There are a lot of headaches associated to being a landlord. If something’s broke, you gotta fix it. If rent is not paid on time, you gotta follow up with the tenant. If a tenant moves out, you gotta get the house ready (quickly) and get another tenant in there.
With any business, there’s work involved. But if you’re willing to work, there’s a lot to be gained.
Sheena and I have 2 rental houses and 1 home that we live in. I wanted to share the benefits of owning rental property with you if you are remotely interested in getting into that business. I created a made up scenario to help paint a better picture. This is by no means the numbers associated to our properties. I wish we could have got properties for this cheap! I just made them up for simplicity’s sake.
WARNING: This is just a made up scenario and the “advise” given is just my opinion on the matter. Do your research before you jump into anything! Pardon me if my numbers are off, but I tried my best to stay very conservative in the example.
That’s essentially how Sheena and I structure our rental property financials to speed the process of paying the houses off. We’re far from being “fully profitable” but it’s encouraging to know the big picture while you’re making the journey.
Personally, the headaches associated to being a landlord don’t bother me when I think about the big picture. When the houses are paid off, I’ll be inching towards retirement age, so this will be great supplemental income! Not to mention the equity being created for us by our tenants. Essentially, someone else is buying us a house and we reap the benefits of it!
Questions? I’m no pro at this, but I’m willing to share what I do know. Leave a comment and lets talk!