Anyone make any money renting houses? - GoFuckYourself.com

Kard63 · 06-18-2006, 09:44 PM

I've been looking up tax plans for it and all of them revolve around making cash when you sell the house. None of them give a good strategy in a situation where you make a few hundred a month. Anyone here do this?

Rictor · 06-18-2006, 11:15 PM

It really only works if you pay cash for the house and don't have a monthly payment to make. This is because renters suck and will rarely actually give you any money. Then, depending on the laws of your state, they get to live rent free in your house for several months before you can legally evict them. Then your spend $50,000 repairing all the damage they did to your house while they lived there, none of which you will ever get back because anyone renting a house has no money to begin with (or they'd buy) so suing them just wastes more of your money.

Then your house sets empty while you pay your monthly mortgage payments...then you rent it again and start the money losing cycle all over again.

Renting sucks unless you have a bunch of houses that you paid cash for and have a company handling all the maintenance and finding renters for you. If you actually need guaranteed money coming in each month to pay the mortgages on your rentals, you'll be bankrupt in a year.

Flipping houses is much less risky. You buy a house in a neighborhood that is on the way up, where everyone is restoring the old homes, you put a little money into it, and you sell high a year later to make a quick 20% profit. If you can actually do the work on the house yourself or can put together a cheap contstruction crew to repair houses for you full-time, then you can make even better money at this.

Of course, you need to be able to afford to lose money on a house too, because sometimes neighborhoods that are getting reclaimed take a turn for the worse and every one that was restoring their houses gives up and moves away, leaving the value of your house the same, so you lose money even if you manage to sell it for what you paid for it (considering the high fees you pay when you buy and sell real estate, especially if you use a realtor).

Bdiddy · 06-18-2006, 11:26 PM

What Rictor said.

Have made some good investments with my father on a couple of houses that we are flipping. He's retired, but he is an amazing handyman/carpenter who loves to remodel. It works great!

MrJackMeHoff · 06-18-2006, 11:27 PM

At no time during that incoherant rambling did you even come close to anything that could be considered a rational thought. Everyone here is more dumb for having read that post.

May god have mercey on your soul.

Choppa · 06-19-2006, 01:14 AM

Quote:

Originally Posted by MrJackMeHoff

At no time during that incoherant rambling did you even come close to anything that could be considered a rational thought. Everyone here is more dumb for having read that post.

May god have mercey on your soul.

gotta love Billy Madison quotes

JFK · 06-19-2006, 01:36 AM

Quote:

Originally Posted by Rictor

It really only works if you pay cash for the house and don't have a monthly payment to make. This is because renters suck and will rarely actually give you any money. Then, depending on the laws of your state, they get to live rent free in your house for several months before you can legally evict them. Then your spend $50,000 repairing all the damage they did to your house while they lived there, none of which you will ever get back because anyone renting a house has no money to begin with (or they'd buy) so suing them just wastes more of your money.

Then your house sets empty while you pay your monthly mortgage payments...then you rent it again and start the money losing cycle all over again.

Renting sucks unless you have a bunch of houses that you paid cash for and have a company handling all the maintenance and finding renters for you. If you actually need guaranteed money coming in each month to pay the mortgages on your rentals, you'll be bankrupt in a year.

Flipping houses is much less risky. You buy a house in a neighborhood that is on the way up, where everyone is restoring the old homes, you put a little money into it, and you sell high a year later to make a quick 20% profit. If you can actually do the work on the house yourself or can put together a cheap contstruction crew to repair houses for you full-time, then you can make even better money at this.

Of course, you need to be able to afford to lose money on a house too, because sometimes neighborhoods that are getting reclaimed take a turn for the worse and every one that was restoring their houses gives up and moves away, leaving the value of your house the same, so you lose money even if you manage to sell it for what you paid for it (considering the high fees you pay when you buy and sell real estate, especially if you use a realtor).

That is one side of the equation......

studiocritic · 06-19-2006, 03:03 AM

there are billions to be made in short term (<30 days) vacation rentals.. especially at the beach.

vrbo.com

beachhouse.com

a1vacationrentals.com

dozens of sites like this that will list your houses for free or cheap.. and some of them have a shitload of traffic.

if you can get a house, its insanely easy to drive leads/bookings to it

polish_aristocrat · 06-19-2006, 03:19 AM

Quote:

Originally Posted by Rictor

It really only works if you pay cash for the house and don't have a monthly payment to make. This is because renters suck and will rarely actually give you any money.

I rent an apartment now and treat in like my own, but I realize I may be an exception

studiocritic · 06-19-2006, 03:25 AM

Quote:

Originally Posted by polish_aristocrat

I rent an apartment now and treat in like my own, but I realize I may be an exception

i do too.. but looking at how some of my idiot friends treat their places.. being a landlord would suck. holes in the walls, fixtures ripped down.. wtf

Wilbo · 06-19-2006, 04:20 AM

The key is to properly screen your tenants, get an adequate security deposit and have an iron clad lease which spells out who is responsible for what. I know people who make a wonderful living from this.

bringer · 06-19-2006, 05:09 AM

now is not the time to buy/rent or flip. keep your day job

Kard63 · 06-22-2006, 02:43 PM

Quote:

Originally Posted by bringer

now is not the time to buy/rent or flip. keep your day job

My day job is doing well enough where I'm wondering where to put the cash. Its a new problem for me. I'm looking for something that will not require much time for the next 2 years.

tranza · 06-22-2006, 02:46 PM

DH makes money from renting houses too...

AmateurFlix · 06-22-2006, 02:51 PM

Quote:

Originally Posted by studiocritic

there are billions to be made in short term (<30 days) vacation rentals.. especially at the beach.

vrbo.com

beachhouse.com

a1vacationrentals.com

dozens of sites like this that will list your houses for free or cheap.. and some of them have a shitload of traffic.

if you can get a house, its insanely easy to drive leads/bookings to it

interesting links, thanks for posting that

Kristian · 06-22-2006, 03:01 PM

I've been doing this in the UK for 7 years. I started out by getting a 6 bedroom terrace house at auction and renting it to students at 50 quid a room per week. Collecting the rent was no problem, I left it to guys that do odd jobs for me (and bigger than me at only 5'8 lol). I now rent exclusively to professionals via an estate agent. Everything is handled for me. The most I ever have to do is review applications after they have past credit checks, review home after tennants have left, and organise a local cleaning service.

I'm actually in the process of buying a 5 bedroom terrace here in North Wales. If anyone wants first refusal on renting, lemmo know!

The next step for me is vacation rental property in Cyprus. I just can never find the time to get there and find the contacts I would need and could trust. Vacation rentals are great, yield more obviously, and companies now specialise in runnign them for you. With you being in the US this would be a fantastic option for you (i'm even considering it myself) though you may have to choose prop in another state.

V_RocKs · 06-22-2006, 03:20 PM

Rent to me...

Babagirls · 06-22-2006, 03:40 PM

i think Beemk does if i remember correctly..

beemk · 06-26-2006, 08:42 AM

i have one rental house right now, i paid cash for it and after all the expenses i make about $400 a month. its not that much money, but for the work it involves its worth it. plus you gotta figure how much the value of the house goes up. i could have turned around and sold the house for $20k profit, but i want to make money in the long run.

jimthefiend · 06-26-2006, 08:46 AM

About a third of my income is from renting out a few properties. It's a good business.

DO YOUR RESEARCH though. Know your responsibilities.

jimthefiend · 06-26-2006, 08:50 AM

Quote:

Originally Posted by beemk

i have one rental house right now, i paid cash for it and after all the expenses i make about $400 a month. its not that much money, but for the work it involves its worth it. plus you gotta figure how much the value of the house goes up. i could have turned around and sold the house for $20k profit, but i want to make money in the long run.

I'd have sold and reinvested.

The housing market is about to take a nose dive. There are already signs. If your profit margin is only 400 a month on that particular property, youd have been better off to sell and use the money somewhere else.

Getting more stuff to rent would be FINE, but do it in a different locale. Say, a college town.

I have one piece we bought in 97. My end is about 500 a month. We are renting it for 1300.

COLLEGE TOWN.

edit: The only reason it's 500 is because I was a fucking idiot and took out a bunch of equity once. Which I blew. I wont make that mistake on our other houses.`

06-18-2006, 09:44 PM	#1
Kard63 Confirmed User Join Date: Nov 2003 Location: 237 619 975 Posts: 8,944	Anyone make any money renting houses? I've been looking up tax plans for it and all of them revolve around making cash when you sell the house. None of them give a good strategy in a situation where you make a few hundred a month. Anyone here do this? __________________

06-18-2006, 11:26 PM	#3
Bdiddy Confirmed User Join Date: Mar 2006 Location: Seattle & Manila Posts: 2,456	What Rictor said. Have made some good investments with my father on a couple of houses that we are flipping. He's retired, but he is an amazing handyman/carpenter who loves to remodel. It works great! __________________ "..and which one of you had the prime rib?" - Waiter "frankly, I don't see how that's any of your business!" - Peter Griffin

06-18-2006, 11:27 PM	#4
MrJackMeHoff Confirmed User Join Date: Mar 2004 Location: LOLLIPOP ISLAND =-=-=-=-=-=-=-=-=-=-= =-=-=-=-=-=-=-=-=-=-= =-=-=-=-=-=-=-=-=-=-= =-=-=-=-=-=-=-=-=-=-= =-=-=-=-=-=-=-=-=-=-= =-=-=-=-=-=-=-=-=-=-= =-=-=-=-=-=-=-=-=-=-= =-=-=-=-=-=-=-=-=-=-= =-=-=-=-=-=-=-=-=-=-= =-=-=-=-=-=-=-=-=-=-= Posts: 4,569	At no time during that incoherant rambling did you even come close to anything that could be considered a rational thought. Everyone here is more dumb for having read that post. May god have mercey on your soul. __________________

06-19-2006, 03:03 AM	#7
studiocritic Confirmed User Join Date: Jun 2005 Location: Irvine, CA Posts: 2,442	there are billions to be made in short term (<30 days) vacation rentals.. especially at the beach. vrbo.com beachhouse.com a1vacationrentals.com dozens of sites like this that will list your houses for free or cheap.. and some of them have a shitload of traffic. if you can get a house, its insanely easy to drive leads/bookings to it __________________ 254342256

06-19-2006, 05:09 AM	#11
bringer i have man boobies Join Date: Jul 2003 Location: van down by the river Posts: 13,082	now is not the time to buy/rent or flip. keep your day job __________________ 333-765-551

06-18-2006, 11:15 PM	#2
Rictor Old Timer Industry Role: Join Date: Jan 2001 Location: Indianapolis Posts: 12,208	It really only works if you pay cash for the house and don't have a monthly payment to make. This is because renters suck and will rarely actually give you any money. Then, depending on the laws of your state, they get to live rent free in your house for several months before you can legally evict them. Then your spend $50,000 repairing all the damage they did to your house while they lived there, none of which you will ever get back because anyone renting a house has no money to begin with (or they'd buy) so suing them just wastes more of your money. Then your house sets empty while you pay your monthly mortgage payments...then you rent it again and start the money losing cycle all over again. Renting sucks unless you have a bunch of houses that you paid cash for and have a company handling all the maintenance and finding renters for you. If you actually need guaranteed money coming in each month to pay the mortgages on your rentals, you'll be bankrupt in a year. Flipping houses is much less risky. You buy a house in a neighborhood that is on the way up, where everyone is restoring the old homes, you put a little money into it, and you sell high a year later to make a quick 20% profit. If you can actually do the work on the house yourself or can put together a cheap contstruction crew to repair houses for you full-time, then you can make even better money at this. Of course, you need to be able to afford to lose money on a house too, because sometimes neighborhoods that are getting reclaimed take a turn for the worse and every one that was restoring their houses gives up and moves away, leaving the value of your house the same, so you lose money even if you manage to sell it for what you paid for it (considering the high fees you pay when you buy and sell real estate, especially if you use a realtor).

06-19-2006, 04:20 AM	#10
Wilbo Confirmed User Join Date: Mar 2001 Location: Baltimore Posts: 2,082	The key is to properly screen your tenants, get an adequate security deposit and have an iron clad lease which spells out who is responsible for what. I know people who make a wonderful living from this.

06-22-2006, 02:46 PM	#13
tranza ICQ: 197-556-237 Join Date: Jun 2003 Location: BRASIL !!! Posts: 57,559	DH makes money from renting houses too... __________________ I'm just a newbie.

06-22-2006, 03:01 PM	#15
Kristian Confirmed User Industry Role: Join Date: Aug 2003 Posts: 3,733	I've been doing this in the UK for 7 years. I started out by getting a 6 bedroom terrace house at auction and renting it to students at 50 quid a room per week. Collecting the rent was no problem, I left it to guys that do odd jobs for me (and bigger than me at only 5'8 lol). I now rent exclusively to professionals via an estate agent. Everything is handled for me. The most I ever have to do is review applications after they have past credit checks, review home after tennants have left, and organise a local cleaning service. I'm actually in the process of buying a 5 bedroom terrace here in North Wales. If anyone wants first refusal on renting, lemmo know! The next step for me is vacation rental property in Cyprus. I just can never find the time to get there and find the contacts I would need and could trust. Vacation rentals are great, yield more obviously, and companies now specialise in runnign them for you. With you being in the US this would be a fantastic option for you (i'm even considering it myself) though you may have to choose prop in another state.

06-22-2006, 03:20 PM	#16
V_RocKs Damn Right I Kiss Ass! Industry Role: Join Date: Dec 2003 Location: Cowtown, USA Posts: 32,428	Rent to me...

06-22-2006, 03:40 PM	#17
Babagirls Text Writer Join Date: Feb 2001 Location: Wisconsin Posts: 18,812	i think Beemk does if i remember correctly.. __________________ Need a Text Writer? Blogs\|Reviews\|Descriptions\|Paysites\|TGP's\|Stories ICQ: 397892500

06-26-2006, 08:42 AM	#18
beemk CLICK HERE Industry Role: Join Date: Jan 2002 Posts: 20,829	i have one rental house right now, i paid cash for it and after all the expenses i make about $400 a month. its not that much money, but for the work it involves its worth it. plus you gotta figure how much the value of the house goes up. i could have turned around and sold the house for $20k profit, but i want to make money in the long run. __________________ I host with Vacares

06-26-2006, 08:46 AM	#19
jimthefiend So Fucking Banned Join Date: Oct 2003 Location: icq: 121189 Posts: 18,889	About a third of my income is from renting out a few properties. It's a good business. DO YOUR RESEARCH though. Know your responsibilities.