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/biz/ - Business & Finance

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1193984 No.1193984 [Reply] [Original]

I'm considering getting into real estate. The gist of it is get bank loan for 100-200k house, split it into 2-3 apartments, rent for $500-$1000 each, continue wage slaving, rinse and repeat.

Is this a "viable" approach or is it massively over simplified?

>> No.1194064

You'll need 20% down if you're getting a conventional mortgage (more than likely 25% for investment property), money for: the remodel (few extra bathrooms, bedrooms, separate utilities etc.),closing costs, pull permits and get approval to convert into multi family home, I could go on. Much easier just to buy a duplex or triplex if you want to go that route. But I would recommend a good amount of research before even thinking about buying a rental property. A good starting strategy would be buying a duplex, renting out half and living essentially rent free while saving up the money for future properties.

>> No.1194299

>>1194064
Landlord here. I agree with all of this. Just buy what your looking for, no need to do big remodels. Keep it simple.

Oh and for multifamily properties, make sure they are separately metered for utilities.

>> No.1194360

>>1194299
I don't know how to ask this without sounding obtuse, but how much does location matter with rental properties? Like will it be much harder to find tenants out of the way from a big city?

>> No.1194536

>>1194360
Yes, obviously location matters a lot.

You don't need a big city but nobody will rent a house in the boonies. The area should be nice and clean etc, good infrastructure is a plus but not next to loud highways and so on.

Tho it depends where you are too. For example, here in germany you can rent out pretty much anything because there is huge demand for living space but our lovely socialist state has regulations and taxes out the ass so building is expensive and a pain in the ass. Then last year they introduced rent control and started to seize empty property to house rapefugees, so now building has become even more unattractive for investors.

You gotta study the market and the area and make decisions based on that. There are way too many factors for a simple online answer.

>> No.1194540

>>1193984

See people doing this in cali right now. Buying up 2-4 units, using rental income to qualify for other 2-4 units, using more rental to qualify for more 2-4 units. Know a guy who bought 3 3 unit foreclosures when houses were low. Rented out for 4 years. Now prices are peaked and he dumped them, made a million just renting for 4 years and flipping foreclosures at the right time.

>> No.1194862

>>1194299

This is important.
>Dad is a landlord
>Utilities+water are included in the monthly rent
>Tenants literally leave lights on all day; one lady went to Mexico for a week and left her living room light on the whole time (to prevent a robbery she said)
>They take year-long showers and do their laundry EVERY SINGLE DAY even if it's just one pair of socks (they are my lucky tennis socks he said).

Please make your tenants pay for their own utilities/water.

>> No.1194868

>>1194862
>not just raising the rent

>> No.1195047

>>1194540
The time has passed for good deals in CA. Look in other places