I LOVE being a landlord. However, my wife and I put EVERY SINGLE POTENTIAL TENANT through the 3rd degree: Background, credit, employment, 3-4 consecutive paystubs, W2s, 1099s (if self emplyed), list of former landlords, references, letters from HR stating employment and salary. Guess what? We have EXCELLENT tenants and always have, but you must put these people through the wringer.....or else they'll do it to you.
Yep. Upscale properties and screen ruthlessly, and go to the trouble to learn how to manage effectively. If you do that landlording is a great business.
California is passing laws to not allow you to do any background checks on tenants or ask about where their income comes from, or raise rent more than CPI, evict poor tenants and on and on with little protection for housing providers.
We held their deposit and the property manager sent them the bill for the reminder payment after they left and they paid that. Also, they were navy and the housing program that they were a part of didn’t help us when we reached out to them (I am not implying that all soldiers are bad tenants).
As a recovering landlord, I would never own revenue again, the stress is not worth it. The tenants are liars and thieves, and the government has their back.
There's a lot of landlords that are liars and thieves. It works both ways. Thank god, I own my own house with appliances that actually work and I'm not freezing in the winter.
not really. I have 3 sets of tenants and they are ALL fantastic. Clean, quiet, keep the yards spotless, and always pay on time. Of course, we vet our tenants to within an inch of their lives. @@j81851
I inherited a house that I'm moving to. I'm selling my current house. I would never consider renting it. I'm not a "people" person and can never deal with all the crap.
Honestly for the first couple years just let your experienced realtor handle finding you a good tenant then when you’ve had 2-3 years experience as a landlord do the vetting yourself I’ve had 4 good tenants in a row and this last one I got paid an entire year upfront from her parents Being a landlord is great as long as you get good tenants
Dave is always spot on with common sense - it´s amazing how litte common sense there is and how much money he made preaching basics for over 3 decades.
Been landlording for 11 years and have 30 tenants now. I spend around 3 hours per week (156 per year) doing actual landlord work. I profit around $80k per year. That's about $500 per hour of work. Yeah.... totally not worth it.
Exactly. I’ve got lots of mid market and upper end properties. People that suck at being a landlord and let tenants manage them are the ones that complain. The cash flow, equity, and tax benefits are great.
Been there done that. Bought 3 4 family’s in 2008&2009. Market was was good for buying at that time.Had some good tenants and some from hell. Had them for 12 years put a lot off time and energy in them. Cut grass, snow removal, painting, Maintenace, repairs, Cleaning, renting units out, had 3 people pass away not fun. It was an experience. Paid them off and sold them in 2020 & 2021. Made a killing on them sold the for well,over asking price. Paid my taxes on the gains an life is good Retiring within the next 6 months All set no debt at all and wii Start Social security in 1 year 8 months and will not run out of money
You did it right then. My parents rented out 3 properties...after their tax bath when they sold they told me not to bother with that. They made some money but the money was worth less than the hassle.
In the old days, renters skipped payments when they couldn't afford to pay rent. Nowadays, renters skip payments to take advantage of the system and become squatters. If you have great tenants then good for you! But if you end up with a bad tenant, god have mercy cause you will develop some real real real bad ulcers, or worse. It's a crapshoot and that is why I prefer to put my money in stocks.
True story about a former coworker. Her family moved frequently, every six months to a year. She used to boast about how she would look for "dangerous things in the house." It could be a leaky faucet, or a heater that did not work the way she thought it should. She would advise her landlord and stop paying the rent until SHE decided whatever issue was fixed to her satisfaction. She would use the court system and her kids to stay in the apartment and delay paying rent for several months... The her family would find s new place and move, without paying the back rent payments. One of the last places she played this irritating game was over a "wiggling handrail," and she bragged about living rent free for nearly a year. When she decided to move, her family applied for an apartment in an upscale area of Los Angeles (mid-Wilshire). She complained about being ignored, not just by the upscale apartments but by "every place" her family applied to. Meanwhile, her current landlord was working to evict her for non-payment of rent after he fixed the handrail. Her family eventually moved in with family members. She paid a rental agency to get her listings (such scammers were common in L.A. during the 1980s/90s) and found out that word had gotten around that her family was a poor risk as renters. She screamed about suing snd found out that it would cost s fortune in lawyers just to find out who to sue to clear her "good name." Even though it was likely illegal to trash her rentak status, a small group of us were delighted that she had gotten comeuppance for her grifting.
@@user-mv9tt4st9k - Ignored by every place her family (so there was another adult in the family?) applied to? Shocking!😉 Finally, what WENT around CAME around! I would hope if she could have afforded a lawyer, that he or she would have laughed her out of their office.
I work in Ann Arbor and I hear constantly from people "This isn't the best area for rentals." The people that mostly live there are college students who don't have much money and rooming or older folks. I know exactly what this guy is talking about. Sell it!
Many renters are bitter. They think paying rent is the same as paying the landlord's bills when in fact it is paying their own bills ie the roof over their head.
@@LetsGoKraks Yeah or at least paying a high price for their own bills. I used to live with people who between the 3 of them only had $200 some months. Truth is I thought $400 for 3 people was fair but as we all can see they disagreed. Renters in my experience tend to not have much excess wealth.
Some landlords treat their tenants like parasites. I'm talking the ones who refuse to accept they are being paid THOUSANDS of dollars yet still think they can do whatever they want and not accept it's not all yours anymore. Or tenants are just seen as walking/talking atms, to pay for their lifestyle and therefore the building is not cared for properly and tenants are just supposed to take it.
@@somuchbaloney6283 I'd wager a dollar if I were a gambling man all three of these commenters are millennials, possibly live with parents in the basement and hate capitalism. Why do we have housing shortages? Because people have 100s of thousands in a property and would rather sit on it empty than put up with renters like all three of these would be. Gripey , whiney, late with rent unappreciative of the risk the business owner (property owner) has to maintain to codes and standards and upkeep. I am one of those business owners and last year I fired all of the few folks I had left because of poor performance, whiney, and negligent of responsibility. Now my oldest daughter does the books on line with an online bookkeeping system and bank account balancing tool, is 10 X more efficient and does it in appreciation of us helping her have a place to live. The other tasks the other employee did are now contracted with no long term commitment on an as needed basis. Go to the ant though sluggard do you work or own property? Probably not!
This is interesting and I’ve never thought of it that way. Maybe because I’ve rented three apartments and never had this attitude. I needed somewhere to live!!😂
I am for sure was on the crazy train, My renters nearly destroyed my property, I'll NEVER EVER be a Landlord again. I just simply went over and said you have 90 minutes to get out. You can call cops, layers, mafia anybody. But your gonna be out .They said we have nowhere to go, I said sure you do, you can go OUT. They folded up there George Jetson furniture and they were gone. $4800 later i sold the home and washed my hands. I Learned a BIG lesson.
As much as i hated being a landlord i think it's a good idea to do it again but with 1 house at the most. This is so i stay diversified with my other investments and can keep up with inflation. I learned my lesson from a previous tenant and will be more involved in the upkeep and will hold them more accountable and do better screening. I won't care too much about income but more about a steady investment and keeping the house in good condition
Everyone buy's the lie that being a landlord is completely passive, but you have to put in some work. At the end of it all, you will have gotten a paid for house out of it. It's Completely worth it, and better than putting all of my money in a retirement account so vanguard can use my money to implement ESG scores on the world and fund Big Pharma etc.
I had a rental house. Im telling you it sucked. The renters will abuse the hell out of it. When one moved out I had to re-paint, scrape candy off the floor with a paint scraper, peel gooey stuff off the ceiling, re-paint the ceiling, clean dog hair off the molding (I prohibited pets), re-paint the molding, haul of two loads of trash, load up a whole dang above ground swimming pool and haul it to the landfill, pick up cigarette butts all out of the flower beds and yard. Fix the cabinet where they brought their own refrigerator and chopped of the bottom of the cabinet above it. Re-do the flooring in the bathroom where they just let water go everywhere. Then in the middle of this experience, the sewer line busted and had to get it redone for $6,000. The central A/C always needed something to keep it going. I had an HVAC company on contract. If I am a landlord, no way is my renter's doing without basic needs. Meanwhile I never got rent on time. This is a bad way to invest money, I was constantly worried about what's next and how much will it cost. The happiest day of my life was when I closed on this place and it sold. I would much rather put it in a Mutual Fund and let it sit.
Experience I've had with landlords and these are not slumlords is that they do bare minimum to keep up the building, andit's worse if it's an older building. They don't reglaze the windows if not replace the windows totally they just paint over any worm rot or cracks in the walls, there's no more insulation in the walls, the heating is usually not enough to actually keep the building going etc. And then they don't pay attention to who they let in. credit scores and money in the bank tell you nothing; if they don't want to pay the bills they're not going to and a lot of landlords don't pursue. You really do have to TALK FACE TO FACE with potential renters about other things to get a feel for them. Do thorough background checks, esp court/arrest cases to see what they're about. Check with previous landlords. Get a job history to see how much lying is involved.
I lived on the first floor of a upper-lower duplex...in Milwaukee...it was the worst experience...a family with 4 kids above me...not 5 seconds went by where i didnt hear a loud banging noise. The landord even admitted that the lower floor tennants constany move out because of that. Luckly my landlord let me rent the upper apartment for half price after the family moved out. So i had both units...like a single family house to myself...it was great after the family moved out.
20 year ex landlord here. I sold my rentals when the state told me I had to house non paying dead beat tenants for free. Tenants who worked every day just quit paying the rent. After the moritorium ended, I sold the properties. The last dead beat moved out on December 2nd. I celebrate that day as a holiday every year.
I was waiting for Dave to mention the last part. Like why would you buy property with someone you're not married to? That was my thinking at the beginning.
some people are so afraid to be alone--what they don't realize is that will cost them big--cohabitation laws in most state, the 'partner' can steal half your $
I hate being a landlord and I just started in March. I have 2 tenants and one just moved in in June. Already I have a huge expense with the HVAC system. Before that, it was tough to find decent, quality tenants who can afford the rent in the area it's located. It sucks so bad, it feels like a financial nightmare. Lord help me.
I have at times considered buying rentals, but after seeing what friends of mine go through with their rentals I had to say no to that plan. Absolutely filthy people would move in to these units and trash everything. It's honestly just not worth it.
Residential rental properties have always been a rough and tumble business and not one for the weak or timid. Some states are better than others and some are pure nightmares for the landlord. The Covid eviction moratoriums were the final nail in the coffin for a lot of casual landlords (less than 3 units). When you have a deadbeat tenant and the government says you can't evict, nothing can compare to that frustration. I am a member of a couple of landlord groups on Facebook and you would not believe some of the stories they tell. I got out of residential investment properties and am now strictly commercial. I'm never going back.
Here’s an idea… View your home as a home instead of a source of income. The rental market is debasing our, once, beautiful neighborhoods. And, corporate real estate is buying up everything. I hope my kids will be able to OWN a house someday!🤨
I have had up to 33 homes at one time. Believe me it is not a profession for the weak at heart. I did it for 40 years and at 73 I have finally sold everything except a vacation rental which I have managed by a rental company. It feels like an extreme burden has been lifted. I was so burned out I couldn’t bear any of it. Thank God it’s gone so I could keep my sanity and enjoy a retirement.
Also 40 years ago and about the same age. Still remember that particular 3 am phone call waking me up: Hello, this officer X, ARE YOU THE OWNER OR LANDLORD of apt.#3 on XXX street? Are Mr.& Mrs. XX your tenants? - YES, Can you come over to that location as soon as possible? WHY? NOW? yes, Your Tenant Mr. X just murdered his wife and than shot himself. We need more information about them. Thank you. ** My 2nd year as young excited to be a landlord, It was a 4 Plex. Was such events ever mentioned in the get rich quick manual for 'Crazy Train'?
I've watched enough Judge Judy to wonder why *anyone* would rent their clean, hard-won property to people who have no respect for a decent place to live. Case after case of trashed homes, writing on the walls, broken windows and counters, pet waste (only blaming the human animals here, BTW) etc. I've no doubt there are many great renters, but the horror stories are rampant.
Most of us Boomers started out as renters but all of us bought homes ASAP. Most renters today do it for decades and if you are lucky you will find the top 10%, because the bottom 90% will wreck your property.
I just work hard as hell at my W2 and only buy rentals in A or B areas. Have a property manager. Have money to pay for capex. You’ll be fine. For all you naysayers, diversify! I’ve already maxed out 401k, Ira, HSA, etc.
I just moved out of Cali and my friends keep telling me i should have rented out my place instead of selling it. No way. As you stated the risks are way too high. I am all for renters having rights but Cali takes it too far.
@sanahlis5322 Good, you didn't. You dodged a bullet. California lacks rentals to keep housing affordable. Yet they do everything they can to screw landlords.
Being a landlord is all fun until you encounter one of those "professional" tenants that will cause all sorts of problems. You know stop paying rent and make it super difficult and quite expensive to get rid of them.
I own a large house and rent out the basement. Some days, it feels like free money, but most days, I wish I didn't have to worry about tenants and if they stop paying or trash the place. Some people are wired better to deal with things like rental properties, but the whole thing just takes up too much space in my head.
Even years ago, when landlords had more rights and the squatter problem wasn't nearly as bad as it is now, I knew several people who owned 3 family homes who had an apartment or two vacant. They'd say they were willing to forego the rental income because they were just so tired of dealing with troublesome tenants.
I purchased a duplex and I live in the first floor and rent out the second floor. It’s been really good so far I have good tenants and I’m in the trades so I can do all the maintenance myself
When you're in the trades, landlording becomes SO much easier. I have a hard time finding reliable trades people to show up when they agreed to and finish the job
@@donaldlyons17 no surprise. It's just a reflection of the current market we are in. Back in 08' after the crash, trades we begging for work. Just a supply and demand issue. If we go through another dip, things may change. But it's all part of economics. The more trades/insurance charge, the more I increase the rent.
@@donaldlyons17 my issue is, if a trades person is too busy to do the job, just say so, and the customer can look for someone else. Respect eachothers time. Not to say thats you, but contractors and trades people have built a reputation for unreliability.
I loved renting (after i sold my last real estate) because i got a brand new house and a great landlord. He said i was his best tenant ever as well. But i had to relocate and found most landlords are clueless or abusive, and most rental units are friggin gross! I have experienced owning and renting out a 4plex, and owning my 3 houses as well. So not all tenants are created equal. I chose to rent for the freedom and flexibility, but these situations make me want to get a brand new trailer instead. Lol
I've never formally been a landlord but I did a couple informal short term rentals of my parent's old house to folk that were building a house, or looking to buy, and just needed a place for a few months. Both renters were great folk, and I didn't have a single issue with either of them. But I did not enjoy being a landlord. Would not care to have that as a ongoing thing in my life.
I've never had a bad experience w/ renters, but I currently don't own any right now My dad had good & bad experiences w/ renters growing up .Enough bad experiences that I've decided I like my mutual funds better . Will I buy alternative real estate again ? Maybe, but Im in no rush
Renters can be such a pain in the butt. Dealing with one right now who wasn't paying rent. Court told her to get current or get out so she got current. Then she didn't pay rent again. We non-renewed her lease and that is now expired, but she is still in the house 10 days after the lease expired and 6 weeks since she last paid anything. And we are renting for VERY fair market value.
Don’t rent out to a woman unless she’s married My current tenant does door dashing or something and My realtor got her parents to pay me one year in full upfront I wouldn’t rent to someone unmarried unless they make close to six figures or Do a scenario like listed up above
@@Kylewraps This advice is insane. My mother was divorced with us children when she needed to rent a place. She worked her ass off to ensure every bill was paid. I'm not going to discriminate for some arbitrary reason like that. We do credit checks, background checks, and salary verification. That's enough. It also happens to be legal.
@@YT0091 ok and I clarified to not rent to someone unmarried (man or woman) but just take only half of what I said that’s always cool I would rent to someone that makes close to six figures if they’re single that’s the only exception
I had a Townhome and the HOA fee was supposed to be like $200 a month including water and repairs, realtor lied on listing it was really $269 a month then in the span of one year it shot up another $100 a month for new roof I sold it made like $10,000 by some miracle and will never live in a townhome again or even an hoa shit was $380 a month after the $100 increase and $8 cc fee
Same story in Canada. Tenants won't pay and u absolutely can't do anything about it. Sometimes its worth taking risk. When they away for work just enter and throw out their shit in driveway. Hire couple of bouncers to keep them from entering.
As a Canadian landlord - you know You can’t do that. Landlord tenant board provides all kinds of legal assistance to tenants.. Regardless of whether or not they pay rent.
Of course but it is still better than having to handle all the handymen myself, screening tenants myself, etc. It saves time and causes less stress so the 8% a month that he is paid is worth it. Also, he is a real estate agent and if familiar with all the laws and knows how to handle everything.
Ok.. Things are replaced around the house and he is handling issues. Due to different circumstances in our lives, we are not going to handle the rental and we are not going to sell it either (the interest rate is 3% and we plan on keeping it income during our retirement and for our kids).
@@amireallythatgrumpy6508 ok for the two years I've had my property managers, so far here is the "managing" I did: 1. Say yes to fixing something. 2. Decide whether to raise or lower rent. 3. File taxes
I would not want to deal with residential rental properties. I have a piece of commercial property with a triple net lease. It’s hassle free for the most part.
Question, because I don't know: If owning rental property is burdensome and not recommended, how is real estate a great financial investment? How is money made in real estate if its not rental or lease property?
Real estate IS one of the biggest wealth builders. They should not have given him that advice. Yes, being a landlord can be a pain in the ass and not for the faint of heart, but it is a long game and a winning game. Be sure to run the numbers before you do it and have $$$$ reserves for unexpected issue. I.e. - new HVAC, new roof, Tenant that wont pay for a few months, or trashes your place. Can't depend on monthly cash flow for many years. Again, a long game. When it becomes paid off, triples in value and rents go up....and all along the tenant buying the home for you, then you hit the jackpot
I don’t like being a tenant, landlord or borrower. I only want to be an owner occupier. For investments, I would rather invest in equities or REITs, which outperform leveraged real estate on a risk adjusted basis, and are liquid.
With title, renters feel The Same !!! Scammy/ Greedy/ Slum Landlords. We don't need a overpriced/ over expensive/ updated rental 🤪. We need Reasonable Rent! (Caped Rent) All the scams (Fees) that landlords have come up with is ridiculous! - Admission fees, Pet rent, Electric fees, Application fees, Etc. 🤬 * App. fees should be Per Unit (Not per person) * Admission fees - $$$ for sitting on your A$$ to put in info into computer * 1 time Pet deposit understandable, but Pet rent ridiculous, renters take care of their pets Not landlords (so this fee = scam) * renters already have to pay for their own Elect, why charge an Extra fee (ontop of already high priced rent) to pay for the landlords Electricity use 🤬.
If you are a private landlord renting your house to “tenants” has become a liability. It is not an asset. You don’t know if they will pay on time or pay at all. They most likely will trash your house and or either em destroy it.
I’ll never understand these people that buy houses or cars w/a mere gf/bf. Forget marriage, morality, etc. It makes no sense legally. You’re creating a legal mess w/no easy way out if anything goes wrong. The risk is enormous. Get married and own it together. Or, buy it in your name, take your profits, & spoil your gf if you want. Either is much cleaner.
I love you Dave I'm a landlord with multiple pieces of property you are giving me the best advice I've ever had in my life bar none just thank you for being there advising us
another option Dave could have mentioned was to use a property management company to deal with the property. Not for everyone but no head aches for a small fee and keep your property.
I promise you, when things get ugly the owner DOES have headaches. Management companies will have clauses that protect them. The buck stops at the owner.
My husband and I rented a lovely house in Napa Valley from the best landlord in the world for almost 20 years. We were never late with our rent. He also never raised our rent and always told us to treat the house like it was ours. We treasured and loved the house. I remember asking him if we could get a pet. He said, "Get a dog! Get a cat! It's your house!" We did any repairs at our own expense because we were so grateful to him. He always told us to send him the bills, but we never did. He also became a very good friend. He passed away from cancer. My husband retired and we moved to Tennessee. We could afford to buy a house here. The house in Napa Valley isvstill my favorite house. I miss it. We were so blessed to have such a wonderful friend and landlord.
Wow. That is the caliber experience I would want as a landlord. So if you know anyone, I'm renting my house now! =) There's a few gems out there like us!
Wouldn't it be better just to pull out the equity rent out both properties and have it managed? You get to basically sell it and own it and not have the responsibility of running it.
Assuming your rents are always paid. If they aren't for any reason you are behind on both rents and you still have to pay a manager. It's not as easy as tik took makes it sound.
@@John-du2mq I wasn't saying it was easy I have a rental property it's a lot of work But once you get things in motion it'll usually take care of itself after you've fixed and repaired just about everything.
*Being a landlord is not a easy side hustle or easy money as being told to everyone online, its a pain in ass* *How do i know? I am one* *You will love theoretical money they show in graphs and in mind but when u understand the headaches bad renters bring and the stress, would rather leave the house stay empty rather than renting* *Its all based on how your renters turn out to be*
@@alinatamashevich3354 liberals dont care for middle class people who work hard Leftists are a cult everywhere, here in india too one freebie spender asked people not to pay rent at all But here we handle things differently
I would advise someone always to pay cash for a rental, never have it mortgaged. You are right, totally depends on the renters &location. I have a number of renters that have been in my units for over 8-9 years. In gross, they have literally paid for the units themselves.
@@lionheart93 in delhi the state govt told people not to pay and made it illegal to vacate houses during covid for a year, renters basically used to call police on landlords. A lot of people beat the shit out of them after months of frustration, but then kejriwal never compensated landlords and several landlords had FIR filed against them for vacating houses
They're not listening to Joe. He doesn't like living under his renters. He's not saying he doesn't want to deal with renters at all. However, he needs to address the owning property with GF issue. Not a great idea for most as Dave said.
Loved being a landlord. But, you're either cut out for it, or not. We had tenants downstairs, for twenty great years. Also had several units nearby, and really enjoyed that as well. But, I'm in construction and really resourceful, as well as practical, so....
Over the years, I have learned that you need to pick an investment option not because it gives good returns, but because it aligns with your personality. Cash flow real estate gives good returns. But it is not for people who believe that investing means just putting in money and then sit back and watch the game. It needs a lot of running around, managing unreasonable demands of tenants, managing the paper work etc. Also, you need to have the knack of “judging” a potential tenant by talking to them face to face. Credit history doesn’t tell you the full story. This is the hardest part. And you need to be a” handyman” yourself. If you are a person who cannot fix the broken lights yourself but rely upon some “electrician” to do it for you, you are screwed because you are going to be over charged. Tenants are always going to come up with a sob story and you need to be tough with them. If you let all these eat away your peace of mind, better to stay away from real estate, even though it gives good returns. Hiring a property management company could help a bit, but that will again eat into your earnings. Additionally, a property manager can only do so much if you run into legal issues. So, if you are not a “people person”, just stick to traditional mutual funds.
Some of the landlords I had were utter dirtbags. Probably most of them are. They get leveraged and raise their rents and want to provide as little service as possible to their customer.....that's right....the tenant is the customer. Yup - a lot of landlords are straight up scumbags. Buying properties just to gouge renters on rent is not very admirable which is what a ton of landlords do.
Idiotic advice that marriage helps men in owning a house. What do you think the divorce court will do when things go south, hand the house to the lady and you start over. No thank you
It sounds like he wanted to keep it to me, or just needed some encouragement to move and/or find a property manager. I too live next to tenants and sometimes it sucks but I’m glad I didn’t listen to the voices that told me I shouldn’t do it. It’s also hard saving money, not eating out, or working to get out of debt. Dave, how is this any different???
I almost thought he'd go through the whole call with no wisdom on the girlfriend pretending to be married thing. Good job Dave! Staying true to the Lord.
This seems like bad advice. Why can’t he use a letting agent to take all the hassle away…..selling and buying real estate is expensive and also creates stress itself….
This is the way my grandpa approached real estate with multi family housing . He said let someone else pay your bills for you. . It's a shame Dave says sell from the tone of the kids voice . Did not look at costs and positive cash flow . So you don't want to live under someone . Rent both spaces out . Usually multi families are quite lucrative . I hear in his voice a bit of discouragement with maybe a first try and maybe find away to make it a better situation but the guys say throw in the towel and move on leaving a opportunity for future security
Understand the pressure of a business/property owner. Most cities today are all in for the renter (often becoming a squatter) and have nothing for the responsible person= the property owner. Renting is a privilege and seemingly government and renters now see the renter as a villain. I just don't have time to constantly fight with government and the renter as my savings hemorrhage out over the continual disputes
Clearly your condescension and high up nose shows how you fail to look into the problem of bad renters and unconditional laws that protect squatters excessively, kid.
I guess you have to see the bright side to any investment...dont forget the golden rule....buy low, sell high....at this point it just makes sense to sell bc you will probably get double the value you owe on it. Take the W and sell
I LOVE being a landlord. However, my wife and I put EVERY SINGLE POTENTIAL TENANT through the 3rd degree: Background, credit, employment, 3-4 consecutive paystubs, W2s, 1099s (if self emplyed), list of former landlords, references, letters from HR stating employment and salary. Guess what? We have EXCELLENT tenants and always have, but you must put these people through the wringer.....or else they'll do it to you.
Yep
Yep. Upscale properties and screen ruthlessly, and go to the trouble to learn how to manage effectively. If you do that landlording is a great business.
@@Emuller05 stay away
Obviously you are smart...good job.
California is passing laws to not allow you to do any background checks on tenants or ask about where their income comes from, or raise rent more than CPI, evict poor tenants and on and on with little protection for housing providers.
As a California resident, no thank you to being a landlord. The renters and squatters here have more rights then the owner of the property.
Don't make investments you can't risk lmao. Easy.
It depends. We took our former tenant to small claims court and we won.
Best bet is to buy a nice house near a hospital and lease it to them.
We held their deposit and the property manager sent them the bill for the reminder payment after they left and they paid that.
Also, they were navy and the housing program that they were a part of didn’t help us when we reached out to them (I am not implying that all soldiers are bad tenants).
Commiefornia
As a recovering landlord, I would never own revenue again, the stress is not worth it. The tenants are liars and thieves, and the government has their back.
There's a lot of landlords that are liars and thieves. It works both ways. Thank god, I own my own house with appliances that actually work and I'm not freezing in the winter.
We couldn’t stand being renters. It doesn’t make any sense in any case.
I have had the same renters renting my houses for 18 years straight....great renters...clean and always pay😊
Today I dare say you had what would now be the exception
18 yrs? They could have been halfway to owning their own home! Nuts
You must give reasonable rent increases.
@@commonsenseisntcommon1776 Yeah and just think about how poor they will be without ownership of their own!!
not really. I have 3 sets of tenants and they are ALL fantastic. Clean, quiet, keep the yards spotless, and always pay on time. Of course, we vet our tenants to within an inch of their lives. @@j81851
I inherited a house that I'm moving to. I'm selling my current house. I would never consider renting it. I'm not a "people" person and can never deal with all the crap.
Honestly for the first couple years just let your experienced realtor handle finding you a good tenant then when you’ve had 2-3 years experience as a landlord do the vetting yourself
I’ve had 4 good tenants in a row and this last one I got paid an entire year upfront from her parents
Being a landlord is great as long as you get good tenants
Dave is always spot on with common sense - it´s amazing how litte common sense there is and how much money he made preaching basics for over 3 decades.
But TikTak told me real estate was passive income!
It is.
It was with me for 15 years.
Absolutely brilliant! 5 stars best ever comment!
😂😂😂
It’s the Chinese probably pumping up the real estate market
Been landlording for 11 years and have 30 tenants now. I spend around 3 hours per week (156 per year) doing actual landlord work. I profit around $80k per year. That's about $500 per hour of work. Yeah.... totally not worth it.
You got to look what you could get out of the money without working
Exactly. I’ve got lots of mid market and upper end properties. People that suck at being a landlord and let tenants manage them are the ones that complain. The cash flow, equity, and tax benefits are great.
Been there done that. Bought 3 4 family’s in 2008&2009. Market was was good for buying at that time.Had some good tenants and some from hell.
Had them for 12 years put a lot off time and energy in them. Cut grass, snow removal, painting, Maintenace, repairs,
Cleaning, renting units out, had 3 people pass away not fun. It was an experience.
Paid them off and sold them in 2020 & 2021. Made a killing on them sold the for well,over asking price.
Paid my taxes on the gains an life is good
Retiring within the next 6 months
All set no debt at all and wii
Start Social security in 1 year 8 months and will not run out of money
Congratulations dude
You did it right then. My parents rented out 3 properties...after their tax bath when they sold they told me not to bother with that. They made some money but the money was worth less than the hassle.
It's difficult to be a landlord under this regime, especially when politicians make it to where renters don't have to pay you.
I’m sure that does wonders to incentive landlords to rent out homes. 😂
@@menumlor9365 I'm not a landlord, but I'm sure there is a good process to get renters to ensure they will be good.
It’s easy to evict..
In the old days, renters skipped payments when they couldn't afford to pay rent. Nowadays, renters skip payments to take advantage of the system and become squatters. If you have great tenants then good for you! But if you end up with a bad tenant, god have mercy cause you will develop some real real real bad ulcers, or worse. It's a crapshoot and that is why I prefer to put my money in stocks.
True story about a former coworker. Her family moved frequently, every six months to a year. She used to boast about how she would look for "dangerous things in the house." It could be a leaky faucet, or a heater that did not work the way she thought it should. She would advise her landlord and stop paying the rent until SHE decided whatever issue was fixed to her satisfaction. She would use the court system and her kids to stay in the apartment and delay paying rent for several months... The her family would find s new place and move, without paying the back rent payments. One of the last places she played this irritating game was over a "wiggling handrail," and she bragged about living rent free for nearly a year.
When she decided to move, her family applied for an apartment in an upscale area of Los Angeles (mid-Wilshire). She complained about being ignored, not just by the upscale apartments but by "every place" her family applied to. Meanwhile, her current landlord was working to evict her for non-payment of rent after he fixed the handrail. Her family eventually moved in with family members. She paid a rental agency to get her listings (such scammers were common in L.A. during the 1980s/90s) and found out that word had gotten around that her family was a poor risk as renters. She screamed about suing snd found out that it would cost s fortune in lawyers just to find out who to sue to clear her "good name." Even though it was likely illegal to trash her rentak status, a small group of us were delighted that she had gotten comeuppance for her grifting.
@@user-mv9tt4st9k - Ignored by every place her family (so there was another adult in the family?) applied to? Shocking!😉 Finally, what WENT around CAME around! I would hope if she could have afforded a lawyer, that he or she would have laughed her out of their office.
@kyung-What I'm Doing👍
where do you rent at? In my small town you dont pay rent you gettin thrown out with hands lmao
I work in Ann Arbor and I hear constantly from people "This isn't the best area for rentals." The people that mostly live there are college students who don't have much money and rooming or older folks. I know exactly what this guy is talking about. Sell it!
Many renters are bitter. They think paying rent is the same as paying the landlord's bills when in fact it is paying their own bills ie the roof over their head.
It’s paying their own bills AND the landlords
@@LetsGoKraks Yeah or at least paying a high price for their own bills. I used to live with people who between the 3 of them only had $200 some months. Truth is I thought $400 for 3 people was fair but as we all can see they disagreed. Renters in my experience tend to not have much excess wealth.
Some landlords treat their tenants like parasites. I'm talking the ones who refuse to accept they are being paid THOUSANDS of dollars yet still think they can do whatever they want and not accept it's not all yours anymore. Or tenants are just seen as walking/talking atms, to pay for their lifestyle and therefore the building is not cared for properly and tenants are just supposed to take it.
@@somuchbaloney6283 I'd wager a dollar if I were a gambling man all three of these commenters are millennials, possibly live with parents in the basement and hate capitalism. Why do we have housing shortages? Because people have 100s of thousands in a property and would rather sit on it empty than put up with renters like all three of these would be. Gripey , whiney, late with rent unappreciative of the risk the business owner (property owner) has to maintain to codes and standards and upkeep.
I am one of those business owners and last year I fired all of the few folks I had left because of poor performance, whiney, and negligent of responsibility. Now my oldest daughter does the books on line with an online bookkeeping system and bank account balancing tool, is 10 X more efficient and does it in appreciation of us helping her have a place to live. The other tasks the other employee did are now contracted with no long term commitment on an as needed basis.
Go to the ant though sluggard do you work or own property? Probably not!
This is interesting and I’ve never thought of it that way. Maybe because I’ve rented three apartments and never had this attitude. I needed somewhere to live!!😂
I am for sure was on the crazy train, My renters nearly destroyed my property, I'll NEVER EVER be a Landlord again. I just simply went over and said you have 90 minutes to get out.
You can call cops, layers, mafia anybody. But your gonna be out .They said we have nowhere to go, I said sure you do, you can go OUT. They folded up there George Jetson furniture and they were gone. $4800 later i sold the home and washed my hands. I Learned a BIG lesson.
Wow! I've learned little lessons that cost me more than 5k. Not the way I would've handled it, but seems like it turned out ok for you.
My coworker had to pay 30k to repair damages to his SF rental home. He sold immediately after that
I own a home in a retirement community that I rent. Older folks tend to be more stable, financially and emotionally. It's so much easier.
Girlfriend and I….stop right there…
As much as i hated being a landlord i think it's a good idea to do it again but with 1 house at the most. This is so i stay diversified with my other investments and can keep up with inflation. I learned my lesson from a previous tenant and will be more involved in the upkeep and will hold them more accountable and do better screening. I won't care too much about income but more about a steady investment and keeping the house in good condition
Everyone buy's the lie that being a landlord is completely passive, but you have to put in some work. At the end of it all, you will have gotten a paid for house out of it. It's Completely worth it, and better than putting all of my money in a retirement account so vanguard can use my money to implement ESG scores on the world and fund Big Pharma etc.
if he sells the duplex he aint never gone find another one at a cheaper price
I had a rental house. Im telling you it sucked. The renters will abuse the hell out of it. When one moved out I had to re-paint, scrape candy off the floor with a paint scraper, peel gooey stuff off the ceiling, re-paint the ceiling, clean dog hair off the molding (I prohibited pets), re-paint the molding, haul of two loads of trash, load up a whole dang above ground swimming pool and haul it to the landfill, pick up cigarette butts all out of the flower beds and yard. Fix the cabinet where they brought their own refrigerator and chopped of the bottom of the cabinet above it. Re-do the flooring in the bathroom where they just let water go everywhere. Then in the middle of this experience, the sewer line busted and had to get it redone for $6,000. The central A/C always needed something to keep it going. I had an HVAC company on contract. If I am a landlord, no way is my renter's doing without basic needs. Meanwhile I never got rent on time. This is a bad way to invest money, I was constantly worried about what's next and how much will it cost. The happiest day of my life was when I closed on this place and it sold. I would much rather put it in a Mutual Fund and let it sit.
Experience I've had with landlords and these are not slumlords is that they do bare minimum to keep up the building, andit's worse if it's an older building. They don't reglaze the windows if not replace the windows totally they just paint over any worm rot or cracks in the walls, there's no more insulation in the walls, the heating is usually not enough to actually keep the building going etc. And then they don't pay attention to who they let in. credit scores and money in the bank tell you nothing; if they don't want to pay the bills they're not going to and a lot of landlords don't pursue. You really do have to TALK FACE TO FACE with potential renters about other things to get a feel for them. Do thorough background checks, esp court/arrest cases to see what they're about. Check with previous landlords. Get a job history to see how much lying is involved.
I lived on the first floor of a upper-lower duplex...in Milwaukee...it was the worst experience...a family with 4 kids above me...not 5 seconds went by where i didnt hear a loud banging noise. The landord even admitted that the lower floor tennants constany move out because of that. Luckly my landlord let me rent the upper apartment for half price after the family moved out. So i had both units...like a single family house to myself...it was great after the family moved out.
Yeah I had a duplex once, worst experience. Now I only do single homes with fence back yard…
20 year ex landlord here. I sold my rentals when the state told me I had to house non paying dead beat tenants for free. Tenants who worked every day just quit paying the rent. After the moritorium ended, I sold the properties. The last dead beat moved out on December 2nd. I celebrate that day as a holiday every year.
If you can't trust someone enough to marry them why would you trust them enough to by a house witth them?
Morals aside, that's just not smart.
I was waiting for Dave to mention the last part. Like why would you buy property with someone you're not married to? That was my thinking at the beginning.
some people are so afraid to be alone--what they don't realize is that will cost them big--cohabitation laws in most state, the 'partner' can steal half your $
Why would anyone get married in this society? Divorce rates are over 50% with the divorce being initiated by the woman 80% of the time
@@travelnurseadventures3225 and your lawyer yoinks another 1/3 rd.......
Recipie for disaster
I need Dave to give this same speech to all the men saying “marriage is just a piece of paper. We can still buy a house, have kids, etc. without it🥴”
I hate being a landlord and I just started in March. I have 2 tenants and one just moved in in June. Already I have a huge expense with the HVAC system. Before that, it was tough to find decent, quality tenants who can afford the rent in the area it's located. It sucks so bad, it feels like a financial nightmare. Lord help me.
I have at times considered buying rentals, but after seeing what friends of mine go through with their rentals I had to say no to that plan. Absolutely filthy people would move in to these units and trash everything. It's honestly just not worth it.
Unfortunately it appears your friends are doing it wrong.
Being a landlord is not passive income. It is a hard work. If you want passive income, REITS are the way to go.
They don't pay the same or appreciate as much tho
Yes, my former neighbor told me about REITS over 15 years ago, I wish I listened to him! 🙄
@@md-wg4bz reits are 🗑️ tho
Don't be cheap. Hire a good property manager.
💯
Residential rental properties have always been a rough and tumble business and not one for the weak or timid. Some states are better than others and some are pure nightmares for the landlord. The Covid eviction moratoriums were the final nail in the coffin for a lot of casual landlords (less than 3 units). When you have a deadbeat tenant and the government says you can't evict, nothing can compare to that frustration. I am a member of a couple of landlord groups on Facebook and you would not believe some of the stories they tell. I got out of residential investment properties and am now strictly commercial. I'm never going back.
Commercial real estate not too great today
It’s really bad.
Here’s an idea… View your home as a home instead of a source of income. The rental market is debasing our, once, beautiful neighborhoods. And, corporate real estate is buying up everything. I hope my kids will be able to OWN a house someday!🤨
I have had up to 33 homes at one time. Believe me it is not a profession for the weak at heart. I did it for 40 years and at 73 I have
finally sold everything except a vacation rental which I have managed by a rental company. It feels like an extreme burden has been lifted. I was so burned out I couldn’t bear any of it. Thank God it’s gone so I could keep my sanity and enjoy a retirement.
Also 40 years ago and about the same age. Still remember that particular 3 am phone call waking me up: Hello, this officer X, ARE YOU THE OWNER OR LANDLORD of apt.#3 on XXX street? Are Mr.& Mrs. XX your tenants? - YES, Can you come over to that location as soon as possible? WHY? NOW? yes, Your Tenant Mr. X just murdered his wife and than shot himself. We need more information about them. Thank you. ** My 2nd year as young excited to be a landlord, It was a 4 Plex. Was such events ever mentioned in the get rich quick manual for 'Crazy Train'?
Question..
If you had to do it all over again would you? And if not, what would you have done instead .?
I've watched enough Judge Judy to wonder why *anyone* would rent their clean, hard-won property to people who have no respect for a decent place to live. Case after case of trashed homes, writing on the walls, broken windows and counters, pet waste (only blaming the human animals here, BTW) etc. I've no doubt there are many great renters, but the horror stories are rampant.
Most of us Boomers started out as renters but all of us bought homes ASAP.
Most renters today do it for decades and if you are lucky you will find the top 10%, because
the bottom 90% will wreck your property.
Don't buy a house with someone you're married to either and make sure it is clearly ro remain yours in the prenup.
Really good point
Now you're typin'!!!
Why?
@@Fishouta Because it is another hardship for the woman if she seeks a divorce
I just work hard as hell at my W2 and only buy rentals in A or B areas. Have a property manager. Have money to pay for capex. You’ll be fine.
For all you naysayers, diversify! I’ve already maxed out 401k, Ira, HSA, etc.
I live in California so I could not take the risk of having renters as they have all the rights.
I just moved out of Cali and my friends keep telling me i should have rented out my place instead of selling it. No way. As you stated the risks are way too high. I am all for renters having rights but Cali takes it too far.
@sanahlis5322 Good, you didn't. You dodged a bullet. California lacks rentals to keep housing affordable. Yet they do everything they can to screw landlords.
I guess it depends. We took our former tenant to court and we won.
@@sanahlis5322🎯
Bad renters will make anyone give up on being a landlord... or turn them into a slumlord.
Being a landlord is all fun until you encounter one of those "professional" tenants that will cause all sorts of problems. You know stop paying rent and make it super difficult and quite expensive to get rid of them.
Expensive? 9mm is like 30 cents per round? How many times do you need to repeat yourself?
I've been a LL for 25 years, mostly good experiences. But I know a lot of people that USED to be landlords.
Real estate is not for everyone.
I own a large house and rent out the basement. Some days, it feels like free money, but most days, I wish I didn't have to worry about tenants and if they stop paying or trash the place. Some people are wired better to deal with things like rental properties, but the whole thing just takes up too much space in my head.
Nobody:
John Deloney: I can hear the anxiety in your voice brutha
Right ..making HUGE assumptions
Joe, the dog dug up your carpet again. Can you send someone to fix it so I don't have to report you as a slumlord? lol
Even years ago, when landlords had more rights and the squatter problem wasn't nearly as bad as it is now, I knew several people who owned 3 family homes who had an apartment or two vacant. They'd say they were willing to forego the rental income because they were just so tired of dealing with troublesome tenants.
If you are not handy it is pretty difficult to be a small landlord. Having to hire some to come and fix everything can be expensive.
I purchased a duplex and I live in the first floor and rent out the second floor. It’s been really good so far I have good tenants and I’m in the trades so I can do all the maintenance myself
I did the same thing. Best financial decision I ever made.
When you're in the trades, landlording becomes SO much easier.
I have a hard time finding reliable trades people to show up when they agreed to and finish the job
@@YoPhocFays Well in my experience trade people tend to have many people looking for them so it any of that a supprise?
@@donaldlyons17 no surprise. It's just a reflection of the current market we are in. Back in 08' after the crash, trades we begging for work.
Just a supply and demand issue. If we go through another dip, things may change. But it's all part of economics.
The more trades/insurance charge, the more I increase the rent.
@@donaldlyons17 my issue is, if a trades person is too busy to do the job, just say so, and the customer can look for someone else.
Respect eachothers time. Not to say thats you, but contractors and trades people have built a reputation for unreliability.
I loved renting (after i sold my last real estate) because i got a brand new house and a great landlord. He said i was his best tenant ever as well.
But i had to relocate and found most landlords are clueless or abusive, and most rental units are friggin gross!
I have experienced owning and renting out a 4plex, and owning my 3 houses as well. So not all tenants are created equal. I chose to rent for the freedom and flexibility, but these situations make me want to get a brand new trailer instead. Lol
I've never formally been a landlord but I did a couple informal short term rentals of my parent's old house to folk that were building a house, or looking to buy, and just needed a place for a few months. Both renters were great folk, and I didn't have a single issue with either of them. But I did not enjoy being a landlord. Would not care to have that as a ongoing thing in my life.
I've never had a bad experience w/ renters, but I currently don't own any right now
My dad had good & bad experiences w/ renters growing up .Enough bad experiences that I've decided I like my mutual funds better .
Will I buy alternative real estate again ? Maybe, but Im in no rush
Renters can be such a pain in the butt. Dealing with one right now who wasn't paying rent. Court told her to get current or get out so she got current. Then she didn't pay rent again. We non-renewed her lease and that is now expired, but she is still in the house 10 days after the lease expired and 6 weeks since she last paid anything. And we are renting for VERY fair market value.
Don’t rent out to a woman unless she’s married
My current tenant does door dashing or something and My realtor got her parents to pay me one year in full upfront
I wouldn’t rent to someone unmarried unless they make close to six figures or Do a scenario like listed up above
@@Kylewraps This advice is insane. My mother was divorced with us children when she needed to rent a place. She worked her ass off to ensure every bill was paid. I'm not going to discriminate for some arbitrary reason like that. We do credit checks, background checks, and salary verification. That's enough. It also happens to be legal.
@@YT0091 ok and I clarified to not rent to someone unmarried (man or woman) but just take only half of what I said that’s always cool
I would rent to someone that makes close to six figures if they’re single that’s the only exception
My husband & I sold our townhome instead of renting it out. Best decision ever.
I had a Townhome and the HOA fee was supposed to be like $200 a month including water and repairs, realtor lied on listing it was really $269 a month then in the span of one year it shot up another $100 a month for new roof
I sold it made like $10,000 by some miracle and will never live in a townhome again or even an hoa shit was $380 a month after the $100 increase and $8 cc fee
@@Kylewrapsright! No more HOAs!
@@Chelle-kd1po When Trump gets back in office he needs to make an executive order to abolish all HOAs
How about REITs? Kind of the same thing but with no tenant to manage directly
Issa no for me too😂😂😂 landlord don’t have rights
Appreciate this big time. Thanks guys.
Let him talk! Like wtf. He's trying to explain something.
Yeah, both these guys constantly interrupt their callers. I rarely listen to this show anymore unless I see a really interesting topic.
Same story in Canada. Tenants won't pay and u absolutely can't do anything about it. Sometimes its worth taking risk. When they away for work just enter and throw out their shit in driveway. Hire couple of bouncers to keep them from entering.
That is highly illegal in Ohio
@@patriciadenzinger2644 not paying rent, damaging property is also illegal.
As a Canadian landlord - you know You can’t do that. Landlord tenant board provides all kinds of legal assistance to tenants.. Regardless of whether or not they pay rent.
We hired a property manager our second year as landlords. He can handle the tenants.
You've still got to manage HIM.
Of course but it is still better than having to handle all the handymen myself, screening tenants myself, etc.
It saves time and causes less stress so the 8% a month that he is paid is worth it.
Also, he is a real estate agent and if familiar with all the laws and knows how to handle everything.
@@IrisP989 he's gonna do the bare minimum to get paid..he's not going to give a shit
Ok..
Things are replaced around the house and he is handling issues.
Due to different circumstances in our lives, we are not going to handle the rental and we are not going to sell it either (the interest rate is 3% and we plan on keeping it income during our retirement and for our kids).
No one uses property managers? I'm using two different ones for my 2 rental, very stress free.
You still have to manage THEM.
@@amireallythatgrumpy6508 ok for the two years I've had my property managers, so far here is the "managing" I did: 1. Say yes to fixing something. 2. Decide whether to raise or lower rent. 3. File taxes
And what a waste of time those activities are. Investing in real estate simply isn't worth it. @@JustAName-it5qp
Only an idiot would use 2 property managers for only 2 properties..are you elderly? Or just stupid?
I would not want to deal with residential rental properties. I have a piece of commercial property with a triple net lease. It’s hassle free for the most part.
I got a commercial property. Lessee is a City on 75 year term. Triple net. I'll probably never get into residential real estate.
Question, because I don't know:
If owning rental property is burdensome and not recommended, how is real estate a great financial investment? How is money made in real estate if its not rental or lease property?
Real estate IS one of the biggest wealth builders. They should not have given him that advice. Yes, being a landlord can be a pain in the ass and not for the faint of heart, but it is a long game and a winning game. Be sure to run the numbers before you do it and have $$$$ reserves for unexpected issue. I.e. - new HVAC, new roof, Tenant that wont pay for a few months, or trashes your place. Can't depend on monthly cash flow for many years. Again, a long game. When it becomes paid off, triples in value and rents go up....and all along the tenant buying the home for you, then you hit the jackpot
You can flip a house
Dave you still that guy with good advice god bless
Just making sure this isn't my landlord calling in about me...
I don’t like being a tenant, landlord or borrower. I only want to be an owner occupier. For investments, I would rather invest in equities or REITs, which outperform leveraged real estate on a risk adjusted basis, and are liquid.
With title, renters feel The Same !!!
Scammy/ Greedy/ Slum Landlords. We don't need a overpriced/ over expensive/ updated rental 🤪. We need Reasonable Rent! (Caped Rent)
All the scams (Fees) that landlords have come up with is ridiculous! - Admission fees, Pet rent, Electric fees, Application fees, Etc. 🤬
* App. fees should be Per Unit (Not per person)
* Admission fees - $$$ for sitting on your A$$ to put in info into computer
* 1 time Pet deposit understandable, but Pet rent ridiculous, renters take care of their pets Not landlords (so this fee = scam)
* renters already have to pay for their own Elect, why charge an Extra fee (ontop of already high priced rent) to pay for the landlords Electricity use 🤬.
Pet rent sounds good .I'm gonna charge that ..pets ruin property
If you are a private landlord renting your house to “tenants” has become a liability. It is not an asset. You don’t know if they will pay on time or pay at all. They most likely will trash your house and or either em destroy it.
I’ll never understand these people that buy houses or cars w/a mere gf/bf. Forget marriage, morality, etc. It makes no sense legally. You’re creating a legal mess w/no easy way out if anything goes wrong. The risk is enormous.
Get married and own it together. Or, buy it in your name, take your profits, & spoil your gf if you want. Either is much cleaner.
I love you Dave I'm a landlord with multiple pieces of property you are giving me the best advice I've ever had in my life bar none just thank you for being there advising us
another option Dave could have mentioned was to use a property management company to deal with the property. Not for everyone but no head aches for a small fee and keep your property.
I promise you, when things get ugly the owner DOES have headaches. Management companies will have clauses that protect them. The buck stops at the owner.
Only until your renter stops paying. Then what?
I’m a new follower from 🇵🇦
Just wanted to say you are amazing. 👍👍
Is it possible to get your books in Spanish?
Good money in rentals gotta choose the right tenants
Caller just wants someone to give him that little push to sell it. SELL IT MAN!!!
Owning property is supposed to be work. I'm tired of people acting like real estate should be their god-given right to "passive income".
The reality is there is no such thing as "passive income" anyway.
My husband and I rented a lovely house in Napa Valley from the best landlord in the world for almost 20 years. We were never late with our rent. He also never raised our rent and always told us to treat the house like it was ours. We treasured and loved the house. I remember asking him if we could get a pet. He said, "Get a dog! Get a cat! It's your house!" We did any repairs at our own expense because we were so grateful to him. He always told us to send him the bills, but we never did. He also became a very good friend. He passed away from cancer. My husband retired and we moved to Tennessee. We could afford to buy a house here. The house in Napa Valley isvstill my favorite house. I miss it. We were so blessed to have such a wonderful friend and landlord.
Wow. That is the caliber experience I would want as a landlord. So if you know anyone, I'm renting my house now! =) There's a few gems out there like us!
Yea passive income alright lol I rather invest in mutual funds and ETF’s and build wealth the peaceful way
Wouldn't it be better just to pull out the equity rent out both properties and have it managed? You get to basically sell it and own it and not have the responsibility of running it.
Assuming your rents are always paid. If they aren't for any reason you are behind on both rents and you still have to pay a manager. It's not as easy as tik took makes it sound.
@@John-du2mq That's just a risk you have to take. 1-'s of millions of landlords take that risk everyday.
@@jimmymcgill6778 Problem is getting away with the risk taken...
@@John-du2mq I wasn't saying it was easy I have a rental property it's a lot of work But once you get things in motion it'll usually take care of itself after you've fixed and repaired just about everything.
*Being a landlord is not a easy side hustle or easy money as being told to everyone online, its a pain in ass*
*How do i know? I am one*
*You will love theoretical money they show in graphs and in mind but when u understand the headaches bad renters bring and the stress, would rather leave the house stay empty rather than renting*
*Its all based on how your renters turn out to be*
Or when the Government tells them they do not have to pay rent. Tell that to the bank if it is mortgaged .
@@alinatamashevich3354 liberals dont care for middle class people who work hard
Leftists are a cult everywhere, here in india too one freebie spender asked people not to pay rent at all
But here we handle things differently
I would advise someone always to pay cash for a rental, never have it mortgaged. You are right, totally depends on the renters &location. I have a number of renters that have been in my units for over 8-9 years. In gross, they have literally paid for the units themselves.
@@alinatamashevich3354government can’t tell people to not pay. People aren’t paying rent? Where at?
@@lionheart93 in delhi the state govt told people not to pay and made it illegal to vacate houses during covid for a year, renters basically used to call police on landlords.
A lot of people beat the shit out of them after months of frustration, but then kejriwal never compensated landlords and several landlords had FIR filed against them for vacating houses
They're not listening to Joe. He doesn't like living under his renters. He's not saying he doesn't want to deal with renters at all. However, he needs to address the owning property with GF issue. Not a great idea for most as Dave said.
Loved being a landlord. But, you're either cut out for it, or not. We had tenants downstairs, for twenty great years. Also had several units nearby, and really enjoyed that as well. But, I'm in construction and really resourceful, as well as practical, so....
Ulcers are formed by infection not stress
People are animals and are piss-poor at being responsible about paying their debts. No way.
164k after renovations on a two unit residence in Ann Arbor? In 2020?? Impossible. Even Ypsilanti housing costs more than that.
Over the years, I have learned that you need to pick an investment option not because it gives good returns, but because it aligns with your personality.
Cash flow real estate gives good returns. But it is not for people who believe that investing means just putting in money and then sit back and watch the game. It needs a lot of running around, managing unreasonable demands of tenants, managing the paper work etc.
Also, you need to have the knack of “judging” a potential tenant by talking to them face to face. Credit history doesn’t tell you the full story. This is the hardest part.
And you need to be a” handyman” yourself. If you are a person who cannot fix the broken lights yourself but rely upon some “electrician” to do it for you, you are screwed because you are going to be over charged. Tenants are always going to come up with a sob story and you need to be tough with them. If you let all these eat away your peace of mind, better to stay away from real estate, even though it gives good returns. Hiring a property management company could help a bit, but that will again eat into your earnings. Additionally, a property manager can only do so much if you run into legal issues. So, if you are not a “people person”, just stick to traditional mutual funds.
I’m tired of people buying up all the damn land and houses just to rent it out
It's called INVESTING. Don't hate the player, hate the game.
Some of the landlords I had were utter dirtbags. Probably most of them are. They get leveraged and raise their rents and want to provide as little service as possible to their customer.....that's right....the tenant is the customer. Yup - a lot of landlords are straight up scumbags. Buying properties just to gouge renters on rent is not very admirable which is what a ton of landlords do.
Stop buying a house with someone your not married to
Idiotic advice that marriage helps men in owning a house. What do you think the divorce court will do when things go south, hand the house to the lady and you start over. No thank you
So what to do with 💰 money you gained from property sold? It was giving monthly income and now what? Please explain or ideas . Thanks 🙏👍
It sounds like he wanted to keep it to me, or just needed some encouragement to move and/or find a property manager. I too live next to tenants and sometimes it sucks but I’m glad I didn’t listen to the voices that told me I shouldn’t do it. It’s also hard saving money, not eating out, or working to get out of debt. Dave, how is this any different???
I almost thought he'd go through the whole call with no wisdom on the girlfriend pretending to be married thing. Good job Dave! Staying true to the Lord.
What Lord bullcrap
Jesus is the Lord. Doesn't change if you don't believe
@@georgewagner7787 I believe in mickey mouse instead it's the same thing!!
they brainwashed you with this nonsense as a kid now you an adult wake the fak up!!@@georgewagner7787
@@summerforever6736 You'll find out. The only mickey mouse around here is you.
This seems like bad advice. Why can’t he use a letting agent to take all the hassle away…..selling and buying real estate is expensive and also creates stress itself….
This is the way my grandpa approached real estate with multi family housing . He said let someone else pay your bills for you. . It's a shame Dave says sell from the tone of the kids voice . Did not look at costs and positive cash flow . So you don't want to live under someone . Rent both spaces out . Usually multi families are quite lucrative . I hear in his voice a bit of discouragement with maybe a first try and maybe find away to make it a better situation but the guys say throw in the towel and move on leaving a opportunity for future security
Understand the pressure of a business/property owner. Most cities today are all in for the renter (often becoming a squatter) and have nothing for the responsible person= the property owner. Renting is a privilege and seemingly government and renters now see the renter as a villain. I just don't have time to constantly fight with government and the renter as my savings hemorrhage out over the continual disputes
Clearly your condescension and high up nose shows how you fail to look into the problem of bad renters and unconditional laws that protect squatters excessively, kid.
Great advice!😊
If you have to call in, you have no idea on how to manage your property - especially from another town or state.
If joe doesn’t like renters joe should use property management
He don’t want to pay as usual
Wonder if his girlfriend knows he’s never gonna marry her?
I guess you have to see the bright side to any investment...dont forget the golden rule....buy low, sell high....at this point it just makes sense to sell bc you will probably get double the value you owe on it. Take the W and sell
I was sick and tired of being a renter.
Just hire a property manager and your good.
You just need to manage the manager then. You're still managing.
Property management only wants money they aren't much help at all
Why is Dr. John's laptop closed?
count how many times dude says "um" or "uh"... 😂