Weird question, is this a bad idea?

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Weird question, is this a bad idea?

Lam N.
Rental Property Investor · Troy · Member since 2017 · 175 posts · 271 votes

I currently drive a beat-up old minivan with 240K miles on it.  Yeah, I sacrificed myself to jump-start my rental business.  I plan on buying the Tesla Cybertruck as my main vehicle.  

Recently, a thought came to me.  Is it a bad idea to get the cybertruck and then let the tenants see me driving in it?

Ok, hear me out.  Every time the cybertruck is mentioned, I always hear people saying it must cost $120K.  It looks expensive.  But the thing is it's only $40K.  One of my tenants drive a $70K truck, so... But that doesn't matter because people keep thinking Tesla = rich man's toy.

For the past year, there's been a lot of hate for landlords flying around.  A thought occurred to me that tenants seeing me drive what they think is a $120K vehicle might create resentment.  I'm afraid they might start thinking "so, this is what my rent is going toward..."

Is this fear warranted or am I over thinking it?  

A possibility is I could continue to drive my old minivan whenever I have to go to a tenant's place and only drive the Cybertruck strictly for pleasure.  A friend suggested this to me.

What do you think?  Do I have to worry about this perception or am I just overthinking this?

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Jonathan StyerBusiness Member
Real Estate Broker · Columbus, OH · Member since 2018 · 330 posts · 396 votes
5y

You know your tenants better than anyone on BP. If you're worried about it just drive the minivan when you go around like your friend said. As you grow, you're not going to really be able to worry about what the tenants think of you, this is a business. Treat them fairly and expect the same and anything outside of that is just noise. 

Styer Real Estate Professionals4.941 Reviews
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  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    5y

    @Lam N.  do you rent in the hood where your truck might be stolen or is this all about perception?   I usually don't worry about perception just if I feel like it is a safety risk.     Some tenants may see this as a negative but how what can  you do?   The truck is a lot less expensive then the house you rent to them.  Frankly , they may feel this way no matter what new vehicle you buy. 

    6Reply
  • Bjorn AhlbladPro Member
    Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
    5y

    I think your concern is warranted. When I drove a Porsche I never took that vehicle to one of our rentals. I'll have to look into the Cybertruck I thought they would be way more expensive!

    9Reply
  • Jonathan StyerBusiness Member
    Real Estate Broker · Columbus, OH · Member since 2018 · 330 posts · 396 votes
    5y

    You know your tenants better than anyone on BP. If you're worried about it just drive the minivan when you go around like your friend said. As you grow, you're not going to really be able to worry about what the tenants think of you, this is a business. Treat them fairly and expect the same and anything outside of that is just noise. 

    Styer Real Estate Professionals4.941 Reviews
    WebsiteView Page
    15Reply
  • Lam N.
    OP
    Rental Property Investor · Troy · Member since 2017 · 175 posts · 271 votes
    5y
    Originally posted by @Colleen F.:

    @Lam N.  do you rent in the hood where your truck might be stolen or is this all about perception?   I usually don't worry about perception just if I feel like it is a safety risk.     Some tenants may see this as a negative but how what can  you do?   The truck is a lot less expensive then the house you rent to them.  Frankly , they may feel this way no matter what new vehicle you buy. 

     No, I don't rent in the hood.  Getting it stolen won't be an issue at all.  I'm just worried about perception.  I guess I am being extra careful about perception nowadays due to the cancel culture we are in.  

    Literally, every time I mention to anyone about the Cybertruck I preordered, they always say "oh wow, you must be rich for paying $120K for that".  I have no idea why people think that thing cost that much.  But if my friends and relatives are all under the impression that the Tesla Cybertruck will cost in the neighborhood of $120K, then I think it is a safe bet that my tenants will feel that way as well.

    4Reply
  • Lam N.
    OP
    Rental Property Investor · Troy · Member since 2017 · 175 posts · 271 votes
    5y
    Originally posted by @Bjorn Ahlblad:

    I think your concern is warranted. When I drove a Porsche I never took that vehicle to one of our rentals. I'll have to look into the Cybertruck I thought they would be way more expensive!

    See?  Even you thought it costs way more than what it actually costs.  Everybody always get the impression it costs north of $100K.

    2Reply
  • Lam N.
    OP
    Rental Property Investor · Troy · Member since 2017 · 175 posts · 271 votes
    5y
    Originally posted by @Bjorn Ahlblad:

    I think your concern is warranted. When I drove a Porsche I never took that vehicle to one of our rentals. I'll have to look into the Cybertruck I thought they would be way more expensive!

     Easier said than done.  My minivan is dying.  I'm bringing it in this Friday to have all the wheel bearings replaced because they are going bad.  My original intention of getting the Cybertruck is to use it as a work vehicle.  

    1Reply
  • Joe VilleneuvePro Member
    Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
    5y

    You're looking at this backwards.  If I'm the tenant, I'd be more concerned about my landlord driving up in a van ready to fall apart, than an expensive car.  Perceived or not.  

    13Reply
  • Lam N.
    OP
    Rental Property Investor · Troy · Member since 2017 · 175 posts · 271 votes
    5y
    Originally posted by @Joe Villeneuve:

    You're looking at this backwards.  If I'm the tenant, I'd be more concerned about my landlord driving up in a van ready to fall apart, than an expensive car.  Perceived or not.

     LOL why?

    1Reply
  • Joe VilleneuvePro Member
    Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
    5y

    If the tenant feels/knows they are paying the going rate for their rent in the area, it won't matter to them what you use the money for.

    If, however, you drive up with a piece of $h17 van, that tells them you can't handle your money, you aren't making enough money, and/or you are on the edge of financial trouble...and they could be living in a house that is about to be foreclosed on.

    7Reply
  • Bjorn AhlbladPro Member
    Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
    5y

    Cybertruck sounds awesome. I have a 2012 Tundra in perfect shape if I sell that and my wifes car I can get the dual motor model! Hell ya!!

    1Reply
  • Eric Gerakos
    Investor · Costa Mesa, CA · Member since 2016 · 1k+ posts · 1k+ votes
    5y

     Basing your life choices on the perception of others is never a good idea. I'm not comfortable with you driving anything but a 1972 Pinto......

    8Reply
  • Ian WalshBusiness Member
    Lender · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
    5y

    Its likely whatever you make of it.  Personally I would take option B and continue to drive the 240k mile truck.

    3Reply
  • John Clark
    Member since 2018 · 1k+ posts · 1k+ votes
    5y

    "Is this fear warranted or am I over thinking it? "

    -------------------------------------------------------

    Overthinking. Whenever anyone questions your purchases or lifestyle, just tell them to become landlords. Once they see how much of a bargain they're getting renting your place, they'll shut up.

    3Reply
  • Max T.
    Investor · Philadelphia, PA · Member since 2015 · 3k+ posts · 3k+ votes
    5y

    @Lam N.

    Production has not even started yet 😂🤷‍♂️🤦‍♂️

    5Reply
  • Chilly Nathan
    Rental Property Investor · Sacramento, CA · Member since 2021 · 13 posts · 12 votes
    5y

    @Lam N. I always downplay my wealth to anybody, especially my tenants. Thats just my opinion. When i drove my audi up to my triplex i always felt guilty. Now i drive a volvo it seems more understated...

    4Reply
  • Scott M.
    Real Estate Broker · Rochester Hills, MI · Member since 2009 · 2k+ posts · 2k+ votes
    5y

    Your fear is valid.  Problem is you can't control what anyone thinks.  No matter what kind of car you roll up in, clothes you wear, how you speak, how you gesture everything may be interpreted because sometimes that is what we humans do.

    Some will see it just as you fear as the rich greedy SOB landlord here to collect pennies from the minions.  Some may see it as super cool and be a great ice breaker for you.  For some you may even be an inspiration as they may inspire to own a cybertruck one day.  I have been doing this for over 20 years and in that time I have rolled up in absolute junkers (I keep my cars way to long) and 1 semi new (was 2 years when I bought it).  I have never thought about it as this isn't something I think about personally but yes, your fears are valid.  some will think bad of you but some will think positive of you and most will not think anything except, **** the landlord is here.  

    3Reply
  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    5y

    My tenant was telling me about his old landlord, a well known realtor in town, and he said "he had lots of money, he drove a Porsche". I happen to know the Porsche was used and probably cost about as much as the leased car my tenants wife drove. Yes your tenants will draw conclusions based on the vehicle you drive up in. Even as a landlord, we draw conclusions quickly. If you had a contractor show up to quote a job in an $80K new truck, then another shows up in a 10 year old white Ford Econoline van, what conclusion would you come to when the first bid was much higher?

    As far as the Cybertruck, I personally love it, but I see two problems. First of all, you won't be able to get one delivered for two years at least. They have a million on back order and the plant isn't even producing them yet. Even when they do start production, they will start with the higher end versions first. Second issue is I doubt it will cost $40K. The Model 3 launched at $35,000 and they filled the low cost version orders last, then raised the price. The cheapest Model 3 is over $40K now. Even if they hold to the $40K price, that is without options like no all wheel drive, smaller battery, lower towing capacity, etc.

    Personally, I say drive what you want to drive. Tenants will draw whatever conclusions they want to draw. If they complain that you have too much money, just tell them "you won't believe what this car payment is, so NO you don't have money"...

    4Reply
  • Lam N.
    OP
    Rental Property Investor · Troy · Member since 2017 · 175 posts · 271 votes
    5y
    Originally posted by @Max T.:

    @Lam N.

    Production has not even started yet 😂🤷‍♂️🤦‍♂️

     Of course it hasn't.  Are you suggesting I should put off thinking about this until the truck gets delivered to me?

    1Reply
  • Max T.
    Investor · Philadelphia, PA · Member since 2015 · 3k+ posts · 3k+ votes
    5y
    Originally posted by @Lam N.:
    Originally posted by @Max T.:

    @Lam N.

    Production has not even started yet 😂🤷‍♂️🤦‍♂️

     Of course it hasn't.  Are you suggesting I should put off thinking about this until the truck gets delivered to me?

     Yeah!

    2Reply
  • Lam N.
    OP
    Rental Property Investor · Troy · Member since 2017 · 175 posts · 271 votes
    5y
    Originally posted by @Max T.:
    Originally posted by @Lam N.:
    Originally posted by @Max T.:

    @Lam N.

    Production has not even started yet 😂🤷‍♂️🤦‍♂️

     Of course it hasn't.  Are you suggesting I should put off thinking about this until the truck gets delivered to me?

     Yeah!

     Actually, you can take out cybertruck and insert just about anything in there.  My next car will definitely be something bigger and not a minivan.  So, anything, really, will fit into my concern.

    1Reply
  • Jim K.
    Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes
    5y
    Originally posted by @Lam N.:
    Originally posted by @Max T.:
    Originally posted by @Lam N.:
    Originally posted by @Max T.:

    @Lam N.

    Production has not even started yet 😂🤷‍♂️🤦‍♂️

     Of course it hasn't.  Are you suggesting I should put off thinking about this until the truck gets delivered to me?

     Yeah!

     Actually, you can take out cybertruck and insert just about anything in there.  My next car will definitely be something bigger and not a minivan.  So, anything, really, will fit into my concern.

     Lam, I've said this at least a dozen times on this website. If you successfully self-manage C-class properties, especially long-term low-cost C-properties, one of your prime life choice is going to have to be to hide with pride. Never outdrive, outdress, or outcrib your tenants. It will make rent collection go a lot smoother. You are dealing with people who have deep issues. The job will make you rich. Success breeds resentment among poor, damaged people.

    Flashing the wealth you've built off their hard-earned rent in your pocket every month in their faces is a BAD life choice that you will eventually come to regret. Buy a used car with some wear on it. Make a habit of never talking about your acquisitions, your vacations, your small life victories with your tenants. They need to see a consistently morose man who freely shares that he's only a step away from bankruptcy when asked. Take abundant pictures on your phone of all the dirty jobs you have to do. Share them at the drop of a hat.

    To explain vacations and where your money goes, make up a desperately sick relative undergoing expensive treatment not covered by insurance. He gets worse every time you fly out to the experimental clinic to see him. You were stuck next to a three-hundred-pound drunk in cattle class all the way there and a screaming, projectile-vomiting baby all the way back.

    Be smart. If these people were wholly rational and consistently made good choices, they woud not be your tenants. Your money comes steeped in human misery. Play your cards right and you'll get rich, play them wrong and you'll get curb-stomped out of this business.

    14Reply
  • Eric James
    Investor · Malakoff, TX · Member since 2017 · 2k+ posts · 2k+ votes
    5y
    Originally posted by @Joe Villeneuve:

    If the tenant feels/knows they are paying the going rate for their rent in the area, it won't matter to them what you use the money for.

    If, however, you drive up with a piece of $h17 van, that tells them you can't handle your money, you aren't making enough money, and/or you are on the edge of financial trouble...and they could be living in a house that is about to be foreclosed on.

    That very well could be what they would think. Even though the truth would be the opposite.

    1Reply
  • Suzanne Ludlum
    Investor · Fredericksburg, VA · Member since 2019 · 37 posts · 17 votes
    5y

    @Lam N. As you grow your business, have all the rentals handled by property managers and they can drive whatever car they want to the house.

    1Reply
  • Henry Lazerow
    Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
    5y

    Who cares. Just buy whatever car you want. I have a C7 corvette my tenants see it and are like cool car. 

    5Reply
  • Joe VilleneuvePro Member
    Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
    5y
    Originally posted by @Eric James:
    Originally posted by @Joe Villeneuve:

    If the tenant feels/knows they are paying the going rate for their rent in the area, it won't matter to them what you use the money for.

    If, however, you drive up with a piece of $h17 van, that tells them you can't handle your money, you aren't making enough money, and/or you are on the edge of financial trouble...and they could be living in a house that is about to be foreclosed on.

    That very well could be what they would think. Even though the truth would be the opposite.

    Not necessarily.  I would bet more often than not, it to be true.  I know if someone rolled up in a crapmobile, I wouldn't hire or work with them.  They don't have to have a Porche, but the vehicle must look good and be in good shape.  That vehicle is a version of "first impression", and there is no rationalization of economic priorities that would change my way of thinking.  If for no other reason, I would be very worried about the car breaking down.  Also, if the vehicle looks like that, what kind of work do they do?  That vehicle could very well represent the same pride they have in their work.

    1Reply
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