My first tenant ever moved into my first investment property. The amount of work is such a nightmare. I see why people don’t do real estate investment now.

likesmartfunny
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I tell this to everyone who wants to get rich of real estate. It’s a lot of work and stress. If you don’t have a passion for real estate you are going to hate it.

likehelpfulsmart

Had a rental property for 10 years that I just sold (was a townhouse I lived in before I got married, so didn’t buy it as an investment property). The only reason I kept it as a rental was because the value dropped significantly from what I bought it at.

Had 3 three tenants over that span and I wouldn’t say it was a nightmare, but things did pop up here and there and every text message and email I got I would have an uneasy feeling in the back of my mind that it was a rental issue.

I would much rather just invest in the market than rentals, much more passive and don’t have to deal with people or problems.

likesmart
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Why so much work? Shouldn’t it just be one off things? I’ve lived in an apartment for three years now and have not had to have the owner come out to fix anything and my building is over a hundred years old. Sorry for the ignorance, genuinely curious.

likesmarthelpful

I died at all the goat stuff 😂

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Yep. We have the best tenants in the world and it’s still too much work for too little gain. We already know we’ll sell when the lease is done rather than rent again.

likefunny

The value in rental properties, if mortgaged, is rarely about the cash flow…it’s about someone else paying for the equity appreciation. That said, equity takes years to build so it’s not a set it and forget investment. You have to keep it maintained, keep it occupied, and even then the average mortgaged home rarely appreciates at a rate that outpaces the market. So yes, it’s definitely not for everyone. I’ve owned at least one rental property for the past 10+ years. I could live without it and would likely make more by just stuffing the proceeds from selling out into index funds. It is nice having that physical asset sitting there though, but idk if that’s enough to invest the energy it requires.

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Eh...it's about someone else paying for your equity, yes, but as they say, the money is made at the purchase. Equity build isn't guaranteed and cash flow alone isn't worth it.

likesmart

This is why I said no - I was strongly encouraged not to sell my condo when I was moving out of state because it was a unique unit in a highly desirable neighborhood, but I just couldn't be bothered to deal with the hassle for a max gain of a couple hundred bucks a month.

likesmart

Yeah, I was in California, so my mortgage amount wasn't low, but taxes, HOA, and homeowners insurance added another $1k/month in cost, so the threshold to make a profit was low, then I'd need to hire someone locally to deal with issues since I wouldn't be there, so it just wasn't worth it.

like

It might just be a combination of the townhome being old, out of maintenance, and high expectations from the tenant.

There is a ton of repairs for minor things. Things that you could live with if you were living there instead of renting. Like a dripping tap

Tenant complained that the house is dirty when I had someone clean it the week before.

We explicitly told the tenant a big piece of furniture is staying and now they are making a big hassle to have it removed and ask us to pay for the removal.

There are also things that are just plainly broken from use that no one noticed beforehand.

It’s just sucking a lot of positive energy from me when I’m sitting in back to back meetings to have someone complain about things and breathing down my neck to fix stuff

like

It’s weird this would have been a surprise. This is called being a landlord and it’s a real responsibility.

Invest in REITs in a Roth. Zero hassle and tax efficient.

like

Could you go into more detail? I want to hear the horrors as I see so many people pushing to do this for FIRE

like

Ugh that’s discouraging I was looking to buy a property to Airbnb - anyone have experience with this that can provide some input?

like

We moved everything into the equity market around august last year. It was the best financial move we’ve made in a while

like

I hear ya — work getting apartment ready ?

what specific aspects of renting it out make it too much of a hassle?

What made it so much work?

For me it’s, find tenant, hire cleaner to turn over, set up lease and then we’re good to go generally. I’ve had one issue with no hot water but it’s because the tenant turned it off

How about having an agency manage the property? Will we not get benefit in long run??

I am planning to buy a rental property (avoided it for long) with 20% to 40% down. I am planning to buy a townhouse in a fast growing area 🤔

That’s why I moved away from townhouse investments to single family homes. I didn’t want to deal with neighbors/HOA for the maintenance of my property. We pulled money out of HCOL townhouse and bought a SFH in a LCOL area. Even with the property management we believe it will be a good investment in 5-10 years. Area is booming.

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What paperwork? I give them a lease and receipts for their security deposit and rent.

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