When was your last rental property purchase and why?

I had my last purchase occur early 2016 but it was kind of a fluke. I went for a jog and saw a house that was mis-priced by an out of area realtor.

But I have decided that I'm not buying at the current levels. At least in my area prices are too high and don't make any sense.

Bought one in late October. Complete renovation, then rented it yesterday.

Why? Total investment: $77k. Rented for $2,883/month.

Oh, I hate to confess, but here goes- 2014, and it’s still not in service!

Went another direction.

Sold my primary and bought another primary.

A 3/2, soon to be a 5/3. Private, secluded location.

JB,

Last purchase was Oct, he called me, nothing down, seller paying ME $4000 to pay down the mortgage to my offer price, seller makes the next 4 monthly payments (piti) and I take over payment starting Feb, all this in my 401kRoth so it’s all tax free.

Learned technique at a seminar. Love it!

Soon to sign for a duplex - take over mort in ROTH, and a sfh with the Roth putting up the money.

The most recent purchase was this summer. It is a class c 3/1.5 brick ranch for $52,000. It will rent for $925/month. It will be ready to rent in a couple weeks.

The purchase before that was in December last year. It was a 3/2, class c, brick ranch. Someone decided they wanted the copper out of the house, so, the house did not have any water pipes or any drain pipes (the drain pipes were copper). I paid $20,000 and it will rent for $925/month. I will have this house ready to rent this spring.

Late 2018. $61k on a nice lot plus some minor upgrades and fix-ups (paint, flooring.) Rents for $1000. Probably could have pushed it to $1100 but it was December.

Unexpected fix was adding several hundred dollars worth of driveway materials: yard got smooshy after all this rain.

We still have one in our back pocket, purchased in 2015. I don't know if we will ever finish it. The fire's gone out.

It's an empty shell that has been framed, re-wired and somewhat plumbed. And thar she sits. New windows in packaging on floor. Some appliances sitting there.

But it needs insulation, drywall, flooring, more plumbing, a kitchen, toilet and sinks, etc.

Most RECENT purchase: 3000 sq. ft. commercial. $135K $1500/mo. mod. gross

LAST Purchase: Haven't made it yet.

Last purchase was a three bedroom, three storey townhouse with attached garage here in SW Ontario. Purchase price in November 2016: $138,000. Comparable units are now selling for $220,000 in the same condo complex in January 2019, less than three years later. It is a hot market. Rent on the unit went from $1,275 with the first tenant to $1,440 with the second and is now $1,485 with the third (unusual turnover rate because I had a lease breaker on one tenancy).

Labor Day, 2018. A small (1000 sf) 3/1. CHA, big detached 2-car garage, half-acre lot.

It was owned by the janitor at DH's workplace. He wanted to move into a house owned by his preacher dad's church. I convinced DH to pay $8k for it, just so the janitor wouldn't be able to say he'd been taken advantage of--- we probably ought to have paid $5k.

I thought all I had to do was paint, flooring, and fixtures, throw in a hot water heater, plus repair a stretch of the garage roof overhang/fix the garage doors.

Well, I also had to run a new panel, rerun the gas line, correct a large amount of sketchy wiring, reconnect some bad plumbing, fill in some low parts of the yard, bank some dirt around the house, throw in some attic insulation...

The project's been on pause for the last month or so due to budgetary constraints. Things are evening out. It's already been promised to some current tenants who have a 2/1, and want to start a family. The sizes are about the same, but the space distribution is different.

We got one in January 2018 and almost have it done (we have also worked on two more that we already had during the spring and fall of 2018).

No matter what stage the selling cycle is in, there are always some properties that can be bought! Just have to keep looking.

True Deanna, but the margins are either so tiny or non-existent (unless someone comes in with cash). And if you do pay cash then your ROI is pitiful.

The MFH market is still moving but the Cap rate is so low I don't know why anyone is buying multis out here. I think many who are late to the game are the only buyers for most of these places.

I think the some of the flippers are still doing okay although SFH prices have come down since last summer.

The only really good thing here is that appreciation (since the downturn) is big. So for those of us who've been in the game long enough that has kept us going.

But no way I'd be dishing out $300k all-in to rent a house out for $1500 (minus another $350 taxes and ins) only leaving $1150 (then deduct repairs, vacancies and other expenses). That might only leave you with $1000/mo on $300k...Pitiful...

I 1031ed two properties that I sold into three value play SFH.

Lesson learned - don't buy three foreclosures and sell two places in a 6 week period and expect to get much done else where. I closed on the last one of those in late Oct.

I took some time off around the holidays.

Last physical purchase: A tiny (600 sq ft) "2-bedroom" (we'll call it a 1-bedroom with an office) SFH that is just a couple of blocks from our previous SFH 2-BR. $38k. Will take maybe $2k in some improvements needed for the rental license in town. Will rent for $650/month. This was about a month ago.

Last "virtual" purchase: 160 Disney Vacation Club points at Saratoga Springs. Total cost ~$18000. Will rent for $2,160 per year without any effort at all (just yearly maintenance fees). We'll do nothing but let it sit and rent and, after ~15 years we'll own it. This was our second DVC purchase to do that -- we bought 130 points just two months ago (and rented all the points out for the year within 2 days of making them available). I plan to pick up a 3rd one later this year.

- John...

Interesting niche John.

How much is your annual maintenance fee? I have a site that might be of some value if you would like to expand it further.......but I really don't want to make it public. I used a very specialized niche that lead me to that site.

Ray-N-Pa: Maintenance on Saratoga Springs DVC points for 2019 are $6.44/point. They currently rent for $13.50/point. So, basically, they rent for about twice the maintenance fee. And that is if I just let someone else do the rental work. If I wanted to spend more time -- which I don't know, but may in the future, I could get another $3/point (i.e. $16.50/point total) probably. But, as I'm new to the DVC resale market, I'm letting one of the big companies do it for me (David's DVC Resale).

I'm mostly only interested in DVC when it comes to timeshare stuff because I have experience with it already (due to family having them for years) -- and because it tends to be one of the ONLY timeshares that continuously go up in value because of Disney's Right Of First Refusal program.

But, I'm still interested in hearing about what you have in mind. You can reach me at:

land lord

john

michigan

at gma il . c o m

(Put that all together as one long thing.)

Thanks!

- John...