Where to "park" your rainy fund?

[Ble_PE]

Yea, I could never see myself being a landlord at all. Way too much effort goes into it and I would get tired of it. Plus, there's the horror stories like Snick's in-law's experiences.

 

[Capt Worley PE]

The horror stories I hear from my ILs about their renters...even the property screened variety....is enough for me never to enter that sort of situation.

Yeah, that and watching the renters in general.

Absolutely no way would I do this.

 

[mudpuppy]

My dad and brother have both been landlords. Based on their experiences, no way would I go down that road. My dad has had to evict people for nonpayment, and my brother has had to completely gut and re-do his rental twice. A responsible tenant is almost impossible to find.

 

[Capt Worley PE]

^^Responsible adults purchase a house.

That leaves...

 

[mudpuppy]

^^Responsible adults purchase a house.

That leaves...

While I agree with you, I think it also somewhat depends on the area. Areas with high home prices might be a different story. But around here houses are cheap, so . . .

 

[pbrme]

Based on similiar horror stories previously stated, I will always oppose owning rental property unless it's in storage units.

 

[Dexman PE PMP]

I really have no desire to be a landlord either.

Responsible adults purchase a house.

Which is why you include this as part of your rental agreement. Rent to own or lease to own contracts provide higher incomes to the landlord/owner, while transferring all of the maintenance to the tennant/buyer. The renter/buyer gives you a much larger deposit and a higher rent payment as a token of their seriousness to buy (and to provide additional incentive to take care of the place), and then it's up to the buyer to maintain the property.

Then, if the tennant/buyer doesn't want to buy or bails on the property, the owner/landlord is sitting on a lot more equity and typically has received enough $ that any damages are covered.

 

[snickerd3]

I always secretly hope mr snick parents get rid of the rentals ASAP...if something were to happen to mr snicks dad then it will become a huge mess to deal with....but the one that caught fire a couple years ago it straight profit every month to supplement their retirement. the other house is their old house which right next door to their current house and they haven't separated the land yet...that is the task for this year. Trying to find the best way to split it given the placement of the wells and septic fields.

 

[Dexman PE PMP]

The other thing to keep in mind is to hedge the risk of rental ownership through S-corps and LLC's. Last thing you need is to have a problem with a tennant and then have his lawyer learn you have several hundred thousand dollars worth of property for the taking...

 

[Judowolf PE]

I guess I'm a little spoiled, the wifes bro is general manager for the local car lot and a real estate agent, who knows just about everyone in a small town of like 3-4k folks and we live about 15 mins from there. He has info on most of the houses that are for sale and knows some of the history behind them, so I have a good source if there is mold, ect on the properties. This is also good since he is 30ish, knows most of the 20-40 range folks personally and most of their parents too, so knowing who you are possibily renting to is a little better than just winging it. i don't think I'd own a rental outside of this area, mostly good families outside of the meth heads...

 

[EAZY]

I tried slumlording and it sucks.

 

[ptatohed]

I have a rental SFR and one MFR (condo). I've never had a problem with tenants, luckily. I've pretty much always had the properties rented, always had good tenants and the properties are always left in good shape. It's the depreciation during the recession that makes me want to jump off a bridge. The house dropped in value about 50% from its peak (worth about 33% less than what I paid) and the condo dropped about 70% from its peak (worth about 55% less than I paid).

 

[roadwreck]

Invest in land... They aren't making more of it!!

Sure they are

 

[Capt Worley PE]

The Dutch have been making new land for centuries.

I think they made new land for an airport in Japan.

 

[wilheldp_PE]

Hong Kong built an island for their new airport. Dubai built the palm tree shaped islands and started on a group of islands shaped like the continents (last I checked, they ran out of money before completing those). There are lots of coastal cities that have expanded their land into the nearby water.

 

[roadwreck]

Typical engineers, we turn a financial discussion into a talk about moving dirt.

 

[Judowolf PE]

Typical engineers, we turn a financial discussion into a talk about moving dirt.

As an EE, I find this revelation to be shocking!

 

[envirotex]

I have never been sorry about any of the real estate investments that we have made, but like others have said not the best for emergencies. Cash is king, and immediate cash usually gives you the power to negotiate...

 

[Judowolf PE]

^ Not that I look to take advantage of the misfortunes of others, but having a little cash to take advantage of certain situations is always a nice option...

 

[Capt Worley PE]

Typical engineers, we turn a financial discussion into a talk about moving dirt.

As an EE, I find this revelation to be shocking!

As an ME, it gives me stress.