Examples of rentals you own that perform well financially?

[JoJoP]

Best purchase in my 14 years was last year

58k purchase and closing 1k rehab   =rent 895

On our 2nd year with this property.
Have 6 properties with 2 being bought at or near the top of the market.
All properties will be free and clear in 15 years.
Rents cover all mortgages and most expenses including our own home mortgage.

Will clear 60k+/year when free and clear without adding more properties.

I buy local our market is pretty descent for buying.  The thought of buying distant is intriguing.

Spent 15 years as a carpenter so I can do most work.  I hire plumbers and electricians.

This ROCKS!  I love the idea that when the rentals are paid off, life is sweet.  Our plan is similar- all rentals (that have loans) are set to pay off in 15 yrs or less.
We have one rental bought at the top of the market, but all the rest have both appreciation and cash flow.  It feels like a rock solid life plan, and I sleep well at night. 
I, personally would not buy a far away rental, because I would not want to be so reliant on someone else to keep an eye on my holdings.   Plus, when opportunity is right around the corner, why trouble yourself to look further afield? 

[usmarine1975]

I do too. We want to enjoy the 15 years till then. Only wish I would have started the 15 year mortgage deal 14 years ago when I started buying. Mortgage brokers don't sell them as much as the 30,year.

[JoJoP]

There are actually some benefits to getting 30 year mortgages and paying them off in 15.   I like the flexibility of not HAVING to make that accelerated payment.  Currently I am applying a pay down strategy to my largest rental loan, which also has one of the highest interest rates that I've got.  I should have it paid off in 5 more years at the rate I'm going.  Like financial people often advise about paying off credit card debt, I'm doing the same with my mortgages.  That strategy is focusing on one and shoveling the money in.  When this one is paid off, I'll take the thousands of dollars that I've been paying on it, and move to the next mortgage. 

Although the interest rate on a 15 year is a wee bit lower, the commitment to pay the bank a lower monthly payment (and adding principle payments) might prove handy when getting more bank loans. 

In case somebody doesn't know this strategy, I had this loan "recast", or "re-amortized" when I made a large principal reduction payment.  For $250, a one time fee, the loan, which was set to pay off in about about 12 years with the payments and principal reduction payments I was making monthly, was recalculated to bring it back to the original pay off date, some 20+ years out.   This lowered my monthly payment by about 1000 per month.  (It was a big loan).

Since my goal is FI,  I continue to contribute that same extra 1000, except now it goes 100% to principal.  The loan mod department does this.    This is the only way that I know to bring an existing monthly payment down without refinancing. 

[usmarine1975]

I think the most important thing to do when considering the type of mortgage you are taking is what your goals are and to make sure that the loan fit's that goal.  My retirement goal is 50 to 55.  The 15 year mortgage fits this goal.  It forces me to make the larger payment and in 1 loan alone the difference in interest is close to 400k.  And the great thing is I can also pay more on that 15 year mortgage and repay it sooner if I so desire.  The interest rate is a little better and it's amazing how quickly that loan starts to pay down compared to the 30 year loan. 

I do however get your point and it makes sense.  The problem that I see with getting more loans is that most banks are limiting me to 4 mortgages.  They don't care what the payment is or even the debt to value.  They consider debt to income and how many mortgages I have.  My wife has bought the last two properties in her name alone for this reason. 

Some banks will go over 4 loans or make exceptions.  But it's getting harder partly because so many have decided to just cut and run on properties they took a risk on. 

The rental business is a business it takes time, know how, and money.  I have watched many get into the business thinking it would be so easy only to sell in a year or so because of the different challenges landlord's face.  It does get easier as time goes on and it is a good solid business if done right.  And doing it right isn't always the same for everyone.  The 30 year mortgage seems right for you and that's great.  For me each time I buy a new property we look at a 15 year and a 30 year mortgage and make the decision that fits us.

[Blindsquirrel]

 An old thread but a great one. Motivational. Last deal rented today. Purchase 23k, rehab $6700 (not done by me swinging a hammer for 1 minute)  rented $875 a mo within 36 hrs of posting ad on CL.