Home Forums Hunting & Shooting Hunter's Campfire Good/Bad Time to buy a rental property…?

Asking for some relatives. What kind of financing is available for something like that?

Thank you in advance!

Prices are near record highs.

Look very, very carefully at the renter’s rights laws in the appropriate jurisdiction.

I wouldn’t want to be a landlord at this time.




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Don't rent to any kind of lawman.

My wife and I had rentals for 30 years, one of the happiest days of my life when we closed the sale of the last one. IMHO, there is NO good time to be buying a rental.

I have two rental properties. They are wrecking me.

Good renters are about 10% of the renters.

I'm in the eviction process now and will have to do a complete exterior and interior remodel and then will sell. The place is completely trashed.

One year from now, I aim to be out of the investment property business.

There's a real estate correction coming, but where I'm looking it's only started. Waiting for some deep reductions.

Gentlemen,

Thank you for your frank comments. TimberRunner, I agree with you as far as the whole housing market is concerned, but the prices on good property are going up almost 1% a month. The house next door to us sold at the same time we bought this house, seven years ago. The folks who lived there moved to Texas in July and sold that house before it was listed for 220% of what they paid for it. If there is a correction coming it will be a big one…

Are ya ready ta be your own electrician, plumber, roofer, and a/c tech, all in the middle of the night?

Whilst you're bein a lawyer durin the day, throwin families out inta the cold just because they couldn't pay the rent?

Are ya gonna throw people out, just cause they just missed one month rent?

We bought a 4 bedroom house this past May and are renting to my sister in law and her two kids.


She's a good person and I have zero worries about her not paying rent. The only reason we bought it is we have a fair amount of extra income(relatively speaking...) and needed to put some money into something. And the house she was renting from my parents was only a two bedroom. My mom and grandma have 10 rentals so I know all about the random chit that goes on.


It's sort of a piggy bank, it is NOT a money making deal as we are giving her a sweet deal on rent. It basically keeps me from spending money like an idiot...lol


And in our little town prices never really got crazy, sure we overpaid a little but we have an awesome location and I'm not worried about future resale.

It was $190k and we put 60k down.


That said, no way I would have been buying pretty much anywhere else in the state, things are cheap out here...lol


We have a 20 year loan at 5.25%, fixed for the first 10, variable for the last 10. Plan is to pay it off in 5-10 years so not concerned about getting hosed by the bank.

Wife and I rented a couple of houses we had; not "rentals" per se, we didn't get them to rent, they were just extra houses we had so we rented them out long term to the right people. It all worked out well for us, but it was a temporary thing. We came out ahead both times, but a taste was enough. I would not want to be in the landlord business long term.

Bad renters are usually due to bad landlords.
Due diligence, check references etc. Routine scheduled maintenance visits (“change the filters”) to keep an eye on your investment. Wife makes the rounds to collect rents on a set day every month. Stops all the “I mailed it” bullscheit excuses. We’ve had to evict one time in 15 years.

Best decision we ever made was buying/owning rentals. Passive income and an appreciating asset that someone else is paying for, for you.
Run it like a business (because it is) don’t get personally involved or attached with renters, NEVER rent to family or friends.

Last week I checked on financing for a duplex that was a reasonable deal. The interest rate on a commercial loan, 20year amortization, was cheaper than a 30yr FHA loan. Crazy times.

I'm planning on buying/building some multi family as prices come down. Yes, they are going to come down. Building will get cheap and that will put pressure on existing homes prices. Lumber has already pulled back, but everything else is still higher than Willie Nelson.

What was the rate?

Lumber has pulled back but other materials have not. I hope they follow .

5.1% and at that time a 30yr was close to 6%

Thanks, that's right in with the deal we got.

I'd advise they wait a year, or two, and see what happens.

Interest rates have a big effect on real estate values, but real estate takes time to find the new equilibrium.

Figure the real estate bottom will be 2 years after the stock market bottom. Don't know if stocks have bottomed, but I'd guess not.

Everyone has an opinion, that is mine. dvnv

Locally there is money to made on bare property. Even though housing is tough and rentals are doing well, I'll never do the rental deal. Were around a lot of renters during our early poor years and saw very few that I'd want as customers.

I’d remember one thing listening to advice on the internet from randomly placed strangers, every AO is different. Lots of factors that impact the housing market, it’s not like the stock market, commodity or bond markets etc. which exist with no regard to geographical location.
A rural, desirable area close to an urban hub with low inventory can’t be compared to thar same urban hub people are fleeing or the locales that have seen property values triple during the pandemic. There are isolated bubbles that WILL burst, but many more places that won’t and will at the worst plateau and at best still appreciate at a more reasonable level.

Wife and I are invested in the stock market only for tax benefits and the fact she worked for a company that offered 2:1 match up to 7% in a 401k for years.

If it weren’t out of necessity, I’d have put every dime into real estate without hesitation.
My uncle who was as close to a mentor as I ever had always told me stocks were nothing but a piece of paper, buy land. Even if it crashes in value, you can still take a piss or plant a potatoe on it.

Good luck. I was a landlord for a couple of years. Never again and no amount of money is worth it.