Fix and Flip vs Fix and Rent

Wow...$375,000 cheap? I need a handyman job haha.

I moved from CA in 2005 and do buy, fix and rent in TN while working a full time job but I was fortunate to work from home. I am now retired at 46 and living off my rental income. Yes 20% and now put 30% if I were to buy. FYI - I agree with everything you say on this video. There is company is pushing the price. 40K for than what is worth and I am waiting for them push it another 100K so I can sell and 1031 exchange pay off my other rental.

Thats a nice house for a rental

2500€
That like unpayabel that 2times my income

“Significant profit of $1000” wow.... I mean you DO realize that $1000 isn’t profit , right? There’s a little thing called “operating expenses” when you own a rental property.... and that $1000/ mo you think is profit , not only isn’t profit, it’s not even CLOSE to covering the true expenses on a houses that price.

Is Polly a pit bull? Cool dog.

also called "buy & hold"

Is this house in Canada? Where does a split level home in pretty good shape cost 400k in the "ghetto"?

$1500 mortgage payment + $850 per month property tax + $100 per month home owners insurance. Yeah, I don't know how you can make any money on a $2500 per month rental fee. Plus you have to account for all the maintenance costs.

You are correct about California economy in the Bay Area, that house would be between 750-850.
We don't need to write any letters to buy it houses, just the price has to be right. I feel bad for people who have to almost beg to get a house which they are paying for. What state are you in?

The cost of an investment property (maint, taxes, ins, etc excluded) is the current market value times the investment return on money. If you put down 100% to buy the property you can't rent it for the cost of maint, taxes, ins, etc (plus profit) just because you don't have a mortgage payment. You have to pay yourself for the money you have invested, which is the equity; not what you paid down X years ago. For example, you could sell the property, get the equity, and invest that money elsewhere to earn a return. When you invest in a property, you are doing the same thing and should get a return on the money you have at risk: the value of the property, 100% of the value of the property. You are paying interest on 100% of the value of the property, some to yourself and some to the lending institution.

That house would rent for about 1200 in Arizona. Phoenix metro area

It's a lot of house for the money. In town where I live I saw only 1 house below $400k. It was approx 1000 sq ft, built in 1910ish and last renovation was done maybe 50 years ago. Ah and I forgot - right next to railroad. And it is a lest 50 minutes away from the "hot spot" where all the business is.

never discusses taxes and insurance......      a good rental rents for 1% of homes worth

You said a lot of key phrases for people who are new and that is to know your markets. Plus you also have to know your numbers that's super important otherwise if you're a beginner you're going to lose money

What part of the country is this house ?

I’m doing fix and rent in a small mid west town where $100,000 buys you a A large house in great shape. It makes it hard to comprehend these numbers

More like $2000 a month with taxes and insurance

pocket listings are what is called when a realator holds a listing for select clients. I have never bought a house from an MLS listing and always get before they go public.

I suck at door knobs. I don't know why I have such problems but I do. Drives me nuts!!!

If you buy a house are you allowed to do plumbing/ electrical in your area? if yes then there is an inspection?

It might be easy but I still got it work, it was upside down. :)

this math will not work in east or west coast.

I always have my radio on while I'm painting. Stops me from going stark raving MAD!

My friend got married and had an extra house. She didn't want to be a landlord but I convinced her to rent the house to me for the mortgage cost. 7 years later she decided she wanted sell. The rent is the area in almost triple what the mortgage was. Fortunately I was I a position to buy. Now my mortgage is the same as my old rent. Ganna rent it out when we move up.

I was briefly a landlord in MA and let me just say, never fucking again.

Live in the Washington D.C. area (D.M.V) house flipping, house renting and large companies building townhouse neighborhoods on every corner . Everybody and they momma getting into the business.

for 374k I could buy a hug house on 10 acres and still be only 30 min from work.

Well I live in Hawaii and housing costs here are crazy high. Glad I bought when I did could not afford to buy now.

Those landlords have a terrible ROI. Combine that with NY state taxes or wherever they live they are getting shafted. Better off just dumping their money into a mutual fund if you arent getting 1% rent/property value ratio.

Where in the world does this guy live? Stupid people with more money than sense.

All those numbers assume that you don't get bad renters. Bad renters will suck up all your profits quick!

As a youngster I built my first house well outside the city limits. I then purchased another approx 50 miles from the city, then another and another. Renovating and slowly crept towards the city. Now I have inner city houses, no mortgages. If you try to buy an inner city property from the start, you need an obscene level of income to afford it.

Sappy letter to Seller? Sounds like the Seller has mental issues, too much attachment to the object they are selling.

Fuck that shit if the house would sell for 500k easy, I'd flip that shit. With $100k down your mortgage before taxes is about $4k. Your down $1,500 every month And that's before you pay taxes, insurance or repairs. Does the rent their include utilities? that's another expense. You will be lucky to get the taxes and insurance paid for. You need to sell that house like 2 years ago buddy, That is a HORRIBLE investment. I paid like 20k for my house (10 years ago, but still 20k!) FOR THE ENTIRE HOUSE NOT a 20k down payment, like 20k and the house is mine. It's not in a bad neighborhood, NOBODY boards up, or puts bars on their windows. It needs work but is totally livable. The major problem here is its not worth fixing up, because the contractors are unreasonably expensive, especially considering that if I put $100k in upgrades I might see $60k come back, Maybe. More realistically I'd see about $40k come back. So I plan on selling as is, the way I bought it years ago and Buying another house no fixing to do here not worth the money time or effort. Even in more affluent area's its hard to find a house listed over a million. I hope the housing crash comes soon. People NEED it inorder to afford it. Damn, HOW THE @#$% do people survive on $10 an hour?

well, that explains how he's able to make so much money fixing doorknobs and toilet seats - the economy of a place where rent is 2500 to live in the crap neighborhood

I'm a fan of your channels and I'd be interested in seeing more learning more of everything to do with your rental im in the middle of a major remodel of an 80yr old house i inherented from my great grandmother having a family i need something bigger I've been considering renting over selling just haven't researched everything that goes into owning a rental yet would really appreciate a video on that everything about owning a rental and operating it thanks your the man ...I'm also a subscriber of your hunting channel fellow bow hunter

This house is in your ghetto? Talk about people being disconnected.

This guy is very knowledgeable. He was spot on about rental hacks. What he was describing was house hacking where you buy it for 15% to 20% down at cheaper interest rate, live in the property for a year or two, then rent. In the meantime, you can rent rooms if you're single.

I just bought a house for $215k, will put about $10k to 15k in repairs, then rent for $1500 to $1600 per month. Mortgage with insurance and taxes is only $940/month. Giving me $500 to $600 month in cash flow. Cash flow isn't the reason to buy rental properties, it's equality.

2021, Los Angeles area, houses going 200 to 300k over asking (asking already around 1 million) in good school districts. Letters aren't even read at this point because people are getting such insane offers. One realtor literally stated, any offer submitted with a handwritten letter will be auto-rejected. 425 for a 400 listing doesn't sound so bad!

Rent… use to be a good idea. No way would I rent out a property now.

I'm thinking you're in Washington state 🤔

it DEPENDS on where in CA you ARE....in the big cities yes you pay much more but in the interior not so much...it is still higher than the Midwest or South

You are correct about CA. Any single family home will be 750-850 for basic 80’s builds. Orange County it’s 1 million plus.

The profit depends on keeping it rented and having a good general maintenance fund along with a well funded property emergency fund for unexpected major repairs like a heating system. If that is all in place, the fix/rent is a good idea. My mindset is that the property owner “me” will pay all my mortgages and when I have renters, they “refund me back” with extra. This way, I will remember to not take on anything that I cannot find myself if the renter population drops for a period of time because, renters or not, the mortgages will need to be paid. Best plan, (the one I adhere to) is that it would best to have paid for rentals so you have no mortgages at all. Much less risk.

More like, shows all the GREED!

I've never had good luck with rentals. The last one cost me over $10K in repairs and the renters were only there for 4 months! Bah! Fix and Flip makes more sense imho.