« What We've Learned from Millionaires | Main | Cost of Average Wedding Almost $30,000 »

May 05, 2014

Comments

Feed You can follow this conversation by subscribing to the comment feed for this post.

This is a great read - thanks for sharing your thoughts for those of us considering the landlord business.

Looking forward to seeing the spreadsheet!!

Great post! Are you calculating CAGR on your real estate? I'd be interested to know how well your physical properties perform compared to a REIT index like Vanguard's VGSLX.

Wow. That seems like a whole lot of income production and a great Net for that cost basis. Nicely done.

Very good, thank you for sharing.

BTW, the William Bernstein e-book is free right now:

http://www.amazon.com/If-You-Can-Millennials-Slowly-ebook/dp/B00JCC5JKI/ref=zg_bs_154606011_f_4

I greatly enjoyed this post. I own a few rental houses and am a passive partner in two apartment complexes. Yay passive income!

FMF-

I thought you may have mentioned it before, sorry if I missed these answers, but I have a couple of questions about logistics:
-are you set up as an LLC (or something else) to do these rentals? Either way, why or why not?
-other than the commissions on sales, is your helpful real estate agent getting any other share in these rentals?

Thanks for the informative RE series,
Mike

Mike B --

I use an LLC for liability protection.

My agent gets the commissions out of the arrangement and that's it.

Mr. Everyday Dollar --

To do that, I'd have to estimate appreciation on the properties themselves, correct?

FMF- Thanks for sharing this experience/info, its very valuable.

A quick question ....How do you search for these properties? Is this based on certain search filters that Eric may have set up for you?

AK --

I get an email that lists every income property in the city when it's put up for sale. I used to look through each one of these, as would Eric, to see if we were interested. If we were, he would call the realtor, we'd get more details and decide whether to proceed or not. We had to look through a ton of options before we found one we liked (based on our metrics).

That's how it used to work when I lived in Michigan and was actively looking for places. Now I have both Eric and my management company (they have a brokerage arm) looking for me, but my criteria has changed. I really have all the properties I want in Michigan at this point, so I'm only looking for SCREAMING deals (no-brainers). If they can find any, I'm interested. If not, I'm fine where I am.

Not sure if I'm going to buy any places in Oklahoma or not. I'd love to tackle a larger multi-unit place (10 or more units), but not sure I can make it work financially.

The comments to this entry are closed.

Site Sponsors


Enter your email address:

Delivered by FeedBurner

Disclaimer


  • Any information shared on Free Money Finance does not constitute financial advice. The Website is intended to provide general information only and does not attempt to give you advice that relates to your specific circumstances. You are advised to discuss your specific requirements with an independent financial adviser. Per FTC guidelines, this website may be compensated by companies mentioned through advertising, affiliate programs or otherwise. All posts are © 2005-2012, Free Money Finance.

Stats