Should I become a landlord?

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The landlording issue is: Can you beat S&P 500 ? Most likely no

Imagine you buy another car, just so someone else will drive it. You pay for everything, maintenance, tires, etc. person pays rent ... maybe.
It's an insane investment that no one will ever do.

Having a million sitting in decaying real estate is stupid. Paying rent and profit taxes on it is even stupider.
Commercial goes for 10% gains yearly, if it dips below that it gets sold. Most owners never make as much.
Selling the home is also another completely mad thing that can make you loose a bunch.
 
reptile baht spaniard rid said:
that fucking Rich Dad faggot
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That's the fucker who says you need to leverage to the tits to buy real estate and never pay right? I wonder how many people have been fucked over by that advice. Leverage and mortgages in real estate always, always, always come to fuck you over because of inevitable fluctuations in the market. There is money to be made in real estate, but it's all about timing, location, construction, accounting, and people skills. No real estate book talks about that, only how to leverage to infinity and get passive income. Guaranteed to fuck up your life early into your investing career if that's what you're after, and Kiyosaki is not even the worst nowadays.
 
SmugAutist said:
No real estate book talks about that, only how to leverage to infinity and get passive income.
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The only time the "leverage to the hilt and damn the consequences" works is when you're young, dumb and full of cum.

If you do it right out of college, after you get your first "real" job, the usual worst that can happen is doing it right into a crashing real estate market and then you fucking go bankrupt and never touch real estate again. Even the states that aren't officially non-recourse (like California) or aren't officially single-action (like New York) rarely pursue a deficiency judgement (e.g., if you're fucking underwater, send the damn keys to the bank and walk away).

If you have nothing else at all, what is there to lose? Can turn it into a "win/can't lose" situation. But only before you actually have anything.

They leave that part out.

Coincidentally, YD&FoC is the exact time you're willing to live in one quarter of a four-plex and deal with shitty tenants in the other three spaces. So it's certainly an option, but you really ought to spend a year or two learning all the aspects of it (fuck, get hired as a property mangler during college, can let you live off campus for free and teach you why being a landlord is a shit).
 
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666NASTYFUCKINGFREAK666 said:
One thing I was thinking of was renting (or trying to) exclusively to military. Don't wanna sperg out and fuck them up but if they get retarded you can contact their command chain for maximum lulzery.
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My current landlord has started doing that and now he has a room he cant rent because the 1st dude was recording every infraction ( landlord came to the house to pick up mail) and after two months now is suing for violation of tenant rights ( liberal state ). A dude who joined the military to get out of Somalia and is being investigated for a sexual emergency of some dude while in service and a cool dude that works moterpool. Its a mixed bag especially once you start renting around military bases

Personally ive been looking at the logistics of buying rentals in South America as alot of the time the initial costs are low enough to avoid having to take a loan out at all. Looking at capitals and collage towns so if the local market wont fill the vacancies you have tourists and visiting families to short term lease to.
 
Quite frankly, I have to say it despite how elitist I may come off as, but real estate is a rich man's game. Not only do you need the skills (accounting, basic handyman skills, people skills) for it, you also need the connections. Lawyers, local politicians, and construction companies to make it work. When you buy something with leverage, you're buying the scraps that the developers and high level investors are leaving you. Can you make scraps work? On the idea conditions, you can. Right now the conditions are not ideal. Mexico is better right now, but again, high level entry for that market.

If you want to make money, get a job, make a business, and invest in index funds. Once you become rich and get rich friends, get into real estate if you still have the desire to.

Tēzcatlīpohca said:
Looking at capitals and collage towns so if the local market wont fill the vacancies you have tourists and visiting families to short term lease to
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Sorry for the double post, but... just no. Short term rentals will fucking kill you. There's some advantages to having real estate in Latin America. We have commercial and residential in Monterrey, but you have to make sure that where you are buying is a manufacturing and services hub. No tourism, cartels will fuck that city up and tank property values. The good thing about Latin American real estate is that building material is way better than American, so maintenance is not as bad as in Texas. The downside is that all of these conditions require capital investment up front. And if you do lease your residential, lease it to someone who works management in manufacturing. Less hassle with them.

Airbnbs will get wrecked. I guarantee you.
 
SmugAutist said:
Sorry for the double post, but... just no. Short term rentals will fucking kill you. There's some advantages to having real estate in Latin America. We have commercial and residential in Monterrey, but you have to make sure that where you are buying is a manufacturing and services hub. No tourism, cartels will fuck that city up and tank property values. The good thing about Latin American real estate is that building material is way better than American, so maintenance is not as bad as in Texas. The downside is that all of these conditions require capital investment up front. And if you do lease your residential, lease it to someone who works management in manufacturing. Less hassle with them.

Airbnbs will get wrecked. I guarantee you.
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no need to apologize and its mainly so i can try to generate local equity and advance to a construction company and/or lumber plantation . I understand the inherent risk with the cartels and your point about short term leasing is valid. I just see places like Lima with the relative low cost of entry currently picking up tourism wise once the veneco problem is solved. Perhaps a hotel would be smarter
 
Tēzcatlīpohca said:
no need to apologize and its mainly so i can try to generate local equity and advance to a construction company and/or lumber plantation . I understand the inherent risk with the cartels and your point about short term leasing is valid. I just see places like Lima with the relative low cost of entry currently picking up tourism wise once the veneco problem is solved. Perhaps a hotel would be smarter
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If it's part of a larger strategy then I guess it could work. The problem I find with tourist destinations, especially Latin American tourist destinations, is that you tend to buy when speculation is priced in, and tourism destinations change with time. There's no shortage of nice beaches in Latin America. I had some friends who invested into Tulum a few years back and the market collapsed. That's why we tend to stick to manufacturing hubs. Logistical needs and local services means it's profitable to do commercial and because it's manufacturing, moving to another destination is almost impossible. If you develop high quality residential, you get middle management with high wages living on them.
 
Blue Flying Leaf said:
Imagine you buy another car, just so someone else will drive it. You pay for everything, maintenance, tires, etc. person pays rent ... maybe.
It's an insane investment that no one will ever do.
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This reminds me of timeshares. Why go through the hassle of only owning half a vacation home with the other half going to a complete stranger? Taking time off work can be enough of a struggle without having to coordinate with the other family to see if the timeshare is available during your vacation.
 
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