Need quick 2nd home advice (rental property)

[Baron Von Crowder]

Dave is a goober. Scared money don't make no money, never has or will.

Using leverage is best, something happens walk away and start over. This is good debt, its not like financing a 100k boat or car. People take on debt to buy stupid things like Iphones, vacations, etc. Debt to produce a cash flow or income is a fantastic idea. You don't get wealthy with inflation by saving pennies.

Dave is great at what he does. Getting the gutless, irresponsible masses to get out of debt. But you will never become wealthy if you follow his advice.
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I dont think getting out of debt and making money are really comparable. I listen to the show on tuesdays on the way home from the auction, and laugh my ass off at the people that call in asking for his advice. He's not going to tell you to go buy a new car. He's not going to tell you to keep supplementing your income buy running up credit card debt. And they keep on calling, one after another.

"hi, I make 36k a year, and I was wondering what your opinion of timeshare properties is? We dont have that much debt, since we live in an apartment. Just two new cars and like 30k on the credit cards"

[dblack1]

< also a Dave Ramsey nut swinger. I've paid off over 30k in debt last year. It's awesome.

I took on a couple hundred thousand in the last year, feels even awesomer. Congrats though, especially if it was on a car/student loan/credit card at a high rate of interest.

I'm just saying that a house is probably the best thing you could take on debt for outside of some other capital investment you can actually see. It isn't buying stock on margin, it is real property.

[likeitfast55]

People with wealth seldom pay things off if it is not in their best interest(taxes). Most of the wealthy people I know extend credit out as long as they can. Their reasoning is pay as few (real dollars) today as possible. Granted they have the assets to be liquid if they want to.

Ramsey speaks to the average working guy/gal that lives pay-check to pay-check. A few very wealthy people I know are cheap bastards.

Dave is great at what he does. Getting the gutless, irresponsible masses to get out of debt. But you will never become wealthy if you follow his advice.


Without all the details (purchase price, comps, current tenant plans, etc) it's hard to say whether you should pull the trigger or not. My current house will be a rental property here soon. I'll be hiring a managment company to deal with all of the shit for me. To me it's worth it to pay their fee, rather than worry/stress myself over it. My goal with this rental though, is to build wealth and post retirement income. This one will bankroll another, then another, then another, etc.

This is how I see Ramsey as well.

[Roscoe]

Dave is great at what he does. Getting the gutless, irresponsible masses to get out of debt. But you will never become wealthy if you follow his advice.

Exactly.

I'm going to get into rental property at some point, just not sure if I want to deal with it right now.

Rental house or fund investments? .....................

[ShawnQ]

Biggest thing that keeps me considering it is the fact that in my area, there are never homes for rent. They go same day. This is a 3/2/2 all upstairs which is even harder to find. Talked to my mortgage co and got a few ideas. We'll see what happens

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[ShawnQ]

For the record; im not looking for a profit right now. I am looking to let someone else buy a house for me...

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[Big Pencil]

Can you do all kinds of repairs and renovations yourself? Do you mind getting up late at night to deal with plumbing or other issues? Will you care when renters sneak off in the middle of the night without paying, and leave the property trashed - or worst? If you can answer no to most of these, then you'll be fine. If not, stay away from rentals. You'll never make any money paying for repairs, and many renters (not all, but many) will simply screw you over, whether it's by skipping out, tearing stuff up or all of the above.

[03mustangdude]

Can you do all kinds of repairs and renovations yourself? Do you mind getting up late at night to deal with plumbing or other issues? Will you care when renters sneak off in the middle of the night without paying, and leave the property trashed - or worst? If you can answer no to most of these, then you'll be fine. If not, stay away from rentals. You'll never make any money paying for repairs, and many renters (not all, but many) will simply screw you over, whether it's by skipping out, tearing stuff up or all of the above.

management company plays a significant part in that. The people that complain about repairs obviously dont file taxes correctly. Also you can set a certain limit of "calls" that you will take care of for free after that you have the tenant pay. Most never reach the limit and/or stop calling the management company since the door makes noise etc.