Rental Property Investment ?

[HogHunter34]

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?

[hooligan]

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

[HOOKNBULLET2]

My experience in Rockport, TX is that you can net about $20k/year in rents on a half million dollar waterfront house after the management/marketing company gets their cut.

$20k/year won’t make the mortgage payment, but it’ll pay the property taxes and utilities.

[HogHunter34]

Yeah I figure timing right now is not good but considering down the road potentially. Just wanted to hear from some of the experience here on the green screen. Thanks

[Atfulldraw]

Yeah I figure timing right now is not good but considering down the road potentially. Just wanted to hear from some of the experience here on the green screen. Thanks

It’s about to be a great time to buy

[DFWPI]

Some has slowed down, as far as buying, but not that you would notice. I get 2-3 emails/texts per day from investors asking if I have any off-market properties that I haven’t listed as of yet.


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[Throwin Darts]

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.

[armadillophil]

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.

[Paycheck]

We mess with a couple of dozen residential houses. We normally pick up the rent at each house but now ask them to drop it off at the bank in the drive through. We have had great luck this month, most have already paid and not expecting any problems with the rest.

[LWC]

It’s about to be a great time to buy

This is what I'm thinking. I've been tinkering with the idea for the last few years but properties have seemed overvalued to me. They may look a little better since uncle sam tanked the economy. Time will tell

[mooch]

Rental Property Investment ?

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.

Even 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?


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[coy-ote]

do 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.

[jkk831]

.

[RiverRat1]

do 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 highly doubt it.

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.

[armadillophil]

Even 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?


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Lots of investors don't have reserves for more than 1-2 months. Right now you can't evict anyone so if this drags on more than 60 days it will be ugly.