Owning rental property...worth it or too much hassle?

[ksharp01]

so many headaches. I was thinking of doing something like this but after seeing my boss buy several properties and the hassels he goes through, I have changed my mind. The one good thing about his is he has them listed under section 8 (I believe that is what its called) but every month he gets his checks from the states and doesn't have to worry about collecting from tenants. They have pre set amounts you qualify for based on room count and bathroom count.

 

[alien amp pharm]

if its ur only job it wont be THAT bad, otherwise everyone who rents out always bitches and has to deal with shitty ass people fucking up the houses/appartments

I mean I realize it will be aggrevating at times but if I have the mindset of "This is my full-time job" then it won't be nearly as bad.

Plus I can handle almost all the repairs, construction, maintenance myself. Actually it's quite fun and gives me an excuse to buy more tools

 

[digimon7068]

I mean I realize it will be aggrevating at times but if I have the mindset of "This is my full-time job" then it won't be nearly as bad.

Plus I can handle almost all the repairs, construction, maintenance myself. Actually it's quite fun and gives me an excuse to buy more tools

the real bitch is seeing people wreck shit that you care for. . .plus, once in a while you'll get a single mom/dad who decides that they don't wanna pay and evicting them is very difficult. . .

 

[batidora]

I will go for it, do your best (or 110%) and show them what you got.

 

[bran987]

68 units.. is there a mortgage on the building? You're splitting the Cash Flow 50/50 but are they actually going to GIVE you 50% ownership? If so it's a no brainer. But the cash flow I mean, if you clear $200/unit on 68 units that would be $6,800/month for you and an equal amount for your parents... but if you only clear $100/unit after everything is said and done i.e. repairs/vacancy/taxes/insurance/debt service and everything else etc. you're doing a shit job for just $3,400 which is shitty.

Unless of course they are deeding you 50% ownership, then take it of course. If it's just 50/50 cash flow split then you gotta get deeper into the #'s.

 

[alien amp pharm]

68 units.. is there a mortgage on the building? You're splitting the Cash Flow 50/50 but are they actually going to GIVE you 50% ownership? If so it's a no brainer. But the cash flow I mean, if you clear $200/unit on 68 units that would be $6,800/month for you and an equal amount for your parents... but if you only clear $100/unit after everything is said and done i.e. repairs/vacancy/taxes/insurance/debt service and everything else etc. you're doing a shit job for just $3,400 which is shitty.

Unless of course they are deeding you 50% ownership, then take it of course. If it's just 50/50 cash flow split then you gotta get deeper into the #'s.

Where did you get 68 from?

34 units X say roughly $500/mo = $17,000/mo

50% of $17,000 = $8,500

So I would make $8,500 per month.

Minus 50% of the taxes, maintenance, unrented apts, etc. Which I do not know how much at this point, but lets say I can clear $4000 per month. That seems well worth it. I could work a few hours per week and on my own time. I am my own boss and can sleep late each morning.

Not sure about the ownership, but I would guess they would give me part ownership, and eventually the entire thing when they are too old.

 

[bran987]

Where did you get 68 from?

34 units X say roughly $500/mo = $17,000/mo

50% of $17,000 = $8,500

So I would make $8,500 per month.

Minus 50% of the taxes, maintenance, unrented apts, etc. Which I do not know how much at this point, but lets say I can clear $4000 per month. That seems well worth it. I could work a few hours per week and on my own time. I am my own boss and can sleep late each morning.

Not sure about the ownership, but I would guess they would give me part ownership, and eventually the entire thing when they are too old.

oh I thought it was 2 34-unit buildings.

you mean the GPI is $8,500/month, and you are estimating NOI of around $4,000. Your parents probably keep a rent roll and log of expenses, no? that is the only true gauge you'll have.

Rent is only $500/month on a 2-bedroom? wowww... well good luck man

 

[alien amp pharm]

oh I thought it was 2 34-unit buildings.

you mean the GPI is $8,500/month, and you are estimating NOI of around $4,000. Your parents probably keep a rent roll and log of expenses, no? that is the only true gauge you'll have.

Rent is only $500/month on a 2-bedroom? wowww... well good luck man

Cost of living around here is very cheap. $500 is low balling. A lot will depend on the location and condition of the apts.

Honestly I do not know what percentage to expect for expenses. You are right, perhaps they know since they already own some.

Anyways, I think whatever the situation the money will be very good. It's the hassle and headache I was mainly worried with.

 

[The Shadow]

I think what Bran was trying to say and what I was hinting at earlier.....


imo - 500 per rental will not net you a lot of dough

 

[alien amp pharm]

I think what Bran was trying to say and what I was hinting at earlier.....


imo - 500 per rental will not net you a lot of dough

You would be suprised with cost of living where I live.

My parents nice 1 bedroom with washer/dryer hookup and free water in town minutes from campus goes for $350/mo. and they look practically new.