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Speaking only for myself, I don't really care very much about what someone else did in a different geographical market under different economic market condition

by smeej 4y ago

Speaking only for myself, I don't really care very much about what someone else did in a different geographical market under different economic market conditions, except as a curiosity. I can't assume any of what they did will work for me, so what's the point? What's holding me back is that even though I'm interested, I tested the RE waters a decade ago and hated everything about being a landlord except the money, which wasn't nearly enough to offset how much I hated it long enough to get to a point where I was better at it and it sucked less.

ginkoutest 4y ago
Did you try using a property manager? For me, it's mostly been hands-off relying on my PMs to manage all my rentals. Every now and then I will have to step in regarding an issue with a tenant though, for sure. But it seldom occurs, so hasn't been much of a headache for me.
- smeej 4y ago
  At first, I was living in the 3-plex and renting out the other two units, so I figured it made sense to do it myself. I didn't account for the fact that selecting my own tenants without experience meant choosing awful neighbors, nor that I wouldn't even be able to go after them for damage after I evicted them because they knew where I lived and I couldn't trust them not to vandalize my things further. When I moved away, I tried to hire a property manager, but as I only had 3 fairly low-priced units, none of the established managers would take me on. I naively hired someone who had strong references, but for commercial real estate, not residential, and she made the whole process such a nightmare that I gave up and sold my units. (It had become impractical to step in for her when she failed over and over again.) Once bitten, twice shy, as they say. I took the 50% increase on the value of the property and the 3 years of covered housing expenses combined with massive internal resistance as a pretty good sign that I didn't like the process even when it was profitable. I might try again someday, but I value the lack of stress an awful lot.
  - ginkoutest 4y ago
    Accounting for the 50% increase, it sounds like you walked away with a profit then. If you invested a small fraction of your monthly cash flow into a good property manager, it sounds like RE would be a good fit for you. You know the game (having had direct experience), you're aware of the financial returns on your initial capital (as well as tax benefits), and a PM would save you from the headaches you went through in the past. Is that a fair conclusion on my part?
pettycashstash2 4y ago
Exactly this. Real estate is highly localized, and economy has a lot to do with success/ failure. The folks who do well are specialists, and disciplined to be able to surf the ups and downs of any market condition. I second that it would be a cursory curiosity. Plus the home shows have done this ad nauseoum
- ginkoutest 4y ago
  Would you be more interested in RE then if you were exposed primarily to properties in your geographic market with a strategy that is specific to the macro-economy at that time / effective across different economic conditions?

by smeej 4y ago

ginkoutest 4y ago

Did you try using a property manager? For me, it's mostly been hands-off relying on my PMs to manage all my rentals. Every now and then I will have to step in regarding an issue with a tenant though, for sure. But it seldom occurs, so hasn't been much of a headache for me.

smeej 4y ago
At first, I was living in the 3-plex and renting out the other two units, so I figured it made sense to do it myself. I didn't account for the fact that selecting my own tenants without experience meant choosing awful neighbors, nor that I wouldn't even be able to go after them for damage after I evicted them because they knew where I lived and I couldn't trust them not to vandalize my things further. When I moved away, I tried to hire a property manager, but as I only had 3 fairly low-priced units, none of the established managers would take me on. I naively hired someone who had strong references, but for commercial real estate, not residential, and she made the whole process such a nightmare that I gave up and sold my units. (It had become impractical to step in for her when she failed over and over again.) Once bitten, twice shy, as they say. I took the 50% increase on the value of the property and the 3 years of covered housing expenses combined with massive internal resistance as a pretty good sign that I didn't like the process even when it was profitable. I might try again someday, but I value the lack of stress an awful lot.
- ginkoutest 4y ago
  Accounting for the 50% increase, it sounds like you walked away with a profit then. If you invested a small fraction of your monthly cash flow into a good property manager, it sounds like RE would be a good fit for you. You know the game (having had direct experience), you're aware of the financial returns on your initial capital (as well as tax benefits), and a PM would save you from the headaches you went through in the past. Is that a fair conclusion on my part?

pettycashstash2 4y ago

Exactly this. Real estate is highly localized, and economy has a lot to do with success/ failure. The folks who do well are specialists, and disciplined to be able to surf the ups and downs of any market condition. I second that it would be a cursory curiosity. Plus the home shows have done this ad nauseoum

ginkoutest 4y ago
Would you be more interested in RE then if you were exposed primarily to properties in your geographic market with a strategy that is specific to the macro-economy at that time / effective across different economic conditions?