All Forum Posts by: Tim Bee
Tim Bee has started 16 posts and replied 176 times.
Post: What's your average net income per rental property?
- Investor
- California
- Posts 179
- Votes 97
Thanks for the input. Yea I figure Ill just keep plugging away.
Im 46, and a RN. I have a govt pension coming at age 50 but other than that I don't buy stocks, bonds, crypto etc. I just stick to real estate. My total mortgages total $1604 a month and have about 14 years left. I should have been more aggressive getting loans back in the 2010s but oh well. So I basically just buy them cash now in the mid 200 range. Lets hope for a market crash so we can all get a bunch more :)
Post: What's your average net income per rental property?
- Investor
- California
- Posts 179
- Votes 97
Quote from @V.G Jason:
Quote from @Tim Bee:
My plan was just to keep buying as many as I can and just live off the rents. IDK, maybe there is a better plan? I'm up to 16 total now and get about one a year. I started buying in 2008.
Your strategy isn't bad, it's what a lot of people here are seeking. And in fact, you're doing better than almost all of them. The question really isn't how is it subsidizing your life versus how much it could cost you. I would include loans, simply cause those aren't going to be paid by anyone but you. I get it, that your tenant is off-setting, but when push comes to shove you're on the hook. If you die, whose responsible? Other downsides, are you looking at those? I think the passivity nature of the income is great, granted how limited that may be in it's nature, it's really can you still cook if the kitchen is on fire. I think risk management is arguably even more important for you at this stage. I would not change the accumulation phase-- you're doing amazing.
How old are you?
What's your income outside of this?
What else do you have saved?
What are your other investments?
How much debt do you have?
How many do you support, and how many more do you intend to support?
What kind of lifestyle do you want to live?
Post: New investor , Going to buy my first property this is year !!!
- Investor
- California
- Posts 179
- Votes 97
Quote from @Alex Larcheveque:
Congrats! Will you be investing in CA or out of state?
Post: What's your average net income per rental property?
- Investor
- California
- Posts 179
- Votes 97
My plan was just to keep buying as many as I can and just live off the rents. IDK, maybe there is a better plan? I'm up to 16 total now and get about one a year. I started buying in 2008.
Post: What's your average net income per rental property?
- Investor
- California
- Posts 179
- Votes 97
Quote from @V.G Jason:
Quote from @Tim Bee:
I see your points. Thanks for the reply. Let me specify. Per door in my case would be single family, stand alone, houses in CA. Just asking this question because my average rents are 1900 and excluding any loans my net income on average (including vacancy, rehab and all the other obvious costs) is about 1300/mo per house.
Post: What's your average net income per rental property?
- Investor
- California
- Posts 179
- Votes 97
I see your points. Thanks for the reply. Let me specify. Per door in my case would be single family, stand alone, houses in CA. Just asking this question because my average rents are 1900 and excluding any loans my net income on average (including vacancy, rehab and all the other obvious costs) is about 1300/mo per house.
Post: What's your average net income per rental property?
- Investor
- California
- Posts 179
- Votes 97
Quote from @Leo R.:
@Tim Bee the net is almost meaningless without knowing what "per door" means.
A "door" could be a mobile home, or a 10k sq ft luxury mansion.
Indeed, they often mention on BP podcasts that some investors will brag about their door count without disclosing what they mean by a "door"...10 doors might be an impressive portfolio if it's all A grade luxury homes, or it might be pretty unimpressive it's a crumbling D grade apartment complex....
$300/mo cashflow could be a home run for the mobile home, but could be a complete disaster for a mansion.
Post: What's your average net income per rental property?
- Investor
- California
- Posts 179
- Votes 97
Ok, yea that was more what I was thinking at around the 50-80% mark excluding loans. Mine are probably closer to about 60% net of total rent so thinking that puts me at about the average.
Post: What's your average net income per rental property?
- Investor
- California
- Posts 179
- Votes 97
Wow! $100 per door excluding mortgages/loans. So if you rent out a home for $2000/mo that would mean the average expenses come out to $1900/mo. Definitely time to fire that property manager :)
Post: New investor , Going to buy my first property this is year !!!
- Investor
- California
- Posts 179
- Votes 97
The 1% rule simply means that the total monthly rent should be equal to or greater than 1% of the purchase price. For example if you buy a house for 200K the monthly rent should be at least $2000/mo. A lot of people will buy a home for lets say 250K and rent it out for 1800/mo. This would be a terrible deal and should not be purchased. So, keep looking and don't ever settle for less than the 1% rule. Because there are a TON of those deals out there. Even in California!