Knew there was a reason I never wanted my own buisness. Dealing with "the public" wouldn't work well with me. When we were getting ready to move down here, everyone kept telling us not to sell our house in Washington, due to the up-trend in home prices there.
"Just rent it out for a while".
Nope. Not even going there.

__________________
past MB rides:
'68 220D
'68 220D(another one)
'67 230
'84 SD
Current rides:
'06 Lexus RX330
'93 Ford F-250
'96 Corvette
'99 Polaris 700 RMK sled
2011 Polaris Assault
'86 Yamaha TT350(good 'ol thumper)

Also, you may want to look at this:

You say you have this house since 15 years. This new tenant is in his 20's.
So, you were a property owner already, when he was still feeding at mom's and dad's fridge.

What I am trying to say is, he doesn't even have as much experience renting a place, as you have owning property.

Let him get a few years older, make his experience, buying or renting, it doesn't matter.
What will teach him, is the one situation that puts him through the grinder ... after that he will act accordingly.
Ofcourse, provided he learns. Some never learn.

__________________

Sounds like a good decision to cut the pipe instead of lay the pipe.

Stories like these have thus far kept me from picking up a 2 family house or two in town as they pop up. Keep them coming!

__________________

1980 300TD-China Blue/Blue MBTex-2nd Owner, 107K (Alt Blau) OBK #15
'06 Chevy Tahoe Z71 (for the wife & 4 kids, current mule) '03 Honda Odyssey (son #1's ride, reluctantly) '99 GMC Suburban (255K+ miles, semi-retired mule) 21' SeaRay Seville (summer escape pod)

Here's the other side. After I had been teaching for ten years and landlording for 9, I compared how much I had made at my full time job teaching compared to my part-time job landlording. Landlording came out on top by a large margin.

__________________
1977 300d 70k--sold 08
1985 300TD 185k+
1984 307d 126k--sold 8/03
1985 409d 65k--sold 06
1984 300SD 315k--daughter's car
1979 300SD 122k--sold 2/11
1999 Fuso FG Expedition Camper
1993 GMC Sierra 6.5 TD 4x4
1982 Bluebird Wanderlodge CAT 3208--Sold 2/13

Stop it!

I can fully appreciate it. I have a couple of friends/acquaintances who have pieced together a nice bunch of multi-families over the years and make out quite nicely with them. My original plan was to buy a duplex after we got married and to live in half while we collected rent for the other, save up and buy another duplex then collect rent from all 4 and buy a single family to live in. But the Mrs. grew up in a 2 family and really didn't want to. I'd be on my way to a realestate empire by now if we had .

It'll just take longer, but I'll end up picking up a couple anyway. The scary stories keep me based in reality, though!

__________________

1980 300TD-China Blue/Blue MBTex-2nd Owner, 107K (Alt Blau) OBK #15
'06 Chevy Tahoe Z71 (for the wife & 4 kids, current mule) '03 Honda Odyssey (son #1's ride, reluctantly) '99 GMC Suburban (255K+ miles, semi-retired mule) 21' SeaRay Seville (summer escape pod)

Wait a second....I thought owning rentals was passive income


Thats whut the expert R.E. gurus keep sayin....Have I been lied to?

__________________

"Our Lady of Blessed Acceleration...
don't Fail Us Now"

I don't see how that is possible, but I guess it would be dependent on how you define "how much I made" and how you acquired your properties.

That's what I was thinking. Unless you're figuring in the appreciation on those properties. I was a landlord briefly back in the 70's. I don't want to have to deal with renters anymore. That's what REITs are for . . .

__________________
" We have nothing to fear but the main stream media itself . . . ."- Adapted from Franklin D Roosevelt for the 21st century

OBK #55

1998 Lincoln Continental - Sold
Max 1984 300TD 285,000 miles - Sold
The Dee8gonator 1987 560SEC 196,000 miles - Sold
Orgasmatron - 2006 CLS500 90,000 miles
2002 C320 Wagon 122,000 miles
2016 AMG GTS 12,000 miles

I didn't find ANYthing passive about it. Unless, of course, you hire someone to also manage the property for you. Of course, then your costs will go up.

__________________
" We have nothing to fear but the main stream media itself . . . ."- Adapted from Franklin D Roosevelt for the 21st century

OBK #55

1998 Lincoln Continental - Sold
Max 1984 300TD 285,000 miles - Sold
The Dee8gonator 1987 560SEC 196,000 miles - Sold
Orgasmatron - 2006 CLS500 90,000 miles
2002 C320 Wagon 122,000 miles
2016 AMG GTS 12,000 miles

Agreed.

I never made a dime in free cash flow for the first 20 years. Only after I sold a few of the dogs and paid down some mortgage debt did the cashflow turn positive. But, it's not significant.

The taxes and insurance in this area ensure that it's impossible to get ahead on cashflow.

However, from a capital gain standpoint, the returns are significant over a 20 year period.

Yes, lots of factors in determining 'how much I made'. Here's a rough equation to explain it. Not the actual numbers.

10yrs of teaching at 30k per yr= 300k
10 yrs of landlording. Bought property for 100k. Paid off property in 10 yrs. Property now worth 400k.
(Not including cashflow. All my properties had to cashflow on 15 yr mortgages)

__________________
1977 300d 70k--sold 08
1985 300TD 185k+
1984 307d 126k--sold 8/03
1985 409d 65k--sold 06
1984 300SD 315k--daughter's car
1979 300SD 122k--sold 2/11
1999 Fuso FG Expedition Camper
1993 GMC Sierra 6.5 TD 4x4
1982 Bluebird Wanderlodge CAT 3208--Sold 2/13

By your explanation, you didn't make more then.

Edit: my opinion. Not going to get into a big tax and expenses discussion on this board again. Congratulations!

I came to this conclusion when I started acquiring rentals just out of college, so I got out after five years (to be truthful, the IRS helped me free up some of my assets to give to them) and believe I have done much better with spec homes and distress acquisition/restoration of higher end historic properties.

It's a long slow slog to make money on capital appreciation of real estate. If you choose to do all the maintenance on them yourself (as I have done), your life becomes your real estate. Every weekend is spent working on a rental.

The numbers generally ensure your success in the long haul. But, I'm not sure I'd take the same path if I had to do it all over again. I'm tired.