Dentaltown April 2024 - 26

MESSAGE BOARD 2
R1Guy
Post: 33 of 49
3/23/2023
Why do you love the STR and hate the LTR? Is
it just because of the interest rate? Seems like a
short-term rental would be more time-consuming.
I currently do not have any real estate investments
(other than my primary residence) but am considering
it. Thanks! n
KOM
Post: 45 of 49
We jumped into real estate a few years ago,
fliegenfischen
Post: 34 of 49
3/26/2023
STR is more income versus time rented. Because
it's short, it's easier to fix things and not have whiny
renters. I've had my rental for 10 years. No issues,
really. Someone either picked my lock, took the
hinges off or it was an inside job, and stole almost
$1,000 worth of stuff from my owner's closet.
I thought I was going crazy last time looking for
something and keep finding more stolen. I just put a
large lock on and adding an electronic lock. n
buying our first property in Florida that was at first
just meant to be a vacation property. But then we
realized we could rent the condo for three months
(in the prime season) to the tune of $6,000/month,
which essentially covered the mortgage and property
taxes for the entire year. Well, that was great,
but we no longer had a vacation home, so we bought
again, thinking we'd rent one to pay for another.
Then we did that two more times in Florida.
The first property we bought in 2021 at $300,000
is already appraised at $510,000. My wife works
half-time as a physician so she runs the show, and
the term " passive income " really is a misnomer even
if you have property managers. There are always
things to deal with, and while it may be as simple as
a few texts, it's still time-consuming.
My big thing was a reduction in taxes. I could
8553zimmerk
Post: 35 of 49
3/26/2023
I think borrowing money is much more expensive
now; 3% rates may never happen again in our
lifetime. Most properties are not cash-flowing
unless you put a lot down, which defeats some of the
benefits of real estate investing. The only " deals " I
see that cash flow is in are areas you don't want to
be in and/or are 100 years old, both big risks. Real
estate seems to be a relationship business more than
anything; you really need to know a great real estate
agent who's in the know. You need a guy who knows
how to repair things well. Inflation has made the
cost of repairs, labor and insurance much higher, to
the point where profits are pretty much gone. The
average American is really struggling, so simply raising
rents cannot happen forever. I'd hold cash and
wait for a potential correction. We went to school for
eight years to be dentists; most of us know nothing
and spent zero years managing properties. Everything
always looks sweeter on the other side. n
use the real estate to drastically lower our tax
burden through STR loopholes, spouse REPS, and a
cost-segregation study. I would say we saved (conservatively)
$80,000 in taxes this past year. I'd much
rather have that cash now, and guess what I did with
it? Bought another property in Arizona. The stock
market hasn't done crap for me lately.
Now, having said all that: The real estate landscape
right now is very challenging and we are
now super cautious. The interest rates suck. We are
having a much harder time finding good deals, etc.
We'll sit on the sidelines a bit, but we're now halfway
to the goal of owning 10 properties. n
4/22/2023
Check out even more posts online!
This ongoing and lively discussion
is waiting for you to pick up where
this excerpt left off. Just head to
dentaltown.com/messageboard and
search " Real Estate. " This thread will be
among the top results.
APRIL 2024 | 26 | DENTALTOWN.COM
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Dentaltown April 2024

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