You do NOT want a rental house and here is why!
This might seem like a crazy title for someone who has a company that invests in rental houses and basically used rental houses as the vehicle to lead the life I choose to lead, and you would be right it is crazy but let me explain why.
I speak to a LOT of people about rental houses on a daily basis and the reason I do is because its my ‘job’, we also property manage all our own properties so I am involved in real estate every day. I also enjoy it, not the houses and the tenants and all the other stuff that comes along with it, but because it has changed my life and the life of people I know, both friends and family. I enjoy it because I know the power it has to have a huge positive impact on peoples financial futures if its done correctly.
So why then would I say you do NOT want a rental house? Is it because I want to have them all and I’m trying to scare you away? Is it because I think you can not do it and would fail? Absolutely not, in fact the title is a little misleading and I wanted it to be that way for a reason, no-one ‘wants’ rental houses, the business you have to operate in order to be successful, and for sure no-one wants to deal with tenants and the issues that can arise from that, both with the people and the property.
So what do you want then?
You want the positive results real estate investing, when done correctly, can bring you. You want the extra money going into your pocket every month and the financial security of owning some assets that have large equity holdings and the ability to utilize that equity for what you need and want in your life.
Perhaps to retire with more money and not worry about money running out in a RIF for example (retirement income fund) where you get to decide how long you want your money to last or how long you want to live and take you money accordingly, because in our older age we are sure exactly how much money wee will need and how long we will live for right?
Perhaps you want to provide for your kids education and instead of having to put money into an RESP perhaps there is a better way using real estate. In 18 years of a rental property (from when your kids born till they go to college) how much do you think a mortgage would get paid down and how much would a house possibly increase? Although house prices increasing are pure speculation so we never rely on that. 100k? 200k? More? How much if you had bought a house in your market 18 years ago would you be putting in your pocket if you sold it today? Is that enough to send your kid to school, and remember you didn’t save for that, a tenant paid for that for you.
If you got your rental aged 50 and your Turing 70 how much extra, based on your own town in the last 20 years have you just added to your retirement pot? Even if you don’t sell how much do two houses rent for in your area? With mortgages paid off, by the tenant over time, that can become monthly income for you to live and really enjoy those golden years instead of budgeting for either your life expectancy or your income expectancy.
Imagine if your just young like say 20 and you were able to buy a house, your own home, live in it, and not pay any off the bills or mortgage because its covered by tenants in the suite you installed? Now you reach 40 and have no mortgage on your home, plus if its increased you have that extra value, what are you going to do at 40 years old with an extra 300-500k in your pocket? Just in time for the mid life crisis we have except now you have money to buy really good toys to help you through!
My point is you do NOT want the rental house, you want what a rental house can provide, This is called your WHY! Your why is the reason you are willing to carry on if its big enough, your why is the driver that will make keep going if its big enough. Ids your kids future big enough? Is YOUR future a big enough why? Now what if there was a way you could have the positives that rentals can provide and minimize the hassles and headaches? I speak to so many people who gave up on their dreams of financial security and abundance rentals can provide because they had a bad experience or something happened.
I was getting rescued by an ambulance a few days ago (another story) and the paramedic said to me, she got out of rentals because it was too much hassle but she made 50k in the year she was doing it! I asked her, if you were to add up all the hours of 'hassle' you had to deal with and convert them into days, how many days would it be in total? She replied “ about 15-20 days”. I then asked her, and she knew herself before I asked, “Would you put up with 15-20 days of shit for $50,000?” Obviously she said yes, we put up up with shit every day in our jobs and lives for a lot less return of money for the time we put in. Imagine if her 'why' to be in Real Estate was something like, to provide medical care for my Granny, and it just so happened it cost, lets say 50k a year! Would that be enough reason for her to put up with 20 days of crap? This is why your 'WHY' needs to be something that will help keep you focused when dealing with the inevitable crappy days, because they are going to happen, just like real life there are ups and there are downs in the day to day. To give up on 50,000 a year just because for 20 days some idiot made your life a little miserable, you allowed them to have the power over the benefits of your real estate portfolio and pulled the plug! Do not give them that power! Understand though you really do not want rentals, you want what they can provide, and focusing on that will help you keep going.
Real estate can provide you with real returns, on real estate using real investments. You do not have to have the hassles, you can joint venture with people who are willing to deal with the ‘crap’ so you can continue to live your life how you have been, you can joint venture with the right people so you can be totally hands off and still get the benefits of what real estate can provide.
If you would like to more about how to joint venture properly, what to look for in a joint venture partnership then please reach out to us at Rental House Profits www.rentalhouseprofits.com we would be more than happy to point you in the right direction and onto the path of where you do want to own rentals, the hassle free way, the way that supplements your life in a positive manner. Whether through education or even joint venturing with us we can help you use what you already have to get the things that you really want.
Have an amazing day