Anyone here own rental property(s)?

[alaskanseminole]

The older I get the less and less I want to be a W-2 employee. If I'm being honest I'd like to own several rental properties and one actual bed and breakfast I run with Mrs. Alaska. I have enough income via the VA and my USAF pension to cover my day-to-day bills, so my gut says the risk should be low enough to just go for it.

Any here care to share their experiences?

 

[HawkMachine]

I have a condo I've rented for almost 20 years.

Has been a great experience.

Bought it brand new so there's been very little improvements needed which has been good. Replaced washer and fridge is all I think.

Since it was new, the amount of rent is higher so we get great tenants which makes life easier.

I'd hate to have a place renting to lower income. That would be a nightmare.

 

[BanjoSaysWoof]

Have a plan for….

Vacancies (turnover costs, turnover maintenance, turnover process)

Repairs

Headaches…. So depending on what you buy determines your level of headaches. I am at a point where it’s one or two bedroom condos near hospitals. Residents need places to live, are never home, and leave every few years for a new tenant who is almost identical.

I earn a lower yield but I also am way less stressed out.

 

[nolesincebirth]

I have an Airbnb we bought as a vacation home and STR when we don’t use. It’s only been a few months and we’re still new. I have a property management company handle most things. It’s, ok. It’s a bit weird having strangers use my house. I should’ve bought a place I didn’t want to use and had no emotional attachment to.

We’ll see how long we keep it going but I won’t be surprised if we shut down the STR aspect and just keep it for us.

 

[SolarHawk]

Anyone thinking of real estate investing should give "bigger pockets" a listen. It's a podcast that focuses on all aspects of real estate. The good, the bad, and the ugly. Lots of good info and there's like a million podcasts to choose from. They've been doing it for quite a while.

 

[Hoosierhawkeye]

I havn't owned rental property but I would suggest that perhaps this is something that you go into slowly. Buy one, see how it goes for 6 months to a year, maybe even a little bit more. Then if you like how things are going and you feel confident in what you are doing, maybe go for another.

It seems unwise to go from nothing and go all in and suddenly own several properties.

Now unpopular opinion. . . I honestly think we should have laws that discourage but don't totally eliminate rental property investments. Maybe higher property taxes on rental properties or something.

My big issue is that with the obscene cost of housing people who own rental properties are holding up a unit that a family who would actually live in it and gain some wealth from owning their own home can't buy. The bigger issue isn't your problem of course, but it's something that bugs me.

 

[Fijimn]

I think the short-term rental market is too saturated now, unless you are looking at high velocity areas (South Padre, etc). Long term rentals seem to be a pain. We are dealing with my wife’s uncle’s estate and trying to evict a tenant. My advice is to get a good eviction attorney on retainer and have him/her to everything.

 

[bhawk24bob]

Yes and it's not just sitting back and collecting a check every month, you will still end up having to deal with your property manager if you don't want to manage it on your own.

With how convoluted rental rights have become and how far they've drifted from uniformity, I don't suggest doing it unless you have a law degree and can divorce emotion from it. Almost every bad story that you hear and every bad situation a property owner/landlord finds himself in is self-inflicted due to emotion and ignorance of local law.

 

[seminoleed]

We own 2 rentals down here, and 2 more back in Atlanta. They can be a hassle, but if you scrutinize your tenants carefully, if can be very profitable. You'll occasionally have one slip through and have to evict, but it's rare if you do it right.

 

[SeaPA]

We have a couple of rentals - a townhouse in a neighboring community, and a condo in Tampa. With the condo, we have a property manager who takes care of finding a new tenant when one leaves (he also does the move-in and move-out inspections, and oversees any repairs, painting, etc. when a tenant leaves). He charges a reasonable fee for that; he doesn't charge an ongoing monthly fee since he doesn't field the calls for needed repairs during the term of a tenant's lease - they call me directly. It's worked well.
The other we pretty well handle on our own - finding tenant, lining up repairs, etc. It's more of a PITA than the other.
One suggestion - if you do it, pre-screening tenants is vital & helps avoid issues down the road.

 

[ping72]

I think the short-term rental market is too saturated now, unless you are looking at high velocity areas (South Padre, etc). Long term rentals seem to be a pain. We are dealing with my wife’s uncle’s estate and trying to evict a tenant. My advice is to get a good eviction attorney on retainer and have him/her to everything.

AirBnB is not going to be a thing (at least in its current state) in 5-10 years.

 

[SeaPA]

I havn't owned rental property but I would suggest that perhaps this is something that you go into slowly. Buy one, see how it goes for 6 months to a year, maybe even a little bit more. Then if you like how things are going and you feel confident in what you are doing, maybe go for another.

It seems unwise to go from nothing and go all in and suddenly own several properties.

Now unpopular opinion. . . I honestly think we should have laws that discourage but don't totally eliminate rental property investments. Maybe higher property taxes on rental properties or something.

My big issue is that with the obscene cost of housing people who own rental properties are holding up a unit that a family who would actually live in it and gain some wealth from owning their own home can't buy. The bigger issue isn't your problem of course, but it's something that bugs me.

I don't know how it is elsewhere, but in Florida rental property owners certainly pay higher property taxes for multiple reasons.

* On your personal residence, you get a "homestead exemption" that exempts $50k of the value from property taxes.

* The "save our homes" law (that limits the amount of annual increase in assessed value to the lower of 3% or the prior year's inflation rate) applies only to your primary residence, not to rental property.

As an example, the townhouse rental that I own is identical to the one next to it (built at the same time, exact same floorplan, same builder - it is literally identical). However, my property taxes are very close to double what the neighbor pays (it is the owner's principle residence).

 

[lucas80]

Have a plan for….

Vacancies (turnover costs, turnover maintenance, turnover process)

Repairs

Headaches…. So depending on what you buy determines your level of headaches. I am at a point where it’s one or two bedroom condos near hospitals. Residents need places to live, are never home, and leave every few years for a new tenant who is almost identical.

I earn a lower yield but I also am way less stressed out.

I have two friends in IC who have done this. They own on the west side of the river, and only rent to grad students, law students, and people who will be at UIHC for a year or two. Everything they own is within an easy walk/bike ride from UIHC, Boyd Law School, etc...

 

[hydro2.0]

Yes, I own part of a commercial property and co-owner two residential houses. It’s been “fair.” Some months are a PITA other months you never hear from the tenants.

I would recommend being “somewhat” handy and having a decent understanding of how to fix little issues but find someone you trust for big issues. For example one of our properties the furnace quit (shit was old) and 6,000 dollars letter we were good. We make sure to have enough money saved up for expenses like that.

Finding good people to rent your place is also a hassle but a good one is magical

 

[Hoosierhawkeye]

I don't know how it is elsewhere, but in Florida rental property owners certainly pay higher property taxes for multiple reasons.

* On your personal residence, you get a "homestead exemption" that exempts $50k of the value from property taxes.

* The "save our homes" law (that limits the amount of annual increase in assessed value to the lower of 3% or the prior year's inflation rate) applies only to your primary residence, not to rental property.

As an example, the townhouse rental that I own is identical to the one next to it (built at the same time, exact same floorplan, same builder - it is literally identical). However, my property taxes are very close to double what the neighbor pays (it is the owner's principle residence).

I believe a similar thing is true in Indiana but I think they need to increase it because it's not working. Or maybe the property taxes isn't the way to go. Fact is all sorts of boomers who've made all their money are sitting on rental properties while the young can't afford to buy homes so the young shovel even more of their money to the boomers in rent.

This isn't the only problem with the housing market but it's a problem that needs to be addressed.

 

[bunsen82]

It comes down to the quality of the renters. If you are dealing with the bottom of the barrel it will never work out. Fires, behind on payments, eviction issues, massive repairs.

 

[alaskanseminole]

AirBnB is not going to be a thing (at least in its current state) in 5-10 years.

How so? That's what I should have clarified in my OP. Interested in AirBnB/vrbo properties.

 

[cfbfan23]

We’ve got a bunch of rental properties. Some houses, some townhomes and some multi-family. It’s not easy. If you’re handy and the properties are local, you’ll be ahead of the game.

Screen your tenants as well as you can.

Build up a good reserve fund for each property.
Stuff breaks and there can be periods of vacancy.

We put ours into LLCs

Be firm with your renters. Set proper expectations early.

If you have a good renter, do what you can to keep him/her there as long as possible.

You’re going to get a dud or two. Just accept it. Eventually, they leave.

 

[Old_wrestling_fan]

Have a plan for….

Vacancies (turnover costs, turnover maintenance, turnover process)

Repairs

Headaches…. So depending on what you buy determines your level of headaches. I am at a point where it’s one or two bedroom condos near hospitals. Residents need places to live, are never home, and leave every few years for a new tenant who is almost identical.

I earn a lower yield but I also am way less stressed out.

I don't personally own residential rental property, but I know several people very well who do and short, short version...this ^^ advice is great. (I do own commercial property that is rented out.)

Those that have "general population" and/or lower income renters have grown to hate it, even getting rid of their properties. Those that have good tenants sail right along and have been doing it successfully for a long time. Figure out how to attract good renters...bottom line.

 

[Old_wrestling_fan]

I have two friends in IC who have done this. They own on the west side of the river, and only rent to grad students, law students, and people who will be at UIHC for a year or two. Everything they own is within an easy walk/bike ride from UIHC, Boyd Law School, etc...

We might have some mutual friends.

 

[nolesincebirth]

How so? That's what I should have clarified in my OP. Interested in AirBnB/vrbo properties.

I bought mine through a LLC.

I have a property management company handle pretty much everything. They charge 25%.

I don’t make enough to cover all of my expenses. I’m guessing we’re at the 50% range so far.

Things need repaired/replaced.

 

[alaskanseminole]

I don’t make enough to cover all of my expenses. I’m guessing we’re at the 50% range so far.

Well, that defeats the purpose unless you use the property as well.

Our neighbors bought a vrbo down in Corpus Christi as their vacation home and rent it out when they don't have it blocked off. Their goal is simply to break even so they're not paying for it. Seems like a sound investment.

 

[ping72]

How so? That's what I should have clarified in my OP. Interested in AirBnB/vrbo properties.

It’s anecdotal, but there seems to be a huge backlash against them. The fees and nickel and diming, forcing you to deep clean before you leave, creepy owners with hidden cameras, etc. It’s no longer a better deal than a hotel except maybe for a giant multi-family vacation rental.

Just do a quick scan of Reddit, Twitter, etc. Or ask around… I know quite a few people who will never use it again.

There was huge online celebration over the article with the Airbnb slumlord in Phoenix complaining that almost all of his airbnbs were not booked during the Super Bowl.

 

[nolesincebirth]

Well, that defeats the purpose unless you use the property as well.

Our neighbors bought a vrbo down in Corpus Christi as their vacation home and rent it out when they don't have it blocked off. Their goal is simply to break even so they're not paying for it. Seems like a sound investment.

That’s kinda our plan as well. Our primary purpose was for our use and then STR to help with some of the costs.

I could’ve gotten my numbers better. My rec to do that would be:
1 a location that has almost or year round tourist activity,
2 no or minimal personal use,
3 manage it yourself and have your own crew for maintenance and cleaning, and
4 you’ve got to pay cash or somehow beat current rates. Property is already high right now and rates make it difficult to recoup expenses in rentals

 

[nolesincebirth]

It’s anecdotal, but there seems to be a huge backlash against them. The fees and nickel and diming, forcing you to deep clean before you leave, creepy owners with hidden cameras, etc. It’s no longer a better deal than a hotel except maybe for a giant multi-family vacation rental.

Just do a quick scan of Reddit, Twitter, etc. Or ask around… I know quite a few people who will never use it again.

There was huge online celebration over the article with the Airbnb slumlord in Phoenix complaining that almost all of his airbnbs were not booked during the Super Bowl.

I’ve seen Reddit and the stories. But I stay in Airbnb all of the time (and I obviously own one as mentioned in this thread). There are so many that there are going to be horror stories. But I’ve had nothing but good experiences.

And I can’t get my family and another family adequate comfort in a hotel for $500 a night. Where I can cook, hang out, sit on a deck, park right outside, etc. Despite the various fees, I still contend you get more value with an Airbnb.

If I’m traveling for a night or two, and by myself, it’s hotel every time. But for family vacations or multi-family vacations, Airbnb is great.

And I don’t make people clean before they leave. That’s why I charge a cleaning fee.

 

[alaskanseminole]

It’s anecdotal, but there seems to be a huge backlash against them. The fees and nickel and diming, forcing you to deep clean before you leave, creepy owners with hidden cameras, etc. It’s no longer a better deal than a hotel except maybe for a giant multi-family vacation rental.

Just do a quick scan of Reddit, Twitter, etc. Or ask around… I know quite a few people who will never use it again.

There was huge online celebration over the article with the Airbnb slumlord in Phoenix complaining that almost all of his airbnbs were not booked during the Super Bowl.

Definitely seems to be a mixed bag. We have a close friend who refuses to use them for the reasons you've listed above, cleaning, organizing, trash, etc.

My experiences have been really good and we rent them 2-3x per year. We have one we use in Port A that has a "chore list" for check out, but it's pretty easy and stuff we'd probably do any way. If it weren't for the AirB&B model, we'd have been screwed for our upcoming FSU trip in Oct. Even booking 6+ months in advance all the hotels were booked (sans the roach motels). I checked on Monday out of curiosity and a few places were available via the Bonvoy site, but it was like 2K per night!

Additionally, there's just something about enjoying your Colorado family vacation in a 2 bedroom with giant porch and a full kitchen as opposed to a hotel where every meal is out.

Our recent stays:

Guesthouse in Glenwood Springs · ★4.97 · 2 bedrooms · 2 beds · 1 bath

Dos Adobes Guesthouse

www.airbnb.com

Gem in Roswell Neighborhood! - Central Colorado Springs

Polk Street - $128 avg/night - Central Colorado Springs - Amenities include: Internet, TV, No smoking ✓ Bedrooms: 2 ✓ Sleeps: 6 ✓ Minimum stay from 2 night(s) ✓ Bookable directly online - Book vacation rental 3167585 with Vrbo.

www.vrbo.com

 

[General Tso]

We have one that we rent to a relative. We charge probably 2/3s what the maket rate would be, but in return we get a known tenant who is handy and repairs/replaces stuff if we buy the materials. Overall decent setup.

 

[alaskanseminole]

Airbnb Host Threatens To Find Tenant's Home Address Who Left Him A 4-Star Review – 'I Have Your Picture, Your Name, And Your Number'​

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Airbnb Host Threatens To Find Tenant's Home Address Who Left Him A 4-Star Review – 'I Have Your Picture, Your Name, And Your Number'

Airbnb refused to act until the police got involved.

www.yahoo.com