Originally Posted by
Hamtragedy
Yes. The friend who has 15 left has done it as his sole occupation for the last 25 years. The last 5 years have been as rough as possible, and if he was not free and clear on all of them, next to impossible. All his properties are on his block or in his neighborhood within 4 blocks. Mine were on my block, but I'm the only one with a lawn mower and edger so I cut half of my block, cuz it makes my properties look good.
As for the return, it ain't gonna happen over night.
Rental Income 650/mo x12 = 7800 [[if you can get 12 months straight)
Prop Tax = 2000-3000
Ins = 1200-1500
Say 4000 left.
minus:
Mortgage Principal
Mortgage interest
10-15% Maint Fee
Cost of new roof [[tear off) 4000-7000 [[2 for me)
Cost of new roof [[second layer) 2500-4500 [[is there a garage?) [[2 of those)
Cost of new furnace. 2000+ [[1 for me)
Cost of new boiler . 5000+ [[2 for me)
Cost of new electrical panel to 100 amp [[insurance co. will bill you higher for 60 Amp) 1000 [[did it myself).
New bath no tile 1000 [[done several)
new bath tile floor 2000 [[done several)
new bath tile thruout 4000-6000 or way more [[did those in a couple of my own)
I'm not saying it can't be done. I guess my first point of living on the block is as important as having a stake in your community. Grandmont Rosedale were nearly decimated when the market originally tumbled, because people started buying those houses for pennies on the dollar, but they didn't have the resources nor interest in stabilzing those houses. So they fell into disrepair even more, got scrapped, and it dragged the entire neighborhood down even further. Luckily, those houses are being salvaged but only thru GRDC.
This city is a tough rental market if you're not in midtown [[apparently). Would you make 6% ROI if you include all the hours and headache you put into it during the first five years? If you have a mortgage, I doubt it. But you did say long term, so yeah, if you have a stabilized block of houses, sure. But it's taken me a while