All Forum Posts by: Account Closed

Whats the spread between long term lease and expected short term net profit? Whats the breakeven occupancy? You will have to furnish and equip the place so that would be the upfront cost. If I was the property owner Id rather rent to a regular tenant. Whats the upside for me to let you do this? Unless you are willing to pay significantly more than market. And then there's HOA and city regulations etc. The owner still bears liability for all this as well as general liability. Doesn't seem like a good idea from the owners POV.

Nobody can predict even 5 years out let alone 50. Your plan has to be flexible.Tract houses built in 50s, 60s and 70s exposed to midwest weather don't age well. If you buy a home built in the 70s and hold another 30 years it will be 80 years old! 

A lot of responses here are the reason landlords get such a bad rap. Basic ability to use the kitchen should be assumed in the rent. As a landlord you have to provide it. Asking the tenant to use hot plates or microwaves or toasters is ridiculous. Unless appliances are not provided as part of the rental, you need to do what it takes to replace the broken oven/stove in a few days at most. There are PEOPLE living in your properties. PEOPLE that pay hard earned money so you can make a profit. I am really disgusted by the attitude of some of the landlords here.

I have owned a portfolio of properties out of state and made good money. However I would caution against remote BRRRR. You are opening yourself up to a whole extra set of risks and for little benefit on a sub 100K house. Your cost to rehab are going to be higher than a high volume local flipper can manage. It will be tons of stress and headache to manage contractors from a distance. You will open yourself up to being ripped off in a million ways. And for what? You may pay a $10K premium over doing it yourself IF you manage to do it well. Most likely there will be no cost advantage at all and a lot more risks. Im not saying you cant do a cosmetic paint/carpet overhaul. But a serious rehab is a bad idea.

My end game (already reached) is a diversified portfolio that generates enough cash for my lifestyle at the minimum risk. That can include paid of rentals, other passive investments, dividend stocks etc etc. I believe the purpose of your wealth is to enable your life. Simply maximizing the number seems pointless to me. And taking extra risk (like leverage) when you don't need it also doesn't make sense to me. The specific numbers depend on you. 

My townhouse in San Jose had an upcoming vacancy. It took 4 days to find a new tenant. At a slightly higher rent than the last one. So 

Insurance is a legal scam. Some ways to minimize the cost: 

1. Take the maximum deductible. You will not make small claims anyway and if you do they will jack up your rates and recover much more than they ever paid out.

2. Insure only up to the mortgage amount. That will satisfy the banks. Yes, you will lose your equity if the whole thing burns down but thats an unlikely scenario. 

If you have free and clear properties you can self insure. You still need liability coverage but you can ignore the structure. This works if you have a portfolio. For example if insurance costs about 1-2% of the value of a house and you have 5-10 properties you are paying the equivalent of one new house every 5-10 years. What is the risk of a house burning down every 5-10 years? 

Ok. So let me get this straight. You don't trust others on the internet but you want to remain completely anonymous and expect these other potential internet partners to trust you? Seriously, if you can't find someone on a google search how can you do any basic background screening?

BTW I agree that FB and other companies have zero regard for your privacy. But neither does the NSA and FBI and all the cameras on every street corner. To expect privacy in the modern world is unrealistic anyway.

No worries. Just be aware that the upfront buying cost is probably a minor factor in your total returns. On a $100K property you may have been able to save another 5-10K tops on the purchase. Over several years time that's not much.  How the property is managed, how many turnovers you get, how many nightmare tenants you get etc is the bigger swing factor. Some is a factor of the PM. Some is just blind luck. To get consistent returns I think you need at least 8-10 properties.

Not to rain on your parade but this is as much a 'WIN" as buying a few shares of GOOG on eTrade! You paid asking price online for an asset. It may or may not work out for you in the long run. Its an average kind of Turnkey deal.  I think its too early to tout the company based on this experience so far. See how it goes...