Is it feasible to buy a small apartment for 40k, rent it out

>>1171974
why wouldn't this be feasible?

>>1171983

Seems too good to be true, especially in the UK.

remember costs

>not accounting for HOA fees
>not accounting for taxes
>not accounting for vacancies
>not accounting for risk of bad tenants or issues
>not accounting for the time and work of maintaining it, showing to prospective tenants or having to replace a lightbulb for current tenants
>not accounting for depreciation of building or appliances

I think I'd rather get a part time job for the extra $5000/year.

Sure - where are you looking for this?

Just make sure that your taxes and insurance aren't too out-of-hand.

>>1172007
on the other spectrum, he could easily turn what would be a 400/mo rent to 800/mo rent in ten years

still, yeah. unless doing it in bulk its not really a good investment. its better to buy an apartment to live in and just rent out a room, rather than giving free reign to an entire apartment when you dont know wtf theyre doin. at least the worst they could do then is destroy a room.

>>1171974
the part thats not feasible is when you cant get anyone to stay and youre paying the 400 out of your own pocket

It is feasible, but places where you a flat rents for $400 while selling for $40000 aren't your attractive busy cities (where a $400 appt sells for around 100k).
Still, you can find these prices in smaller towns, but it's harder to find tenants.
A better way to go about it is to buy a place like this to live, paying mortgage instead of rent. With a 2% interest rate you'd be spending ~3.5k in interest, paying $470 a month for a $400 flat, decent.
Although I would recommend doing it with a small house rather than an appartment. Appartment lots can have heavy collective maintenace fee, and if the owner's union votes to repaint the building or change the elevator, you're fucked.

>>1172049
Fucking this.

I bought a vacation home and decided to rent it. The guy I rented it to told me he was a builder. The police in my country is corrupt and shitty and wouldn't do a background check without bribe, and they didn't do it even after a bribe so I gave up and rented the apartment.

A month in I found out that the guy engraved his name on the front door. Was actually a taxi driver and had 8kids. He was also caught stealing from an ATM and wanted me to let his family live in the house for free until he got released(8years).

The house was destroyed as well, the savage somehow managed to break the toilet bowl and his rat kids drew graffiti and literally attacked the walls with screwdrivers every day.

They even almost burned down my house once. And he once forgot the keys so he broke the door.

Had to get a court order just to get him out.

I'm going to sell the house and just invest in government bonds and trust finds.

The guy was Sikh BTW.

>>1171974
Yeh dumbass. Literally the most common way normal folks get into real estate is buying a duplex where the rent for one unit pays the mortgage so they live for free

Google "bigger pockets"

This sub needs a damn sticky

>>1171974
Yes, but try not to get stabbed collecting rent.

Yeah bro a 12% cap rate is super realistic

>>1173724
>The guy was Sikh BTW.

b-but they're bro tier

Other than India, what shitty country do sikhs live in?

Location Location LOCATION. That's the name of the game, OP.

3 years ago I bought 6 houses in Las Vegas for 30-50k each and rent them out for $1k-1.1k a month. Each year there will usually be one tenant that vacates the house and I've got to spend the whole summer fixing up the place which can cost around $2-3k. I'm a semi handyman too so I can imagine spending $5k+ If you have someone else fixing the place. Haven't had anyone sue me yet for their deposit because I find enough reasons to keep it. I'm good right now with all houses being rented out. They'll pay for themselves in 3-5 years after all the expenses fixing them up in the first place. I still have a day job too so my days off in the summer are used to fix up the places. It can be a real headache but with one property it will be easy.

Feel free to ask me any questions

>>1173770
China, Pakistan, and probably a lot more Asian countries.

It can be good, but there's also a lot of other costs involved than just the mortgage:

>Property taxes
>HOA fees
>Building maintenance

You also have be prepared for vacancies and bad tennants. Like if they stop paying, you'll have to get a court order to evict them. But that doesn't happen overnight and usually they aren't the best with your property once they hear of the eviction proceedings. Sure, you'll be able to take them to small claims over damage, but good luck getting deadbeats to actually pay.

>>1173770

Canada, America, England. What are you, stupid?

>>1171974
After 8 years you'll own an 8 year old apartment that's been lived in by a bunch of short term tenants (i.e. it'll be trashed).

>>1173887
I don't know where you live, but all the houses Ive ever lived in have been rented for decades and look fine. Only one was ever shitty and it was build in the 20s. Houses don't magically go to shit from people living in them.

>>1173775
>houses for 30-50k
explain this please

>>1173775
>not returning deposits
kill yourself

>>1173724
Your first mistake was not being in a good country?

The most important business decision you can make in your career is to leave your home country if it isn't good. If you aren't willing to move where there are better opportunities, how can you expect to move forward in life?

Renting in the U.S. is a great job. I manage a few properties that I inherited while going to school full time and I'm loving life. Obviously I'm very lucky to have the setup that I do, but for most younger teenagers and young adults that are U.S. citizens there are lots of great opportunities to earn money and purchase property if you're willing to work.

>>1171993
>UK
>£40,000 apartment

LOOOOOOOOOOOOOOOOOOL

Try 100k minimum m8 200k if it's in london.

>>1171974
>too good to be true?

depends. Tenants usually fuck things up because they don't own it and sometimes the safety deposit doesn't always cover it. You should always stuff away some excess cash for incidental repair bills.

Also, you're responsible for most of the upkeep. If the AC breaks, you gotta get a repairman out there pronto.

Also, evictions are a bitch. It can be upwards of 3 months to get a delinquent tenant out of an apartment, which is 3 months that you have to foot your own mortgage.

>>1173957
If he has valid reasons for not doing it I think it is you who should kill yourself for not taking responsibility and violating the contract.

File: adam scott.jpg (24KB, 400x400px) Image search: [Google]

24KB, 400x400px

>be me
>own parking lots all over downtown
>Average $15k after taxes every month
>Literally zero maintenance so no headaches and almost no time spend managing the investment (I literally work like 1 hour a week on this, if that).
>land is relatively expensive to buy, but once you have it all you need to do is clear it up, throw asphalt on that shit and mark up the parking spaces and you're done.

So yeah house owners, have fun dealing with trash humans fucking up your investment every month

>>1174011
How do you prevent everyone just ignoring your ticket machines and parking for free?

>>1174015
What is an automated barrier?

>>1174016
Just lift it up?

>>1174015
What this guy >>1174016 said

Also, do you not think that in the lord's year 2016 there exists some very rudimentary technology that makes sure this >>1174017 doesn't happen?

I feel like you're one of those guys who would get caught trying to steal a car because it was stick shift and you couldn't figure out how to start it

>>1173949

Las Vegas was one of the fastest growing cities in America during the mid to late 2000's. When the economy crashed, many people were laid off and went bankrupt. I would say about half of LV is considered "old LV" and many people there lost their homes. These people worked in the casinos as cleaners, housekeepers, blue collar jobs. These homes went on sale and remember, these types of people are middle class, have multiple kids, and left these homes a mess.

>>1173957

Like I mentioned above, the majority of these people have multiple kids and they break many things around the house. The carpet has gum, crayon on the walls, the sliding closet doors have missing tracks, drawings on the driveway, etc. These costs add up, quickly. A few also refuse to pay the last month of utilities, so I take it out of their deposits.

>>1174011
I would love this, but the price is too high to get started. Did you have the cash outright? How did you finance it?

I don't think you're factoring in property tax or fees you have to pay to the apartment complex. I mean, it's still profitable but it's not a great rate of growth.

>>1174015
Getting in with a towing company and doing spot checks lets people know you are serious about collecting payments. Towing company makes money in towing fees that the car owner has to pay to get their car back.

>>1174006
he said he always finds a way to not give back the deposit. I call bullshit that every tennant this slumlord ever had doesnt deserve a nickel of their deposot back

>>1174286
Don't know about Nevada law, but here deposits are capped at 1/2 months rent. If he's renting out a house for months, it's pretty easy to find $500 worth of damages.

>>1174303
where is that? in my state deposits are typically 2 months of rent