Rental Property thread:Good, Bad, & Ugly

[get these nets]

Creating this thread as a clearing house for info about rental properties.

For those who own/manage such properties, I'd like you to share literally good, bad and ugly stories.
I'll weigh in later.

 

[Cynic]

if it ain't commercial tenants then good luck

 

[Everythingg]

if it ain't commercial tenants then good luck

Why do you say that breh?

 

[.r.]

.

 

[fairfax12]

I know a dude who owns a duplex and lives in one of the units. Front unit pays the whole mortgage and he's hired a company to handle the business side. Front tenants don't even know he's the owner, but he gets their checks every month

 

[Cynic]

Why do you say that breh?

You aren't subject to comps in commercial RE... only the income the building generates a valuation

Plus it's longer term contracts and if you get triple net lease tenants

Honestly I'd rather deal with business owners and manufacturers than residential tenants

 

[MillionMills]

if it ain't commercial tenants then good luck

commercial properties are much harder to obtain for your average joe looking to own some property

 

[Cynic]

commercial properties are much harder to obtain for your average joe looking to own some property

who gets into business to remain an average joe ?....

 

[get these nets]

who gets into business to remain an average joe ?....

I don't think you addressed his point.

I would think that commercial tenants have their own set of issues. Unless you are leasing space to a franchise or a branch office of a large company, I think you are going to have a high turnover rate. Smaller businesses being more likely to fail.

 

[MillionMills]

who gets into business to remain an average joe ?....

You're talking about the motivation

Most people are average joes when they get into business, which is why almost nobody has the upfront capital/access to capital to purchase commercial property

 

[Cynic]

I don't think you addressed his point.

I would think that commercial tenants have their own set of issues. Unless you are leasing space to a franchise or a branch office of a large company, I think you are going to have a high turnover rate. Smaller businesses being more likely to fail.

I did. If you want to get into commercial property then stop acting like average joe. Average joes remain average joes for a reason.

You can look at certain metrics beforehand (foot/vehicle traffic, average income, job economy) before acquiring your property
or prospecting for potential tenants. If you are smart enough to know how to grow businesses then it'll be in your best interests
to grow with your tenants especially if they are small businesses.

Equity plus rental income...

 

[Cynic]

You're talking about the motivation

Most people are average joes when they get into business, which is why almost nobody has the upfront capital/access to capital to purchase commercial property

There are a lot owners looking to cash out and a lot of investors searching for good quick yields

You can be average and sit back and invalidate with excuses or develop the skills to pitch/prospect and put deals together

but since "almost nobody" does it and stays comitted ... only a few get to feast

 

[MillionMills]

There are a lot owners looking to cash out and a lot of investors searching for good quick yields

You can be average and sit back and invalidate with excuses or develop the skills to pitch/prospect and put deals together

but since "almost nobody" does it and stays comitted ... only a few get to feast

Got all that but my initial point is commercial property is harder to obtain than residential property

 

[Cynic]

Got all that but my initial point is commercial property is harder to obtain than residential property

Bigger payoff and less headache...

 

[SupremexKing]

There are a lot owners looking to cash out and a lot of investors searching for good quick yields

You can be average and sit back and invalidate with excuses or develop the skills to pitch/prospect and put deals together

but since "almost nobody" does it and stays comitted ... only a few get to feast

you looking for an apprentice?