Quote:
Originally Posted by dreamingat30fps
I was in the landlord business for probably less than a year back around 2011. I had a condo I was upside down on thanks to 2008. We had no desire to stay there more than a couple of years and we had already been there like 5+ and the area went to shit with the 2008 crash, several places turned into like low income housing. Anyways we needed to GTFO.
Anyways bought our current home and attempted to rent the condo. Never again. What a pita!
I have also looked into rentals as potential income stream but as a layman who doesn't know anything about that business. The returns just seem like crap. If I had a $500k property I would have to rent it out for over $4k/mo to get 10% on my money and that's assuming no mortgage and not counting expenses, taxes etc. PLUS my time and hassle otherwise I would need a property manager which would eat into the revenue even more. My robo stock investments have done better than 10% on average since like 2016 and I don't do shit. Of course that's a way oversimplified example, but still with my limited hands on experience of the hassles of landlording... I would need waaaaay more than a 10% return to make it worthwhile.
Obviously there's people who make a lot of money on real estate but doesn't seem all that great for an average person. At least not for me and not at this time.
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We put our house on the rental market in early 2004 after moving into our current house. I used a property management firm to find a renter and collect the rent, etc. Near the end of the 1st year the management firm notified me that the tenant was late with the rent. So, I hopped in my car and paid a visit to our property. The tenant was long gone and the house was filthy. Their deposit covered the unpaid last month, but we still had to clean the house.
I called my management dude and told him to sell the house. We had lived in it for 20 years, plus the additional rental year, so the remaining mortgage was small plus the market was pretty strong. We came out of it okay. But never again.