Profit Margin on Trucking vs Landlord

Discussion in 'Questions From New Drivers' started by AllenRhodes, Dec 15, 2020.

  1. AllenRhodes

    AllenRhodes Bobtail Member

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    What is more profitable and easier? Having 100 houses with 100 tenants or having 100 trucks with 100 drivers? And if the latter is harder, why does anyone bother doing it?
     
    blairandgretchen Thanks this.
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  3. Midwest Trucker

    Midwest Trucker Road Train Member

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    Wow, what a loaded question. I don’t think I’d want 100 houses or 100 trucks!

    100 houses less risky, 100 trucks more risky but could make you (if successful) so much more money it’s not even comparable.

    Which one is harder? That’s personal preference I’d say and how you structure the company. Both could be a potential nightmare.

    What would Midwest do? Own the trucks and save enough to buy 1000’s of acres of land, sell or retire from the company, and be rich. To hell with having a 100 different tenants in 100 different homes.
     
  4. Blue Zombie Trucker

    Blue Zombie Trucker Light Load Member

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    Is there a community college professor somewhere who gave his class an assignment to go flood TTR with nutso questions? It's sure starting to seem like it. I've started putting the nutso question spammers on iggy.
     
  5. blairandgretchen

    blairandgretchen Road Train Member

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    We had 4 rentals over about 10 years or so. They’re a royal pain in the arse.

    Some years we’d be lucky to see $10k clear after taxes, insurance and R and M, tenant changes, unpaid rent and damages.

    We sold 2 and a third is on rent to buy - she takes care of all tax/insurance and repairs.

    Much easier now to view a monthly bank statement and toss it in the trash, than to deal with bloody tenants.

    Trucking? Dunno about 100 trucks, but in 5 years I’ve never been below 40% profit, this year over 60%. With 1 truck.

    Thats my 2c.
     
    Midwest Trucker, D.Tibbitt and alds Thank this.
  6. Ridgeline

    Ridgeline Road Train Member

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    You can handle 100 properties and tenants easier than 100 trucks with drivers, when you get past that 50 truck threshold, it becomes a multiplayer game for the back office where property can be handed off to a property management company.

    oh and the asset management are completely different, if you take a 10 year cycle on property, it still is better than the 3-5 year cycle on each truck.
     
  7. Moose1958

    Moose1958 Road Train Member

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    The best way to make a Million bucks trucking is to start with two Million!
     
  8. kemosabi49

    kemosabi49 Trucker Forum STAFF Staff Member

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    With all of the people not able to pay there rent right now because of the china flu, might be a bad time to be collecting rent on 100 houses. On the other hand, any more than one truck would be too much for me.
     
  9. SteveScott

    SteveScott Road Train Member

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    Right now, I would not want to own a lot of rental property with a lot of tenants. With so many out of work, the loss potential is huge. Many states are enacting laws to prevent landlords from evicting tenants who are unable to pay rent because of a job loss. It's even worse in the commercial real estate market, which may completely collapse over the next year.
     
  10. Blue Zombie Trucker

    Blue Zombie Trucker Light Load Member

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    There really are an awful lot of people struggling due to the EDITED flu, and it's become an avoidable national tragedy.
     
    Last edited by a moderator: Dec 16, 2020
  11. D.Tibbitt

    D.Tibbitt Road Train Member

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    Would rather just run 1 truck . Make enough to live like i want and not deal with anybody elses BS.
     
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