How many of you have rental properties? I am done maxing 401k, IRA and putting $ in index funds. But haven’t had the time to research investment properties or courage to pull the trigger. Missing out?

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Oh!!! I live at one of those

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No. Calm Down.

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if you live near a military base and can find personnel to rent the property, it removes most of the risk. Failure to pay is frowned upon by chain of command and they will drop the hammer on any renter you turn in for non payment or damages.

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The key is to thoroughly vet. Margins depend on what the housing market looks like in your area. Things to consider is it going to be a buy and hold, buy and flip, or buy and rent. It can be worth it. But if I can give any advice it is to go vacant longer to secure a good tenant if needed, it will save you headaches later. I charge 1 family under market but I rarely hear from them outside of rent day, they pay on time, and take care of the house. 👍

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We have 3 regular rentals and a vacation property - it’s a good revenue source - that said you can’t go into it thinking it is easy and carefree - it is not. Lots to consider including qualifying the properties you want to purchase, your target market (type of renter) you want, manage yourself or hire manager (we have property manager - I hate the people side so willingly pay to not have to do it) - how much renovation you are prepared to do on a new property and do you know how to do stuff ....

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Property management typically charges 10% per month - not a big bite - as I said it’s worth it for us - some people dont want to give up any $ for it - you have to decide if you are willing to do what it takes to manage it on your own

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But on a serious note, if you are interested in it, it’s not a bad idea. A lot of risk, yes.. but it seems like this is something you enjoy?

It can be profitable however the biggest problem of a rental property is the renter. A tenant can be a massive headache and just not worth it

This is a second job

Having a property manager eats much of your margin. If you want to really make this work, you have to be really handy and do it yourself

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