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Done the same over the years. Although slum lords can do better, I prefer the higher end, where appreciation is part of the equation. Property management head
by asah 12y ago
Done the same over the years. Although slum lords can do better, I prefer the higher end, where appreciation is part of the equation. Property management headaches typically go down at the high end because there's more $ per unit, and the things that break tend to be per unit/person. You also have more $ to fix things and can do it "right". Finally, you can enjoy the places yourself.
Typically, I shoot for ~5% rent to value ratio, e.g. $100k/yr income on $2mm worth of property. With appreciation, I can see why old people do this.
I used the time to bootstrap a company to 40 employees, and profitability-- boy, that wad hard work.
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- charlesdm 12y agoSort of similar questions I asked the OP: How much capital did you invest, and how much debt did you use?
- asah 12y agoSorry, this is confidential. :-( Also, the capital equation is something you can compute: if you want $x in income, then how much capital cost is there etc Keep in mind, we're in a low interest rate environment.
- charlesdm 12y agoAbsolutely. :P Was just curious how you would run something like that, by raising equity, instead of putting up all of your own money. I know it's possible in some cases, but often, it doesn't make a lot of sense.