Some wisdoms: I don’t recommend doing it. It’s not very liquid. Your success 100% depends on a great PM in every area. Not for the faint of hearts. Lots of asshole tenants wasting my PM’s time going to court or calling the sheriff. Cash flow positive should be considered as bonus. The real gain is the appreciation gain. When you are super old, it is best to sell all of them and stick with VOO. Have LLC for each city. Have liability and rental insurance. When it’s time to sell, sell. Don’t hesitate. Move your money quickly to other investments or 1031 exchange. If you have a bad WLB on your day job, don’t play this game. If your anxiety is already high because of stuff or visa status, don’t play this game. Bad marriage? Don’t play this game. Don’t play Airbnb game. Too much liabilities and active work like supplies, cleaning, and repairs. Cities all over America are actively banning. Superhosts charge a lot more. That said, if you have an industrious house wife with penchant of business, make her be the boss of your properties and turn her into a “real estate professional”. With a good accountant, it will wipe your tax obligations to zero. This plus depreciation math plus land value appreciation are the three most profitable axis. My exwife only wants to burn money so she didn’t want to play this game. Don’t be cheap with accountants. Just pay one. Never buy a high rise condo for rental. Bad returns due to astronomical HOA. High HOA eats all your margin. You know what? Just don’t buy high rise apartments with high HOA. You want a high rise jet setting living? Rent it. Live and build your life in blue states. Buy rentals and be a landlord in red states. There is no such thing as “passive” income. Every meaningful amount of money requires work. All youtubers are liars about this. Some metrics: - Raw rental revenues: $9200/mo total - 3 different cities in 3 different states - Each city has an LLC - Average property tax is $1400/year - All house prices below $200k. - $600k TC (day job only) - 15 years across many FAANGs - 25 YOE total - $6m NW - 1 divorce. The luckiest divorce ever. She just bounced, no contest, demanded no contact. I keep everything. #housing #rental
But you are missing your TC
Updating.
Is this a good time to buy? Things seem very over priced
7% of cheap is still cheap. What’s 7% of $100k really?
I don’t think there is anywhere in the country where you can get a decent rental for a 100k.
How did you choose your site.
Red states. Population > 200k or near a city with that kind of population. At least 1 hospital, at least 1 university, preferably 1 large employer.
What makes red states attractive?
Hey what state is your portfolio mostly focused in? As someone who is about to buy his first rental in the Bay Area, would love some tips/advice on how to approach this. Will be cash flow negative for a few years but banking on appreciation. For my next properties I was thinking OOS since I can’t scale as quickly here.
I experimented each time. I am not the greatest, but always choose red states. You want a place with the easiest way to kick tenants out.
Gotchu. Yeah gonna go that way for my next investments. Do you recommend taking cash flow hit for appreciation in red states as well? Like Arizona, Georgia, Tennessee, North Carolina etc? The Bay Area market is unique so appreciation play is a pretty safe bet. Any recommendations on how to get started with OOS investing?
Net worth or its fake
Updated.
This is amazing ! Thank you
LLC doesn’t help. You can still be sued directly. What you need is umbrella insurance.
umbrella is a tad pain in the ass to buy. combining liability, rental insurance, and LLC covers everything.
Can you mention the areas? Or I’m Happy to DM you.
I don’t want to dox myself. Friends already know my top locations.
What is the profit per month?
3 of them already paid off. So max rent - prop tax - pm fees + judgements from non paying people. The rest, same formula minus mortgage
Can you share exact number? Total 9 property profit.
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How many properties do u have per LLC?
in 1 city I have 4. in another city I have 3. And last one I have 1.
Thts cool, how much do u put down