/biz/ - Business & Finance

imagine how many rental properties you could have if you waged and collected the passive income

>>16747803
It's true that with the income i could probably mortgage two more houses, provided that I dump my savings for a down payment. Then, naturally when they're rented they would pay their own mortgage and then some.

But up to this point I've done everything with cash, so making that next step will be a little more difficult. On the other hand, if I keep up with buying cheap cash properties and renovating/building on my own I can just work for myself full time. I lean more toward that because I'm not slaving for a wage like I would building houses for another company.

how old are you? how long did it take you?

>>16747887
25, about to turn 26, took me longer than it should have because I tried to pay my way through school first (bad idea). When I found out you could buy abandoned houses for $10,000 I already had $20,000 in the bank from working at a sawmill for 8 months, so from there it only took a year and a half.

In theory I could have been here when I was 20. I wish I never took anyone else's advice in my life.

How do you deal with deadbeats who don't pay rent and then trash the place after you evict them?

>>16747969
So far I am exclusively renting to a construction company, which I am thrilled about. For one you can charge them a premium and they'll take it because its cheaper than booking their workers in a hotel. The houses see little use because they work long hours.

>>16747947
Care to explain how you did this anon? Inspiring

you made it bro
don't worry about making 1200, the important part is that you can live off that and don't have to work anymore

>>16748006
There are other avenues to buying very cheap houses, but I bought a house directly from a municipality. They're owned by the town because the previous owners stopped paying their property tax and it was taken back; A surprising number of towns have properties like this listed.
The buildings were all pretty worn down, but since I build houses for a living anyway and they were strucurally sound it took a little over $15,000 in repairs. All in all I got two properties for $25,000, something I thought was impossible just a couple years prior.

I got the money to do it by working. I used to work a lot, 14+ hours a day whenever I was allowed, because that meant nearly $5000 per paycheck. But even my lowest paying jobs would let me save at least $1000 monthly, so I think its very doable for anyone who wants to do it.

>>16748075
>I build houses for a living anyway

that's the key right there. skill in renovating the properties into something valuable at minimal cost

>>16748075
While inpressive OP and I admire your determination, I know nothing of building houses? Is it still a viable option to buy worn house from local municipalities? I'm in North East Ohio and there is an abundance of them Im sure. Lots of duplexes for sale in general around here move in ready for 35K or less some as low as 25K. Thoughts or advice. This was my original plan from crypto profits but my student loan debt makes it impossible to get a housing loan. Im getting close to just outright buying one. Idk other advice is greatly appreciated. Its insane how quick it can all snowball if you leverage the equity in your paid off house to get more rentals as an option.

>>16747861
>But up to this point I've done everything with cash

How did you get the cash then?

>>16748318

Also only 2 houses are providing $1200 monthly after everything is said and done? Do you have your own house you are living in paid off as well or living in one of the houses as well?

>>16748337
I agree there is something wrong. $1200 after expenses is extremely high.

I mean what about taxes, maintenance, insurance, etc. $600 profit per house is a lot.

>>16748318
The most important knowledge is knowledge of building codes and knowing how to get the permits you need to operate and pass inspection. Even talking to professional contractors, they often don't know everything.

Renovations are pretty easy (but time consuming) and you might need some substantial tool investment you probably don't have. But, obviously it depends on the condition of the house.

Ideally you might find a knowledgable carpenter friend who's willing to help you evenings/weekends for a bit of cash - I used to do that all the time. Find a property you like and run the numbers, see if you like the looks of it.

>>16748321
>inheritance or lives in a flyover state with ~100k houses

>>16748415
>taxes
$800/yr per property
>maitenance
If something breaks I'll fix it, but since I renovated it, it will be in good shape for years.
>insurance
just a few hundred yearly, doesn't even cross my mind.

My personal expenses are very low, basically I spend the rent money from one property and keep the rent money from another.

>>16748432

Yea I guess my fear is if I don't buy something more or less move in ready Im going to purchase something that has a lot more problems than I'm aware of and it turns into the movie Money Pit. Lol That being said my costs of living are incredibly low as well and around here most property taxes where I'd buy cap out at 1200/year. I could charge around 500/ per side so roughly with full capacity and 2 rentals I'd make 24K/year gross profits. With taxes insurance maintenance I could sadly almost not work. Maybe with 3 rentals for sure.

>>16747790
Good job anon! How much did you invest to make that passive income possible?

>>16748560
>How much did you invest to make that passive income possible?
$25,000 invested, plus roughly 200 hours of my own time.

Look at this guy going all Rich Dad, Poor Dad.

>>16748592
That's pretty impressive. Any advice for buying rental properties? Do's and don'ts?

>>16748466
Red pill me On water heater tanks. Do they need to be changed after a while or just leave them.

>>16748646
I don't really have a ton to say, but:
- Don't buy anything older than 40 years if you might have to demolish it, because asbestos regulations are impossible to work with for us small guys.
- Avoid anything with structural damage or water damage of any sort (roof and foundation are most important)
- Most expensive renovation is in the kitchen, believe it or not. A servicable kitchen is super important and is normally what sells a post
- Be aware of any sales conditions. Municipalities often require a certain amount of development when selling abandoned houses, so make sure its within your capabilities.
- Do not limit yourself to your area. If you can save 50% of the cost by driving for 2 hours, its 100% worth doing.

>>16748688
They can run for 20+ years in my experience. Places with acidic water will need replacement, places with hard water can be cleaned. They're cheap anyway though, so if its a selling point then just throw a new one in.

where do u live anon eg where to buy them?

>>16749366
Better yet, where do you live? I might be able to find something.

>>16747947
Impressive. Aren't those abandoned houses in terrible condition and in bad neighborhoods though? Do you tenants fuck shit up?

>>16748857
These are good tips. Foundation and roofing is something I've always heard. I guess the only downside of living 2 hours away is incase of emergency. Whatever a water pipe breaks or something. You just find numbers of contractors in the area I guess ahead of time when a tenant calls if its that serious.

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An application that calculates compound interest.

The calculation results are explained in detail in charts and graphs.

I would be grateful if you could leave a review after use app.

>>16748444
>>16748321
probably by working?

>>16747803
sometimes waging isn't so bad. I always got Kleros jury duty to fall back to in case I can't feed my family from my crypto investment gains alone. (that will never happen)

>>16749527
>Aren't those abandoned houses in terrible condition and in bad neighborhoods though?

A lot of Canada is filled with boom/bust mining towns and the like. For example there's an area in northern BC that was recently revived when the coal mine reopened - properties that were 60k four years ago are selling for 250k+ now. When the industry dries up, nobody's there. The houses are pretty much left as they were.

>Do you tenants fuck shit up?

Hoping they don't but I'm renting to a construction company right now, they'd be held liable if one of their workers damaged the place.

>>16750527
Wtf are you in Canada? I almost gave up on this thread before reading this post. I'm in Van and have always thought of residential property as requiring $100K starting to get into the game.

>>16747790
How'd you do it? Tell us your tale anon

>>16747790
Can I do this with $34,000 USD while unemployed?

>>16747790
I'm on my way anon, I just renovated the house I inherited and live in , mostly with EU gibs, and now I'm waiting for a loan approval to buy a small apartment to rent to students or AirBnB (center of Athens).
It's harder here but it's only going to be easier now that I don't pay rent, the ball will start rolling at last. I want to be renting at least 3 of those apartments when I'm 40, and receive close to 1k euros monthly.

>>16747790
That's an insanely high ROI( for RE), anon. People would pay serious cash to get a ROI like that from a secure investment as RE. Consider looking into selling this form of investment to investors.

>>16750527
I was debating if this was a larp until the "hoping they don't". I worked as a carpenter's assistant for 6 years and the company would always sell the houses, even if they could afford to keep them, because being a landlord can be hell if you're in a bad area. Even if you're not, most states heavily favor the tennent. It's very easy to end up not getting paid 1-2 years rent if the renter knows how to play the game, plus you'll be paying repairs for stuff they break on purpose after you try to evict them the first time.

Also a ton of people, probably your renters, are about to lose their shitty jobs, which gives them the perfect excuse not to pay, and I'd bet every dollar I have that the judge will full against you and force you to take a lose on your investment.

You'll make more money reselling the houses OP, I'd resell and buy better placed starting houses going for 100k and turn them into 400-500k with 50k worth of material and 2 months of work as opposed to continue to be a slum lord. 18k a year isn't enough to cover yourself if anything goes wrong and you're liable.

>>16752304
How do you go from 100k to 400k with 50k of materials?

>>16752845
Labor, presumably.

>>16748321
kneepads

>>16750931
Vancouver is the worst housing market IN THE COUNTRY to get into. There are towns in BC where you can buy houses with a credit card. You might have to go 3-4 hours out of the city before you start finding realistic prospects, but they're there. For comparison, I drove 30 hours to get to where I am now, and went camping for the summer while I was waiting for the paperwork to pass. Super comfey.

bump

>>16752304
>I'd resell and buy better placed starting houses going for 100k and turn them into 400-500k with 50k worth of material and 2 months of work as opposed to continue to be a slum lord

This is actually an option I'm considering, but the biggest ROI I can get is building a prefab steel building on vacant properties and selling them as commercial workshop space. I can sell one property for the capital and have it built in a month. Around here you can't turn a 100k house into 400k, unfortunately, because the price is almost entirely dependent on location.