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Opposite_Selection_3 t1_j41qitj wrote

Reply to comment by TheSpektrModule in What does eviction prevention accomplish. by LongjumpingShot

That is not happening. The tax loopholes and long term value of real estate make this game too appealing even with increased risk. The cost of housing is going to push more and more people into the rental market so tenant quality will remain solid in most areas.

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Ktktkt84 t1_j42wbem wrote

Mom and Pop landlorded in the city for 10 years and we’re getting out. We rented upscale townhouses in Hampden and even without a single problem tenant it was not worth it. The city taxes, insurance, cost of turn over and maintenance of 100+ year old properties. The 24/7 nature of landlording, the inevitable emergency while you’re on vacation or on Christmas morning. The conflicting interest of someones home as your business. I wouldn’t recommend land lording in Baltimore city to anyone.

Now what’s going to happen? Probably all/most of the mom and pop landlords with a few properties are gonna get out leading to less availability and increased rental prices. Likely more soulless big box slumlords managing the rest.

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TheSpektrModule t1_j41rjmf wrote

> The tax loopholes and long term value of real estate make this game too appealing even with increased risk.

That's definitely not what I found when I looked into landlording. The realistic returns were not that great relative to the risk and hassle. Maybe for big institutional investors it's a different story but being a small time LL was a high-risk nightmare.

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markmano33 t1_j41we1l wrote

Being a landlord sounds like a giant PITA to me. I’ll stick to mutual funds with my extra monies lol.

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TheSpektrModule t1_j421l1e wrote

I did some quick number crunching. Between when we sold our old house (the one we considered turning into a rental property) and today the S&P 500 is up about 33%, and that includes 2022's drop. I am so glad we did not become landlords.

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Opposite_Selection_3 t1_j42xqdd wrote

I was responding to the idea of getting out the landlord business. Even with a crushed stock market I would not get into it. However, if you currently own real estate that can regularly get a tenant the long term outlook for that asset is looking pretty good.

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