Sold my rental property a few years back. There’s nothing passive about the income from a rental. An index fund will never call you at 2am with a leaking pipe.

Renting isn’t worth the risk these days.. good tenants are few and far between. People have no respect

But I thought being a landlord was easy, "passive" income?? 🙄

Everybody’s your friend until they decide they want their money over you.

He's an accidental landlord. Bought it as a fixer-upper for himself, then suddenly decided to rent it out when he had to move out. If you're going to be a landlord, be an intentional landlord, taking the time to choose your properties and tenants carefully and without duress.

I wonder what's worse for a landlord: a tenant trashing your property or the CDC telling them that they don't owe you rent?

I don’t understand why anyone would do this to their landlord or want to destroy the residence that they pay for and enjoy? What is wrong with people :-(

“Sell it”. I love it when I said it at the same time 😂. I’m getting the hang of this

I had a tenant in Los Angeles do $40k damage to a house. I never rented anything out again in Los Angeles. I only do business in Idaho now and have never had a tenant damage anything.

You should not be a landlord without large cash reserves.

That's why long distance landlording is a BAD idea.

John, it's amazing how fast you zero-in on what's really going on, and great how you communicate it. You (and Dave) really helped this guy, and did it on his level. Excellent!

A simple background check charge of $45 to $65 paid by the prospective tenant is enough to scare away most deadbeats. Just adding that one line to a rental advertisement is enough to save you thousands in damages and unpaid rent. It’s not full proof but helps a lot.

I don't think any counselor is worth it out there. Councillors are incentivized to keep you coming back. They are not incentivized to fix your life

Showering without a shower curtain is one of the most destructive things that could ever be done. I would never do that even if I was renting.

I’ve never had a tenant treat my house well. They don’t care.

How about just split a 2Br apt with your friend and tell him you will cover his share of deposit plus moving expenses?

My father was left a 4 apartment apartment house from his parents. Mom and Dad got so very discusted with renters that they eventually sold the place. Even with a good deposit the renters would leave the apartments in such bad condition that my parents had to put a lot of money in repairs that it was a real problem. Then we had some agreements that the renters had to acknowledge and sign but every time they broke one it seemed that you had to take them to court to get them out. My parents eventually sold the place and got out of the rental completely.

This is what made me sell a 4-plex. The cost to repair after the average renter (and never being able to collect for the damages or unpaid rent from the deadbeats) made the place lose money.

I grew up watching my dad manage a rental house. He had one tenant who trashed the house and burned him out to the point where he put a for sale sign on the rental house! I get the impression that this is a very common tale in the rental house business. The quality of the tenant can make or break owning a rental IMO. When you have a good tenant who takes care of the house and reliably pays rent, Owning a rental can be a good investment. When you have a bad tenant who trashes the house and flakes out on paying rent, it doesn't quite pencil out on paper to continue being a landlord.

Landlords absolutely need more rights. If you want to call someone greedy, at least refer those words to large property management companies.

Love this advice. Sometimes you just need to slow down. I got involved with selling on Amazon and that business took over my life. It was just too much on top of everything else going on in my life. It wasn't until I quit and slowed down that I realized just how miserable I was when I was doing that. And yes when I quit I felt like a failure but now I realize I'm not a failure at all I just don't like doing that and there is nothing wrong with not doing something you don't like especially when you don't need to do it in the first place.

Any profit you could possibly make renting a house has to be put in a bank account for when something inevitably breaks in or on the house and even then thats if your tenants aren't tearing up the place too badly. The only money you make from rental properties is the appreciation of price of the house when you sell it. Hard pass owning a property across the street and charging rent.

And this is a big reason why I'll never be a landlord in the traditional sense. If I want to make income from real estate, I'll stick to REITs.

The more stuff we own , the more stuff owns us .

I had a similar situation several years ago. I submitted a notice to vacate to the tenant and she refused to removed from the property. I handled the situation incorrectly. Got into a verbal argument, but the woman lived in my condo until she knew I was going to lose it to foreclosure.

I would never be a landlord to renters unless I'm renting out a room and can keep an eye on how they're treating their space. People are disrespectful and disgusting.

He did sound relieved with this conversation.

Sell the tenants, beans and rice

Debating being a landlord currently…. This makes me worry.

Is there a way to run a background check on tenants before renting it out?

Hands down, all time favorite Ramsey video.

With the amount of stress it sounds as he is under, selling it by far would be the best choice plus he would have some cash to put in his pocket. A no brainer IMO. He has to get over the apparent emotional attachment to it and not fall into the sunken cost fallacy.

Dave hasn’t been fishing for bluefin tuna. It’s the greatest 😂😂

You could almost hear John sigh when Papa Dave disagreed on giving 5000 $ as a gift but thought 1000 would sound way better

"if his life was all hooked up he wouldn't had come" 😂😂🤣🤣😂😂🤣🤣

I sold mine rental property after 10 years and might have made 3-7% roi over 10 years. I made about 5k after flipping it. If I would have sold in 2010 it would cost me 10-15 k to sell. I did ok however rental property is a big headache. Bad to ok tenants, tenants breaking leases, property management have no clue on cost, hot water heaters and Ac breaking on the weekend. Great life experience. Know what not to do and what to look for . Stacking the cash for a deal in the future.

Same reason I'm back at my homestead. I really wanted to sell it. Caretakers did $35k in damage, so chose to live here as I fix it up (thank God for unanswered prayers).

Spent 39 years stuck with a military move rental. Sold it two years ago, never made money but had to pay capitol gains on it. Painful but I am happy to be done with it

Happened to some family I know with bad tenants had to spend many thousands just to evict them.

Sold my rental property and retired debt free in 2013.

Love you guys together!

Had bad renters. Made insurance claim to pay almost all damages to get fixed

I’m moving to Florida from The Denver Metro area. I have been very confused, not knowing if renting the house out or selling it would be the best for me. I can’t seem to find the right tenant, who looks like they would be good a good tenant. I prayed and asked God to give me a sign and tell me what to do. He’s given me many signs, but this video is another sign telling me to sell the house and buy one in Florida as soon as I can. Thank you father God for talking to me. Amen!!

I've been in the biz just over 20 years. I know a lot of people that USED to be landlords. Many people picture a LL just sitting in a rocking chair, counting his money. Taxes, insurance, flood insurance, upkeep costs- and those things are all with a tenant. There are also times between tenants collecting no rent when the unit is empty, problem tenants, damage between tenants, many costs there too.

Nothin like a Mosh-Pit in the family room !

Selling the house is a no-brainer

According to Dave, your friendship is only worth $1k - how cheapskate is that. Settle this matter with at LEAST $5k!

Play golf. Don't play golf. Good advice

Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.

If a kitchen is mess the house does not function well as a home.

A simplified life!😁👏👏👏 When I ever get to ambitious, I hope to remember this video!👌

Won't the damage deposit help? Then take them to small claims court for the rest!

Especially right now with all of the laws in favor to protect the renters - you think they’re not gonna take advantage of that? At this time, there is no “passive”

Sell it while you can. It will tank soon. Make the dough NOW

Take them to court.

I've given a lot of thought, time and effort in achieving the boring life that I have. I'll take boredom over terror any day of the week.

I agree....taking up golfing is the worst mistake he can make right now

The problem is that a lot of people have a few rentals. If you have a rental portfolio of 25 units, one bad tenant and a few repairs won't bankrupt you. Systems need to be in place and you need reserves as you build up the portfolio.

Great dude.

I've read a lot of testimonies from millionaires who said they started making money with their rental properties. Well, it seems like a good idea----but they never talk about tenants that stop paying rent or damage the property.

John: Give your friend $5000. Dave: Give your friend a $1000. What?

How was Dave so lost on the storyline? Lol

It's common sense to sell this.. that would wipe away the house debt and the CC debt...

Sell it and make $135k.

SCREENING PROCESS ? This is why you pick up the rental money order once a month AT THE APT. THAT WAY WHEN THEY MOVE OUT OR EVICTED THERE'S NO HUGE OIL SPOT IN THE MIDDLE OF THE LIVING ROOM CARPET. RIGHT, DAVE LOL

Dave disagreed on giving the guy a 5000 gift but a 1000 sounded way better...lol

I think this guy likes the idea of being a landlord, but the reality is much more harsh. There are so many easier ways to invest your money. Sell the house and put it all in the S&P 500.

When I lived in England, I had a landlord who was a complete creep but who was very smart with his property. We had a cleaning lady coming to our house every week, and that was included in our rent. This allowed the landlord to keep a very close eye on the state of the house we were renting. He had weekly updates from a third party and knew right away if his renters did anything wrong. I like that method. Too bad he was a terrible human being on a personal note.

Don't be afraid of real estate...I own 7....But I don't consider myself to be a landlord. I'm a property owner. I pay 8-10 percent to property management companies to be the "landlord" of my properties. They have routine inspections, and have good relationships with the tenants. For me, it's on autopilot and very passive. Everything's not going to be perfect because people are people. But the good outweighs the bad. This case is more of the exception than the rule and rarely happens. I've instructed my property manages to be kind and considerate to people. And in return, I've had a wonderful experience.

Ever thought about HUD? Pays every month and inspect your property!!!

He is an example of someone who shouldn’t be a landlord. As Dave said, he sucks at real estate lol

Caller says he’s doing well at the beginning of the call then quickly proceeds to say he is emotional, mentally and physically exhausted. That doesn’t seem like doing well to me 😂

Rental or not, a home is not an investment.

Colty called in….wonder if Larissa knows about this..

I have one rental and so far so good, but only in my 6th month

It's so hard to be a landlord. I'm the managing partner on 128 units. The great majority of tenants are fine, but that's not good enough. The relative few are animals with no regard for humanity. I am a few weeks shy of 60. Doing this for 37 years. I cannot hand off management to outside party. They're no good. I'll probably sell within 2-3 years.

I never bought fixer uppers and solely bought 2/2 or 3/2 move in ready homes with small yards, in neighborhoods that arent necessarily high end but not in the bad side of town, built not before the 2000s and had property management deal with all the screening and headaches 🤷🏻‍♀️ my husband and I are still working full time and it’s been totally passive in the past 7 years... I live in Montgomery too and these types of houses cost around 120-130k.. The caller bought it in 2018, and the type of house that we bought were prolly around 80-90k that time! There were houses in nice gated communities for 150k during that time! How in the world did he end up with a 140k loan and 35k credit card debt for a fixer upper in freakin montgomery alabama!? Poor decision…

With the eviction moratorium, I really have to question being a landlord nowadays. I know some people who didnt pay rent for 18 months, thats wild.

Come on now give that man 3 thousand dollars

Those sounds like easy fixes cheap to fix if u fix it yourself 🤷‍♀️

This is why I invest most of my money into dividend stocks. No need to worry about tenants trashing the house. Some people are real clowns. Smh

Delony is right. Offer the friend $5000. $1000 won’t even cover moving costs

That's why the rent is so high(cause of homeless), government promote tenants to abuse house providers.

Sounds like a problem I don't have with my automatic DCA into index funds

I understand his guilt with the friend and how difficult housing is now, but he will understand if he is a true friend

You can see how much Dave is a cheap skate. John said give him 5000 and Dave said nope 1000

But the KZfaqrs told me it was easy. I love to hear the flip side. My landlord stole my security deposit cause alot of them do that.

I’ll say this, I may be bald! But I don’t cut people off nor do I fold my arms.

This IS the reality of rental property! It IS not all Unicorns farting rainbows.

5000 is better than 1000

Buy land, they’re not making it anymore

Oh gosh...boring is the best way to live life...trust me...when the tail is wagging the dog with expenses etc...let it go

Yes! Find some joy in life.

I can’t even keep up with my own house. Noooooo thx

What's wrong with golf?

I don't think renting out a house is worth it. There are so many legal problems you can end up in. People are all idiots, and everyone thinks that all landlords are tyrants and deserve to be punished just because they're landlords

If he had had insurance wouldn't he have not had this problem?

You can't decide to just live in the barracks. Also, you don't want onpost housing.

Real Estate isn’t for everyone. It’s not an arm chair investment, you’re better of throwing your money into an index fund that earns 5% a year.