We apologize, but the forums are closed for new posts. Click Here To Join The Unemployables Facebook Group

Welcome, Guest. Please login or register.
June 14, 2021, 03:53:44 pm
Home Help Search Calendar Login Register

Welcome, Guest. Please login or register.
June 14, 2021, 03:53:44 pm
Home Help Search Calendar Login Register

Author Topic: How much do you make per month on your single family houses?  (Read 13452 times)

Offline Redstar1324

  • Member
  • *****
  • Posts: 1000
How much do you make per month on your single family houses?
« on: August 12, 2016, 02:47:23 am »
Obviously, it depends on the size of the house, but I've heard that you only make about $500/month per house.

That doesn't even sound worth it to me when you can make much more rehabbing or wholesaling without the hassle of being a landlord.

Offline Luke9686

  • Member
  • ***
  • Posts: 225
Re: How much do you make per month on your single family houses?
« Reply #1 on: August 12, 2016, 11:35:01 am »
If you're able to make $500/month positive cashflow per house then buy all the houses you can.  This is far beyond what most landlords make per property.  The norm is $100-200/month per door.

This strategy is just that, a strategy that can fit certain peoples investment strategy.  If you're immediate goal is cash then this won't work.  However if you're goal is long term passive wealth creation with certain tax benefits, this is one option.  Personally my strategy is buy sub2 and sell with owner finance.  Much more secure position without the headaches of being a landlord.

Offline Redstar1324

  • Member
  • *****
  • Posts: 1000
Re: How much do you make per month on your single family houses?
« Reply #2 on: August 12, 2016, 01:34:39 pm »
1. In a sub2 deal, does the deed change hands? If you default on the mortgage payment, does the judgement go against you?

2. When you sell owner financing, who pays taxes and insurance?

Offline Luke9686

  • Member
  • ***
  • Posts: 225
Re: How much do you make per month on your single family houses?
« Reply #3 on: August 12, 2016, 01:55:34 pm »
There are several answers to these two questions, PM me and I'll explain best I can.

Offline Bill H

  • Member
  • ***
  • Posts: 375
Re: How much do you make per month on your single family houses?
« Reply #4 on: August 12, 2016, 07:56:51 pm »
Redstar, the law of deeds says "The deed MUST BE delivered during the life of the grantor"  If you get a deed sub2 whether or not  you record it you are the owner of the property.

Offline Redstar1324

  • Member
  • *****
  • Posts: 1000
Re: How much do you make per month on your single family houses?
« Reply #5 on: August 13, 2016, 01:05:02 am »
If you're able to make $500/month positive cashflow per house then buy all the houses you can.  This is far beyond what most landlords make per property.  The norm is $100-200/month per door.

This strategy is just that, a strategy that can fit certain peoples investment strategy.  If you're immediate goal is cash then this won't work.  However if you're goal is long term passive wealth creation with certain tax benefits, this is one option.  Personally my strategy is buy sub2 and sell with owner finance.  Much more secure position without the headaches of being a landlord.

Is this $100-$200/month per house figure assuming a mortgage payment?

A person could make $8,000/month wholesaling two houses per month, even after marketing costs. This means that even if you made $300/month per house, you would need 27 houses to match this figure.

I think that only a fool would buy a house in cash because that money would more wisely be used (if one were to stick with real estate) in rehabbing, home building, etc. Therefore, I see no point in single family rentals.

Apartment complexes and hotels may be another story, but I have never actually ran any numbers. One time I went to the owners of a local hotel and pretended I worked for a real estate investment firm that was interested in buying their hotel. They told me it had a revenue of $57,000 per year. Even if it only cost $3,000,000, it would take 52 years to see that back. I'm not sure there is a point in buying ANY real estate in all cash.

To me, the only advantage of investing in real estate over the stock market is the ability to take out long-term loans to do so. (Aside from the fact that it's just "cool" to own an apartment complex or hotel). Seeing as I've profited $0 in my many years of experience, I would consider myself an expert.

Rehabbing and home building is not "real estate investing" to me, it's more like starting a business. And wholesaling is just creating money from nothing.

Offline Redstar1324

  • Member
  • *****
  • Posts: 1000
Re: How much do you make per month on your single family houses?
« Reply #6 on: August 15, 2016, 09:12:29 am »
Without starting a new thread...

When renting a single family house...

Who pays for garbage, recycling, and sewer?

Offline javipa

  • Member
  • *****
  • Posts: 2350
    • Profitable Investing Strategies
Re: How much do you make per month on your single family houses?
« Reply #7 on: August 15, 2016, 07:02:20 pm »
Usually the renter pays the utilities on a rental house, including water/sewer/trash.

"149 Ways (Plus One) To Find Motivated Sellers..!"  -Free Report-
>>> Click: http://sub2marketdomination.com/how-to-find-motivated-sellers-2/

Offline Redstar1324

  • Member
  • *****
  • Posts: 1000
Re: How much do you make per month on your single family houses?
« Reply #8 on: August 16, 2016, 03:38:28 am »
So then the math on a house would look something like...

INCOME = rent, minus sales tax and income tax(es)

EXPENSES = property tax, property insurance, maintenance, legal costs, management costs
  debt service (if applicable), mortgage insurance (if applicable)

REVENUE = income - expenses

____________________________________________________________

On an apartment complex, you would add garbage, sewer, recycling, storm water.... (some apartment complexes might include water, Internet, cable)

On a hotel/motel, add water, electricity, and probably Internet and cable....

Offline javipa

  • Member
  • *****
  • Posts: 2350
    • Profitable Investing Strategies
Re: How much do you make per month on your single family houses?
« Reply #9 on: August 16, 2016, 07:40:02 am »

So then the math on a house would look something like...

INCOME = rent, minus sales tax and income tax(es)

EXPENSES = property tax, property insurance, maintenance, legal costs, management costs
  debt service (if applicable), mortgage insurance (if applicable)

REVENUE = income - expenses

____________________________________________________________

On an apartment complex, you would add garbage, sewer, recycling, storm water.... (some apartment complexes might include water, Internet, cable)

On a hotel/motel, add water, electricity, and probably Internet and cable....


You've already been offered this feedback numerous times, and what you've posted is not accurate.  Go through my posts to find the right answers.  It's too much to repeat/justify.

Meantime, assume expenses will be 50% of your market rent on a given property.  Expenses are not considered the same as debt service, and debt service is not included in the expense column.
"149 Ways (Plus One) To Find Motivated Sellers..!"  -Free Report-
>>> Click: http://sub2marketdomination.com/how-to-find-motivated-sellers-2/

Offline Luke9686

  • Member
  • ***
  • Posts: 225
Re: How much do you make per month on your single family houses?
« Reply #10 on: August 16, 2016, 09:07:31 am »
All parts of investing should be ran like a business.  Those who do run it like a business are the most successful.  In terms of renting properties, it depends on your strategy.  Yes it takes a ton of houses to equal what a good wholesaler can make in a month, but if done right it can be more passive of an income.  There was a guy on here years ago (propertymanager) that offered tons of advice on landlording/rentals.

You suffer from indecisiveness.  Please find one aspect of real estate that appeals to you and learn all there is to know about that one aspect.  If you don't have a clear idea of your exit strategy, it will be impossible to solve your sellers problems because you yourself won't know what to do.

Offline Redstar1324

  • Member
  • *****
  • Posts: 1000
Re: How much do you make per month on your single family houses?
« Reply #11 on: August 16, 2016, 11:08:35 am »
All parts of investing should be ran like a business.  Those who do run it like a business are the most successful.  In terms of renting properties, it depends on your strategy.  Yes it takes a ton of houses to equal what a good wholesaler can make in a month, but if done right it can be more passive of an income.  There was a guy on here years ago (propertymanager) that offered tons of advice on landlording/rentals.

You suffer from indecisiveness.  Please find one aspect of real estate that appeals to you and learn all there is to know about that one aspect.  If you don't have a clear idea of your exit strategy, it will be impossible to solve your sellers problems because you yourself won't know what to do.

Exit strategy for what?

Offline Luke9686

  • Member
  • ***
  • Posts: 225
Re: How much do you make per month on your single family houses?
« Reply #12 on: August 16, 2016, 06:06:46 pm »
The seller.  What a wholesaler will pay is different than a landlord might pay, which is different than what a person who buys Sub2 and sells on l/o might pay.  It's tough to provide a solution if you have too many ideas floating around your head.  It is for me anyway.

My method is Sub2, I sprinkle in some wholesale deals here and there.

Offline javipa

  • Member
  • *****
  • Posts: 2350
    • Profitable Investing Strategies
Re: How much do you make per month on your single family houses?
« Reply #13 on: August 16, 2016, 07:38:33 pm »

The seller.  What a wholesaler will pay is different than a landlord might pay, which is different than what a person who buys Sub2 and sells on l/o might pay.  It's tough to provide a solution if you have too many ideas floating around your head.  It is for me anyway.

My method is Sub2, I sprinkle in some wholesale deals here and there.


 :beer :beer :beer
"149 Ways (Plus One) To Find Motivated Sellers..!"  -Free Report-
>>> Click: http://sub2marketdomination.com/how-to-find-motivated-sellers-2/

Offline Redstar1324

  • Member
  • *****
  • Posts: 1000
Re: How much do you make per month on your single family houses?
« Reply #14 on: August 17, 2016, 05:11:38 am »
The seller.  What a wholesaler will pay is different than a landlord might pay, which is different than what a person who buys Sub2 and sells on l/o might pay.  It's tough to provide a solution if you have too many ideas floating around your head.  It is for me anyway.

My method is Sub2, I sprinkle in some wholesale deals here and there.

I think if I had the money, I would just rehab houses.

 




SMF 2.0.15 | SMF © 2017, Simple Machines