Reply to Stop 401k and Purchase a Rental Property?

Forum Index » Money and Finances

Reply to "Stop 401k and Purchase a Rental Property?"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous]Landlord here. I thikn it comes down to the value of your time, and also the uncertainty of cashflow. Are you willing to put in the time to deal with repairs and issues that arise at odd hours? The hassle of finding a tenant? Evicting a tenant?

None of this is difficult to do, but it just takes time. If you have that time to spare, then it can work out well. If you don't, then a 401k or similar investment is easier -- just put your money in and no more work needed.

Also varies based on what you rent. I had a SFH in a good school district, but could _only_ find a tenant in summer since families were moving for the school, and no one is going to move mid school-year. So I got stuck when an active duty military family had to break lease early (it's required by allow it) in January because he got reassigned to another city. House sat empty for months, and I'd spend time every week posting up ads and showing it now and then also.

Or the time I had a tenant stop paying rent. I'd be at the courthouse 2x a month for almost half a year, filing paperwork and then showing up in court. You don't get to pick your court date -- they do -- and if you don't show up, your case is dropped. Once I had come back from a trip to Asia the night before and overslept my court date --- well, now the process had to restart and another 4 weeks to get a new court date.

So while it's important to look at the $$ side of things, also consider the time involved. Management companies will charge 10-25%, but it may be worth it.. or not.[/quote]

+1.  Vacancies and non-payment evictions are my biggest concern with my rental.  I haven't found the maintenance costs to be too much yet.

Choosing the right tenant is very important.  The difference between my current tenant who is normal and the prior tenant who was crazy is like night and day.[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics