I made a little money on real estate but only when I was physically able to do some of the maintenance myself. After paying $530 to have a $22 walmart thermostat installed and being robbed by plumbers charging $400 an hour in the same month and many other things I decided rentals weren't worth it.
I was charge $5300 to have some mold from a leaking water heater remediated. It took two guys 90 minutes each. The tenant was immunocompromised so I had to have it professionally done.
I had 5 single family homes in a great rental market at one time but I tried to be a good landlord and take care of things so it was mostly break even. I sold one to the tenants at a loss because they had pretty much destroyed it and I didn't want to deal with gutting and remodeling it. I made around $20,000 on the next one when I sold it after about 3 years of dealing with jerk renters. I made about $40,000 on the last one I sold but had a ton of sweat equity in it.
I can't say I didn't make a little on real estate but I sometimes wonder if it was worth it. I don't see many deals around now either. I'd like my money to be earning without me having to clean up a yard that tenants neglected for 3 years or scrape boogers off the walls with a paint scraper. I'm sure there's better ways to make it in.real estate but there are a lot of scammers in it too.
I have one 4 bed 2 bath 2 car garage rental left. It rents for $1200 a month and I'll have it paid off in 3 or so more years. Taxes and insurance are about $300 a month so paid off I'll net $900. I could sell it for over $200,000 and then hard money loan that out at 12% and make much more money without dealing with renters. Equations like that make me question owning rentals. I know I could leverage out that $200 k and borrow into several rentals but it's just more hassle and more expensive repairs.
My in laws were always savers and put about 10% of their income in a 401k. They are very cheap and cautious and for most of their lives didn't earn much. They retired with over $3,000,000 in their 401. They started early and had time on their side.
I did get a good deal on one rental when I bought it because the guy had it in a self directed IRA and had to start taking money out because he turn 70. He had to sell it in a very down market and wasn't happy. I gave him a low ball offer and said call me if it comes down to it and you don't have other options. He called a few months later and said let's do it.
I wonder what kind of real estate deal a guy could do with $1000 in a self directed IRA. I'm sure it's been done but I wouldn't know what to do with only 1k.
Bb
Last edited by Burleyboy; 11/02/19.
