If you have rental property, how much do you make every month?

[Anonymous]

Anonymous wrote:

Anonymous wrote:$15,000/month-5 units

What are we doing wrong? We lose $250/month on a townhome in VA.

I have a townhouse in VA, too. I make $$1050/mo. after the expenses.

[Anonymous]

Asking "how much do you make a month" is sort of the wrong question. The real question to ask would be "what is your return on investment / capital".

For example the previous poster says that they are making $1050/month in a townhouse while another poster is making $300 a month.

That is great, but how much equity do they each have tied up in their townhouses, that is the real question. If the $1050 a month poster owns a $300K townhouse with no mortgage, then they are basically investing $300K a year to make $12,600 a year. The return on investment would be 4.2% That is pretty good.

The $300 a month poster might have a $250K mortgage on a $300K townhouse, so $50K in equity. That is a return of 7.2% on their investment. Which is much better, even though they are making less money each month.

[Anonymous]

We own a beach front condo in Florida that nets us about $200 a month average, WITHOUT a mortgage.

Once you account for depreciation we're looking at a net loss, on paper.

Terrible, terrible investment (it's worth about $300k). We inherited it and will likely sell as soon as our tenant moves out.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:$15,000/month-5 units

What are we doing wrong? We lose $250/month on a townhome in VA.

Sorry mines a little strip mall with 5 units, 3 tenants (in the South). I won it in a poker game so I have no mortgage. I'm no financial genius.

For real? Tell us more about that poker game?

[Anonymous]

Anonymous wrote:Around $50k true net a year after all expenses and management fees and I have none of my own cash in them at this point.

15 rental properties and about $3.25M in equity.

You only have $50k return on $3.25 million? Surely that money would be better invested in the stock market.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Around $50k true net a year after all expenses and management fees and I have none of my own cash in them at this point.

15 rental properties and about $3.25M in equity.

You only have $50k return on $3.25 million? Surely that money would be better invested in the stock market.

I have about 1.3 million of real estate and get about 50k per year. I'm not financially educated - just went along with the investment advice from family members. My understanding is that the equity in real estate is safe and stable and rises with inflation. Isn't investing in stocks risky? I'm counting on my equity for our retirement and/or to leave in my will. Thanks in advance for weighing in.

[Anonymous]

I'm negative 1k/mo total on my three properties Glover park/Logan/clarendon. I have high mortgages bc I bought the properties with almost zero down. I view it as forced savings and I will never sell bc I want to pass the paid off properties to my kid. They are great condos in great locations and in 20 years he can net a comfortable amount and always have the income so he doesn't have to get a "job" just to pay the bills and has more financial freedom to pursue what he is passionate about.

[Anonymous]

Anonymous wrote:Asking "how much do you make a month" is sort of the wrong question. The real question to ask would be "what is your return on investment / capital".

For example the previous poster says that they are making $1050/month in a townhouse while another poster is making $300 a month.

That is great, but how much equity do they each have tied up in their townhouses, that is the real question. If the $1050 a month poster owns a $300K townhouse with no mortgage, then they are basically investing $300K a year to make $12,600 a year. The return on investment would be 4.2% That is pretty good.

The $300 a month poster might have a $250K mortgage on a $300K townhouse, so $50K in equity. That is a return of 7.2% on their investment. Which is much better, even though they are making less money each month.

Good point. I am making $650/month on a house that I have about $60k of equity in. So about 13% per year.

[Anonymous]

I disagree with the "return on equity" analysis. Rental income is steady and for the most part unrelated to fluctuations in the stock market. My portfolio could drop 20%, but if my units are leased (and my RH is on the Hill - it's never empty), that income still comes in like clockwork. That's worth more than an extra point or two to me.

[Anonymous]

Anonymous wrote:I'm negative 1k/mo total on my three properties Glover park/Logan/clarendon. I have high mortgages bc I bought the properties with almost zero down. I view it as forced savings and I will never sell bc I want to pass the paid off properties to my kid. They are great condos in great locations and in 20 years he can net a comfortable amount and always have the income so he doesn't have to get a "job" just to pay the bills and has more financial freedom to pursue what he is passionate about.

Please think strongly about this. It's character building to get a job and make your own way in the world. It's possible to still find yourself and be able to take care of yourself. BTDT -- sometimes financial freedom can have its own chains. Until I straightened myself out, my trust caused me to basically be a wastrel and layabout who got messed up in drugs (just weed but oh man so. much. weed.) and what's worse was my attitude -- a sense of entitlement and no work ethic. My parents taught me very well and were very attentive, but money comes with its own problems. It took me years to figure my life our because I had the "freedom" to be a total screw up.

[Anonymous]

Nothing. It was never intended to be a rental and the tenants find something they want to have fixed every single month which comes out of the rent check. Can't wait to sell.

[Anonymous]

Anonymous wrote:I disagree with the "return on equity" analysis. Rental income is steady and for the most part unrelated to fluctuations in the stock market. My portfolio could drop 20%, but if my units are leased (and my RH is on the Hill - it's never empty), that income still comes in like clockwork. That's worth more than an extra point or two to me.

The return on equity analysis is the correct way to look at this, especially when comparing one rental property to another as people are doing in this thread. Just saying $X per month means nothing when you don't know how much equity the various posters have invested.

I have a rental property that has a mortgage, yet is still cash positive, maybe $300 a month. I could increase that to maybe $1300 a month by paying down the entire mortgage with my savings. The ROE calculation is the only thing that tells me whether this is a good idea or not.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:$15,000/month-5 units

What are we doing wrong? We lose $250/month on a townhome in VA.

Sorry mines a little strip mall with 5 units, 3 tenants (in the South). I won it in a poker game so I have no mortgage. I'm no financial genius.

For real? Tell us more about that poker game?

Yes, I can't believe it took so long for someone to ask about this. So, while not a financial genius, are you a poker genius?

What a lucky win! Though I'm feeling bad for the person who lost the strip mall. I hope he/she was an awful person, not some gambling addict who gambled away his wife's investments and ruined his family.

[Anonymous]

-250 when the tenant pays her rent, but she also seems to think that's negotiable so some months -1050. It's my husbands old house he had before his divorce and it's small and in an economically depressed area of this south. I wish the tenant would do us all a favor and burn it down.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I'm negative 1k/mo total on my three properties Glover park/Logan/clarendon. I have high mortgages bc I bought the properties with almost zero down. I view it as forced savings and I will never sell bc I want to pass the paid off properties to my kid. They are great condos in great locations and in 20 years he can net a comfortable amount and always have the income so he doesn't have to get a "job" just to pay the bills and has more financial freedom to pursue what he is passionate about.

Please think strongly about this. It's character building to get a job and make your own way in the world. It's possible to still find yourself and be able to take care of yourself. BTDT -- sometimes financial freedom can have its own chains. Until I straightened myself out, my trust caused me to basically be a wastrel and layabout who got messed up in drugs (just weed but oh man so. much. weed.) and what's worse was my attitude -- a sense of entitlement and no work ethic. My parents taught me very well and were very attentive, but money comes with its own problems. It took me years to figure my life our because I had the "freedom" to be a total screw up.

I see your point, but you are but one scenario. Our world is changing. It's more competitive. This poster is keeping his family safe and an edge up in the world. I wish I could do what he is doing. His kids could also continue the business of renting properties. This poster could be teaching his/her kids all about money, investments, real estate before just handing over the inheritance.

I do see your point, but if handled wisely, this poster is being smart and planning for his family's future. Lucky family