I’ve been having trouble finding a rental property that cash flows. Since my approach is out of state long term buy and hold I’m considering a property that essentially breaks even (after reserves and property management). Bad idea? Too risky?

likeuplifting
Posting as :
works at
You are currently posting as works at

I’d run the numbers and see if it works long term. Personally, I like owning property, but I keep leverage very low. Just keep in mind that rentals always come with risk — you need to be able to afford it if the place sits empty and be realistic about your risk tolerance.

like

Especially, in today’s job market.

Why would you do this logically

M1 this is a real estate bowl, why are you here?

funny

If you think the property will appreciate, and/pr rent growth is eminent, this might work.

But I wouldn’t make those bets personally.

Rental real estate that requires a lot of capital is hard to cash-flow, especially when it’s leveraged. The typical approach is to buy, improve, rent for a few years, and sell within three to five years to capture the upside. If you’re doing this personally, it’s important to be clear on the goal, the return is usually around 5% from rental.

My other thought is to put a little more money down to make it cashflow. My long term goal is to have paid off properties so paying a little more in equity upfront is something I’d consider in order to buy in B class neighborhoods

Do you care about ROI? Or are you fine with holding a rental property as a “trophy”

A few possibilities: 1. These aren’t good deals at these prices, 2. Your modeling is off, 3. They are in areas expected to have high appreciation which is built into the prices and you need to do a multiyear model to assess the deal and be prepared to fund cash the first few years. 4. Too much leverage relative to other buyers.

Using less leverage is fine - I do as well, but will certainly depress returns.

Related Posts

How do your companies track talent and music usage, are there any good software applications for this?

like

bonus letter received?

like

Hi Fishes, its urgent

Anyone got onboarding email for joining on 10th Oct? The email stated that joining will be conducted from base location which is bangalore. Can anyone confirm if we can attend initial joining virtually as currently i am in Kolkata and also my recruiter is on Leave till Thursday.. Thanks

like

What is the salary for Amazon Business Analysts (level) in indian? I have recently received offer from Amazon and they are asking me for CTC expectations.
Please help Amazonians!

like

Anyone had good multiple offers and had one the hiring managers pressure you into taking the offer after asking for additional time to think about it?

like

Hi, I have Cleared technical round for automation testing. I got a oral confirmation from HR that I was selected. But not receiving any confirmation mail of selection or documents submission.
Anyone please help me on this.

Thanks in advance

Which one to choose among these two
1) Barclay's
2) CITI

Pay is High in CITI around 4 LPA over Barclays. Yoe - 6 (Java Full stack)

like

Any nurses here not have hospital experience? I work as a community nurse and have previous experience in an assisted living and clinic. I don’t have much interest in going to the hospital. Been a nurse for about 9 years. Started out as LPN and now I have small children and enjoy my flexibility. Any regrets for those that never did the hospital ?

like

There are too many men out there who think that just because I'm being polite, it's a sign that they should flirt with me while I'm at work. I thought this was 2022, why haven't we as a society gotten past this yet?

like

Serious question: Sheraton cancelled my reservation and I was stranded for a night last night. Called CS and my useless ambassador and they cant help and “sorry”. How do I escalate this?

like

Have people been doing more or less work with personal projects since working from home? I feel like it’s been harder to keep motived to work on my side projects since starting a permanently remote position.

like

Friends any Sap Security and GRC openings . Plzzz refer me... I need a job... I have 5.2 years exp in SAP security and GRC.

like

Account management role at Google or product management role at Facebook? (Entry level)

like

BCGers your NYC office makes me pretttty jelly... 😳 can't wait for us to leave 52nd st

like

If you win the lottery tonight, what’s the first thing you’d do and/or buy?

like

Can we change unit within Consulting Of Deloitte India.?
I am in bench though. I found opportunity in another unit within Consulting

like

How much does EY pay to ISB graduates?

like
like
like

Currently working as a QC reviewer, and had lab analyst experience in Vaccine Science and Immunochemistry. Anybody have any experience, transitioning from a CRO to a Fed level science/ auditing related job?

like

Additional Posts in The Real Estate Bowl

Question for folks with second homes: Considering buying a vacation home but would be primarily for family use. We currently have a primary residence with a mortgage balance of ~640K, so my understanding is I could only deduct the mortgage interest on 110K of the second mortgage to stay under the 750K cap. If I were to buy the second home through an LLC, would that allow me to exceed that 750K since the expenses of the second home would be pass through expenses/income?

like

Looking to buy a studio in NYC (~600k). How low should I go below asking price when making an offer (especially given that the price went down 5% two months ago)? I’m thinking 15% below asking. Location is okay, no view, and a month to month renter in place. Thoughts?

like

Is a sloped floor of 1/2” over 10’ noticeable? I have to make room for conduit and cannot trench in my current place

likesmart

Can I negotiate for a longer pre-approval period? I live in a hot market so likely will take longer than 60-90 days to secure something. Or does the pre-approval auto extend without a bunch more paper work?

like

For anyone that has bought a townhome from Lennar, are the walls fairly well insulated for sound?

What, if any, were your main complaints?

like

I'm a first time home buyer and got pre qualified back in Jan. Hard pull on credit docked me a few points. I wasn't able to close and now considering another hard pull for a different mortgage company offering better rates.
I'm new to this and this may be a stupid q but I'm looking for input from the bowl on whether to do this hard pull and get pre-qualified with a few more mortgage companies. Any advice is appreciated. Thank you

like

Thinking about purchasing a property in the Turks and Caicos Islands. Anyone done this? Looking to learn more about the pros/cons of international / Caribbean property ownership.

like

So I am about to move to D.C this fall for work. I'm really interested in Real Estate and renting places out but don't know where to start. Should I look into getting a license or just putting down money on a place to own and then renting it out? What makes the most money? How long would it take to see income?

like

I'm early in my career, managed to save $30K to invest, and want to get my hands dirty with a rental property without too much risk (e.g. no HML/flipping). It sounds like that's a tall order in the NY/CT area given the prices, not to mention whether I'd be able to get a mortgage on anything below $100K, but I figure I'll give it a shot anyway. Any advice on what you might do in my position? Am I being crazy with this idea?

like

Anyone sell to Zillow? Got an amazing offer from them, but naturally my floor decided to start deforming right before inspection. No water damage - I can get someone out here to fix it ASAP, but wondering if it’s worth the hassle. Mostly worries inspector will think there’s water or foundation issues

like

Has anyone made a property purchase using sheriff sales? Can you shed any light on the process or share tips or resources?

like

For those who use property management companies to manage your rental properties, what are the services that you really value and will switch out to a different one if not getting such services?

Anyone here used Mynd or Ziprent property (or similar )property management companies? What has your experience been like? Would you recommend?

like

What are some of the things that were a MUST when buying your first home and what were some things that you were more flexible with and why? I’m having a discussion with my partner about what we absolutely need and what can be worked on later.

like

Looking to move out of California, and considering buying a townhome in Atlanta for ~$650k. Any thoughts on the Atlanta real estate market?

like

Better mortgage vs. Rocket mortgage - anyone shopped with both and what swing your decision?

like

Tomorrow is a big day for me!
Made a written offer on an apartment on Sunday. Owner‘s starting price was 500k. My offer is 450k. He thanked me and we are meeting this weekend to „negotiate“. Tips?

Is it better to get credit at closing or lowering the overall home price?

seller is offering to lower the cost or give credit to fix the flooring

like

Got a letter of default and acceleration notice from bank who repurchased my mortgage due to what they thought was mortgage fraud but wasn’t. I’m contacting a lawyer but has anyone gone through this? I know they want it off their books and suggesting I refinance but my rate will increase and they’re demanding legal fees too

like

For any of you real estate investors, what tools or sources did you learn from when getting started. Can’t find a mentor currently so want to find some highly recommended books or videos. If focused on the tri-state area (NY, NJ, Long Island mainly) that would be even better. My hope is to buy and rent out a apartment while also owning a house and house hacking that by renting part of it out. Trying to understand all the steps, traps, and how to find if it’s a good investment.

like

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the
Fishbowl app

See what’s happening in your industry
from the palm of your hand.

A phone with Fishbowl app

Scan your QR code to download
Fishbowl app on your mobile

Download app

Sign up for free to view this conversation on Fishbowl

By continuing you agree to Terms of Use and Privacy Policy

Already have an account? Log in

Sign up for free to continue using Fishbowl

By continuing you agree to Terms of Use(New) and Privacy Policy(New)
Messaging rates may apply

Already have an account? Log in

For account settings, visit Fishbowl on Desktop Browser or

General

Legal