I have been sniffing around the rental property market since 2012 and have yet to pull the trigger.
Part of the problem is my natural conservative nature and part of the problem is the wives. Me and my friend have been formulating Master Plans over beer for years, all the while knowing we get one real shot, so it better work out.
Our better halves are watching and would love nothing more than to snicker and eye roll at our ‘get rich quick‘ schemes.
They even demanded that we produce an actual Business Plan to launch any attempt at rental properties. They were obviously trying to call our bluff and hence the birth of the DDR LLC. Business Plan.
Unfortunately, every year since 2012, I have attempted some version of a large financial project that has delayed the acquisition of any rentals. 2013 saw the purchase of The Cottage. Although we do rent that out as a vacation rental. 2014 saw Operation Business Deal. I wanted to wait through 2015 to make sure that deal would run smoothly before taking on more risk.
We spent 2016 looking to jump into the real estate market, but easier said than done. In the beginning we did not really know what we were doing.
I looked up a lot of information on the Internet and started making informal spreadsheets to assess the viability of a given property. Here is an example. We did this on dozens of properties. We also went with our realtor friend to actually eyeball half a dozen maybes. It was never a waste of time, but I just did not see the right property.
TWICE I did see the ‘One That Got Away‘, but of course so did everybody else and they were off market inside of a day or two.
Anyone who has spent much time lurking around the world of Personal Net Worth Blogs can’t help but notice the ubiquitous nature of the ole ‘rental property’ listed among assets. It is still very much a part of my plan to diversify passive income streams and I predict 2017 might be the year I finally get in the game.
Years ago, I found this web site; It is the best site I have come across for a comprehensive overview of the rental property world.
Coach Carson also has a great post outlining all the different methods used to calculate the value of a potential rental property; HERE.