Quote:
Originally Posted by chiefnchopper
Just been maxing the Roth IRA each year. Anyone own rental houses? Are you getting a higher return from your rental(s) than an average year of the S&P 500 returns (9%)?
What's your Roth IRA through? Vanguard? My annualized returns shows 10.7% which is disappointing to your 30% but I also have 10% bond and some international stocks. Thinking I may just switch over to Vanguard and do the S&P 500 though.
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I was a landlord for many years.
My father-in-law owned 6 rental homes.
Good friend owns over a dozen.
If you want to learn more about it, Bigger Pockets forum is a great resource.
But here’s the quick summary. They make money sloooowly.
People rarely calculate their profits from rentals properly.
They don’t include depreciation, taxes, utilities, repairs, damage caused by the renter, insurance, mortgage or heloc, applicant costs, credit report costs, credit card transaction fees, vacancies, court fees, attorneys, etc.
If you profit $300+ per month on a rental, you’re in the TOP end of landlords.
Many people average around $100 to $150 true profit per rental per month.
I can think of many other things I’d rather invest $100k into.