Recent Topics
Ipad covers
by daves87rs
04/21/18 12:11 AM
Did I screw myself...
by NoNameJoe
04/20/18 10:15 PM
Careers advice for Teenagers.
by Shannow
04/20/18 09:09 PM
Mobil 0w40 $25.99 Cdn
by tcp71
04/20/18 08:55 PM
Mixing a quart of PP 0w40 with Rotella T6 5w30
by slacktide_bitog
04/20/18 08:51 PM
02 Censors?
by lawnguy
04/20/18 08:06 PM
Canadian Rebates for Rotella T-5 and T-6
by Snagglefoot
04/20/18 07:58 PM
Car buying and lessons learned
by madRiver
04/20/18 07:52 PM
Check out my tree
by Chris142
04/20/18 07:52 PM
New Starter Test Report Says Solenoid Fail
by chevys10
04/20/18 07:43 PM
Fram Tough Guard Air filters for Canadians
by Snagglefoot
04/20/18 06:40 PM
Recommendations for a Repossed Vehicle
by Astro_Guy
04/20/18 06:36 PM
Added Bluetooth Audio Streaming
by The Critic
04/20/18 05:27 PM
Lowest NOACK Synthetic 5W30 for Non - Turbo GDI ?
by ChrisD46
04/20/18 04:57 PM
Dad commited suicide yesterday
by motor_oil_madman
04/20/18 03:56 PM
What tool is needed to remove a hub bolt?
by llmercll
04/20/18 03:55 PM
1998 Nissan Frontier chatter/driveline issues...
by MGPD03
04/20/18 03:45 PM
2018 Chevy Equinox 1.5T mini-review
by road_rascal
04/20/18 03:21 PM
Aftermarket belts Infiniti G35
by mb32
04/20/18 02:58 PM
Mixing, example: Valvoline syn pre and post d1G2
by wemay
04/20/18 02:56 PM
Newest Members
mowermon, Slashdotfx, Dilly, Amersham, Irene
64801 Registered Users
Who's Online
44 registered (bbhero, aquariuscsm, ArrestMeRedZ, 1JZ_E46, BAJA_05, 5 invisible), 832 Guests and 31 Spiders online.
Key: Admin, Global Mod, Mod
Forum Stats
64801 Members
68 Forums
282040 Topics
4708714 Posts

Max Online: 3590 @ 01/24/17 08:07 PM
Donate to BITOG
Page 1 of 3 1 2 3 >
Topic Options
#4602589 - 12/13/17 01:39 PM Retire and Become Landlord to Supplement Income?
LoneRanger Offline


Registered: 07/02/07
Posts: 3926
Loc: Midwest USA
What do any forum rental property owners think about the idea of retiring in one's mid 50's and buying a few properties to rent and using the rental income to bring total income to near-parity with current pre-retirement salary? Rental income would be supplementing defined benefits plan distribution that is "fixed income" but gets cost of living adjustments and pays monthly until I go ten toes up some day. Health coverage for retirees our organization is only $50/mo, so that's covered. Would need about $25,000/yr tacked onto pension distribution to match current salary. Have 457b that can also provide money but I'm 54 and want to leave that alone until at least 59 1/2 on account of the tax penalty thing.

Already own one property that can be rented out once my son and his wife move out, small 1050 sq ft 2 br 2 bath condominium built in 2009 in a condo community with fiscally healthy condo assoc ($130/mo fee). Guessing it could rent for $900 - $1000/mo in local market but that's a raw estimate. The HOA fee takes care of all outside maintenance and repair such as roof, guttering, drainage, front landscape area (1 story bldg, 4 units per bldg). Prop taxes on it are $1500/yr. Paid $75K for it in 2015, no mortgage, clear deed. Thinking holding on to it and renting might be better than selling. Believe the municipal zoning allows rentals but need to check.

Guess I'm asking how much hassle it is vs. the income it provides.

Would be looking to buy a few additional small condo type units, built recent that have healthy condo assoc so you don't get hit with exterior repair and maintenance.

This all may be non-workable, or it might work out okay. Just thought I'd bounce it off any forum landlords.

_________________________

'09 Subaru Forester ...................(QSED DEXOS1 5W30)
'16 Moto Guzzi Stelvio 1200 .....(ENI i-Ride PG 10W60)

Top
#4602591 - 12/13/17 01:41 PM Re: Retire and Become Landlord to Supplement Income? [Re: LoneRanger]
SatinSilver Offline


Registered: 01/24/08
Posts: 9736
Loc: OH
Here's a thread from earlier today on it:

https://bobistheoilguy.com/forums/ubbthreads.php/topics/4602377/Rental_Property_Advice

My friend had 8 rentals and he's slowly selling the properties off. Too many headaches and coming from him that says a lot.
_________________________
2012 Toyota Camry 72k-Idemitsu 0w20,OEM filter, RT43s.
2005 Toyota Matrix 135k miles - VWB 5w30 conv, Valvoline oil filter. Nokian eNTYRES.

Top
#4602593 - 12/13/17 01:46 PM Re: Retire and Become Landlord to Supplement Income? [Re: LoneRanger]
LoneRanger Offline


Registered: 07/02/07
Posts: 3926
Loc: Midwest USA
Thanks for the heads-up I'll check that out.
_________________________

'09 Subaru Forester ...................(QSED DEXOS1 5W30)
'16 Moto Guzzi Stelvio 1200 .....(ENI i-Ride PG 10W60)

Top
#4602623 - 12/13/17 02:18 PM Re: Retire and Become Landlord to Supplement Income? [Re: LoneRanger]
Leo99 Online   content


Registered: 03/30/14
Posts: 2864
Loc: NJ
It sounds good on paper...

Is good if you have good tenants.

Not so good if you don't.
_________________________
Without data you're just another person with an opinion. W. E. Deming

2003 Corolla 250,000 miles
2004 Rav4 333,000 miles
2015 Camry 40,000 miles

Top
#4602630 - 12/13/17 02:24 PM Re: Retire and Become Landlord to Supplement Income? [Re: LoneRanger]
sasilverbullet Offline


Registered: 08/22/04
Posts: 1375
Loc: San Antonio, Texas
Agree with all above so far, also consider what happens if the properties are all vacant for a while.
_________________________
14 Honda Civic 4dr EX-L-M1 0W-20 & WIX XP
14 Honda Accord 4dr EX-L 4cyl-M1 0W-20 & WIX XP
02 Chevy 5.7L van-GTX HM 10W-40 & WIX filter

Top
#4602634 - 12/13/17 02:28 PM Re: Retire and Become Landlord to Supplement Income? [Re: LoneRanger]
PandaBear Offline


Registered: 08/05/02
Posts: 14132
Loc: Silicon Valley
My dad does it.

You will have periods of months with nothing going on and then suddenly one summer everyone left and you have many units come in for remodeling. The work is hard if you want to DIY to save money. It is not a passive income but my parents like real estate and have been doing it as a profession for decades, and they are quite handy (amateur level in wood work, plumbing, yard work, painting, cement, appliance repair, eviction, electrical, dry wall, etc). The record they have is a period of no rest for 5 months, remodeling 3 apartments back to back. You also need to have a good line of credit or lots of cash reserve when things happen, like unforeseen remodeling (tenants damage something big, or unable to find a leak, leading to gutting a bathroom while tenants are staying in AirBnb).

Sometimes it is worth picking a good tenants, especially in area with rent control (you want to pick families that have stable income and the apartment is just slightly too small for them, so when they saved up they'll buy a home and leave).

When things are going well you have months of not having to do anything and money just roll in.
_________________________
"You keep asking questions PandaBear and you'll end up a vegetarian like my wife" - Camu Mahubah

Top
#4602635 - 12/13/17 02:28 PM Re: Retire and Become Landlord to Supplement Income? [Re: LoneRanger]
pandus13 Offline


Registered: 08/12/11
Posts: 2872
Loc: Chicago,IL,USA
HOAs... (just talking from my posterior, but I hope it helps you):
-figure if they approve rent
-any additional taxes (HOA, City permit....)
-if rent spots are already full (10-20% max)
-how the owners will treat renters
-special assessments

Remember condos/apartments usually in a down-market will recover the last.

Now what works:
-like you said, fiscal-healthy HOA; find out all the major repairs made or to be made
-close to schools
-close to shopping/transport
-re-do nicely and also tenant-proof your property
-get friendly with the HOA maintenance crew; sometimes they moonlight...; whatever they do for you, will be silently approved by the HOA
-purchase price(mortgage monthly) + all fees(expenses: HOA, water,power,gas,...) + 10% management(backup) < monthly rent
_________________________
16 Golf SportWagen
13 Mazda5
08 Yaris
04 Elantra
95 accent
95 mystique
97 concorde

Top
#4602638 - 12/13/17 02:32 PM Re: Retire and Become Landlord to Supplement Income? [Re: LoneRanger]
Mr Nice Offline


Registered: 09/12/04
Posts: 20895
Loc: Orlando, FL
Originally Posted By: LoneRanger
Thanks for the heads-up I'll check that out.


Avoid the stress and aggravation of rental properties, its not as easy as some think it is.

Top
#4602644 - 12/13/17 02:40 PM Re: Retire and Become Landlord to Supplement Income? [Re: LoneRanger]
csandste Online   content


Registered: 05/31/02
Posts: 1096
Loc: St. Peters, Missouri
I'm retired and have a rental house and a townhouse. I use two rental companies to keep tax computations separate. They each charge roughly 10% to obtain renters, serve as a contact point, handle light repairs, etc. IMO it's well worth the $90 or so bucks a month. I've never even met my tenants and I like it that way.

Top
#4602655 - 12/13/17 02:54 PM Re: Retire and Become Landlord to Supplement Income? [Re: LoneRanger]
MONKEYMAN Online   content


Registered: 06/24/04
Posts: 2125
Loc: St. Louis
My brother just bought his second rental property. First one was a house. He said it took 800 hours to get it ready. Now, he is capable of doing just about anything and the type of person that has to keep busy. He retired in late 50's and went back to work in a less stressful job, plus doing the rental property thing. He has his son and son-in-law in area to help out. Bottom line sounds like a lot of work.
_________________________
Truth alone triumphs, not untruth.

2017 Elantra SE

Top
#4602659 - 12/13/17 03:03 PM Re: Retire and Become Landlord to Supplement Income? [Re: LoneRanger]
SrDriver Offline


Registered: 12/09/06
Posts: 2789
Loc: Southeast Alabama
My father told me many times: "Whatever you do in life, don't get in the rental business!"

Top
#4602660 - 12/13/17 03:04 PM Re: Retire and Become Landlord to Supplement Income? [Re: LoneRanger]
bubbatime Offline


Registered: 03/18/08
Posts: 5456
Loc: South Florida
If you can hand pick your tenants, which might be against the federal Fair Housing Act, then you'll be OK.

I know a guy in the rental business, that ONLY rents to 60-70 year old retirees. No young folks, no "urban" looking baby mamas with 7 kids, and he has ZERO problems. Probably illegal if someone complains, but he has no headaches.
_________________________
17 Chrysler Pacifica QS syn 0W20
13 Yamaha XT250 Valv MC 10W40
12 Suzuki S40 Rotella 15W40
10 Acura TSX 2.4 ST syn 5W20
06 GMC Sierra Nextgen 10W30



Top
#4602661 - 12/13/17 03:06 PM Re: Retire and Become Landlord to Supplement Income? [Re: Mr Nice]
gman2304 Offline


Registered: 08/11/11
Posts: 2981
Loc: n.c.
Originally Posted By: Mr Nice
Originally Posted By: LoneRanger
Thanks for the heads-up I'll check that out.


Avoid the stress and aggravation of rental properties, its not as easy as some think it is.
I'm down to one rental house and it's for sale.

Top
#4602662 - 12/13/17 03:06 PM Re: Retire and Become Landlord to Supplement Income? [Re: bubbatime]
SatinSilver Offline


Registered: 01/24/08
Posts: 9736
Loc: OH
Sounds about right esp when they have SS checks rolling in and just want a roof over their heads.
_________________________
2012 Toyota Camry 72k-Idemitsu 0w20,OEM filter, RT43s.
2005 Toyota Matrix 135k miles - VWB 5w30 conv, Valvoline oil filter. Nokian eNTYRES.

Top
#4602669 - 12/13/17 03:12 PM Re: Retire and Become Landlord to Supplement Income? [Re: SatinSilver]
pandus13 Offline


Registered: 08/12/11
Posts: 2872
Loc: Chicago,IL,USA
Re: older retirees
Originally Posted By: SatinSilver
Sounds about right esp when they have SS checks rolling in and just want a roof over their heads.

They usually also want less headaches, so:
-building with easy access (at least one entrance wheel-chair friendly) + elevator

Fair warning:
older people may forget stuff... including the stove they just started cooking breakfast/dinner.

have smoke/CO detectors in place and check for still being in their place and functioning properly.....


Edited by pandus13 (12/13/17 03:19 PM)
Edit Reason: smoke detectors
_________________________
16 Golf SportWagen
13 Mazda5
08 Yaris
04 Elantra
95 accent
95 mystique
97 concorde

Top
Page 1 of 3 1 2 3 >