10-01-2021, 03:52 PM
(10-01-2021, 06:48 AM)crimsonghost747 Wrote:(10-01-2021, 06:23 AM)NilesMike Wrote: My best returns are smaller town multi units. Cheap, little competition and my cash flow is 12% unleveraged. Little to no appreciation however. Need more cash flow? Use leverage.
That is a very nice cash flow, especially from unleveraged real estate. I imagine this is yield on cost? or are you using the current estimated value? And if you don't mind me asking, how many units do you have or are planning to have in total?
I would love to do real estate but I'm never around so I would have to buy someone to manage it anyway, so I figured REITs are an easier option for me. But as we all know the cash flows don't even come close to these levels.
I will be 62 on the tenth, been doing the real estate thing since I was 12 and could be trusted to paint an apartment (trusted by Dad), so I have literally a lifetime of experience.
Right now it's 64 units under 8 roofs, self managed but I have an exceptional network of people that I sub things out to. Mowing, painting, repairs, plumbing or electric. I can do most of it myself but don't anymore, except last weekend I had a unit turnover and my go to guy had a Covid scare with his kids and needed to quarantine so I did it. Usually everything works from my phone and I'm no techie by anyone's definition.
Yield is on today's value which doesn't change much with these properties.
Management style is easy going but firm. I don't brow beat tenants but I get my rent. I have even paid tenants to leave instead of evicting, the excellent payers get get a gift card around Thanksgiving, I give my main crew a bonus as well. I treat it as a business with the tenants being my customers. Makes it much less frustrating with that mindset