I’ve inquired before and I know there are several on here that invest in real estate. I’ve heard horror stories on residential rental homes with renters being very destructive. How about vacation rental type properties? Beach condos? Cabin in broken bow, OK? What’s pros & cons on vacation rentals? Any success stories? What to expect or look out for?
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Rental Property Investment ?
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I don’t have any but a friend of mine has a couple condos on Maui that normally rent for $625/night. They’re normally booked solid 10 1/2 months out of the year
He’s lost half of March, all of April and likely May. Luckily he pays cash for his stuff but if you were counting on rental income you’d be hurting right now. Outside of events like this he said his management company is great and as long as you have a good contract it’s worth it if you have cash
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I got out of the rental business three years ago. I always planned on getting back in but I'm not so sure that I will after the situation that we are in now.
You can see now that the rules to the game can be changed overnight. The way to maximize return on rentals is leverage and if big brother can step in and hamper your ability to collect rents, making it more difficult than it already is, then I'm not sure its a game I want to be in.
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I own single family rentals, vrbo and commercial. The single family tenants can be hit or miss. Screening is key. I had a slow payer that just moved out before corona hit and Im glad they did. I am keeping house vacant right now till we get through current situation. My vrbo is on Possum Kingdom and is slow this time anyway. It is booked about 60 nights/year. It requires some weekly work from me during summer but I don't mind. I have a two tenant retail commercial building, one tenant paid and the other has not for April. The rules did change overnight and if you are leveraged then you will be in trouble if this goes on past end of April. Even before this mess buying single family for rental didn't make sense in DFW due to high prices and property taxes.
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Originally posted by Atfulldraw View PostIt’s about to be a great time to buy
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Rental Property Investment ?
Originally posted by armadillophil View PostI own single family rentals, vrbo and commercial. The single family tenants can be hit or miss. Screening is key. I had a slow payer that just moved out before corona hit and Im glad they did. I am keeping house vacant right now till we get through current situation. My vrbo is on Possum Kingdom and is slow this time anyway. It is booked about 60 nights/year. It requires some weekly work from me during summer but I don't mind. I have a two tenant retail commercial building, one tenant paid and the other has not for April. The rules did change overnight and if you are leveraged then you will be in trouble if this goes on past end of April. Even before this mess buying single family for rental didn't make sense in DFW due to high prices and property taxes.
Or are you referring to increasing unemployment and people not able to pay rent for a several more months?
Sent from my iPhone using TapatalkLast edited by mooch; 04-06-2020, 03:14 PM.
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Originally posted by coy-ote View Postdo any of the coastal rentals pay for themselves as far as the mortgage if booked all summer ?was thinking of renting our soon to build vacation home to offset the cost so I don't have to use money from my 401.
I rent my place on the Nueces in George West. Most renters only want weekends.. That alone makes it near impossible to break even.
You have to keep in mind the extra insurance cost when renting, extra utilities, extra things breaking etc.
BTW - if anyone sells commercial insurance please PM me.
I just rent to help pay for upgrades and fixing the place up.
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Originally posted by mooch View PostEven if leveraged, do you typically not keep X amount of months worth of mortgage/costs on hand for times like these? Just curious as my wife and I have thought about investing in rental properties and always planned to leverage but keep a few months expenses on hand in case it goes vacant, situations like this, etc.
Or are you referring to increasing unemployment and people not able to pay rent for a several more months?
Sent from my iPhone using Tapatalk
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