Hi all, I'm looking for others experience on how much aggravation is it to be a slumlord? Several people in finance (SIS, others) have stated that this is the best way to make rental money - what sort of profit do you want to see on a "slumlord property" to make it worth your while? I'm looking to get into real estate and have found a duplex I think I can get for ~$70k. After mortgage, maintenance costs, taxes, assuming it's unrented for 1 month/year, insurance, etc, I think I can put about $300/month into my pocket on average (based on the rent it is currently rented at)
I would have 2 tenants, so that means $150/month/per tenant. I realize that tenants vary, but in general how much do you have to profit each month for you to consider it being worth it?
Message edited by: BigDish on 2009-11-08 10:13:46 CST
Property ownership is a long term investment. If you expect to buy an old property and rent out it out for enough to cover the mortgage, taxes, insurance, upkeep and repairs, and still have money left over for yourself, you're a fool.
moonbeam said:Property ownership is a long term investment. If you expect to buy an old property and rent out it out for enough to cover the mortgage, taxes, insurance, upkeep and repairs, and still have money left over for yourself, you're a fool. Read the above-mentioned finance thread. While I haven't read all 300 pages of it (hence why I posted here) I did read enough to know that people do manage to get cashflow-positive properties (and in fact, buying a property that is not cashflow positive is generally considered foolish)
BigDish said:moonbeam said:Property ownership is a long term investment. If you expect to buy an old property and rent out it out for enough to cover the mortgage, taxes, insurance, upkeep and repairs, and still have money left over for yourself, you're a fool. Read the above-mentioned finance thread. While I haven't read all 300 pages of it (hence why I posted here) I did read enough to know that people do manage to get cashflow-positive properties (and in fact, buying a property that is not cashflow positive is generally considered foolish)
LOL, the last place I'd go for finance information is the finance forum. I've known plenty of stupid people who bought run down properties under the mistaken belief that they could just rent them out as-is and pocket the money, then acted shocked when they were forced to pay for needed repairs out of pocket. Clueless people + run down properties = almost certain disaster.
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I've known plenty of stupid people who bought run down properties under the mistaken belief that they could just rent them out as-is and pocket the money, then acted shocked when they were forced to pay for needed repairs out of pocket. Clueless people + run down properties = almost certain disaster.
