Boost your income with rentals

Boost your income with rentals

I attended a class last week and learned something that I never thought of... Why is rental real estate so good to have in your portfolio? Well, I'll tell you, it’s because rents almost never go down. Property values may go up and down, but rents grow steadily. This is one way to always boost your income.
If your are having trouble with rental incomes, hire a property management company for 10% of collected rents and buy more rentals.

Ty

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Yesterday is history, Tomorrow is a mystery, and Today is a gift...

Ethel Griffin

...So don't throw away a gift, do it today as tomorrow is not promised.


rentals

You are correct TY I have seven families in two buildings and the values of the building go up and down but the rent amounts always go up, They stay with inflation. Cash flow is good
Rick


Ty

That is a great point. And you are not even paying for the building. Someone else is paying your mortgage!

Karen

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Ty

I like your thoughts in a general context; but rental prices did erode in the 1980s and will probably do so again once the real estate crisis is over and people can get approved for buying a house. Once that occurs, people will leave the rental market for the ownership market. Just wanted to add my two cents.

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Yes,

I think Bill does have a point because the reason rents are so high now is people can't buy. They are losing their homes which hurts their credit so all they can do is rent. The rental entities are taking advantage of this. I guess you could call it rental price gouging (like some supermarkets are doing already because of the drought situation.) And I'm living proof of this. My mortgage company is calling my DIL a foreclosure on my credit and it is not even finalized yet. Because of this I will have to pay a double deposit next week when I move into an apartment plus the rent is higher than it should be. When people can buy houses again, the rental market will be competing to get renters and the prices will go down.

But it's all good. Like Karen said, someone else will still be making your mortgage payment and if you're lucky, you might have a good passive income to boot!!

Shirley

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Shirley

What a bummer on the deposit! Sad And the higher rent. Yuck!

Good thing you are a REI now. The sky's the limit, Chickie!

COOL GIRLS WEAR MAGNETIC SIGNS! Eye-wink

Karen

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"You're never too old to be what you were meant to be!"

www.deangraziosi.com/real-estate-forums/investing-journals/59128/day-for...

"Shining Like a Star & Dancing on Sunshine"

"Shoot for the moon! Even if you fall short, you'll still land among the stars!"


Karenq

Yes, I took that apartment on a leap of faith. I was worried about having all the money I needed just to get in. $50 app fee, $507 Deposit plus first month's rent. Then I realized that I have a $500 EMD check out there that hopefully I will get back by this weekend. The contract on this property expires Sunday and today I had 3 contractors looking at it, but so far no buyers have been to look at it. I was a little upset that the listing agent chose today (when my contract is almost up) for everyone to see it, but I understood the inconvenience it could cause the tenants so I went along.

However, (MY) REA told me later that the tenant who has been there 3 years (paying $600/month) told her today that he wants to buy it himself. He would be a first time home buyer. And he's self employed. So she was going to talk to a banker she knows and see if she could get him financed. She asked me what I was trying to assign it for and I told her I would be making a $4000 profit. She said she would let me know how it turns out. I told her that the contract was for a cash sale and I didn't know how she would work that out so that I wouldn't be left holding the bag..., but she had to leave early to go pick up her daughter and said we would talk about it later. So far I haven't heard anything back from her. I did tell her before she left that I did not want to be stuck with that house if it is not sold by the expiration of the contract period. For the life of me, I don't know how she thinks I could get my profit and hers too if he buys that house through a bank!!

But like you said, the sky's the limit and girlfriend, I'm going for it!!

I guess I'll just have to wait to hear from her and see what she comes up with. :/

kareng wrote:
What a bummer on the deposit! Sad And the higher rent. Yuck!

Good thing you are a REI now. The sky's the limit, Chickie!

COOL GIRLS WEAR MAGNETIC SIGNS! Eye-wink

Karen

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Everything works out in the end. If it hasn't worked out, it's not the end.

You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer

It is what it is 'til you change it.


Wow, that's good informationi

I rented during the earlier '80's, and my rent in South Carolina for a high end apartment was $215. I think that same rental today would go for $1,100 to $1,200. If the rents drop a little those properties could still be profitable. It's interesting to see what is going to happen with real estate once the economy changes.

Thanks for the information, that means like other investments we've got to buy low.

Ty

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Yesterday is history, Tomorrow is a mystery, and Today is a gift...

Ethel Griffin

...So don't throw away a gift, do it today as tomorrow is not promised.


Rental Props are great

Ty,
I think rentals are great to have.
Once your rentals are paid for by your tenants, it doesn't matter if the rents go down a bit; it's all passive income...

Shirley,
did you look into a rent to own? You are an rei, you can find a tired landlord who doesn't need a large amount of cash, but doesn't want to be a landlord anymore.... Just a thought! Eye-wink

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Great Point

Hello Bill,

I like your comments... I didn't realize that rents went down in the 80's... I left the U.S. for Germany in 1983, and when I returned in '87 I rented in another state. the rent was higher then, but in '87 I bought my first house. I could see rents going down if the neighborhood declines, but I didn't know that it would otherwise.

Please note that I visited you Trust Point Homes website, and it looks great.

Thanks,

Ty

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Yesterday is history, Tomorrow is a mystery, and Today is a gift...

Ethel Griffin

...So don't throw away a gift, do it today as tomorrow is not promised.


Valerie

I have been looking at rent to owns for several months but they always wanted a big fat down payment for the ones I was interested in.

Shirley

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Everything works out in the end. If it hasn't worked out, it's not the end.

You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer

It is what it is 'til you change it.


Rentals boost your portfolio and income!

You are right Ty, rental income, generally, is fairly stable. More stable than how the prices of homes have been lately. The tenant pays your mortgage and your net-worth and equity build. Wealthy people "own" real estate. If you want to build wealth over time, build your portfolio of owned real estate. Wholesale deals bring in quick cash. I love this business! There are so many ways to make money in this business - it really is wonderful! Build your net-worth, build your income, it's up to you Smiling

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The beauty of real estate investing ...

there are so many opportunities to make money. Tax liens have been my gateway into investing, and now I'm making offers on rentals. You're absolutely right on TY regarding "rents almost never go down". Many of the places I'm pursuing, the rental income has not dropped as much as the value of the property. Unbelievable! Rental income seems like a serious "home run" !! I'm looking to load up.

Thanks always for offering advise ... as a newbie, I'm so grateful.


rentals eroding???

I don't know about that I had been a renter most of my life (61 now)and I have never seen a time when rents were eroding. When I bought my first house I was told that I would be able to rent it for almost twice my mortgage payment and people would LOVE IT! And they did. My mortgage payment was $856/mo and I was getting almost $1400. That might just be here in San Diego though.
John

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Grateful John


South Carolina rents vs San Diego???

I lived in Charlestown, So. Carolina in 1980 and paid $245 a month for a beach community (Folley Beach)Apartment which was the bottom of a house. In San Diego 4 years later my rent was $685.00 a month for a condo two years later I bought a house with a mortgage payment of $825.00 and people were renting the house next to mine for $1200.00 /mo.
Location,Location, Location

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Grateful John