/biz/ - Business & Finance

[Anonymous No.12451359]

When is /biz/ going to take the rental-pill?

[Anonymous No.12451387]

The next buying opportunity. It'll be a 2 for 1 sale. Trying to stay liquid now

[Anonymous No.12451446]

>>12451359
land lord here. it's not all it's cracked up to be. shit breaks. if it can be broken the tenants will find a way to break it. and they wont mention it to you for weeks or months after the fact. like leaky roofs that end up destroying the sheetrock ceiling in the bathroom.

[Anonymous No.12451455]

>>12451446
than FIX YOUR FUCKING ROOF you slumlord

[Anonymous No.12451470]

>>12451359
landlords = literal cucks

[Anonymous No.12451476]

>>12451455
roofs aren't a cheap fix. even finding someone to fix a roof is pretty hard in my area.

[Anonymous No.12451483]

>>12451455
Fuck off peasant

>>12451446
It’s not, but it’s the closest thing to passive income that is attainable to me personally. Currently working on my 5th. Once I hit 10 I’m telling my wife to quit her job and stay at home and make white babies with me.

[Anonymous No.12451575]

>>12451476
How much work do you do yourself? I can manage around 90% of any issues myself. Roofs don’t give me much trouble, then again none of my roofs are in shit shape.

[Anonymous No.12451576]

When is the housing market gonna dip so I can buy cheap? Wtf
Also has any landlord here used peer-to-peer lending to finance their first property?

[Anonymous No.12451588]

>>12451483
How do you find properties to buy and not get ripped off?

[Anonymous No.12451607]

>>12451359
have fun with this shit, seriously
t.gramps owns 15+ local properties and i grew up helping him renovate since 5yrsold

[Anonymous No.12451613]

>>12451575
there's no work i do myself but like i said stuff breaks. and when it does that eats into your income.

Roofs are the biggest thing that can go wrong. If that shit starts leaking and you don't at least get a patch on it. Your looking at thousands of dollars of damage.

Theres also other headaches as well. Like the tenants not paying on time or missing payments. The state has their backs so they are allowed to be late with the rent and you can't evict without going through a lengthy legal process.

All in all it's turning out to be a bigger headache than its been worth for me.

[Anonymous No.12451670]

>>12451359
yeah and I have some pro tips because it's basically my job.

>force leases to max out at 1 year
>keep all security deposits in a bank account strictly for these checks, relay bank info to tenant
>ALWAYS have a clause where you come in to clean every 6 months or once per year
>charge a cleaning fee for this so you can hire out carpet cleaning
>always raise the rent a minimum 5-7% per year
>ONLY sign leases to a tenant with outstanding credit. One person for every 2 needs this.
>straight, white or asian couples are the best tenants. Every time
>never do the move-out walk through before the lease is expired
>never do the move-out walk through with the tenant nearby/with you

[Anonymous No.12451678]

>>12451359

>Baby-sitting another human being

No thanks. Plus it notoriously difficult to evict professional rent evaders. Opportunity cost is also very high because you are tying up a lot of equity in property.

"No"

[Anonymous No.12451691]

>>12451670
Thanks for the tips anon.
>keep all security deposits in a bank account strictly for these checks, relay bank info to tenant
>never do the move-out walk through before the lease is expired
>never do the move-out walk through with the tenant nearby/with you
Care to explain why?

[Anonymous No.12451698]

>>12451691
2nd for this. Don't understand the last one, next to your tenant

[Anonymous No.12451726]

>>12451670
What do you mean by one person for every 2? Also, how do i keep out "undesirables" and not get sued

[Anonymous No.12451770]

renting master race
>rent brand new luxury condo, townhouse, or house no one has ever lived in before
>move out after a year
>repeat
it's so nice having every appliance brand new and a brand new clean and fresh smelling place. I can't believe people actually pay twice as much to build equity in some 30 year old filthy rundown piece of shit

[Anonymous No.12451789]

>>12451670
>ALWAYS have a clause where you come in to clean every 6 months or once per year

Interesting, is this to gain lawful entry into the property to change out locks on deadbeat tenants?

[Anonymous No.12451799]

>>12451770
i agree. i dont rent a condo but houses are a meme. they are basically just rotting wooden boxes that you have to pay rent to the state to "own". anyone that owns a house and doesn't rent it out is a fool.

[Anonymous No.12451810]

>>12451359
already have my friend. i also own a property management company. you biggerpockets?
>>12451770
get a load of this faggot.

[Anonymous No.12451835]

>>12451576
you shouldn't wait to borrow money when rates are gaining fast.. We'll be at 6% soon for even super-qualified borrowers.

>>12451691
>keep all security deposits in a bank account strictly for these checks, relay bank info to tenant
This is to cover your ass in small claims court, or any situation where you need to sieze/spend deposit money. A law savvy tenant (or the court in liberal states), will force you to prove that the funds never intermingled with any other monies you may have. So that means it can't be in a general business account for all your expenses.. Especially do not use a personal savings or checking account in your name. A trust account at a local credit union is probably ideal, you'll get okay interest rates too.

>never do the move-out walk through before the lease is expired
This should be obvious, but your checklist or whatever you're checking against from the move-in date is the reason. If something happens to the property when they actually haul their shit out of the house/condo.. say a drywall puncture, you want that covered. Doing a walk through prior to this leaves you exposed to damage that pops up when the unit is totally empty. Now it's your $.

>never do the move-out walk through with the tenant nearby/with you
I made this mistake two times in my life. In one instance the guy low-key threatened to attack me, then tried starting an argument and filming damage with his phone, only to realize his phone battery was dead. kek. Fortunately his lease was expired by 30hrs, so I simply told him to leave the property immediately.

Do your documenting on your own, when the place is empty, and you're cleaning up everything after move-out. Take lots of pictures.

>>12451789
No this is just to clean because as >>12451446 has now learned... They won't tell you when shit is busted. You need to check that yourself, it's like babysitting.

[Anonymous No.12451854]

>>12451446
One of the best acid trips took was watching celling melt from a leaky roof. Was renting and didn't give a fuck, even used it to get that month free.

[Anonymous No.12451896]

>>12451670
thanks for sharing anon

[Anonymous No.12451938]

>>12451726
Usually, if you're dealing with roomies or a couple, you want to be 100% sure at least one person has their shit together. This will be obvious in the credit report / background check. If someone is even "average", say.. 700 credit score and making min payments on credit cards. DO NOT RENT TO THIS PERSON

Excellent renters have excellent credit: 760+ credit score, multiple (4+) lines of credit open, pays all balances in full or in large chunks.

Also people who lease used cars tend to be retarded, that is a warning flag. Just use common sense when interpreting credit reports.

[Anonymous No.12451948]

>>12451854
hope you lost your security deposit and got a negative mark on your credit report.

we can do that you know...

[Anonymous No.12451967]

>>12451455
Hard to know what to replace when your tenants don't fucking communicate.

[Anonymous No.12452111]

>>12451810
Any advice on how to start a property management company? How many properties do you manage? How many are yours? I was thinking of doing this because I have 3 properties and considering scaling up.

[Anonymous No.12452422]

>>12451938
people with those credit scores dont rent

[Anonymous No.12452462]

>>12451670
lol increase rent by 5-7% a year??

u mad? you're gonna drive people away each year and spent time looking for new tenants. Such a high price rise will only work in key areas

[Anonymous No.12452513]

>>12452462
People have a lot of fucking junk and moving expenses alone will prevent them from moving out. A 5% increase is normal.

[Anonymous No.12452717]

my parents made all their money in real estate in the 90s and still insist on continuing being a landlord.

flipping real estate? buying low in recessions and cashing out at the top? mad gains.

holding real estate and renting it? it’s not worth it. you get lower returns than the S&P500, and you have to deal with tenants and back breaking blue collar work. passive income my ass.

also niggers from the government will pose as potential renters. reject them and the Federal government sues you for 10k-100k.

NOT worth it.

[Anonymous No.12452778]

>>12452717
>also niggers from the government will pose as potential renters. reject them and the Federal government sues you for 10k-100k.

Source?

[Anonymous No.12452807]

>>12451770
this, renting as a tenant is very legit. you could either spend that money on interest to a bank (for a much shittier living condition) or pay a smaller premium to a landlord who is running on low margins.

being a tenant is basically arbitraging boomers.

[Anonymous No.12452848]

>>12452778
fair housing act, read up on it.
https://www.justice.gov/crt/fair-housing-testing-program-1

you always have to evict niggers, but the government forces you to rent to them. avoid landlording like the plague. so many better ways to make money.

[Anonymous No.12452854]

>>12452807
>giving away your money.

Absolute insanity

[Anonymous No.12452908]

>>12452422
810 credit score here, I rent. Why buy a house now when interest rates are absurd and I'm more likely than not to lose 1/2 my equity when the bubble pops in the next 5 years. Not to mention maintenance costs, maintenance time and effort, insurance, property tax jewry, and all the fuck else. Fuck that noise. Plus I gotta maximize my LINK stack before we breach $1.

When I respond to apartment ads I straight say in the first sentence that I have a fulltime stable job, I am single and my credit score is 800+. That gets landlords dripping wet in no time.

[Anonymous No.12452938]

>>12451359
>government taking your money at marginal tax rate

yeah no thanks, i'll stick to the stock market faggot.

[Anonymous No.12453007]

>>12452854
you have to pay money for shelter no matter what. rent or interest to a bank, same shit. subtract from the rent the property tax, utilities, maintenance you would have had to pay and you’ll see renting is a much better deal.

even if you own a home without a mortgage, you still pay. you are paying an opportunity cost.

you carry all the risk as a homeowner. a major employer could move out, niggers could move in, your city could become a spic town, so many ways you could lose almost all the equity in your property (and by extension most of your net worth). renting is antifragile. if the city goes bad, you can get up and leave without losing all your money.

[Anonymous No.12453021]

>>12452908
>Why buy a house now when interest rates are absurd

What the fuck are you talking about? There is a glut of cheap money for home buyers, it’s one of the reasons home prices are so high.

[Anonymous No.12453053]

>Start living in a rental
>Dont pay the rent
>Claim there are damages to that need repair and thats why Im not paying the rent
>Dont let the landlord in
>This goes on for a year
>The entire time im living rent free with electricity
>Landlord spends thousands of dollars in legal fees taking me to court
>Dont show up
>Get an eviction date
>Dont leave on the eviction date
>Continue living rent free for 2 months
>Landlord has to spend more money getting bailifs to his apartment to evict me
>Destroy everything in the apartment
>Finally leave
>Never pay the rent
>Landlord is stuck with a destroyed apartment he has to spend thousands repairing, thousands in legal fees and more
>Meanwhile I move into the next apartment and rinse and repeat

[Anonymous No.12453169]

>>12451455
You can actually put a clause in your renters agreement that if you have to repair something due to their neglect of telling you(say something becomes a huge deal when you could have fixed it before it got bad) you can sue their renters insurance company. My uncle finished out the basement of one his properties after having to replace a roof and the sheet rock in most of the house due to mold that was not brought to his attention. He got to kick the dirty spics out too.

[Anonymous No.12453763]

>>12453053

reeks of nigger

[Anonymous No.12453796]

>>12451359

I live in a nice 3bdrm house. its older but I have nice hardwood floors, landlord lets me have pets free of charge since im not a nigger with pitbulls. Replaced his shitty appliances with mine. Living good for only 700 a month. But I would never be a landlord.

[Anonymous No.12453972]

>>12451770
This guy gets it. Probably the only one winning itt.

[Anonymous No.12454144]

>>12453972
That’s just like leasing a car. You never build any capital

[Anonymous No.12454170]

>>12453796
>700
Would be 3-4k in my city

[Anonymous No.12454207]

>>12453763
he's lying. you get evicted and no one is going to rent to you again.

[Anonymous No.12454310]

>>12451470
The truth is probably somewhere inbetween.
Landlording definitely isn't such a baller's life like /biz/ pictures it.
Tenants are cucking your property.
You are cucking their future.
Real estate is used up rootles roastie.
The returns are usually 6% yearly for getting your property cucked.
I don't wonder when richfags in London just hodl vacant properties.

[Anonymous No.12454378]

>>12454310
>6%

What the fuck? I am getting between 14-17% on mine

[Anonymous No.12454441]

>>12454378
That's net though.

[Anonymous No.12454515]

Landlords will be the first ones put up to the wall and shot like the dogs they are. Profiting from the poorest of society. Not adding any value to society at large. Scum of the earth.

[Anonymous No.12454526]

>>12451359
I read somewhere that if you include repairs/maintenance/all that stuff that your landlord has to take care of, then housing has been a terrible investment since 2000, averaging at a measly 2% yearly return.

If you can rent cheap, it's far better to keep renting and putting your money into more profitable assets.

As a bonus, you're not stuck in a house/apartment if/when you get a new job/have a baby/move for whatever reason.

Red pilled ya.

[Anonymous No.12454596]

>>12454515
>scum of the earth
>implying your pic related isnt the actual scum of the earth

[Anonymous No.12454633]

>>12454526
You omitted the real estate appreciation.
If you don't rent to a monkey you should do fine.
However, tenant's effect on the real estate value is detrimental.
The rich and behaved people are prone to seek new constructions which slowly pushes you into the vortex of slumlording.

[Anonymous No.12454657]

The only real complaints of slumlording is limited income. My uncle is a slumlord with over 80 houses, and a tenant tearing his house up is nothing for him, he just pays to go in and fix it and goes onto the next one.

[Anonymous No.12454812]

I rent close to my work downtown. Real cheap rent hasn't been raised but he knows its a renters market in bumfuckville. No pets, and I can't garden or live my life. I have no debt or bills but want to buy a 2bd house a few miles away to start living. Everyone keeps talking about housing crashing and shit. I dont know

[Anonymous No.12454918]

>>12454515

This, this and only this again. I fucking hate 'em. Most of them never worked for it, but inherited property.

[Anonymous No.12454929]

All of you people are retarded. I manage my flat with 3 other mates and the monthly rent to my landlord is like 1500€. That's some nice passive income. If I manage to make around 300k with BTC I'll use that to buy a flat in Frankfurt and passively live off the rent.

[Anonymous No.12454937]

>>12454929

Sure, sure....does the word 'larping' ring any bells?

[Anonymous No.12454944]

>>12454937
Buttcoin will reach 100k by 2022. I already have 1 BTC. I am aiming for 4.

[Anonymous No.12454952]

>>12454944

ya, absolutely, mate! and by then marilyn monroe will be trumps new wife and he will be the king of the united nations of the north.

[Anonymous No.12454963]

>>12454952
You got into crypto in 2017, didn't you?

t. 2013 fag

[Anonymous No.12454992]

>>12454963

Nah, but I got into capital markets in 2014. I do know my shit.

[Anonymous No.12455021]

this is everyone's dream, but i can see tennants being bitter at the point of paying "too much" and out of general jealousy. unless you know the tennants personally, and how they are. its not worth it imo. unless you own plazas or stores, then that might be different since store owners are probably going to take much better care of their property.

[Anonymous No.12455041]

>>12454992
This is totally different, you dolt. I was here when gox collpased. Hell, I was here BEFORE gox collapsed. Here, have this little time capsule.

https://www.youtube.com/watch?v=K2ku1A5Ox8U