Owning More Properties Isn't Always The Answer
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- เผยแพร่เมื่อ 23 ก.พ. 2024
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We know that owning real estate and rentals is a large part of the solution to retiring and leaving our day jobs - but how many rentals do we need to own to actually feel like we can? Well, as always, it depends. There are three common ways of doing it and then there's one uncommon way (which I'm doing). Between long-term, mid-term and short-term rentals there's a clear winner in a diverse portfolio, but bang-for-the-buck the answer may surprise you.
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How many rentals do you think you need to own to get out of the rat race? 😮🎉
I’m not in a race, I have 2 regular room, one Master suite with own bath and private entrance. I’ll add an ADU in back yard. It was be an upfront cost of around $300k but money will be recouped in 3-5 years and adds to the overall property value. People love guest houses. . But yes my house was bought during marriage 13 years ago. But funded mostly by me.
So guess it will be
3 rooms rented out regularly
1 room Airbnb
1 guest house once it’s built.
Looks like it adds out to 5 rentals, but all under the same property.
Here’s another idea for you all and what I did in college. I rented a house with several bedrooms and rented out the other rooms for more. My personal rent was super low, but I did pay the difference when rooms were vacant. Wasn’t often as the area was near a college. If you have decent credit rent a property and sublease it out. It’s quite easy and risk free. In College my rent was $120/mo, but
was in the late 1980s. Still think even today it can pay off, drawback, you have to live with people. In my house now I just put fridge and micro in each room. Just gotta find a house that’s lends itself to the right amount of space. Works better in older houses as they are often more specious. And cheaper to rent.
Yup, I did the same. Great way to save and even make money when you're first starting.
Excellent & sensible presentation!
High quality content
Thanks!
Glad you liked it!
I LOVE IT! Kai’s course too
lol. Paid ad ☝️ Thanks, Brian :)
4 luxury 2 bedroom beach condos in Thailand Phuket. Much cheaper to live a great life in Thailand.
Indeed it is! Some great beaches too!
Is it possible for foreigners to own beach condos in Thailand? I’d consider it. Also know couple who bought a nice 3 BR condo in Costa Rica and management company rents it out. Then they block out the time to use it themselves, when they want to.
Another family had similar condo deal in Hawaii. Since I’m now divorced I have no interest in a vacation place, unless I get new life partner, which I highly doubt. But I’d not mind investing in a deal like beach condo and pray for no Tsunami. Hopefully ins would cover and be affordable. .
@@lovemagicandroad Foreigners can't own land/villas legally but are 100% allowed to own condos freehold. There are management companies but I manage them myself to save money.
Great inspiration. In your other video you mentioned other countries. After a quick look on AirDNA, Puerto Vallarta in Mexico looks interesting. Wonder if it is worth doing a deeper investigation. Thanks
Hello! Maybe, definitely dig deeper into the numbers and take a look at the comps in the specific area you're interested in.
Can you do an updated best places to purchase on 2024 video? Maybe even add some international locations too? 🙏
I rent out rooms cash in my house. It’s very profitable, and one can always raise the rent. I have had some great renters and some terrible ones that were asked to leave. They are on month to month basis so can be asked to leave anytime. I put a fridge and micro in each room, so they’re not in my main kitchen. One large room I put a kitchenette’ in and it has its own entrance and bathroom. We have a huge housing shortage here in S Cal. My yard to also big enough for an ADU (guest house) so that will be another rental. Right now I am able to work 2 days a week, but enjoy working. Also travel quite a bit. And make time for the gym. So yesRE is GREAT. Median income around my area is around $90k or was a few years ago, might be more like $120k now. It’s a well to do middle to upper class area. We have a huge housing shortage and rents are as high as my mortgage of around $3k. There is of course lots of overhead so cost to live in my house is around $6-7k. It has 4 extra rooms to rent out. So you do the math. Not doing this to make millions, leave that to investing in the stock market (been fabulous). But renting out, although it is some work for sure, makes for a comfortable living. One of the 4 rooms will be made into an Airbnb. For yet another different source of income. Will do under a Corp so I can write off maximum $.
Yep, shared spaces can be tricky. But done right, you basically can live for free (no rent or mortgage).
Fun topic. You should do a follow up video where you interview like 10 people and get their answer to that question, how many until you felt rich? How many and what kind, that might be a cool and vsluable addition to this topic, since the number will be different for everyone! Good stuff
Great idea! It does have a big range depending on the person.
Do you coach people that tryies to do this but in another country?
Somewhere in Europe preferably.
I have some money, I'm looking for the exact same thing that I can call a "land hack" project and I need some more coaching than youtube videos.
Yep, we sure do. Setup a call with us.
Nice video, very informative, quality --> quantity.
Glad you liked it!
That median American income number will ruin your math every time. $5000/month is pure fiction! The majority of households will collapse over a $500 emergency. Barely half of the adult population is married and thus most households are ran by a single working adult. Median income looks more like $35k to $50k/year. After taxes it’s more like $3000/month or less. Your $5000/month only works with two incomes and no kids. To earn $5000/month you need to clear $100k before taxes.
That’s not the average person in the U.S.
I’m only pointing this out because if you’re somewhere in the middle of the country, like Ohio, Kansas, Michigan, or south like Kentucky, Alabama, Arkansas, or even West Virginia you won’t find a lot of people who earn $5000/month. If at all.
Well, I think you’re crossing two things here. Whether it’s median or average, we are looking at the entire country. So if we are looking at Kansas and Ohio, you also need to look at California and New York. We can’t cherry pick. In regards to the not having $500 for emergency, that’s a cash flow problem. Not an income issue.
@@KaiAndrew I want you to know that I generally like how you think about the business of real estate. However, median/average is too generalized when you're talking to people all over the country. I can't expect you to narrow the scope for a particular group, but I will always feel that median income paints a poor picture of the general population. Especially when the average American actually needs to work 80+ hrs a month to pay rent in arguably every state and D.C.
We both know that the median income of U.S. households is greatly skewed by the top 15% of incomes. And the other 85% have an income problem.
As for cashflow problems, if the average American needs 50% of their income to pay rent in arguably every state and the moment they have children they're basically broke, how can that not be an income issue?
I can certainly understand that those who grind their way to affluence may view things from that lens, but those people will always be the minority of the population. I don't view the wealthier among us as evil or completely out of touch. However, once out of the perpetual employee trap, how does one stay grounded enough to realize they may well be a touch out of touch?
I'm not trying to insult you, but sometimes we need to recognize that we who are in a place of extreme privilege sometimes forget exactly how hard just getting by can be. Or that we may need to find a way to better our disseminated information for those who need more grounded options.
@@multidinero so, I agree with everything you're saying. Most Americans are in a very insecure place financially. They don't have a savings, they aren't earning a livable wage, or even if they are earning a liveable wage, healthcare costs and just the general cost of living have gotten so expensive it's hard to catch up. It's can be hard for people who haven't personally experienced that more recently to recall what that feels like. Or maybe they've been lucky enough to never know. My wife and I are lucky enough to be in a pretty great place financially, but we are only a few years out from being pretty damn poor so we're very aware of that privilege.
I do think however, that this isn't the right place for a lecture on wealth inequality in the States. Kai's whole channel is targeting people who are in a place to invest in real estate. It's not his fault that most of America is unable to do that. Nor, is he promoting anything that specifically makes it harder for regular people to live their lives, ie: Air BnB arbitrage etc.
@@whitneyhodgkins1114 I think you’re misunderstanding my point. I originally talked about the number he used for median income for a U.S. household. I expressed that to use $5000/month as a baseline income for the general population is completely inaccurate when comparing the actual income of most American households.
That was my only real gripe with the video. It sets an inaccurate baseline for those listening to the video. The rest happened because Kai expressed that he felt cash flow problems were separate from income issues.
That’s all. I responded to him about that. I never intended to makes this a forum for discussing my feelings on the subject of economic inequality or such things. It just went in that direction.
Baraka from mortal kombat
lol.
The numbers are misleading. Look around the country and any house that is bought at 400K is not being rented out at $1700. That is just absolutely false.
Not misleading at all. We're dealing with medians and averages of the entire country. But sure, let's play your game - How much would a $400k home rent out for? Do you think over $3500/mo? No. So the point of the video remains the same regardless if you agree with the $1700 figure or not...
A guest house in California can yield that rent and cost around that to build a really nice one, but rents are super high around here.
Typo in the title bro. Just a heads up
Thanks! 🙏 you’re the ‘reel’ one ☝️
@@KaiAndrew 🫡🫡
invest in low-income housing in a red state. Thank me in 5 years.
I FEEL RICH WITH 1 BEACH RESORT HOTEL IN THE PHILIPPINES!🏝️🏨⭐️⭐️⭐️⭐️⭐️🇵🇭
Yep, one smart buy can do that ;)
That sounds fabulous. Are you from there? How are taxes there?
@@lovemagicandroad Hello! My wife is from the Philippines! We live in Seattle but will move to the Philippines once our hotel is completed! We are building slowly paycheck to paycheck, no loans! Taxes are low! Labor is cheap! But of course we take care of the crew better than the normal rates! OHANA BEACH SUITES….coming soon! Thanks!