Owning a rental property is one of the most popular ways to generate passive income, but it’s not always easy. We purchased a 4-plex through a short sale process in October 2011 and my rental income projection was quite wrong.
I finally finished our 2012 tax return and I can share the details from the 4-plex now. I’ll put it next to my original projection so you can see how wrong I was. Read More…
4-plexing is a big gamble and so i am not surprised by the problems the author had. For me i am also an owner but have looked to downsize things to a single family unit. More profit for me and less issues.
Live and learn.
Now i am scared to try renting. We have a big house and based on these #s it doesnt seem all that worth it.
@sam this also depends on where he is located because in Vancouver we are experiencing a bit of a bubble and so it might not be too long before ALL property values drop (correct).
Ouch for 2012! Seems most of it was eaten primarily with set up issues and so my thinking is that in time things will be better.
I second the PITA remark. I use to be in the business and glad i am out. I jumped in because my friends were bragging about making so much easy money. Not for me but glad i tried.
That’s good the article points out the property value. I was wondering the same because although its not making much ROI right now i would think it would be wise to hold since the area might be a gold mine.
Any new rental property is going to be full of headaches. I remember my 4-plex was bed bug infested and it took several months to just identify the problem before we could get it resolved.
I found new families want to rent the biggest and newest homes on the block and so going about buying/renting old property isnt always the best of ideas because there is so much work to be done on them.