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Ambassador
5,358,671
Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

Very few people are really prepared for what it takes to be a landlord and since most areas of the country are at the top of the bubble right now, both options may be risky.

How prepared is your client for either option?

Apr 27, 2017 02:05 AM
Rainmaker
3,997,425
Richard Weeks
Dallas, TX
REALTOR®, Broker

My thoughts he should consult with his cpa or financial planner.

Apr 27, 2017 05:30 AM
Rainmaker
4,056,567
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

My thoughts are that this depends on the indiviual's finances and objectives. Secondly. this is not the kind of advice I would ever give a client... he needs to speak with his cpa, his financial advisor, etc.

Apr 27, 2017 03:41 AM
Rainmaker
882,547
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

Retired? Did he retire at 50, 60, 70, 80? Available time and investment maturity must be in sync.

Experience? Has he done any of these things before? Flipped or rented PROFITABLY. Or is he watching too much TV

Resources? Who does he have on his team when the wheels come off the wagon?

Alternatives? How about transaction funding or angel investing, Nonperforming notes or JV?

Temperament? IF this person is a control freak, goes ballistic whenever something unexpected  appears, be aware, should anything go wrong, you will be blamed.

Take great caution to not offer advise that comes with consequences, but you can suggest options. 

Apr 27, 2017 05:14 AM
Rainmaker
5,571,343
Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

more information about him financially is needed....

Apr 27, 2017 05:09 AM
Rainmaker
1,380,623
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Resale, as in flipping.  That's a tough thing to do, it isn't as easy as TV makes it look.  The payoff can be big and short term.

Rentals are nice, they have small payoffs but are over the long term.  I have several rentals and enjoy the financial freedom they give me.

Apr 28, 2017 06:17 PM
Ambassador
4,201,309
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

Karen, I would only share options with him - I wouldn't want to be to blame if whatever he decides to do is the wrong option for him at his age, finanaical status, etc.  Tell him to seek counsel with a CPA - get yourself off of that hook!

Apr 27, 2017 10:20 AM
Rainmaker
3,558,180
Brian England
Vacasa - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

I think there are positives and negatives for each, but personally, I would prefer resale if the numbers make sense.

Apr 27, 2017 09:47 AM
Ambassador
3,037,439
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

There is so much more to this than the questions.  Retired?  What is their income, assets, goals for investment, etc.  There is not a blanket answer to this. One must get under the covers and look at the entire financial picture. 

Apr 27, 2017 09:06 AM
Ambassador
1,616,354
Harry F. D'Elia III
RentVest - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

depends on the reserves

Apr 27, 2017 07:58 AM
Ambassador
4,558,329
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

I wouldn't advise this client as I don't know the financial situation. I would suggest he have a conversation with a CPA, or perhaps a financial advisor

Apr 27, 2017 07:00 AM
Rainmaker
2,634,337
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

A nice rental in a good area provides for good dividends

Apr 27, 2017 06:57 AM
Rainmaker
5,527,257
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Karen,

I think he should talk to his financial advisor before deciding. A

Apr 27, 2017 06:26 AM
Rainmaker
4,799,481
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

It all depends on his long term goals.

Apr 27, 2017 06:13 AM
Rainmaker
887,983
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

This is a question for the client's financial advisor, or at very least requires a lot of analysis.

Apr 27, 2017 06:08 AM
Rainmaker
2,020,150
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

Ask him - At this point in life which one is more important - Cash Flow OR

Building NET Worth

Apr 27, 2017 05:53 AM
Rainmaker
915,973
Jennifer Mackay
Counts Real Estate Group, Inc. - Panama City, FL
Your Bay County Florida Realtor 850.774.6582

IMO - depends on his life style and affordability

I would advise he buy a multi-plex - triplex or duplex - live in one rent out the other.

Or if he can afford it buy 2 units - 1 vacation condo for rental income and usage, and one unit (house, condo or townhouse) to live in

Apr 27, 2017 05:49 AM
Rainmaker
4,159,333
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Too many variables unanswered to pursue a full answer!

Apr 27, 2017 05:44 AM
Rainmaker
3,321,246
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

It depends what is goal is. For profit now, buy, fix and sell, then repeat. For long term steady goals, buy a good clean rental. 

Apr 27, 2017 05:39 AM
Rainmaker
1,716,354
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg Real Estate

Sounds like he feels he is 'cash rich' at the moment. Your question doesn't make complete sense.

Apr 27, 2017 04:58 AM
Rainmaker
1,707,423
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

I would have to have a long talk about strategy and goals and create awareness on risks of fix and flip, and depending on his age the holding period for the rental.

Apr 27, 2017 04:30 AM
Rainmaker
3,069,934
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Bob Crane nailed this one!

Apr 27, 2017 03:21 AM
Rainmaker
1,044,339
Dave Martin (703) 585-4687
Fairfax Realty - Fairfax, VA
Making Realty Dreams a Reality #WeWillGetYouHome

My thoughts are that this depends on the indiviual's finances and objectives.  

Apr 13, 2018 07:05 PM
Rainmaker
3,970,940
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

If he buys a rental property will he be managing it or hire a property manager?

May 01, 2017 06:41 AM
Rainmaker
4,433,583
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

He should talk to a cpa

Apr 29, 2017 07:38 AM
Rainmaker
4,885,685
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

I think a call to a financial planner would be in order.

Apr 29, 2017 07:21 AM
Rainmaker
843,936
Pete Xavier
Investments to Luxury - Pacific Palisades, CA
Outstanding Agent Referrals-Nationwide

Long term medical related real estate investments is my choice. Less stress, higher cash flow as well as long term appreciation and tax benefits.

Apr 28, 2017 03:55 PM
Rainmaker
6,545,029
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Recommend what will best meet the needs of your client.

Apr 28, 2017 04:37 AM
Ambassador
4,312,753
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Karen Jones Lewis, MBA, Realtor - Ask your client to consult a financial advisor or a CPA. We just help people buy or sell homes! Simple.

Apr 27, 2017 11:11 PM
Ambassador
3,986,660
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

Not everyone is cut out to be a landlord. It also depends if the client is satisfied with where he lives now. 

Apr 27, 2017 08:49 PM
Rainmaker
3,985,837
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Need m ore info about the needs and such

Apr 27, 2017 07:38 PM
Ambassador
2,564,031
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

 Send him to a CPA.  If he buys rental, refer him to a good property management company.

Apr 27, 2017 06:04 PM
Rainmaker
4,174,664
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

I'm with Richard Weeks ..we are not financial advisers and don't know what his Portfolio looks like..he needs to weigh his options considering what he stands to lose at this time of his life.

Apr 27, 2017 05:42 PM
Ambassador
3,258,976
Anna Banana Kruchten CRS, CRB, Phoenix Broker
HomeSmart Real Estate BR030809000 - Phoenix, AZ
602-380-4886

I think he/she should consider having a discussion with their financial planner for some long term strategy planning. That's what we do with our folks.

Apr 27, 2017 05:06 PM
Rainer
353,510
Jim Cheney
Saint Francis Property Santa Rosa, CA - Santa Rosa, CA
Rincon Valley Realtor 707.494.1055

I was able to retire from a civil service job  because I have a rental that produces a positive cash flow.  In my community, rents are sky rocketing so it seems having a rental would be a continuous source of income that can go up annually.  

 

My recommendation would be rental.

Apr 27, 2017 02:19 PM
Rainmaker
818,607
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Really can't answer that with just this information in hand.

Apr 27, 2017 11:38 AM
Rainmaker
1,514,405
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

Depends. Looks at the number and see what has more sense for his particular situation and time commitment. 

Apr 27, 2017 10:46 AM
Rainmaker
549,486
Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

Has he dealt with a financial advisor to give him advice? So much depends on his age and his financial situation. 

Apr 27, 2017 09:31 AM
Rainmaker
1,149,109
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

want income rental.

Want to flip buy a small house first.

Apr 27, 2017 09:25 AM
Rainmaker
808,847
Kasey & John Boles
Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com - Boise, ID
Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties

I am confused by the question, do you mean he is considering a buy and hold property to be a landlord or a fix and flip to try to make money? -Kasey

Apr 27, 2017 07:02 AM
Rainmaker
1,104,814
Kevin J. May
Florida Supreme Realty - Hobe Sound, FL
Serving the Treasure & Paradise Coasts of Florida

Being a landlord isn't my idea of a relaxing retirement. Choosing the latter with eyes wide open could keep me occupied and out of trouble much more easily. To each his own.

Apr 27, 2017 06:34 AM
Rainmaker
1,157,485
FN LN
Toronto, ON

It depends on an analysis of his needs, requirements, goals and objectives and other matters.

Apr 27, 2017 06:29 AM
Rainmaker
1,456,827
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Karen Jones Lewis, MBA, Realtor Is this client looking for a quick ROI or is the client look for an income stream. This should be the deciding factor.

Apr 27, 2017 06:15 AM