In a snow bank....it's the closest I can get to a bank after building spec homes .

LOL, no fraud here I like my morning crap to with a virgin butthole.

I have a buddy who is a slumlord. Owns 35+ 2 and 3 families in Providence and the surrounding area. He is the insurance and legal guy, his brother is the investor and rehab man and the third partner looks like a Caucasian version of Suge Knight. He is the rent collector/office manager/enforcer. Drives a 7 series BMW and is scary as hell. They don't really have any problems with tenants.... I kinda think that problem tenants end up face down in the Providence river.

I have thought about rental property however I don't think I have the temperment for it.

RT

__________________
When all else fails, vote from the rooftops!
84' Mercedes Benz 300D Anthracite/black, 171K
03' Volkswagen Jetta TDI blue/black, 93K
93' Chevrolet C2500HD ExCab 6.5TD, Two-tone blue, 252K

Most 7-series owners are as scary as hell regardless of their profession.

My practice has been to buy historic commercial buildings in need of refurbishment and with high vacancies. I then do the repairs and rent to new tenants at market value and sell when it is all up to snuff. I really cannot say that I make much from the rental business but I can make wages from the work and take some profit upon sale of the property.

I have built two new spec homes on difficult lots, sold each before they were finished and made about as much as I lost on one and the other. If that makes no sense, on one I made wages and some profit, on the other I did not really make wages but did not work completely for free, needless to say on the second example there was no profit.

Building spec houses is tricky as an Architect because I have a tendency to build the same quality I would for a client or for myself. Unfortunately the market does not seem to reward true quality in pricing.

As a landlord I buy property in good locations, and do first class renovation. I am fortunate to be able to capture good tenants and have yet to experience a tenant who "trashes" my property. I have had a few default on leases and just kindof disappear though.

I fix things when they are broken and try to run a first class place.

Getting rich? No. Trading money at present and hoping for a better market in the near future.

Being in the property owning business has led to a better lifestyle for me for sure. Hopefully when I can't work any more I will have enough to live comfortably.

Tom W

__________________
[SIGPIC] Diesel loving autocrossing grandpa Architect. 08 Dodge 3/4 ton with Cummins & six speed; I have had about 35 benzes. I have a 39 Studebaker Coupe Express pickup in which I have had installed a 617 turbo and a five speed manual.[SIGPIC]

..I also have a 427 Cobra replica with an aluminum chassis.

I am close enough to the business to see all the numbers. I know what they paid for the lot, what they sold it for, and all the associated costs.

One of them just closed on a house and picked up three building lots for damn near free, well the cost of a new Camry...They are true masters at the art of steeling building lots and do well because of it.

I'm also continue to be amazed at what they actualy own. Since nothing is in there names, you can't just run a name search in the property records. But if you know the LLC's you can look it up. They own entire streets and street corners...

__________________
2006 CL500
1969 280SE
2023 Ram 1500
2026 Genesis GV70
2007 Tiara 3200

Sounds like magic opportunities for you to me. You know all the numbers...........go for it!

__________________
'06 E320 CDI
'17 Corvette Stingray Vert

RT,

You are on the cusp, in my experience. Either go for it, or you'll be pushing 60, wondering why you didn't.

My Father started building homes, duplexes, and apartment buildings for himself to landlord, when he was 35 years old. By the time he was 50, he was independently wealthy, drove new Mercedes-Benz' paid for in cash, AND, debt free!

I started buying stocks when I was 22 years old. By the time I was 48, I was independently wealthy.

There's a lot of BS on getting rich
out there, but only two certain ways to do it........stocks OR real estate. Take your pick, buy all the stocks you can with your income, or buy real estate.
90% of us that are millionaires DID NOT inherit it.

__________________
'06 E320 CDI
'17 Corvette Stingray Vert

I always say....

a million won't buy what it used to!

Tom W

__________________
[SIGPIC] Diesel loving autocrossing grandpa Architect. 08 Dodge 3/4 ton with Cummins & six speed; I have had about 35 benzes. I have a 39 Studebaker Coupe Express pickup in which I have had installed a 617 turbo and a five speed manual.[SIGPIC]

..I also have a 427 Cobra replica with an aluminum chassis.

From what I have seen, this done right is extremly lucrative. You cannot buy a 2-3 family in my city that cash flows, and a lot of them at junk regardless of the price. However you can build one that does. Also since you built it and its new maintenance is much less than a 100 year old building.

The trick seems to be that you build them on crappy lots that no one would want to buy a house on. For example a lot that is on the edge of a busy road across the street from a gas station. You would have to sell a house on this lot for cheap because the location sucks, but renters don't really care.

__________________
2006 CL500
1969 280SE
2023 Ram 1500
2026 Genesis GV70
2007 Tiara 3200

I have to disagree on this. One of the key components that makes my life as a landlord tolerable is that my apts are in prime locations. I don't think I'd want to deal with a class of tenants that didn't care where they lived.

__________________
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

Well its a great spot for commuting.


People seem more willing to pay $1,100-$1,300 a month to rent a place thats a close drive to work, vs $340k for a house on the same lot.

I agree location is everything, but I there are variables.

__________________
2006 CL500
1969 280SE
2023 Ram 1500
2026 Genesis GV70
2007 Tiara 3200

Agreed. Having excellent tenants requires that you have excellent properties well located. This is especially true now with a surplus of housing (at least here).

If there is a lot of pent up demand then the renters cannot be picky.

Tom W

__________________
[SIGPIC] Diesel loving autocrossing grandpa Architect. 08 Dodge 3/4 ton with Cummins & six speed; I have had about 35 benzes. I have a 39 Studebaker Coupe Express pickup in which I have had installed a 617 turbo and a five speed manual.[SIGPIC]

..I also have a 427 Cobra replica with an aluminum chassis.

My Dad built in a solid blue-collar section of Omaha. Not exciting, but long term 15-20 yr. lucrative. The key to getting started is to have a plan, cash for down payment on the loan, and a job you earn money to live on, on the side. I think most of the landlords here had or have a job or career on the side.

Good tenants are dependant on a good landlord. The landlord sets out the ground-rules, not the other way around. If the tenant deviates from the rules, raise their rent, or 30-days notice to vacate. My folks never offered leases for that very reason. Undesirable tenants were given the 30-days notice to vacate. No tollerance rentals, at under market rates== (nearly) 100% occupancy.

__________________
'06 E320 CDI
'17 Corvette Stingray Vert

Last time I ran my occupancy rate it was something like 99.89% over a 12 yr period.

__________________
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