Quote:
Originally Posted by daquix
I was a landlord for many years.
My father-in-law owned 6 rental homes.
Good friend owns over a dozen.
If you want to learn more about it, Bigger Pockets forum is a great resource.
But here’s the quick summary. They make money sloooowly.
People rarely calculate their profits from rentals properly.
They don’t include depreciation, taxes, utilities, repairs, damage caused by the renter, insurance, mortgage or heloc, applicant costs, credit report costs, credit card transaction fees, vacancies, court fees, attorneys, etc.
If you profit $300+ per month on a rental, you’re in the TOP end of landlords.
Many people average around $100 to $150 true profit per rental per month.
I can think of many other things I’d rather invest $100k into.
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There are long term plays, short term plays and risky plays. They're all worth looking into. Real estate is as much a long term play as my Microsoft and Walmart stock.
The thing about real estate is everyone has to live somewhere. And they aren't making any more land. When the stock market crashes like it always does, your renters will still be paying you a monthly dividend.
Biggerpockets is a great site. One thing I'll point out is to get a 15 year note and pay it down in 10. I used to look for $200/mo profits on a 30 year note. All that did was make money for the bank.
I look at each rental as another 401K.