I read about real estate investing, I have to agree with you. It sounds like a whole lot of work for not much money. Especially as housing prices have risen (and therefore property taxes as well) over the last several years while rent prices have stayed fairly stagnant.

Even renting out a room can be a pain. A friend has a couple tenants living in his basement who are perpetually late on rent. He could evict them, but they’re so nice, and she’s months pregnant, and the rent check is always just around the corner.

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