My Intestinal Fortitude is Weaker Than I Thought

[Anthony Wick]

I viewed a buy and hold multi family property yesterday. And I learned a lot about myself. I learned money and top returns is not my most important goal. The numbers were crazy good. 2.5% rule! And after I've been seeing mostly 1% rule around the area.  But this property was going to take more work now, and absolutely more work in the future, than I am willing to put into it. 

2 units vacant for over a year (out of state owner, hasn't tried renting them out, allegedly). 1 unit in the middle of an eviction. 2 units filled on MTM leases. A boarded up, Squatter house next door. 

I won't go into the finer details of what would need to be done to rent out all units. It wasn't anything major, but certainly some work. But, the most important part is, what good is a 2% rule if you aren't actually collecting the rents!

I found out yesterday that it isn't passive income if you have to go pound on doors every month to collect the rent. 

I found out yesterday that I am unwilling to purchase myself a second full time job in real estate. 

[Joe Hines]

@Anthony Wick

That's a great, grounding reminder about real estate investing. I've read countless posts in this forum where new investors view REI as a high interest savings account that is going to yield a fat check every month. This is a business. You have to think in terms of strategy. You have to consider a lot of variables (like rental markets, capital reinvestment, tax advantages, etc) to keep your bottom line returns up. You have to view your RE investments as your side job, even if you have a PM. It isn't for everybody and like everything in life, you just have to find what makes you happy and focus on that.

Sometimes, saying 'no' is as important as saying 'yes'.  

Thanks on behalf of all of the people who read this post and really think deeply about RE investing before they jump in and cause a lot of suffering for themselves and others.  :-)

Joe