 Eastwood123 
Member
Joined: Feb 2001  TX, USA
 Posts: 2354 Feedback: 100% (14) |
Posted: 6/18/2012 7:10:16 AM
THE IMAGE ABOVE IS A PAID ADVERTISEMENT The mess seems way too complicated. The ever changing laws and mountains of paperwork etc, just see overly complicated to me. |
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Posted: 6/18/2012 10:12:05 AM
I own a couple of rentals, and have been flipping other houses for about a year now. Should have been into it three years ago, the competition is fierce now and prices are really being bid up. More buyers than houses at the auctions. Nice hobby for extra cash, but keep your day job.
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Posted: 6/18/2012 10:43:20 AM
[Last Edit: 6/18/2012 10:47:27 AM by goodoleboy]
Originally Posted By Eastwood123:
Ive dabbled at it before but didnt have much luck, mainly because I couldn't find the properties. However, I do see the tax advantages. The mess seems way too complicated. The ever changing laws and mountains of paperwork etc, just see overly complicated to me. Not sure if i see your question, but it sounds like you are shying away from it. Tell us are you interested in buying raw land or a property with a bldg or home? Do you want to flip the houses or become landlord? If you want land only there are special considerations and some large barriers to entry / staying in the game if so. As far a tax laws with capital gains its pretty simple any changes are announced ahead of time anyway.. |
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Posted: 6/18/2012 8:11:31 PM
Im interested in buying "working class" homes for use as rental properties. Looking at the tax advantages. At least until uncle sugar takes those away too.
My approach would be to acquire 10-15 properties that I manage to find from "motivated sellers" in good neighborhoods, lease them out. Ive taken a few weekend classes on REI and have been interested only on the "quick turn" side of things in the past, mainly with wholesale. Like one of the previous posters mentioned, the hardest thing is finding properties at a price that makes sense. Ive been reading a few books lately and my interest is returning, but with different goals. Im more interested in the tax advantages now, not just the quick wholesale deal. Having 10-15 properties that build equity, while having a most income stream would be ideal. Im just hesitant about the amount of paperwork involved, ever-changing laws, and the idea of becoming a landlord and possibly having to have people evicted. |
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Posted: 6/18/2012 11:24:38 PM
IMO - too late, i mean if now U wanna get anything not best but not so worst, U are late.
why? try to remember 2008s prices... |
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Posted: 6/19/2012 11:15:15 AM
Ehh, its never too late, IMO.
My realtor told me he just bought a house for about 50k that he will rent for $900. As long as the taxes are low, and its not a total dump, thats a nice return. I have three houses, and a bare lot that we rent to a business for storage. It's been a good investment, but Im not looking for anymore. |
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Posted: 6/19/2012 9:49:43 PM
The other problem is that myself and the wife both have full time jobs and a kiddo in school. Not sure how I could manage 2 or 3 rental properties.
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Posted: 6/20/2012 8:22:12 AM
Originally Posted By Eastwood123:
The other problem is that myself and the wife both have full time jobs and a kiddo in school. Not sure how I could manage 2 or 3 rental properties. it is always time on week end... or just find any trusted person or agent, but Ull lose some % but U will not need to find time |
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felrom
Fighting Naturalist
Team Member
Joined: Oct 2010 TX, USA
Posts: 2294 Feedback: 100% (2) Link To This Post |
Posted: 6/24/2012 10:01:13 AM
I have a retired family friend who at his height owned 23 rent houses in DFW. He used guys from Church-sponsored half-way houses to do maintenance. He could always find people with skills who would work cheap because they had few other prospects. He became very wealthy as a landlord, but he did it for almost 40 years.
I've considered it a few times, but in Texas the property taxes and insurance for a house can run 3.5% per year. I'm moving for a job, and just signed a one-year lease on a house; considering the monthly rent and the house's appraised value, the landlord will spend the first four months of my time there paying all of my rent to the state and insurance company. Plus he paid a half month's rent as a realtor fee to find me. After you tax what's left at the landlord's marginal rate (likely 25% or more) you're left with about 5.5 month's (or less) worth of rent as profit. If he owns the house outright, that means his return on investment this year will be 4.95% simple-interest on the house. This assumes no maintenance is required for the property. |
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BigeasySnow
Fat, promiscuous and pasty!
Team Member
Joined: Jul 2008 LA, USA
Posts: 21105 Feedback: 0% (0) Link To This Post |
Posted: 6/27/2012 10:12:15 AM
I'm in the process of buying a duplex. I plan to live in one side and the other is already rented out. My offer has been accepted, the inspections are scheduled for Monday. My plan is to pay "rent" for my side and use it and my tenant's rent to invest in more rental properties. This duplex is move in ready, but I would like the next one to be more of a fixer upper. I'll be volunteering with Habitat and seeing if I can find classes at Home Depot (tiling, painting etc.) to get some idea of what goes into repairs. I believe an llc is the traditional way to handle properties on the small scale? Is there a better way? I'm reading up on the advantages and disadvantages of s corps and llcs, but I need to make a decision soon, as I need to create and fund the company so that it can own the house and pay for the expenses. |
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