BMW Garage BMW Meets Register Search Today's Posts Mark Forums Read
Go Back   6Post.com | BMW 6-Series Forum > BIMMERPOST Universal Forums > Off-Topic Discussions Board

Post Reply
 
Thread Tools Search this Thread
      08-06-2020, 09:40 AM   #23
UncleWede
Long Time Admirer, First Time Owner
UncleWede's Avatar
United_States
10147
Rep
8,566
Posts

Drives: E90 325i Arctic
Join Date: Jun 2005
Location: Oxnard, CA

iTrader: (0)

My dad's RE investment strategy: TEN months average rent for comps. Does that cover everything in the escrow account? Then you will make some money on the investment.

Each time a tenant moves out, you do some sort of little improvement, since we had to go in a make everything fresh/new to reduce the possibility of the next tenant claiming "it was like that when we moved in" Screen were replaced. Walls were painted. After a few years, carpet replaced. Bathrooms/kitchen floors upgraded from vinyl to ceramics.

I know how to do a lot of home improvement via practice on dad's rental property.
Appreciate 2
vreihen162439.50
FCobra942581.50

      08-06-2020, 12:02 PM   #24
FCobra94
Brigadier General
FCobra94's Avatar
2582
Rep
4,750
Posts

Drives: '07 E90 335i
Join Date: Dec 2011
Location: MD

iTrader: (2)

Quote:
Originally Posted by David70 View Post
On the surface it sounds like a good investment but not nearly enough information to tell as this is one of many costs (taxes, insurance, maintenance) and no idea what you have put in it (downpayment, repairs, improvements).

This is a good site to help figure out returns - https://www.calculator.net/rental-pr...ype=&x=55&y=28
Well, obviously...those details in and of themselves would likely carry an entire thread on their own, but sure, that's only part of the picture. For these purposes though, after accounting for maintenance and any other fees/costs/etc., someone is basically paying me $1k+ each month for the privilege of also having to pay my mortgage, tax, and insurance payments.

Again, the purpose of this home wasn't initially for investment purposes...if you were to look at a true investment calculator, like the one you posted (which is pretty sweet by the way, so thanks for the link!) then yeah, this particular property being classified as a "good investment" if it were to go on sale tomorrow likely wouldn't tick that box for most hardened inventors...nor would any other property in my area though given that real estate is just too darn expensive currently and has been for the last few decades. For that reason, if you want to truly purchase a property for investment purposes around here, you'd have to throw that whole 1% investing rule/mindset that YouTubers/bloggers preach right out the window cuz it ain't gonna happen no matter which way you slice it...it's just not possible. ~0.5% would likely be a bit more realistic goal to shoot for, but again, this is all relative to my specific geographic location so YMMV.
__________________
'07 E90 335i - Automagic - Non-sport
MHD E50|Alpina Flash|Stg 2 LPFP|VRSF 7"FMIC-DP-CP|TIAL BOV|cp-e DCI
Bilstein B6|Dinan Camber Plates|E93 M3 FSB-LCA-Guide Rods|Manzo Toe Arms|HPS 5.0
Style 393 - 225/50/17 - 10/20 F/R spacers
Appreciate 1
David701134.00

      08-06-2020, 12:48 PM   #25
David70
Colonel
United_States
1134
Rep
2,294
Posts

Drives: 06 Z4M Coupe - 13 Cadillac ATS
Join Date: Apr 2012
Location: Cincinnati, OH

iTrader: (1)

Quote:
Originally Posted by FCobra94 View Post
Well, obviously...those details in and of themselves would likely carry an entire thread on their own, but sure, that's only part of the picture. For these purposes though, after accounting for maintenance and any other fees/costs/etc., someone is basically paying me $1k+ each month for the privilege of also having to pay my mortgage, tax, and insurance payments.

Again, the purpose of this home wasn't initially for investment purposes...if you were to look at a true investment calculator, like the one you posted (which is pretty sweet by the way, so thanks for the link!) then yeah, this particular property being classified as a "good investment" if it were to go on sale tomorrow likely wouldn't tick that box for most hardened inventors...nor would any other property in my area though given that real estate is just too darn expensive currently and has been for the last few decades. For that reason, if you want to truly purchase a property for investment purposes around here, you'd have to throw that whole 1% investing rule/mindset that YouTubers/bloggers preach right out the window cuz it ain't gonna happen no matter which way you slice it...it's just not possible. ~0.5% would likely be a bit more realistic goal to shoot for, but again, this is all relative to my specific geographic location so YMMV.
Makes sense except I don't know the "1% investing rule".

My rental investment (house next door) was mostly about having a decent house next door with decent neighbors (added benefit of being able to get rid of them) and a 2 car garage. Also makes me feel better if it turns out to be a poor financial decision although my wife is unlikely to see it in the same light.
__________________
2006 Z4M Coupe - Stromung exhaust, ZHP knob, stubby antenna, clutch delay delete
Appreciate 1
FCobra942581.50

      08-18-2020, 01:08 PM   #26
FCobra94
Brigadier General
FCobra94's Avatar
2582
Rep
4,750
Posts

Drives: '07 E90 335i
Join Date: Dec 2011
Location: MD

iTrader: (2)

Thanks for the feedback everyone...just to close this out, I'm def not going with any of these services.

My initial thought was for ~$50/month, it would be worth just handing the tenant a business card with a number they could call if they ever felt like complaining about something...for that benefit alone, the cost seemed justifiable. At the end of the day though, you guys are right; if something went wrong, it would likely be days before someone got out there to inspect, more days spent "ordering parts", etc. = still resulting in headaches for me, in some way shape or form I'm sure, regardless.

Large home warranty services aside though, I held out a little hope that our local energy supplier (BGE) might be a better solution given that they offer a similar service and I've had good luck with them in the past with respect to HVAC work (all technicians in-house, nothing sub-contracted out, etc.). Unfortunately that solution seems to result in issues as well given that it appears these types of businesses are more transient in terms of employee retention compared to mom-and-pop operations, etc. therefore having a pool of less than knowledgeable technicians to rely upon.

Long story short, I'll continue to go with my original plan of maintaining a short list of trusted contractors for the big stuff and for the small stuff (appliances, etc.) will throw out whatever stops working and just swap it with a suitable replacement.

Appreciate the help!
__________________
'07 E90 335i - Automagic - Non-sport
MHD E50|Alpina Flash|Stg 2 LPFP|VRSF 7"FMIC-DP-CP|TIAL BOV|cp-e DCI
Bilstein B6|Dinan Camber Plates|E93 M3 FSB-LCA-Guide Rods|Manzo Toe Arms|HPS 5.0
Style 393 - 225/50/17 - 10/20 F/R spacers
Appreciate 1
vreihen162439.50

Post Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



All times are GMT -5. The time now is 10:42 PM.




6post.com
Powered by vBulletin® Version 3.8.11
Copyright ©2000 - 2020, vBulletin Solutions Inc.
1Addicts.com, BIMMERPOST.com, E90Post.com, F30Post.com, M3Post.com, ZPost.com, 5Post.com, 6Post.com, 7Post.com, XBimmers.com logo and trademark are properties of BIMMERPOST