The Rental Realist

By now you know my stance on real estate: HOLD IT! In this episode I give 2 great examples of how one investor deployed patience and won, and how another did not and cost themselves over 150k in a 3 year span. Everyone who buys rental property has a purpose, but can many times get knocked off their path. I talk about creating a firm plan and visualizing what the end game looks like. Don't get seduced by the quick cash, play the game and win in the end!

In this episode Tyson shares, albeit simple, the "how to" on marketing rental property. Exposure, pricing, following FHA guidelines, to name a few. He also shares an example of a family member who cost themselves nearly $5000 in loss of rent by not properly marketing their rental home.

In investment property, return on investment is king. You don't buy rental to not try and get the best return possible, right? In this episode, Tyson dives into projected ROI on paper, versus what the reality really is. He shares a few examples of this logic and how always chasing the short term highest return can actually handicap your long term returns. There will be good years, great years, and less than stellar years. It is key to analyze your investment as a whole. One year with higher expense than usual does not mean that your investment is not performing. Look at previous years, future years, and appreciation to properly analyze your rental investment.

I pop off on this episode about an HOA that towed my tenant's vehicle without warning. Many HOA boards are rant by people who don't have a full understanding of law, in particular of what they can and cannot do. I expose on of the worst cases of HOA misuse of power I've ever seen!

Your rental property is a business, it requires effort, planning, a customer, vendors, and creates an income. So as an investor, you need to set it up like a business, so it can be ran like a business. Mixing rent income and expense in your personal bank account just creates confusion and frustration. When set up in a separate account, this creates clarity and keeps business, business, and personal, personal. Businesses also have operating reserves, well so should your rental property. Expense and unexpected things will inevitably come up, so have the proper reserves to handle any situation that might come up through owning rental property.