Now is the time to reflect.
What surprised you this year, what worked great and what were some challenges you encountered?
The market changed quite a bit with foreclosure inventory way down.
Rental market was strong through the whole year.
We start 2014 off facing the new Dodd-Frank bill which will change our ability to sell with seller financing.
How about you?
Jim
Thought you should know
In my area, things have changed. I commented a while back about higher prices for rental property. I mostly buy and hold cheap rental properties. IN 2011 and 2012 we bought 13 units each year, but in 2013 I bought only 1 house and 1 small duplex. That may seem like not enough but the cheap house market in my area has dried up some. Prices are up and harder to find real deals. A major issue that I have is cashflow. I have been buying houses for a little over ten years. I currently own 58 units(mostly sfr’s)
One thing I know:
If you owe money on a significant number of the properties, you better have a lot of cash flow. I have significant equity but still, after you pay the loan payments, taxes, insurance, some utilities, regular maintenance, and then some major renovations each year, it can be hard to make a living off the rentals… Now if you do all the work yourself you would make wages and some extra, but I try to avoid working on them too much. That is the job for handymen and others. I do some small jobs, but I also manage a couple of other businesses(my livelihood) and don’t have time to do everything.
Each year in the next 5-7 years, I have loans paying off and then all properties will be paid for. Then the real joy of owning rentals will be fully realized.
Don’t expect to make a living off mortgaged rentals. Just be content to let the renters pay the bills until the mortgages are paid off.
For 2014 - My largest term note will pay off. Wow $2634.51 per month staying in my pocket. That will be $31,614.12 more cash available to me in 2015. Now what can I buy with that much extra per month…hmmmm.