Does your large property portfolio give you headache?

100% agree with Peter. I have almost 20 IP's, and it takes very little time and stress. Having good PM's is critical. I do have some other checks and balances I conduct myself, such as knowing when leases expire and ensuring PM's are proactively managing renewals + carrying rent comp checks to look stay in tune with the market/ Look for opportunities.

I pay bills only once per month, batching these tasks for efficiency. I have a detailed spreadsheet that shows what expenses are coming in on a given month. I know I can cover it, so don't stress when I see a mailbox full of bills. I also have a monthly contingency of $1500 allowed for any sudden repairs or vacancies etc, so I'm covered there. If something needs attending to, I take care of it quickly and effortlessly. I rarely need the full $1500, but at least i know its there if I need it. In addition to this Landlord Insurance covers me for any nasty surprises.

I've also fixed most of my rates, further reducing any financial stresses.

Parenting two kids is harder than managing an IP portfolio

 

I have always thought of property investing like climbing something like Uluru (or Ayers Rock).

One can climb as far as Chicken Rock and stop. One gets a bit of a view.

Or one can climb all the way to the top and sign the Visitors' Book. The view up there is fantastic, even call it amazing.

But it takes a lot more effort (for some, hours and hours) to get to the top.

One has to take on a lot more risks to get to the top.

Getting to the top can be detrimental to one's health; in fact some have died,

But, IMHO, the reward/benefit way exceeds the effort, the pain, the risks, ...

Same with property investing. Don't aim for small .

 

Hi

33 ip's and manage 32 of them myself. I have 1 ip managed externally by a property manager.

Doing it this way is most certainly a full time job spending a lot of my time searching for new tenants, negotiating leases and lease renewals, handling on-going tenant requests and meeting tradespeople on-site to co-ordinate repairs and of course tracking every last dollar.

EDIT: And yes having this portfolio often gives me head aches, but I rather have it than have to work full time for somebody else.

Regards,

alicudi

 

Yep the travel expenses and accommodation are deducted in the USA. What gets to the ATO is just a gross amount plus a tax credit for any tax I paid the IRS I then still get a threshold from the ATO.

 

We very much run as a business. We run company cars we have an office (not just an home office - which we also have), electricity, phones we employ a Filipino accountant etc all go against our companies. As mentioned my son is even paid a salary from one of our companies with all the added financial obligations related to having employees. I fact we even employ labourers at times.

I also do some of the maintenance but more if the carpentry line - my jobs are hang doors and build wardrobes lol

 

its all easy, peasy roses in managing properties +
I am the poster boy of how easy it is

/do not take the above seriously

 

that is absolutely amazing to be honest,

i would be slashing my wrists by now
but Im getting the vibe yours are preimum or even CIP

 

Hi

Yes, 32 retail and 1 little factory.

Regards,

alicudi

 

Sure ...NSW ...when the Net yields are 7pc !

 

41 Residential properties all unencumbered in and around Brisbane.

Full time salaried property manager who looks after everything from rent collection to Council rates / insurance payments / general maintenance and has done so for last 15 years.

Only headache is the weekly email or phone calls we get from Property Managers telling me how they can do it cheaper given the number. We refuse to take the calls these days as i wouldn't do someone out of full time work just to save a 20K per annum.

 

Right.

At what point do you think this is worthwhile ?

We do a lot of driving and fixing up each year, actually if you do not mind I might take some of it offline and pm you later in the week.

 

Not quite there......and is resi

 

I thought the only headache you get is from " where am I going to spend this months' profit .... I have not even spent last months "

 

I come down to Wenty NSW meeting when the yield reach 7pc again

 

Trust me spending 3 months a year following my home team Bournemouth in the Premier League chews up a bit and my wife has expensive shopping tastes. Still we do save a few quid each year despite all of that.

Richard

 

I

Does your Filipinos accountant operate locally or from the Philippines?

 

lol....well 6 or 12 months ago i could have shown you where you could get 5, but they are onto it !

I am finishing one elsewhere in nsw that kills 7, but was a lucky buy, not easy to repeat....

 

I am here twisting my mo wondering what the above is ??? Do tell

 

You calling out for help Beano ? ....lol

 

It started with
I .....think it is worthwhile (employing property manager as staff) when your rentals are about $800k ie 7% of $800k =$56k ...I employed mine on a site that produced $700k rental.