Ken’s post got me thinking…..
Do any of you guys do anything as side work to suppliment your business? If so, is it lucrative or do you just do it for fun and if it makes something, so much the better. Like DJing, writing, music lessons, etc.
I had always wanted to get some rental propety and maintain them but can’t ever seem to afford to buy anything without refinancing the house or something drastic like that.
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Replies
bunp
Curious myself. Works slowing down here and I may need to look to other sources for a while. Maybe someone has a good idea cheaper than buying an apt. complex.
Speaking of apts...
I would LOVE to have a small commercial building (say 3-5 units) where I could have one of the units for my business and rent the others. Would be great work when the primary work slows down and whenever new tenants came in, tell them I do the buildouts myself.
Just can't afford the property here OR the building. :(
That has been my idea for some time now. But it maybe such an obviously good idea that it explins why I can't find such a building.
My hope has been just that, second floor four unit walk up with a full first floor area for my woodshop and maybe enough shop space to rent out a bit for other similar business. Using the tenants to pay all the cost. This way when work is slow I'm still ok.
Then I imagine the fire marshall kicking my arse over sprinkler issues! Or worse a fire after a bucket of rags spontaneously combust. I worry to much.
You have to think carefully of just who would want to be above a wood shop. If you are talking about apartment (living) space, I think you will find it hard to get anyone to live there.If you are thinking business, what types of business will want a non-street level location? And even then, expect to have major sound proofing.
Ya, there are issues. A friend of mine owns some commercial property in an old business park area of town. He leases storage space for business's tools and equipment either inside or out. He furnishes the security and good roof but not much else.
He says he gets no night time complaints the hot water is broken or the air is down. Worst issue is if the roof leaks or he has a security breach and so far he has had none.
The one good building he has divided in two and leases the front to an artist and he uses the back for his shop. Hasn't paid a dime for it all since he bought it 5 years ago.
My employer does that. He bought a tilt up when it was built in 82' and rents it back to his company and leases out the other one next door.Does the same thing with his plane as well.ML
Mike Smith say I am ADD and that is probably true. I have always had a couple of "other" things going on while working for others and while owning my own business.
Rental property both residential and commercial. I have less now than in the past but it still is ok. I flip a house every year or so when I can find a deal on one. I also buy and sell equipment once in awhile. I have always been a deal maker of sorts so that is mostly what I do "on the side".
To me it is really one big basket with just a lot of stuff going on in different directions. Some folks hate that but I kind of like the excitement of it all. DanT
Mike,
I think you need to be very careful about the context of side work when you own a business.
If you DJ, or rebuild motorcycle engines or teach music because you enjoy it and it helps you relax and puts a few bucks in your pocket? Then by all means.
If you work a side job, like Home Depot or Lowes to help pay the bills when it slow or your just starting out? Ok, I'll buy that. I did that for a full year.
But you have to ask. when is a side "Job" taking away from your business? And what is wrong with your business that spending the extra time on it wouldn't produce much larger gains than your "Side Job"?
At what point would you be better off if your "Side Job" was your business?
I wanted to put this in a seperate post for clarifications sake.
I don't view Realestate or rentals as a "Side Job". Rather as a business owner they are part of your long range plan. A way of planning for your long term financial well being without simply hoarding bucket loads of cash.
And, to illustrate that? How many guys as they get older transition slowly from the trades to managing their commercial or residential properties as they near retirement?
good thoughts robert I own a general store, a woodstove and fireplace showroom,a construction company and 9 rental propertys and some other property i use for the businesses putting in a laundromat and 10 storage units . Who has time for side work? not me ! just planning for the furture.
I feel compelled to ask................
You own Businesses right? Ones that function without you overseeing ever single second of every day?
It's not like that all days but some:)
I started into rentals about 15 yrs ago. Nice little group of them that makes a regular income.
Mulitple income streams is a good way to earn $$$ steadily.
The guy I work for buys all his properties for back taxes.
Mike just wanted to say I hope you find some peace in your life soon dude before you blow a gasket.
LOL well you got one thing right, if you buy a rental you'll be maintaining it alright.
Sorry, I just have to laugh when you equate taking care of a rental and the tenants that come along with it as a hobby.
BTW, Whats wrong with pulling equity to gain an asset? That would be a great use of your equity.
Family.....They're always there when they need you.
I do some woodturning on the side.
If someone needs some chair spindles, or railing balusters, or other turned parts, I'll do them.
At one point I had hoped that what I charged for turning would pay for my turning gadgets, but I've long given up that fool notion <G>
Mike, tapping your equity is simply a tool. Value depends totally on what you do with it. Around here, landlords subsidize their tenants. Rent returns maybe 3% on investment, often less. Appreciation was the only thing working, not much now. Couple that with selling fear due to depreciation and it isn't pretty.
My real estate speculation has all been unimproved land so far (including one with a 100 yr old "Historic" house). Very lucrative to date. Also infrequent. But I'm poised to take a large chunk of equity for an attractive deal. Recently offered $200k for a pair of houses, not to rent. Ridiculously low price, didn't go anywere. Which is fine.
I've had at least one side-line for most of my adult life. In Denver, I had an alarm company that took me out of my woodshop 1 wk/mo on average. Income was about the same per mo. And helped keep me focused.
Here, I've bought machinery that I needed, then found others willing to pay me to use it for them. Me, an excavator? Well, occasionally. Having survived a driveway nightmare, I got the reputation as the go-to guy for difficult driveways. Love doing driveway surveys, the actual earth-moving, considerably less so. I'm also sometimes an hourly heavy equipment mechanic. Then there's PAHS consulting... And the guy who's trying to get me to drill him a well. While I was trying to sell him my drilling rig.
What's made sense to me was to learn whatever I needed, or was interested in, and then go sell it. That's how I got the alarm company going, needed an alarm on my woodshop. Was doing a kitchen for a client who idly asked about an alarm. Gave her a price that was accepted so fast I figured I'd better find out what they were going for. Shocked me.
Doing the same thing every workday should make you really efficient at whatever you do, but not a life I'd like to live. Variety, the spice of life.
Good luck.
PAHS works. Bury it.