patrick.net

I'm looking to buy some more properties remotely. Just do a lot of research.

What percentage of your assets(not including primary residence) should be rental income property?

Ralph says

... Realize, no one wants to be a renter in old age.

Really? No one? Renting in retirement is precicely what I am contemplating.

I will be mortgage free next year. Big deal. Owning is still nowhere near free. I still have property tax and maintenance costs.

I am so sick of the responsibility and costs that come with owning. What if that overgrown tree branch falls on the neighbor's garage? Fork over hundreds of dollars to trim the trees, or $1200 each to cut them down. $8-9K for new roof. $10K+ to remodel the bathroom because it looks old and will hurt the value when I sell.

If I rent, I'll let the landlord worry about the roof. If the bathroom meets my needs I don't care if it's outdated. If there is something I don't like or if I just want to live in a different town, I finish out my lease and move.

Related but embarrassingly ignorant question: let's say I own my first (starter) home and then rent it out to tenants when I buy my second (family-raising) home. The second home is purchased with a mortgage whose monthly payment is equal to the rent my tenants are paying me.

In your state, would I be able to have the tenant pay my mortgage directly, or would the money have to pass through my hands, with income taxes being taken out, before I could pass that money on to my bank?

robertoaribas says

many parts of Phoenix cashflow like crazy.

Yes, it’s kind of shocking how much gross rents can be as a percent of purchase price. I’ll spam my own forum here - check out the numbers for Phoenix in Patrick’s Property Finder

That all sounds great on paper. But personally I know someone who's a landlord in Phoenix and they cannot find a tenant. It's a brand new place too so they are currently out something like $1200 a month out of pocket until they find a tenant.

No actually they're trying to rent it for something like $800 it's a brand new townhouse
in Scottsdale.

Can't find a tenant because there are too many investors coming in trying to rent out properties.

that sounds decent... we rented a condo for about that much (but included some utilities)

looking at a few townhouses in scottsdale for purchase (same hoa for all 3)funny thing is the prices
63k
39k
159k

all for 3 bd 1 ba and the most expensive one isn't even an end unit. all look to be in good shape.