[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]

Originally Posted by 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.

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

[BrianL99]

Originally Posted by Dream2retire

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).

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

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]

Originally Posted by 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

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]

Originally Posted by Dream2retire

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]

Originally Posted by 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.

Probably when mortgage rates are around 5%.

[Normal]

Originally Posted by Caymus

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]

Originally Posted by seecapecod

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]

Originally Posted by 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]

Originally Posted by 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.

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]

Originally Posted by melpetezrinski

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