landlord 101

My experience with my one rental I have is that regardless how good or bad the renter is, It’s an asset liability. However that said what I like about it is the leverage aspect of it.

I bought my house new in Florida 2014 for 229k lived in it for 4 years then moved to Georgia in 2018 the mortgage was around $1500. From 2014 to 2024 that house is now worth 375k. It rents for 2300 a month. I pay a property manager 12% a month approx $275 to manage the tenants so I make about 500 a month positive cash flow. Additionally, a substantial equity gain better than any stock market gains I ever received.

Now you can hold that equity as a nest egg or you can liquify it for cash. The best part you can take out what you need, if I need a 100k I can call the bank refy and pull some of the equity out playing it safe. Watching the markets I know what I could sell the house for relieving the risk/liability or just continue to rent it where the tenant pays down the mortgage.

I’ve had 3 different renters in the home since 2018. With that $500 I make a month it basically goes towards the maintenance and up keep. That gets writing off at the end of the year for taxes.

It’s stressful at times dealing with properly management and renters but over all it’s been worth it.

I think it’s the best way for generation wealth. If I hold onto them long enough my two kids could have em to manage, sell, or live in.

I just pulled some of the equity out of my primary home here in Georgia paid off all my bills and put a substantial amount on my rental with my goal to pay it off sooner than later. Once it’s paid off that rent I collect will pay the mortgage of my current home. I may put a renter in my Georgia home and buy another. I have a goal to have at least 3 properties that are roughly 350-400k in value each so I can say I’m a broke millionaire. Because it’s a million in liability not net worth. With potential to be net worth if I don’t fumble and pay everything off. LOL!

Life goals now get after it, before the asset private equity and black-rock buys em all up.

Remember all investment have risk, with property you have a little more control over that risk. It’s typically not a set it forget it investment like life cycle funds stock market crap subject to flavor of the day market shifts.