My cousin sold his apartment building (6-unit) and within 3 months, his blood pressure was down 25 points. Not worth the hassle...took six months to get one deadbeat out and another two to repair the $20,000 in damage he did before leaving.
Mortgage payoff experiences
- Thread starter emmett442
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One of my coworkers owned an 8 unit building. One of the tenants tenants caused a fire from a cigarette. They fell asleep with it burning. I think damages were around $200k+ and the entire building needed to be redone. It was an older brick building. As soon as it was done he put it on the market and sold it. At least it was in great shape when sold. I think he had insurance for the lost rent while being re-done but there was a limit on that.
My cousin was screwed: because it was deliberate damage, insurance wouldn't pay. We wound up totally gutting and redoing the apartment...it was totally destroyed. The dude had smashed counters, ripped open walls to steal wire, taken an axe to a new fridge..then took the globe off the kitchen light, took a dump in it, and left it on the floor.
OT:
I know someone worth over $2.5M invested in stock market.
Asked if they would own rental property as a form of investment, the person said they wouldn't want a $100 dog house as a rental property.
Like I said before... Wolf is an expert in buying/selling properties for a long time. Some people think it's easy as those so called infomercials on TV that you can become very wealthy buying property, just pay and attend their 3 hour course at the convention center and you're on your way to becoming the next Trump.
I know someone worth over $2.5M invested in stock market.
Asked if they would own rental property as a form of investment, the person said they wouldn't want a $100 dog house as a rental property.
Like I said before... Wolf is an expert in buying/selling properties for a long time. Some people think it's easy as those so called infomercials on TV that you can become very wealthy buying property, just pay and attend their 3 hour course at the convention center and you're on your way to becoming the next Trump.
Without writing an entire book, the whole landlording thing does require some skill and some luck. Some people I know have no people skills so they'd probably be terrible at it or they not good with their finances. It's like doing oils and brakes, somewhat easy for some people and others just can't do it.
Well, I don't pretend to know everything about rental properties. In fact, I'm fairly certain I have almost everything to learn about them. I am NOT the guy banking on infomercial claims.
I'm a realist. I fully expect to make many mistakes along the way. However, I believe I am capable of learning from them. Successful landlords aren't any smarter than I am - just more experienced. But even they were inexperienced at some point!
I'm a realist. I fully expect to make many mistakes along the way. However, I believe I am capable of learning from them. Successful landlords aren't any smarter than I am - just more experienced. But even they were inexperienced at some point!
Originally Posted By: emmett442
Well, I don't pretend to know everything about rental properties. In fact, I'm fairly certain I have almost everything to learn about them. I am NOT the guy banking on infomercial claims.
I'm a realist. I fully expect to make many mistakes along the way. However, I believe I am capable of learning from them. Successful landlords aren't any smarter than I am - just more experienced. But even they were inexperienced at some point!
I'm not taking a swipe at you. Just proceed with caution.
I know an acquaintance that bought rental property only for it to become a big problem. One guy has 5 condos in Aventura/Hallandale FL renting them out to 'mature retired' folks that shouldn't cause any trouble. These retired snow brids caused lots of problems and stress. You won't know how these people will behave once they move in. Lots of sad sorry stories why they can't pay rent on time.
Well, I don't pretend to know everything about rental properties. In fact, I'm fairly certain I have almost everything to learn about them. I am NOT the guy banking on infomercial claims.
I'm a realist. I fully expect to make many mistakes along the way. However, I believe I am capable of learning from them. Successful landlords aren't any smarter than I am - just more experienced. But even they were inexperienced at some point!
I'm not taking a swipe at you. Just proceed with caution.
I know an acquaintance that bought rental property only for it to become a big problem. One guy has 5 condos in Aventura/Hallandale FL renting them out to 'mature retired' folks that shouldn't cause any trouble. These retired snow brids caused lots of problems and stress. You won't know how these people will behave once they move in. Lots of sad sorry stories why they can't pay rent on time.
Originally Posted By: Mr Nice
Why become a landlord ???
Because real estate is the easiest way to borrow money (mortgage) to work against the inflation. If you plan right (location, location, location), you can at least break even on the expense while waiting for it to appreciate in value. It is not for everyone, some people do better with stocks while others do better with real estates.
Why become a landlord ???
Because real estate is the easiest way to borrow money (mortgage) to work against the inflation. If you plan right (location, location, location), you can at least break even on the expense while waiting for it to appreciate in value. It is not for everyone, some people do better with stocks while others do better with real estates.
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This thread is entertaining and informative.
I'm in a field of work that has to deal with rental properties daily. Under no circumstances would I even be a landlord. I've advised family and friends against doing so and they've both regretted the decision (I only "advise" one time) Knowing how the system is set up, you're asking for headaches and a lot of work for little return if you want to be a landlord.
Invest your money elsewhere. A lot less stress and a better return.
I'm in a field of work that has to deal with rental properties daily. Under no circumstances would I even be a landlord. I've advised family and friends against doing so and they've both regretted the decision (I only "advise" one time) Knowing how the system is set up, you're asking for headaches and a lot of work for little return if you want to be a landlord.
Invest your money elsewhere. A lot less stress and a better return.
Yes, being a landlord is a headache sometimes. You have screen your renters thoroughly. There are companies (like Cozy) that can help with that. Same companies collect the rent, and deposit it into your bank.
I have 2 properties. Both are occupied. The advantage is the depreciation on the properties at tax time. And in the end, I'll sell those properties, and buy a retirement place where I want to be when I'm old(er) and gray(er). My primary home where I live is paid off. I don't think debt is necessarily bad, but I do have a healthy respect for it, and don't tangle with the devil too long at any point.
I have 2 properties. Both are occupied. The advantage is the depreciation on the properties at tax time. And in the end, I'll sell those properties, and buy a retirement place where I want to be when I'm old(er) and gray(er). My primary home where I live is paid off. I don't think debt is necessarily bad, but I do have a healthy respect for it, and don't tangle with the devil too long at any point.
Originally Posted By: SevenBizzos
This thread is entertaining and informative.
I'm in a field of work that has to deal with rental properties daily. Under no circumstances would I even be a landlord. I've advised family and friends against doing so and they've both regretted the decision (I only "advise" one time) Knowing how the system is set up, you're asking for headaches and a lot of work for little return if you want to be a landlord.
Invest your money elsewhere. A lot less stress and a better return.
That's why OP needs to focus on:
His retirement savings, children's 529 Plan and paying off his mortgage.
Being a landlord shouldn't even be on his radar.
This thread is entertaining and informative.
I'm in a field of work that has to deal with rental properties daily. Under no circumstances would I even be a landlord. I've advised family and friends against doing so and they've both regretted the decision (I only "advise" one time) Knowing how the system is set up, you're asking for headaches and a lot of work for little return if you want to be a landlord.
Invest your money elsewhere. A lot less stress and a better return.
That's why OP needs to focus on:
His retirement savings, children's 529 Plan and paying off his mortgage.
Being a landlord shouldn't even be on his radar.
Originally Posted By: Mr Nice
Originally Posted By: SevenBizzos
This thread is entertaining and informative.
I'm in a field of work that has to deal with rental properties daily. Under no circumstances would I even be a landlord. I've advised family and friends against doing so and they've both regretted the decision (I only "advise" one time) Knowing how the system is set up, you're asking for headaches and a lot of work for little return if you want to be a landlord.
Invest your money elsewhere. A lot less stress and a better return.
That's why OP needs to focus on:
His retirement savings, children's 529 Plan and paying off his mortgage.
Being a landlord shouldn't even be on his radar.
Perhaps you've lost sight of the original discussion. This is about mortgage payoff.
Again, I already have the mentioned focuses covered. I'm not considering sacrificing the basics you are mentioning to fund a rental property. I see nothing wrong with keeping rental property or any other opportunity 'on my radar'. If you think I'm sacrificing my children's opportunity and my own retirement to make this happen, I guess I haven't been clear enough. I'm not. This is simply extra. In a addition to. [censored], call if a hobby if you want - I'm not banking on it to financially secure my family's future.
I'm willing to take on the landlord challenge. Sure, others have failed - I think I can do it better. If it doesn't work out, I can still retire and my kids will still eat and go to school.
Originally Posted By: SevenBizzos
This thread is entertaining and informative.
I'm in a field of work that has to deal with rental properties daily. Under no circumstances would I even be a landlord. I've advised family and friends against doing so and they've both regretted the decision (I only "advise" one time) Knowing how the system is set up, you're asking for headaches and a lot of work for little return if you want to be a landlord.
Invest your money elsewhere. A lot less stress and a better return.
That's why OP needs to focus on:
His retirement savings, children's 529 Plan and paying off his mortgage.
Being a landlord shouldn't even be on his radar.
Perhaps you've lost sight of the original discussion. This is about mortgage payoff.
Again, I already have the mentioned focuses covered. I'm not considering sacrificing the basics you are mentioning to fund a rental property. I see nothing wrong with keeping rental property or any other opportunity 'on my radar'. If you think I'm sacrificing my children's opportunity and my own retirement to make this happen, I guess I haven't been clear enough. I'm not. This is simply extra. In a addition to. [censored], call if a hobby if you want - I'm not banking on it to financially secure my family's future.
I'm willing to take on the landlord challenge. Sure, others have failed - I think I can do it better. If it doesn't work out, I can still retire and my kids will still eat and go to school.
Just trying to give you some advice to be very cautious with rental property. My lawyer sister has sued a few landlords over the past 25 years, renters have very little obligations.
The same advice I gave today about paying off house was given... Dec 28, 2016 on my first post about your mortgage, retirement and college savings.
The same advice I gave today about paying off house was given... Dec 28, 2016 on my first post about your mortgage, retirement and college savings.
I read the entire thread. I knew the content. Me replying directly to a post 100 above mine didn't make sense. Chiming in about the topic of the last 20 makes a little more. Threads meander off and evolve. That's what happens.
I'm 53 and soon to be unemployed. I have modest savings, enough to pay off my house. I have no other debt. The mortgage interest hovers around $5K per year.
When unemployed, using my savings to pay a monthly mortgage seems like a good way to slowly run my savings down to nothing, while running out of money. Current loan has 3.75 interest rate, balance of $112K.
If I pay it off now, I can, if needed drop homeowners insurance (about 5K/yr) , flood insurance and I will be liable only for taxes.
While I may find employment rapidly, I expect a major pay cut.
Taking the chance of investing 112K and expecting a better than 4% return carries much risk, with little reward.
When unemployed, using my savings to pay a monthly mortgage seems like a good way to slowly run my savings down to nothing, while running out of money. Current loan has 3.75 interest rate, balance of $112K.
If I pay it off now, I can, if needed drop homeowners insurance (about 5K/yr) , flood insurance and I will be liable only for taxes.
While I may find employment rapidly, I expect a major pay cut.
Taking the chance of investing 112K and expecting a better than 4% return carries much risk, with little reward.
When I sold my 100 year old apartment building in buffalo NY I was happy it was gone, but also miss those rent checks sometimes.
My wife and I redid that entire building ourselves using nothing but youtube for most of it, and we only hired pros when required by code.
We owned the building for about 10 years, lived in one of the apartments for 7 years rent free, and we more than doubled our money when we sold the property.
When we received the money from that closing, we refinanced our house in Texas at a low rate, paid it down some to get it under 80 percent and got rid of PMI.
I am happy to own a house near Austin TX with a payment of $890 per month including all escrow. People pay $1000 for a shoebox around here, so that was a good financial decision.
My wife and I redid that entire building ourselves using nothing but youtube for most of it, and we only hired pros when required by code.
We owned the building for about 10 years, lived in one of the apartments for 7 years rent free, and we more than doubled our money when we sold the property.
When we received the money from that closing, we refinanced our house in Texas at a low rate, paid it down some to get it under 80 percent and got rid of PMI.
I am happy to own a house near Austin TX with a payment of $890 per month including all escrow. People pay $1000 for a shoebox around here, so that was a good financial decision.
Originally Posted By: Cujet
I'm 53 and soon to be unemployed.
[off-topic]
Sorry to hear that. with your high level mechanic training, can you find something closer? (yacht/boats/ small airport around you)
i really hope they don't make you work 36 hours straight run anymore....
don't be a stranger to us.
[/of-topic]
I'm 53 and soon to be unemployed.
[off-topic]
Sorry to hear that. with your high level mechanic training, can you find something closer? (yacht/boats/ small airport around you)
i really hope they don't make you work 36 hours straight run anymore....
don't be a stranger to us.
[/of-topic]
OP, I paid off my mortgage in October, 8 years early. When considering the amount of money I saved by not having to pay mortgage payments for those remaining 8 years, it's most likely the most money I could have made/saved in any investment strategy. My current 401K can't begin to match the money I made/saved by paying off my mortgage 8 years early...per my current financial advisor.
Originally Posted By: Cujet
I'm 53 and soon to be unemployed. I have modest savings, enough to pay off my house. I have no other debt. The mortgage interest hovers around $5K per year.
When unemployed, using my savings to pay a monthly mortgage seems like a good way to slowly run my savings down to nothing, while running out of money. Current loan has 3.75 interest rate, balance of $112K.
If I pay it off now, I can, if needed drop homeowners insurance (about 5K/yr) , flood insurance and I will be liable only for taxes.
While I may find employment rapidly, I expect a major pay cut.
Taking the chance of investing 112K and expecting a better than 4% return carries much risk, with little reward.
I'm at an all time high in the stock market. It's setting new records today. There's been a huge run up since the election. It's always tough deciding when to get in, but if you're in, I'm riding it for a while. Last year the rate of return for Vanguard Index 500 was 19.9%, this year in just a few weeks, year to date, it's 3.27%. Over the last 3 years, it's averaged 10.7% I'd say the rewards have been quite rich.
I'm 53 and soon to be unemployed. I have modest savings, enough to pay off my house. I have no other debt. The mortgage interest hovers around $5K per year.
When unemployed, using my savings to pay a monthly mortgage seems like a good way to slowly run my savings down to nothing, while running out of money. Current loan has 3.75 interest rate, balance of $112K.
If I pay it off now, I can, if needed drop homeowners insurance (about 5K/yr) , flood insurance and I will be liable only for taxes.
While I may find employment rapidly, I expect a major pay cut.
Taking the chance of investing 112K and expecting a better than 4% return carries much risk, with little reward.
I'm at an all time high in the stock market. It's setting new records today. There's been a huge run up since the election. It's always tough deciding when to get in, but if you're in, I'm riding it for a while. Last year the rate of return for Vanguard Index 500 was 19.9%, this year in just a few weeks, year to date, it's 3.27%. Over the last 3 years, it's averaged 10.7% I'd say the rewards have been quite rich.
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