Would you live in one of your rentals?

Member since 2019 · 15k+ posts · 11k+ votes

4y

I would. I won't buy a house that I wouldn't live in. That doesn't mean they are all my style, but most of them are painted in neutrals and you can easily make them your own once you add your own furniture. When I retire, my current plan is to move into one of my long distance rentals.

Whenever I've said it is a rental, that means don't buy it because you want an island in the kitchen or vaulted ceilings. I mean buy a generic house that most people could live in. Maybe you'd rather have a slightly darker colour of flooring, but what is in there is in good condition and nice, leave it.

8 Reply

Jeremy Horton

Rental Property Investor · Somewhere over the Rainbow · Member since 2021 · 1k+ posts · 1k+ votes

4y

To answer your question: Some of them I would live in, others I would not (due to varying factors, location, neighbors, condition, my stage in life)

It also sounds like you are wrestling with a morality thing - no problem with that, but this is a business to me personally. I keep my buildings in good shape and the units in good shape - my job is to provide a decent place for someone to live - not to "help" them.

My tenants have different wants/needs from me - some want an affordable place, some want to live near the college, some downtown - I on the other hand want a yard for my family/pets, want a bigger area for my shop & home office.

Additionally it doesn't make business sense for me to strive for perfection in my rentals because tenants will invariably mess something up - they don't care about your house like you do, so they won't treat it as you would (this is a case by case, but generally speaking this is what I have found, I do have some that do awesome - fix small things, mulch the flowerbeds etc). I like my house nearly perfect (this is just personal preference). I think you underestimate some tenants living/life choices in lower income areas as well.

The question: Why is it okay for others to live there but not for you and your family? - This is a borderline entitled socialist question - I'm not even going to start going down that rabbit hole this morning. I don't like "slum" houses anymore than the next guy - but if you are following the law/codes then that is fine and that is what you're required to do.

13 Reply

Chris SvendsenPro Member

OP

Front Royal, VA · Member since 2016 · 306 posts · 240 votes

4y

Quote from @Jeremy Horton:

To answer your question: Some of them I would live in, others I would not (due to varying factors, location, neighbors, condition, my stage in life)

It also sounds like you are wrestling with a morality thing - no problem with that, but this is a business to me personally. I keep my buildings in good shape and the units in good shape - my job is to provide a decent place for someone to live - not to "help" them.

My tenants have different wants/needs from me - some want an affordable place, some want to live near the college, some downtown - I on the other hand want a yard for my family/pets, want a bigger area for my shop & home office.

Additionally it doesn't make business sense for me to strive for perfection in my rentals because tenants will invariably mess something up - they don't care about your house like you do, so they won't treat it as you would (this is a case by case, but generally speaking this is what I have found, I do have some that do awesome - fix small things, mulch the flowerbeds etc). I like my house nearly perfect (this is just personal preference). I think you underestimate some tenants living/life choices in lower income areas as well.

The question: Why is it okay for others to live there but not for you and your family? - This is a borderline entitled socialist question - I'm not even going to start going down that rabbit hole this morning. I don't like "slum" houses anymore than the next guy - but if you are following the law/codes then that is fine and that is what you're required to do.

Guess I should better validate question. I have friends who are landlords who will leave things in a state of disrepair and to me unhealthy conditions and their response is its just a rental. Without a doubt I keep places clean and healthy but not to standards I want my home with finishes and the like. Glad to hear keeping places decent.

2 Reply

Jaron WallingPro Member

Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes

4y

We would and have comfortably lived in some of our properties. The units have been mostly remodeled and the locations are okay, C/B class neighborhoods. It's totally fine not to live in the properties. Every investor has a strategy and different market conditions.

From my experience the answer is determined by how much MONEY and KNOWLEDGE an investor started out with. You could skip a lot of steps in the beginning. Living in a C-class, duplex, with noisy neighbors is one of them.

3 Reply

Patrick DruryBusiness Member

Real Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes

4y

@Chris Svendsen
The reason is it's an investment, not your home, so treat it as such. That doesn't mean neglecting the property or treating it like a slum. You should take care of your property and upkeep in a cost-effective manner to attract good quality tenants and good quality of life. The reason I don't buy places where I want to live is that they don't cash-flow and they don't financially make sense. So I buy in C locations that will produce cashflow in a market that's appreciating and in areas that are seeing growth.

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4 Reply

Bjorn AhlbladPro Member

Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes

4y

Lived in one a few years ago, and living in one for the past 5 years and no intention to ever move. I have apartments that would be fine but too small for our needs, duplexes that would work perfectly well and then the place where we live now. So yeah.

2 Reply

Bruce WoodruffPro Member

Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes

4y

Quote from @Chris Svendsen:

If you answer with no way, I urge you to think about that statement. Why is it okay for others to live there but not for you and your family?

We just like helping others where we can. It may cost me some money in long run but we can sleep soundly knowing we will gladly move into any of our properties tomorrow if needed.

I have had properties that I would not live in. Your whole question is misplaced to say the least. Investors are running a business and should have no concern with whether or not they would live in every single unit they own.

I will not put my family in a bad part of town. But I will buy a run-down house in that same area, fix it up so it's beautiful and rent it to others with different families and comfort levels.

If you just like 'helping others', there are a lot of other lines of work you could have gone into.

Just my .02...

9 Reply

Brent Cook

Investor · Longmont, CO · Member since 2017 · 2 posts · 3 votes

4y

I am living in one of my rentals right now because we are renovating. It's a comfortable 3/2 in a nice blue collar neighborhood. Great neighbors. Even though I'm missing out on rent right now, getting to intimately know your property has some upsides. I'm even thinking of self-managing after this turn!

2 Reply

Bruce WoodruffPro Member

Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes

4y

Quote from @Brent Cook:

I am living in one of my rentals right now because we are renovating. It's a comfortable 3/2 in a nice blue collar neighborhood. Great neighbors. Even though I'm missing out on rent right now, getting to intimately know your property has some upsides. I'm even thinking of self-managing after this turn!

Living in a 3/2 in a nice neighborhood is one thing.......but would you live in a 2/1 where there are gunshots in the alley? :-)

1 Reply

Conner Olsen

Real Estate Agent · Austin, TX · Member since 2020 · 1k+ posts · 941 votes

4y

Quote from @Chris Svendsen:

Ok, just a off topic question but who would live in any of their rentals as it sits right now if needed too without a choice of which one it is? Why or why not?

Reason I ask is curiousity and also my situation. When wife and I began this venture we went into it with two goals. First is obviously to make money from this. Second is to provide a decent place for others to live and raise a family. All to oftern I kept hearing from others its fine, its just a rental. Well, if fine, would you live in it? If not why do you expect others too.

Recently we had a major career changes and relocation. We are now forced to live in one of our former rentals as house market sucked when trying to buy, limited inventory and prices stupid high so we moved renters out and we moved in. Had zero reservations on doing this as was a nice place to live. Ideal for us, no, but none the less a good home.

If you answer with no way, I urge you to think about that statement. Why is it okay for others to live there but not for you and your family? While I do not make 100k a month on rents, we building a nice little nest egg all the while also provide a good home for others. If you are not, what is your reasoning? Is it a strictly profits holding you back from fixing up homes?

We just like helping others where we can. It may cost me some money in long run but we can sleep soundly knowing we will gladly move into any of our properties tomorrow if needed.

I did live in my last rental and I plan to be able to live in all my future rentals. It's a great backup plan!

2 Reply

Matthew Cervoni

Accountant · Lexington, KY · Member since 2019 · 100 posts · 66 votes

4y

Quote from @Chris Svendsen:

Ok, just a off topic question but who would live in any of their rentals as it sits right now if needed too without a choice of which one it is? Why or why not?

Reason I ask is curiousity and also my situation. When wife and I began this venture we went into it with two goals. First is obviously to make money from this. Second is to provide a decent place for others to live and raise a family. All to oftern I kept hearing from others its fine, its just a rental. Well, if fine, would you live in it? If not why do you expect others too.

Recently we had a major career changes and relocation. We are now forced to live in one of our former rentals as house market sucked when trying to buy, limited inventory and prices stupid high so we moved renters out and we moved in. Had zero reservations on doing this as was a nice place to live. Ideal for us, no, but none the less a good home.

If you answer with no way, I urge you to think about that statement. Why is it okay for others to live there but not for you and your family? While I do not make 100k a month on rents, we building a nice little nest egg all the while also provide a good home for others. If you are not, what is your reasoning? Is it a strictly profits holding you back from fixing up homes?

We just like helping others where we can. It may cost me some money in long run but we can sleep soundly knowing we will gladly move into any of our properties tomorrow if needed.

I love this perspective! I think the same could be said for small business that provides a service or product for people, it will surely do better if it is something YOU would also be excited to have/buy.

In my experience running an accounting firm and renting SFRs, treating people well is far cheaper in the long run, and far more meaningful!

1 Reply

Greg M.

Rental Property Investor · Los Angeles, CA · Member since 2017 · 2k+ posts · 5k+ votes

4y

"Decent place" varies by person. I don't want to drive a 2006 Toyota Corolla. Decent car, but I'll keep my Porsche.

What you're really asking is if any of us are slumlords and keep units below acceptable living standards. You're not going to find anyone who publicly admits to that.

9 Reply

JD MartinBusiness Member

Moderator

Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes

4y

Well, considering in my life I have lived in:

- An apartment in a high-crime ghetto;

- A condemned house with a swimming pool in the basement;

- a tent for 4 months when we were homeless;

- a bunk on a US Navy ship;

Any of my rentals would be a major upgrade. So yes, I could live in any of my rentals. But as with @Greg M., I don't want to live in any of my rentals. They're all nice houses and I'm proud to own them but my standards and desires are higher these days. I've already lived in a house with only one bathroom, and I prefer having more than one bathroom.

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2 Reply

JD MartinBusiness Member

Moderator

Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes

4y

Quote from @Chris Svendsen:

Quote from @Jeremy Horton:

To answer your question: Some of them I would live in, others I would not (due to varying factors, location, neighbors, condition, my stage in life)

It also sounds like you are wrestling with a morality thing - no problem with that, but this is a business to me personally. I keep my buildings in good shape and the units in good shape - my job is to provide a decent place for someone to live - not to "help" them.

My tenants have different wants/needs from me - some want an affordable place, some want to live near the college, some downtown - I on the other hand want a yard for my family/pets, want a bigger area for my shop & home office.

Additionally it doesn't make business sense for me to strive for perfection in my rentals because tenants will invariably mess something up - they don't care about your house like you do, so they won't treat it as you would (this is a case by case, but generally speaking this is what I have found, I do have some that do awesome - fix small things, mulch the flowerbeds etc). I like my house nearly perfect (this is just personal preference). I think you underestimate some tenants living/life choices in lower income areas as well.

The question: Why is it okay for others to live there but not for you and your family? - This is a borderline entitled socialist question - I'm not even going to start going down that rabbit hole this morning. I don't like "slum" houses anymore than the next guy - but if you are following the law/codes then that is fine and that is what you're required to do.

Guess I should better validate question. I have friends who are landlords who will leave things in a state of disrepair and to me unhealthy conditions and their response is its just a rental. Without a doubt I keep places clean and healthy but not to standards I want my home with finishes and the like. Glad to hear keeping places decent.

Failing to maintain a property to a habitable standard and wanting to live there yourself is two different animals. I'd say it sounds like you need to find yourself a better class of friends - the landlord friends I have tend to go above and beyond fixing up their homes.

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0 Reply

Brent Cook

Investor · Longmont, CO · Member since 2017 · 2 posts · 3 votes

4y

Quote from @Bruce Woodruff:

Quote from @Brent Cook:

I am living in one of my rentals right now because we are renovating. It's a comfortable 3/2 in a nice blue collar neighborhood. Great neighbors. Even though I'm missing out on rent right now, getting to intimately know your property has some upsides. I'm even thinking of self-managing after this turn!

Living in a 3/2 in a nice neighborhood is one thing.......but would you live in a 2/1 where there are gunshots in the alley? :-)

Nope. But I don't invest in D properties either.

1 Reply

Chris SvendsenPro Member

OP

Front Royal, VA · Member since 2016 · 306 posts · 240 votes

4y

Quote from @JD Martin:

Quote from @Chris Svendsen:

Quote from @Jeremy Horton:

To answer your question: Some of them I would live in, others I would not (due to varying factors, location, neighbors, condition, my stage in life)

It also sounds like you are wrestling with a morality thing - no problem with that, but this is a business to me personally. I keep my buildings in good shape and the units in good shape - my job is to provide a decent place for someone to live - not to "help" them.

My tenants have different wants/needs from me - some want an affordable place, some want to live near the college, some downtown - I on the other hand want a yard for my family/pets, want a bigger area for my shop & home office.

Additionally it doesn't make business sense for me to strive for perfection in my rentals because tenants will invariably mess something up - they don't care about your house like you do, so they won't treat it as you would (this is a case by case, but generally speaking this is what I have found, I do have some that do awesome - fix small things, mulch the flowerbeds etc). I like my house nearly perfect (this is just personal preference). I think you underestimate some tenants living/life choices in lower income areas as well.

The question: Why is it okay for others to live there but not for you and your family? - This is a borderline entitled socialist question - I'm not even going to start going down that rabbit hole this morning. I don't like "slum" houses anymore than the next guy - but if you are following the law/codes then that is fine and that is what you're required to do.

Guess I should better validate question. I have friends who are landlords who will leave things in a state of disrepair and to me unhealthy conditions and their response is its just a rental. Without a doubt I keep places clean and healthy but not to standards I want my home with finishes and the like. Glad to hear keeping places decent.

Failing to maintain a property to a habitable standard and wanting to live there yourself is two different animals. I'd say it sounds like you need to find yourself a better class of friends - the landlord friends I have tend to go above and beyond fixing up their homes.

Will agree there is a reason I do not invest with them and keep my distance.

1 Reply

Tim Miller

Rental Property Investor · Laurel, MD · Member since 2016 · 378 posts · 382 votes

4y

As others have stated, there are different reason why you may or may not want to live in a rental you own. We look at the neighborhood, is it a good neighborhood to live in or is it a high crime area. If it's a high crime area, then we're not buy.

0 Reply

Henry T.

Member since 2022 · 1k+ posts · 1k+ votes

4y

Absolutely, and any one of them. I can't wait to move into one of my rentals. My current residence property tax is disgusting and I can't wait to leave the city limits. BUT, just because you have a property that you won't live in doesn't mean anything. If you're providing a place for someone that needs it, you are doing a great service! End of story. On a side note, these are the kinds of misinformed statements/questions/bullet points that lead to bad legislation and higher rental costs.

0 Reply

Brandon Plombon

Banker · Minneapolis, MN · Member since 2017 · 257 posts · 143 votes

4y

This is one of the questions I ask myself in every rental I purchase. Would I live in this? If the answer is yes then I proceed but if the answer is no I have some work to do.

2 Reply

Bruce WoodruffPro Member

Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes

4y

Quote from @Henry T.:

If you're providing a place for someone that needs it, you are doing a great service! End of story.

Yessir! This is often overlooked by the do-gooders. Every soul needs a roof over their heads, and those of us who venture into less than desirable areas to offer a decent place to live are doing a service.

3 Reply

Jordan MoorheadBusiness Member

Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes

4y

Ours are badass! We rehab and rent blue collar homes and duplexes.

I do live in one of the duplexes but our houses are almost as nice as there are.

If you make your rentals nice and it makes sense to they'll be worth more, rent easier and keep tenants longer.

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Carlos Ptriawan

Member since 2019 · 7k+ posts · 4k+ votes

4y

good questions:
- I will live in all my rentals in bay area
- I would not live in rental in antioch,CA due to high crime.
- I will live in Milwaukee and Birmingham SFR as it's very nice inside
- For other duplexes, I would not live there because of the high crimes
- I will live forever for STR in Hawaii, main reason is that we have a natural tidepool in front yard lol

I ask the same question to spouse like you before , and we've rentals in ok place, heaven-like place, but not-so-good neighborhood as well. Honestly myself I prefer all to be STR by now. Don't really care about cashflows.

0 Reply

Greg WeikBusiness Member

Property Manager · Denver, CO · Member since 2020 · 263 posts · 327 votes

4y

I can't tell if this is a "strategy" question or a "morality" question.

As a property manager with over 15 years in the business, my clients have run the range from "Let me call my buddy to just put duct tape on it" to "Spare no expense, I want my tenants happy at any price." The clients in the former camp would never admit they are slumlords and the clients in the latter camp would never admit they are throwing away money.

Somewhere in the middle, is a happy medium, I think, as an investor. Not exactly in the middle, though. Closer to the "keep the tenants happy and keep the property excellent" camp is the best strategy and happens to check the morality box as well. Some will disagree with me, but I probably would not manage their properties. :)

My personal approach: I buy single-family homes as rentals. Most of them are nicer than the houses my friends and family live in. They're big, updated, and in very nice neighborhoods. For me, this is more strategy than it is morality. Feel free to DM me if you want to know my thoughts on this - it seems to go against the grain of a lot of what I see here on BP. Ultimately, I'm here to make money and build wealth. If a tenant wants to pay $3400/month in rent, I'm not going to get in their way.

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2 Reply

Mark Cruse

Investor · Fort Washington, MD · Member since 2014 · 1k+ posts · 1k+ votes

4y

Most of my are in class D neighborhoods. I lived in areas like that when young but I would not now. Iḿ not sure of the logic in your comment. What does what I would not live in have to do with what someone else would do? I live in a split foyer in southern Prince Georgeś County. I´ḿ sure there are people with mansions in Potomac or Chevy Chase that would never live in my home no matter how modern or nice it is. i happen to love it just like many of my tenants love and appreciate what I provide. Some my tenants can barley afford to live in my units. They are appreciative and happy someone provides a nice, well kept property in their price range. They say thank you..........

2 Reply

Sylvia B.

Rental Property Investor · Douglas County, MO · Member since 2014 · 1k+ posts · 1k+ votes

4y

No, I would not want to live in my rentals. Some are smaller than I want, none have big enough yards, and all of them are in town. I live on 80 acres 5 miles out of town and like it that way. It has nothing to do with the quality or upkeep of the house.

We provide quality rentals and look for quality renters. "It's just a rental" is not something we'd ever say. However, "It's not my preference, but some people like it" is.

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Would you live in one of your rentals?

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