Those of you who are into this line of business , as in , buying cheap property and either refurbishing it and selling it or use it as a rental income. In your experience, how profitable is this business in the long run?
Most people and councils seem to think landlords make loads of money , but ground reality could be very different. Opinions?
Re: Property Rental business
Property cheap or not, if you get 2-3 properties for rent you can live mortgage/property-tax free in 3rd/4th property i.e. if your current home is on a loan then those rental properties will generate enough money to pay for your existing property's tax and mortgage.
Re: Property Rental business
hmm makes sense . I feel the rental yield isnt as big as is assumed by a lot of people though. It takes a lot of understanding of DIY and the refurbishment to be able to ensure the property doesnt eat up a major chunk of the rents in due course. Tenants can be a huge headache too sometimes with missing rents and taking away stuff from the property when leaving.
Re: Property Rental business
It's very profitable for me in that it's a long term investment goal. Other then our house that we live in, I have 2 other rental properties of my own (one which will be fully paid off in 2-3 years time), we're in the process of closing on a 3rd investment property, I have partial ownership in two other rental homes which my siblings and I inherited from our mother that we are in the process of selling right now and I am currently looking at larger multi unit properties for my next investment.
I clear anywhere from $200-$400 a month on the rental properties after clearing mortgage/taxes/insurance/maintenance which in itself is not a huge money maker but it's about the bigger picture. We've seen great growth and property appreciation in our market so as a retirement/long term investment it's been really good for us Alhamdullilah.
Re: Property Rental business
Here are some important factors to consider when assessing whether or not the venture can be profitable: