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I have 30 units. I look at it as an additional stream of income to diversify my financial planning income.
We used to have them. A lot of work.
I have a one bedroom rental. It is very important to get good tenants. They can make or break the deal. I have rented it for 9 years now and sometimes shit happens ( broken water heater , etc). Just be quick and transparent to fix it and if you have good tenants who pay on time , it is worth it.
Yes and get multi units when 1 is vacant. Also set them up under an S Corp or LLC. Also, mainly depends on what your purpose is for it? Do you have time to manage or mgmt property? If someone else will do it, is the cap rate worth it?
Two comments:
1. One bad renter will absolutely destroy the economics. For example, a client had a renter who not only did not pay, but sold the appliances on EBay.
2. If you are any good at the financial advice business your time is worth at least $500 an hour. Factor that into your projections.
I have a professional/office building that is currently half bank/half accountants office. Also a single family house that I’ve had 3 renters In the past 12 years. We also own some storage units. I own one of our offices and rent it back to our business. We will eventually buy some farm ground as well. I like real estate because it’s steady income and non-correlated to the markets but it does take a little time to manage
I own a short term rental for use on Airbnb and I use a property manager that handles everything with it and takes 18%. It makes about 3-5k/month profit above the mortgage payment once all expenses are paid. Best investment I’ve been able to find especially when you can get 80-90% leverage and eventually I will own free and clear.
FA 2 nice! Where is the property located? I own 3 rentals but no short term rentals but would like to explore.
Baltimore. Unfortunately they are passing a rule in the city that won’t allow any more Airbnb’s to operate other than what already are currently so no new ones can be bought and started. On one hand it makes mine much more valuable but on the other it sucks cause I can’t buy more in the city.
Lol, I live in Hunt Valley and have a rental in Baltimore
I will need to see about making mine an Airbnb. Did you do that on the Baltimore Housing site?
Haha that’s funny I actually worked for MS in Baltimore but then moved back to Annapolis area and work with independent BD so turned my old primary residence into Airbnb. Actually I hired a property manager that all they do is specialize in Airbnb’s and getting them setup and marketing them. I’m happy to give you their info if you provide your contact information, not positive if they are still taking on new properties or not or even if you’d be able to turn yours into one as I believe it had to be being rented as an Airbnb by like July of this year already to qualify but definitely worth you looking into.