Author Topic: Rust-Belt Rental Celebration  (Read 2031 times)

leighb

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Rust-Belt Rental Celebration
« on: April 27, 2017, 06:15:44 PM »
I have a handful of rentals in a mid-sized city in the rust belt. None of them were purchased for more than $25,000 and rents are on average $500. Most would advise not to invest in houses like these in the rust-belt. And, that is still solid advice for most folks.

In 2015 my main goal was to break even. In 2016 my goal was to make $14,000. This year my goal was to make $24,000. I met my goals for 2015 and 2016. I just met my goal for 2017 with 8 months to spare! If this is continues I might bring in closer to $40,000 this year.

Granted not all of the rentals are doing well, I have one that's a real pain and has always been a pain. It's on the market with no takers. So... liquidity is an issue.

Today I want to give the rust-belt a little love.

waltworks

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Re: Rust-Belt Rental Celebration
« Reply #1 on: April 27, 2017, 06:32:50 PM »
How many rentals are we talking about? If it's 5, awesome. If it's 25, um, sucky.

-W

Heroes821

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Re: Rust-Belt Rental Celebration
« Reply #2 on: April 28, 2017, 10:01:44 AM »
That's awesome. I hope that you're not stuck handling that in Youngstown though. My dad had so many renters just disappear into the wind, some even took all the copper plumbing. Should of used PEX HA!

I thought about buying houses back home, in 2010 historical homes next to the University dorms were going for $3000 each, but I couldn't imagine dealing with renters out there.  Maybe in FIRE it would be a fun side gig to manage houses there again. 


leighb

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Re: Rust-Belt Rental Celebration
« Reply #3 on: April 28, 2017, 06:16:29 PM »
Yes, it would be awesome to be making $40,000 off 5 rentals. But given that rent's only an average $500/month it's more or less impossible. ;) But to answer your question I have  a dozen.


Blindsquirrel

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Re: Rust-Belt Rental Celebration
« Reply #4 on: April 29, 2017, 07:34:08 AM »
    Cash flow in the rust belt is very, very good. And the rental market is ridiculously hot.

sequoia

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Re: Rust-Belt Rental Celebration
« Reply #5 on: May 01, 2017, 03:43:56 PM »
Yes, it would be awesome to be making $40,000 off 5 rentals. But given that rent's only an average $500/month it's more or less impossible. ;) But to answer your question I have  a dozen.

Wow that sounds really awesome! Congrats! I am hoping we will have 10 rentals in the future - still working on it :)

Just curious, do you manage them full time? Or do you have another job?

leighb

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Re: Rust-Belt Rental Celebration
« Reply #6 on: May 06, 2017, 09:50:52 AM »
They're managed by others.

I'm in the process of quitting my other job. I've made it to the top of my career and found that there was more joy at the bottom. So, I'm starting over, to work for myself. Having this passive income is a huge reason why I can make this risky move.

sequoia

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Re: Rust-Belt Rental Celebration
« Reply #7 on: May 13, 2017, 06:50:00 PM »
They're managed by others.

I'm in the process of quitting my other job. I've made it to the top of my career and found that there was more joy at the bottom. So, I'm starting over, to work for myself. Having this passive income is a huge reason why I can make this risky move.

You are my hero! I am hoping that I can reach where you are and quit my job, or move to a different field/make risky move.

adamcollin

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Re: Rust-Belt Rental Celebration
« Reply #8 on: May 19, 2017, 06:17:05 AM »
That sounds amazing leighb.