Thinking about getting out after 40 years of being a LL,..the world is different. people are different. Yeah there always have been liars and cheats but I think there has been more lately. Personal integrity has gone down and no matter how much you screen,..the bad people can get through. (There are books about how to screw your LL available)

Anyone check this out as an alternative?

welcome.arrivedhomes.com/?transaction_id=102f41f41f7d72238d538ab913f4b4

Oh,..here is the Ad on Mozilla that got me interested.

. Collect Rent Checks — Even if You’re Not a Landlord

Owning a rental property is one of the best ways to make passive income — especially these days. But what if you can’t afford to own a home? Or maybe you’re just not crazy about being a landlord.

Luckily, a company called Arrived Homes lets you earn passive income from rental properties — even if you don’t own property.

Here’s how it works: Arrived Homes lets you invest in single-family homes around the country for as little as $100 — or as much as $20,000. The more you invest, the more you can potentially earn.

That is why we are getting out. Too much BS. Not saying that there should be no rules, but it is getting ridiculous what you have to accept. Steal a pair of socks from Walmart-your picture is on the news but you can not pay rent for HOW LONG??? The process to remove someone needs to go faster and be on the T if the LL wins. Literally the govt should have to garnish them, not the LL going through all the hoops.

I agree with all thoughts above. I decided a couple years ago I will no longer take the risk of dealing with unknown tenants. Once I saw how my rights were being taken away if someone decides to get a doctor’s note for their pitbull which I can’t require to be neutered and my insurance doesn’t cover or the government telling me I must house people without compensation for months on end- that was enough for me.

As such I have contributed to removing a dozen and a half affordable rentals from the market and will continue to add to that number if/when my current tenants move.

Welcome to the Sellers Club.

There's a season for everything.

After 51 years I’m thinking about saying bye bye. When my wife or I depart we can use the stepped up basis unless that is taken away. California has removed keeping the low tax rate so passing my houses to my kids is gone.

I’m tired of the fake service animals and ESA’s. Pets have cost me over $15,000 in lost rent and damages. I have a vacancy coming up and I’ve collected 15 names and only one without a pet.

After 51 years I’m thinking about saying bye bye. When my wife or I depart we can use the stepped up basis unless that is taken away. California has removed keeping the low tax rate so passing my houses to my kids is gone.

I’m tired of the fake service animals and ESA’s. Pets have cost me over $15,000 in lost rent and damages. I have a vacancy coming up and I’ve collected 15 names and only one without a pet.

"Answer: Returns are earned from rental income dividends and appreciation driven by changes in property values. In Q2 of 2022, Arrived investors collectively earned nearly $182,000 in dividends, with annualized yields ranging from 3.0% to 7.6%. Investors also earned $719,000 in property appreciation. Our current policy is to distribute rental payments on a quarterly basis. Learn More Here :"

I've been moving from rentals to businiss ownership. As an example,instead of buying a place for tens of thousands, and all the stuff that goes with it, I bought a utility/scrap trailer for $2000 all-in. I can do one cleanout in a month and make more net profit on that one job than an entire month of profit on a C level house ($500 compared to $200-300). All this and no tenants to deal with or bother me. Add in yard mowing and maintenance plus tree trimming and hauling things from one place to another and it's not even close, money wise. And that's only doing one days work per month. Add in a contract helper to do the work and work several days a week and I can easy make $500-$1000 a week from a single utility trailer.

Then get a warehouse in an industrial park to drop the things they pay me to take away, have a helper sort it and then sell anything that's worth it and the rest to the dump. It's a lot less stress and makes more than a rental.

Yes, I don't get the appreciation of the rental but class C rentals don't go up that much.

Nah, that "investment opportunity" sounds like you're just an underpaid hard money lender. No equity, no tax breaks, no control, no security....and a poor rate of return if MikeA's numbers are correct.

You know what a good rental look like, you know the market, and you know how to value property. Why not just become a hard money lender? Find some of these young go-getters who have experience and just need $$$ to flip properties. Short term loans; 1-6 months; 3-5 points up front; minimum $20K to make it worth your time. Leverage not only your money, but also the hard-learned lessons and skills that being a LL over 40 years has taught you.

A second alternative: ever consider hiring a quality Property Manager? No stress... collect your check. All you have to do is ensure they are reputable. I think it'd be worth your time to investigate before fully pulling the plug.

A third alternative: cash out your rentals and 1031 into commercial property with NNN leases. True mail box money if ever there was. Ray-n-Pay does this and could offer some words of wisdom on how to select the right kind of property and a major tenant who would be higher quality. Probably only works if you have several million to invest in a larger property.

A fourth alterative: go commercial but smaller scope. I've found great success in renting auto shops to businesses and hobbyists. Most of them are pretty squared away so you don't end up with whiney people who expect you to fix every broken light bulb. My expenses are minimal and it's a rare month when I get more than 1 call/text from someone regarding an issue, and I have 14 commercial tenants currently.

A fifth alterative: mini-storage. Those things are easy peasy to manage. We just sold our after owning for 2 years. I maybe spent 50 hours on it in 2 years? Would've stuck with it, but some Kansas City investors came down and threw money at me.... after three times "nope, that's not good enough", I finally got a price I couldn't say "no" to.

Hollis,

I hear ya!

When I started we did well because I was willing to manage the problems of that time when others wanted out.

Today we just have a different set of problems to deal with. Young investors are dealing with them.

BUT I agree there is a new level of "issues".

Like you I have held properties for YEARS and will have a HUGE ENORMOUS GIGANTIC GAZILLION $$$ tax bill if I sell everything outright.

Consider this: I am looking at 1031ing a bulk group of properties into Triple net lease commercial properties. Commercial renter pays ins, taxes, and maint including the parking lot.

The ROI is not as big as LLing but the work level is simply depositing the rent and the occasional rent increase letter.

BRAD

Before going heavy into Rentals, during my real estate investing and afterwards, I've had many small time businesses. Most by myself and others with partners.

A partner will never work as hard as I do. And they put in sweet equity in leu of coming up with the start up finds. After a while they will start to racialize pocking extra money to cover for their extra work load.

Always have a employment contact or partnership agreement.

This just seems like a DST with a lower price point.

If I were in your shoes, I would be thinking NN or NNN investments.

For those thinking of moving onto the commercial world of NN or NNN leases, here is my experience:

I started in commercial 6 yrs ago. Now I have 2 retail strips, a warehouse/storage (3 buildings, 32K sq ft... different sizes units), and an office building offering full service in a town an hour away.

My office building: took a while, but I got a team in place.. call/text, it gets fixed or taken care of. I hardly go the building. I just get billed...

Retail strip: very easy to take care of. The one I have NNN leases in place. With that said, I still have to line up the snow plow guy... the lawn guy... repair the parking lot when DG calls. Outside lights replace...All those expenses come out of the common area fees; but I still need to find someone or do it myself. Its not just sit back and collect the check.... but it is a LOT less headaches of residential. But vacancies a lot longer normally...

Biggest learning aspect: asphalt. Learn how to maintain and or replace it. Most companies don't want a 20k parking lot resurfacing; they want MILES of roads to replace. HVAC: bigger units and on roofs.. taking odd sizes of filters.

Warehouse space: love it. No toilets'. No drywall. In my area, always a need it seems. But returns are lower...