Are rental properties still a good option when you are buying after 60? Are short term rentals better or flips? I have more drive and determination than time. Would love to hear from people in the same situation and anyone else who might have thoughts on the subject
I started at 61 with a partner 67. That was 3 1/2 years ago. Granted we had some money to start. We buy row homes in a blue collar area. We will close 12/29 on a 10 property package thru a bank bringing us to 50 units. We buy 3 br 1 ba 1100 sq ft properties geared for families. We prefer buying tenant occupied neglected under market rent properties. Most of our tenants are families and turnover is not an issue. Our profit is 200 a month per door. We have a woman who manages the portfolio and my partner still does 70% of repairs and rehabs.
The pandemic has caused some rent collection problems. We now budget 10% vs5% for vacancy. However property values have risen as in most parts of the country. We are in process of rehabbing a property we bought for 50,000 3 years ago at a cost of 40,000 and expect to sell the property for 125,000 net. If this goes well we will be seeking 50-75 monthly rent increases after February 1st and if tenant bulks we hope to rehab and sell the property.
The goal is to maintain a portfolio of 50. Buy 5 and sell 5 a year. With luck we will earn 150,000 a year thru sales and 120,000 -150,000 thru rental income. This is the plan. But plans change constantly due to many factors.