TV Real Estate Investment Info and Opinions

[Dream2retire]

I want input and advice about investing in rental property in TV.

Long long story short: I have a cash pension plan from a previous employer. Pays out as an annuity payment at retirement until my death then 50% to my wife until she passes. No value after that. Let’s say it’s $2K/month. Now they are offering us to cash out or roll it over.
I really don’t want any advice about rolling it over.
I was investigating rental property investment. If I could buy a house and get $2k /month rental income after expenses I would be thrilled. My thinking is over the years this would increase ( 20, 15 , 20 years). My income would grow and I would still have the principal ( the house) and that would be growing as well.

After looking at it a little, I’m thinking long term rentals wouldn’t bring in that much after expenses. It appears like it may even be difficult to get long term renters. Short term would definitely bring in that and more during winter months but I’m guessing very little at all during the summer.
Do you agree or disagree? Observations?
Obviously there are a lot of details I have left off to try to be brief. Just wanted your input and experiences. Thanks

[retiredguy123]

A rough rule of thumb is that a good rental property should rent for one percent of the property value per month. So, a $300K house should rent for $3,000 per month, which is very unlikely in The Villages. The way to make money on rental property is to buy cheap houses and to manage them yourself. If you plan to buy a new house and hire a management company, I doubt that you will make money.

[Dream2retire]

Thanks for your input. I appreciate it.

I had invested my mother’s money in condos in Myrtle beach 5 years ago. It worked better than I had planned the first 2 years then COVID hit. After 4 months I had to dump the properties ( minor loss on the sale) because w no income only expenses I would have lost money for her. A year later they doubled in value. Arg!!! The same properties are 60% higher than they were so now it’s no longer a good investment.

The management company was taking 40% BUT the income/ investment cost ratio was still really good.

I’m hoping to find something that gets me income AND grows in value.

[justjim]

OP, you ask some good questions. I have purchased and “flipped” several houses over the years (didn’t get rich but did make some money) but only rented a couple of them. I did put a pencil to renting property in The Villages. No question there is money to be made from several rentals but it also can quickly turn into a full time job. I decided not to trade the good job I previously had (for 38 years) for another one. We are comfortable. Retirement brings two questions. 1. How much time do you have left and 2. What do you want to do with the unknown time you have left. After some thought and discussion we decided on some travel, more time golfing, church and club activities, neighborhood and friends, and remaining flexible to new ideas, activities, etc., etc. But to each their own.

[Dream2retire]

OP, you ask some good questions. I have purchased and “flipped” several houses over the years (didn’t get rich but did make some money) but only rented a couple of them. I did put a pencil to renting property in The Villages. No question there is money to be made from several rentals but it also can quickly turn into a full time job. I decided not to trade the good job I previously had (for 38 years) for another one. We are comfortable. Retirement brings two questions. 1. How much time do you have left and 2. What do you want to do with the unknown time you have left. After some thought and discussion we decided on some travel, more time golfing, church and club activities, neighborhood and friends, and remaining flexible to new ideas, activities, etc., etc. But to each their own.
Thank you. Appreciate it. I’m grasping at straws.

My life didn’t go as planned financially. My wife and I have worked hard since our teenage years and made plenty of money. Neither of us had support or guidance from family and made some bad decisions( marriages) along the way. Our fault, no one else’s. Her ex left without any support for kids and I paid dearly to support mine. We both lost our savings and were plunged into a financial hole. As a result it took years to dig out of the financial hole from 5 kids and a government that takes more money each year than our entire net worth. We have been making great progress more recently. My wife has enough retirement income for herself. I’m not at that point yet and just seem to be burnt out. I’m looking at retirement numbers EVERY day. I’m trying to motivate myself to keep going but for some reason I feel like I’m done and the finish line really isn’t that far away. I’m sure I’ll drag myself across the finish line and make it to retirement.

lol maybe I should be laying on a couch and paying hourly to vent my frustrations. ������

[justjim]

There is one thing you can’t do. You can’t unring the bell. That said, there are many opportunities and options available to retirees who are drawing only social security.

You don’t need as much money as you might think to retire. I know some couples who live in The Villages and they draw their social security, work part-time jobs - (20-25 hours a week). There are many part time jobs here in The Villages. Working a part time job still gives you a lot of time to enjoy the many activities available here.

In addition, there are other retirement communities just outside The Villages where you can rent or purchase a comfortable house less than you can in The Villages. These communities have a lot of amenities and clubs you can get involved in.

[Randall55]

There is one thing you can’t do. You can’t unring the bell. That said, there are many opportunities and options available to retirees who are drawing only social security.

You don’t need as much money as you might think to retire. I know some couples who live in The Villages and they draw their social security, work part-time jobs - (20-25 hours a week). There are many part time jobs here in The Villages. Working a part time job still gives you a lot of time to enjoy the many activities available here.

In addition, there are other retirement communities just outside The Villages where you can rent or purchase a comfortable house less than you can in The Villages. These communities have a lot of amenities and clubs you can get involved in.We sold our home in the Villages for a sizeable profit. We are now renting until we find a new location to build. Our social security checks cover the rent and utilities. We have not dug into our personal money for much. The money is sitting and collecting good interest. The home is not ours and we do not have to pay for upkeep and maintenance.

When you buy an investment home, you will need to make a down payment and pay for closing costs. Rentals in the Villages are furnished with golf carts. This will be more money out of your pocket. Property taxes will be higher because you cannot homestead. You will have to pay management fees, upkeep, and maintenance.

Here is my point: Look at ALL options: renting, buying, or purchasing for investment. Do a cost analysis for each. Your answer for an easier retirement will become obvious. Good Luck!

[Dream2retire]

There is one thing you can’t do. You can’t unring the bell. That said, there are many opportunities and options available to retirees who are drawing only social security.

You don’t need as much money as you might think to retire. I know some couples who live in The Villages and they draw their social security, work part-time jobs - (20-25 hours a week). There are many part time jobs here in The Villages. Working a part time job still gives you a lot of time to enjoy the many activities available here.

In addition, there are other retirement communities just outside The Villages where you can rent or purchase a comfortable house less than you can in The Villages. These communities have a lot of amenities and clubs you can get involved in.
Appreciate your input.

[Dream2retire]

We sold our home in the Villages for a sizeable profit. We are now renting until we find a new location to build. Our social security checks cover the rent and utilities. We have not dug into our personal money for much. The money is sitting and collecting good interest. The home is not ours and we do not have to pay for upkeep and maintenance.

When you buy an investment home, you will need to make a down payment and pay for closing costs. Rentals in the Villages are furnished with golf carts. This will be more money out of your pocket. Property taxes will be higher because you cannot homestead. You will have to pay management fees, upkeep, and maintenance.

Here is my point: Look at ALL options: renting, buying, or purchasing for investment. Do a cost analysis for each. Your answer for an easier retirement will become obvious. Good Luck!
Thank you for your points.

[shut the front door]

We sold our home in the Villages for a sizeable profit. We are now renting until we find a new location to build. Our social security checks cover the rent and utilities. We have not dug into our personal money for much. The money is sitting and collecting good interest. The home is not ours and we do not have to pay for upkeep and maintenance.

When you buy an investment home, you will need to make a down payment and pay for closing costs. Rentals in the Villages are furnished with golf carts. This will be more money out of your pocket. Property taxes will be higher because you cannot homestead. You will have to pay management fees, upkeep, and maintenance.

Here is my point: Look at ALL options: renting, buying, or purchasing for investment. Do a cost analysis for each. Your answer for an easier retirement will become obvious. Good Luck!

The buyer does not pay closing costs. The seller does.

[MrChip72]

I'm a landlord in the Villages. Many long term rentals are charging between $2000-$2500/month right now. Typical expenses on a home is around $1200/month not including maintenance type things. Then you have to account for times where you might have some empty months between tenants at times. The profit for many is razor thin or non-existent in some years.

This is all assuming that you do it yourself and not use a management company. If you would be using a management company, there's no chance you would make a profit at this.

There's many much better ways to invest your money with less risk and less headaches.

[CarlR33]

Thank you. Appreciate it. I’m grasping at straws.

My life didn’t go as planned financially. My wife and I have worked hard since our teenage years and made plenty of money. Neither of us had support or guidance from family and made some bad decisions( marriages) along the way. Our fault, no one else’s. Her ex left without any support for kids and I paid dearly to support mine. We both lost our savings and were plunged into a financial hole. As a result it took years to dig out of the financial hole from 5 kids and a government that takes more money each year than our entire net worth. We have been making great progress more recently. My wife has enough retirement income for herself. I’m not at that point yet and just seem to be burnt out. I’m looking at retirement numbers EVERY day. I’m trying to motivate myself to keep going but for some reason I feel like I’m done and the finish line really isn’t that far away. I’m sure I’ll drag myself across the finish line and make it to retirement.

lol maybe I should be laying on a couch and paying hourly to vent my frustrations. ������
It sounds like you do not have a financial person-advisor to talk to about this? As others have said try to enjoy your retirement when you do get there while you can. As my advisor says, you will be able to enjoy a more active retirement at age 60 than when your 80.

[HandyGrandpap]

Hello OP,
Regarding your retiremet plan, do some research ahead of taking the cash. Still accruing $$ with your service? What is the interest rate you will be receiving, Age of you and spouse, etc. Don't want answers to the questions, some thoughts for consideration. Companies often prefer the buy out as it is cheaper for them as oppossed to the long term financial liability.

Regarding Real Estate, another idea to consider is long term rentals in your local area. If your looking at single family and can get it priced right requiring some sweat equity long term rentals at the sweet price point for your area can build equity and cash flow and if your area is lower priced you can purchase multiple. As the end result is ROI, food for thought my friend!

[Randall55]

The buyer does not pay closing costs. The seller does.If you get a bank loan there will be fees .

[Two Bills]

Take professional advice re pension options.
I have always found that if someone wants to buy you out of anything, it is because it is to their benefit, not yours.
Why gamble when so near finishing line.
You gamble when you have the means to make up the losses.

[Babubhat]

There is liquidity and liability risk in rentals. The bulk of your money will be made in winter months. Investigate the amount of rentals you will compete with. A neighborhood rental had good activity at first and and has not been rented in 4 months.

I ran numbers a few years ago and the benefits were marginal for me.

Localities can ban short term rentals at any time. See NYC.

Lastly, people were conditioned to believe they will appreciate. I highly doubt that is the case with volume of homes being built.

[Robbb]

I want input and advice about investing in rental property in TV.

Long long story short: I have a cash pension plan from a previous employer. Pays out as an annuity payment at retirement until my death then 50% to my wife until she passes. No value after that. Let’s say it’s $2K/month. Now they are offering us to cash out or roll it over.
I really don’t want any advice about rolling it over.
I was investigating rental property investment. If I could buy a house and get $2k /month rental income after expenses I would be thrilled. My thinking is over the years this would increase ( 20, 15 , 20 years). My income would grow and I would still have the principal ( the house) and that would be growing as well.

After looking at it a little, I’m thinking long term rentals wouldn’t bring in that much after expenses. It appears like it may even be difficult to get long term renters. Short term would definitely bring in that and more during winter months but I’m guessing very little at all during the summer.
Do you agree or disagree? Observations?
Obviously there are a lot of details I have left off to try to be brief. Just wanted your input and experiences. Thanks

The Vanguard Total Market index fund would cost you next to nothing. Return 11% on average with little long term risk. Would a rental do that?

ps, I know you did not want suggestions regarding rolling it over, however there are a lot of people who read these forums who have really good thoughts and ideas. It might be worth posting the specifics of your cash out options to get different perspectives.

[asianthree]

We have had 3 investment properties at the same time.

PV as a vaca home for us and seasonal rental November-April. Paid for all expenses plus mortgage, and money to set aside for down on next house. Big money was selling for more than double original cost.

Cottage long term same wonderful gentleman just short of 10 years when he passed on. Rent paid for mortgage lawn amenities (no furniture or utility cost to us) and extra money for down payment on next home, sold at more than double original build.

Designer preowned rented October-March for 2 years, until one moved down as snowflakes/bird. Rental paid all bills, taxes, mortgage. Sold making substantial profit.

In the end each house paid for the next, and all in all paid for our 4th build plus the pool.

Speak to your CPA, about benefits to buy investment properties. Ours always gave us good advice when to buy, pay down mortgages, and sell.

[melpetezrinski]

I want input and advice about investing in rental property in TV.

Long long story short: I have a cash pension plan from a previous employer. Pays out as an annuity payment at retirement until my death then 50% to my wife until she passes. No value after that. Let’s say it’s $2K/month. Now they are offering us to cash out or roll it over.
I really don’t want any advice about rolling it over.
I was investigating rental property investment. If I could buy a house and get $2k /month rental income after expenses I would be thrilled. My thinking is over the years this would increase ( 20, 15 , 20 years). My income would grow and I would still have the principal ( the house) and that would be growing as well.

After looking at it a little, I’m thinking long term rentals wouldn’t bring in that much after expenses. It appears like it may even be difficult to get long term renters. Short term would definitely bring in that and more during winter months but I’m guessing very little at all during the summer.
Do you agree or disagree? Observations?
Obviously there are a lot of details I have left off to try to be brief. Just wanted your input and experiences. Thanks

You are correct, long term rentals most likely would NOT bring in $2k/month after expenses. Don't become a landlord. It's work, it's stressful and not as profitable as you think, especially in today's market. I've had two properties that I recently exited with most of the profit coming from capital appreciation.

[drdoug59]

with thousands of homes being built in TV , I doubt homes will appreciate as fast as other locations in the the US, like the northeast or west coast. If you’re a handyman, you can make it work as a good friend of mine is a retired electrician and he owns 4 rentals in the villages, but it’s almost a full time job.
I own 2 homes and a condo, one in TV, and the others in RI, that we live in and don’t rent out. If i had 2 do it over again, i would just own 1 home, and invest in high tech or semi conductor industries which have averaged 24% a year, this year up 72%. But you have to have nerves of steal to withstand the downdrafts

[BobGraves]

We kept our first house we owned in TV for a rental. It wasn't worth the work. I did all except mowing and still only made a small profit after expenses. Also consider wear and tear on the house. When we sold, after two years, I had a lot of work to do to get the house back in good shape again doing all myself. If I had to pay a painter, carpet cleaner, etc. It would have cut into capital gains. PLUS... No guarantee on the housing market. If we didn't have a tenant under lease we could have sold for about 10% more but by the time they vacated and repairs completed, interest rates started increasing and the market had already started declining. I definitely agree with prior posts expressing the stress of being a landlord. Good luck in whatever you decide.

[Rosethorn]

I'm a landlord in the Villages. Many long term rentals are charging between $2000-$2500/month right now. Typical expenses on a home is around $1200/month not including maintenance type things. Then you have to account for times where you might have some empty months between tenants at times. The profit for many is razor thin or non-existent in some years.

This is all assuming that you do it yourself and not use a management company. If you would be using a management company, there's no chance you would make a profit at this.

There's many much better ways to invest your money with less risk and less headaches.

Amen to this.

I’ve written ten books and my first book was on the hazards of investing in real estate rental properties.

For a time, I worked indefatigably on making money through real estate investments. I bought old properties, restored them and then rented them out.

It was awful. And I lost money. I’d rather go back to working as a waitress at a bar (another ghastly job) than trying to make money as a landlord.

[Skunky1]

And those investments are?

[elevatorman]

What do you do when the management company calls and tells you the air conditioner quit working. Usually it's only a $20.00 capacitor but it was a Sunday and they charged $300.00 to fix it. And then your home owners insurance doubles because the roof is 15 years old, so you have to have the roof replaced. Then no hot water. Who wants the hassle?

[Travelhunter123]

I want input and advice about investing in rental property in TV.

Long long story short: I have a cash pension plan from a previous employer. Pays out as an annuity payment at retirement until my death then 50% to my wife until she passes. No value after that. Let’s say it’s $2K/month. Now they are offering us to cash out or roll it over.
I really don’t want any advice about rolling it over.
I was investigating rental property investment. If I could buy a house and get $2k /month rental income after expenses I would be thrilled. My thinking is over the years this would increase ( 20, 15 , 20 years). My income would grow and I would still have the principal ( the house) and that would be growing as well.

After looking at it a little, I’m thinking long term rentals wouldn’t bring in that much after expenses. It appears like it may even be difficult to get long term renters. Short term would definitely bring in that and more during winter months but I’m guessing very little at all during the summer.
Do you agree or disagree? Observations?
Obviously there are a lot of details I have left off to try to be brief. Just wanted your input and experiences. Thanks

Great ideas
Try making money somewhere else

[seecapecod]

The buyer does not pay closing costs. The seller does.

Both parties pay closing costs. The seller pays the agent commission (unless it’s a FSBO) and the buyer pays settlement costs whether it’s a cash transaction or a loan is involved- real estate taxes, 1 year homeowners, stamps, title fees, etc etc

[Jdennan]

Taking the cash up front is taxable
Consider Mutual Fund money funds such as Schwab
SWVXX paying over 5%

[LonnyP]

It is a good investment if you don't mind dealing with the rental world. It is not easy nor good for the faint at heart.

[Flanman]

Don't forget you are only an investor the day you buy and the day you sell. You are a LANDLORD the rest of the time, which (at times) can be a real pain. You may be better off with the $$$ in a diversified portfolio.

[virtue51]

If you take the cash from the pension plan and do not roll over the money, you will be subject to a significant tax bill. With regard to the fact that you would receive 100% of the pension benefit each month and 50% of the pension benefit would be paid to your spouse upon your death, you should check to see if there are other pension benefit options. The benefit you describe is a 50% Joint & Survivor option. Many plans offer other options including 75% Joint and Survivor option and 100% Joint and Survivor option.

What does it mean? If your monthly pension benefit is $2,000 given the 50% Joint and Survivor option as you describe, then the 75% Joint and Survivor pension option would provide you with a monthly pension benefit of less than $2,000 but upon your death, your spouse would receive 75% of the pension benefit. If the pension plan offers a 100% Joint and Survivor pension option, your monthly pension benefit would be less than $2,000 per month, however your spouse would continue to receive the same pension benefit until your death.

For example, I am only providing numbers without any reference to your pension plan -- it is only meant to be an explanation of the options. The 50% Joint and Survivor option: you receive $2,000 per month and spouse receives $1,000 upon your death. The 75% Joint and Survivor option: you receive $1,900 per month and your spouse receives 75% of the $1,900 or $1,425 per month upon your death. The 100% Joint and Survivor option: you receive $1,750 per month and your spouse continues to receive $1,750 per month upon your death.

Also, does the pension plan offer a cost-of-living adjustment each year? While many pension plan no longer offer a cost-of-living adjustment, you should ask the question. For those plans that do offer a cost-of-living adjustment, the percentage may be low and you may think it is insignificant, however after five or ten years it makes a difference in your monthly pension benefit.

I would check with a person with a financial or tax background before making a decision. Also, does the company offer any seminars in which they bring in people such as the administrator of the 401(k) plan? If yes, you should attend.

A pension check deposited in your bank account is much easier than being a landlord. Please check all of your options before making a decision. You need to take your time to understand the financial impact of your decisions.

[FastAndCurious]

Since this hasn't been mentioned, let's have a reality check about living next door to a SHORT term rental. By definition, this makes your property a mini-motel which is not an approved use in any area zoned for single family residences. Lot's of people do it and get away with it. The Villages was never intended to be a property investment community governed mostly by greed. Not just here, but AirBnB's everywhere are ruining neighborhoods.

That nice couple you THINK you rented to will very likely call every party animal they know and say "come on down!" There's no way to control that. The result will be accelerated wear and tear on your property and your neighbors may end up hating you. If you engage a management company, they will take most of the money and rent to anyone who comes up with the cash.

The homes in the villages carry a premium price. If you can afford one, there should be no need to rent it out. I would never rent my house because I actually CARE about my neighbors......something my mother taught me a long time ago.
Unfortunately, it's a ME FIRST world now.

[VILLAGERBB]

There is one thing you can’t do. You can’t unring the bell. That said, there are many opportunities and options available to retirees who are drawing only social security.

You don’t need as much money as you might think to retire. I know some couples who live in The Villages and they draw their social security, work part-time jobs - (20-25 hours a week). There are many part time jobs here in The Villages. Working a part time job still gives you a lot of time to enjoy the many activities available here.

In addition, there are other retirement communities just outside The Villages where you can rent or purchase a comfortable house less than you can in The Villages. These communities have a lot of amenities and clubs you can get involved in.
justjim....Can you recommend a couple of senior apartments outside of TV....I am tired of home maintenance...thank you!
If you know of a rental in TV for around $1500 I will also be interested.

[HandyGrandpap]

OP,
A free newsletter that is fairly informative on investing ideas is Kiplinger, in case your not familiar. I posted, as a couteous jesture, if you so desire to sign up, as this provides, at least some perspective, on various investment options.

Kiplinger E-Newsletter Sign-Up Page (https://my.kiplinger.com/email/signup.php)

[BrianL99]

I want input and advice about investing in rental property in TV.
...

Obviously there are a lot of details I have left off to try to be brief. Just wanted your input and experiences. Thanks


Over the last 100 years, the safest and fastest way to accumulate wealth in the US has been real estate. Up until 20-30 years ago, most large fortunes were made from real estate investing.

10 years ago, Warren Buffett said: "I'd buy a couple of hundred thousand single family homes if I could" (Access Denied (https://www.cnbc.com/id/46538421)).

Here's a step by step method that worked well for my friend Shane Sigsbee, a former Notre Dame golfer and now an Elite Amateur, with a dozen or so USGA events under his belt: Using the BRRRR Method to Scale to 35 Short-Term Rental Units with Shane & Rachel Sigsbee - The Road to Family Freedom (https://www.roadtofamilyfreedom.com/episodes/using-the-brrrr-method-to-scale-to-35-short-term-rental-units-with-shane-rachel-sigsbee/)

I have 3 rental condos in MA, that I manage from Florida. I've only stepped foot in the building once, in the last 3 years. They return about 6% per year + a 5 year appreciation of 40%. They are investments you can see, feel and touch ... they're not some nebulous piece of paper or #'s on a computer.

When the real estate market is weakened by things such as higher interest rates, rents increase and rental units become more valuable ... folks aways need a place to live and many people are forced to move by circumstances, regardless of their inability to buy or sell a home in a given market.

Over the last 50 years, inflation averages out to about 4%/year. Housing appreciation averages out to about 5%/year. That's somewhat deceptive, in that the housing appreciation average, takes into account the vast area of the USA, where real estate appreciation is minimal (generally areas not in a coastal region). Over the last 5 years, real estate appreciation in desirable areas has approached 10%/year.

As is the case with any business (& owning investment real estate is a business), supply & demand is the driving factor. Personally, I think the supply in TV is saturated. What's worse, is it's saturated by amateur real estate owners, who think buying property in TV is an easy "get rich quick scheme".

In the real estate business, your true profit is made when you purchase, not when you sell. If you buy right, in the right location, your profit is made. You might not realize those profits immediately, but the profit is there and tangible, in equity and/or cash flow.

One other benefit to the real estate approach that many seem to forget, are the tax benefits. "Depreciation" on rental property is free money. Not only is it free, your heirs never have to pay it back, as heirs (in most circumstances) take property at market value. If you depreciate a $1,000,000 worth of property over 27.5 years, at a nominal tax rate of 22%, that's $220,000 or $8000/year of "free money".

Don't let the naysayers get you down. There are plenty of opportunities in real estate investing, although TV may not always be the best place to concentrate.

[nn0wheremann]

I want input and advice about investing in rental property in TV.

Long long story short: I have a cash pension plan from a previous employer. Pays out as an annuity payment at retirement until my death then 50% to my wife until she passes. No value after that. Let’s say it’s $2K/month. Now they are offering us to cash out or roll it over.
I really don’t want any advice about rolling it over.
I was investigating rental property investment. If I could buy a house and get $2k /month rental income after expenses I would be thrilled. My thinking is over the years this would increase ( 20, 15 , 20 years). My income would grow and I would still have the principal ( the house) and that would be growing as well.

After looking at it a little, I’m thinking long term rentals wouldn’t bring in that much after expenses. It appears like it may even be difficult to get long term renters. Short term would definitely bring in that and more during winter months but I’m guessing very little at all during the summer.
Do you agree or disagree? Observations?
Obviously there are a lot of details I have left off to try to be brief. Just wanted your input and experiences. Thanks
With ten rentals you have a living. With five you have an income. With one you have a millstone around your neck. Enjoy the swim.

[BlueStarAirlines]

Thank you. Appreciate it. I’m grasping at straws.

My life didn’t go as planned financially. My wife and I have worked hard since our teenage years and made plenty of money. Neither of us had support or guidance from family and made some bad decisions( marriages) along the way. Our fault, no one else’s. Her ex left without any support for kids and I paid dearly to support mine. We both lost our savings and were plunged into a financial hole. As a result it took years to dig out of the financial hole from 5 kids and a government that takes more money each year than our entire net worth. We have been making great progress more recently. My wife has enough retirement income for herself. I’m not at that point yet and just seem to be burnt out. I’m looking at retirement numbers EVERY day. I’m trying to motivate myself to keep going but for some reason I feel like I’m done and the finish line really isn’t that far away. I’m sure I’ll drag myself across the finish line and make it to retirement.

lol maybe I should be laying on a couch and paying hourly to vent my frustrations. ������

I feel like I'm repeating what many others have said, but I would find a fee-only financial advisor for some advice on the pension as well as your overall financial health. This is the single best thing you can do for yourself. Please do not do anything regarding your pension until you get some guidance as there are some significant and non-reversible consequences that you need to understand.

I live in TV in the south (across the turnpike) and would urge restraint in buying an investment property. I can't speak to the (current) middle and top of TV for rentals, but here in the south we are past the point of saturation and many are going unrented.

My extended family celebrate Christmas a few days after the 25th and wanted to rent a place within walking distance of my home. They were four homes that were wide open and we were able to rent a designer home for $2000 for a week. The home is available the week before our rental on the 28th and for the two weeks after our rental ended. Thats one week guaranteed rental in a month....during the high season. There is no way they are covering all their costs. If finances are as tight as you indicate, you need guaranteed income with minimal downside risk. A rental property does the exact opposite.

[Normal]

Prices haven’t bottomed out yet, why pay more than you need to? Mid summer 24 looks like the best time so far according to many.

[Caymus]

Prices haven’t bottomed out yet, why pay more than you need to? Mid summer 24 looks like the best time so far according to many.


Probably when mortgage rates are around 5%.

[Normal]

Probably when mortgage rates are around 5%.

Maybe, there really isn’t a crystal ball for what the Fed might do or what treasuries might be. Basic economics is still founded on supply and demand but we also know interest rates are important from an investment standpoint. The OP sounds like they are paying cash though?

[melpetezrinski]

Both parties pay closing costs. The seller pays the agent commission (unless it’s a FSBO) and the buyer pays settlement costs whether it’s a cash transaction or a loan is involved- real estate taxes, 1 year homeowners, stamps, title fees, etc etc

You are about 50% correct. Not bad. 1 year homeowners? Do you mean insurance, if so, that's only if there is a mortgage. If there is no mortgage, homeowners insurance is not a settlement cost and it's not even a cost if the new homeowner self insures. Seller pays documentary stamps. Seller pays title search and insurance. Both parties will usually split the other title fees such as administrative or closing fee.

[melpetezrinski]

You are about 50% correct. Not bad. 1 year homeowners? Do you mean insurance, if so, that's only if there is a mortgage. If there is no mortgage, homeowners insurance is not a settlement cost and it's not even a cost if the new homeowner self insures. Seller pays documentary stamps. Seller pays title search and insurance. Both parties will usually split the other title fees such as administrative or closing fee.


This is for pre-owned. I'm not knowledgable in buying new from The Villages. I wouldn't doubt it if they pass all cost to the buyer, which is ridiculous.

[retiredguy123]

You are about 50% correct. Not bad. 1 year homeowners? Do you mean insurance, if so, that's only if there is a mortgage. If there is no mortgage, homeowners insurance is not a settlement cost and it's not even a cost if the new homeowner self insures. Seller pays documentary stamps. Seller pays title search and insurance. Both parties will usually split the other title fees such as administrative or closing fee.
The seller pays for the title search, but an owner's title insurance policy is optional and is paid for by the buyer. As a buyer of a new house, I paid about $1,100 for a title insurance policy. Actually, that was the only closing cost I had, other than the prorated amounts for the amenities, bond, and maintenance that the seller had paid in advance.

[Normal]

If you decide to buy in this poor market, look at for sale by owner listings first on Zillow etc. At least you won’t be paying the leech in the middle realtor.

[retiredguy123]

This is for pre-owned. I'm not knowledgable in buying new from The Villages. I wouldn't doubt it if they pass all cost to the buyer, which is ridiculous.
See Post No. 42. On a new house, the buyer doesn't pay any closing costs, unless they want an owner's title insurance policy. Even on a pre-owned house, the owner's title insurance policy is optional and is paid for by the buyer, not the seller.

[Babubhat]

There are over 150 available on rent from a villager. Likely more to come

That’s a lot of competition

[Dream2retire]

justjim....Can you recommend a couple of senior apartments outside of TV....I am tired of home maintenance...thank you!
If you know of a rental in TV for around $1500 I will also be interested.
The “wilds” apartments in wildwood are brand new. Right next to TV ( Brownwood). $1,600.

[melpetezrinski]

See Post No. 42. On a new house, the buyer doesn't pay any closing costs, unless they want an owner's title insurance policy. Even on a pre-owned house, the owner's title insurance policy is optional and is paid for by the buyer, not the seller.

Went back to the closing statements of both of the patio villas the I bought and sold within the last three years and the seller paid for title insurance.

[retiredguy123]

Went back to the closing statements of both of the patio villas the I bought and sold within the last three years and the seller paid for title insurance.
If you get a mortgage, the bank requires a title insurance policy to protect their interest. But, the buyer does not need to buy a title insurance policy. It is optional. As a buyer, I have always purchased a title insurance policy to protect my interest in the property. I always paid for it. You can negotiate anything with the seller, but in Florida, the title insurance is an optional purchase. Some states have different rules. The seller always pays for a title search to ensure they are conveying a clear title. This is not the same thing as a title insurance policy. A title insurance policy lasts forever and guarantees that the property cannot be seized by someone claiming to own the property. As a seller, I would never agree to pay for the buyer's title insurance policy because it does nothing to protect me. Also, the buyer can buy the insurance policy from any company they choose. They don't even need to buy it at the closing.

[MrChip72]

As is the case with any business (& owning investment real estate is a business), supply & demand is the driving factor. Personally, I think the supply in TV is saturated. What's worse, is it's saturated by amateur real estate owners, who think buying property in TV is an easy "get rich quick scheme".

In the real estate business, your true profit is made when you purchase, not when you sell. If you buy right, in the right location, your profit is made. You might not realize those profits immediately, but the profit is there and tangible, in equity and/or cash flow.

Don't let the naysayers get you down. There are plenty of opportunities in real estate investing, although TV may not always be the best place to concentrate.

I agree with most of your points. You can make money as a landlord in many places but TV is not even close to ideal for that. Amenity fees, the bond, the age restriction, dealing with your own lawn care, and a seemingly unlimited pace that the supply of comparable homes is increasing, and then you have the fact that over 60% of the people renting in TV don't want the home for 12 months, they want it for 3-6 months.

[kkingston57]

I want input and advice about investing in rental property in TV.

Long long story short: I have a cash pension plan from a previous employer. Pays out as an annuity payment at retirement until my death then 50% to my wife until she passes. No value after that. Let’s say it’s $2K/month. Now they are offering us to cash out or roll it over.
I really don’t want any advice about rolling it over.
I was investigating rental property investment. If I could buy a house and get $2k /month rental income after expenses I would be thrilled. My thinking is over the years this would increase ( 20, 15 , 20 years). My income would grow and I would still have the principal ( the house) and that would be growing as well.

After looking at it a little, I’m thinking long term rentals wouldn’t bring in that much after expenses. It appears like it may even be difficult to get long term renters. Short term would definitely bring in that and more during winter months but I’m guessing very little at all during the summer.
Do you agree or disagree? Observations?
Obviously there are a lot of details I have left off to try to be brief. Just wanted your input and experiences. Thanks

A lot of good thoughts/ideas here. Best ? is whether you want the hassles of being a landlord. Can save some hassles by having a property manager but it will cost you. Need to have good understanding of market conditions. Housing boom has cooled and RE is not of an investment now than it was for the last 3 years.