A 23-Month Financial Breakdown
In April 2024, I became a landlord in the “rights only” market. This wasn’t a planned move for a growing (real estate) portfolio; it was an emotional decision. My brother-in-law’s father needed to retire to the province, and buying this property would help fund that chapter while I build a future asset for my son (I rationalize).
I quickly learned that helping a relative retire is a noble mission, but it’s often not a sound investment strategy. Helping family and making a good investment are two different goals. It’s like running a race with one shoe and one slipper. Yes, they move you in the same direction, yet every step reminds you they weren’t made to fit together.
What “Rights Only” Actually Means
In the Philippines, “rights only” means land awarded to settlers (ISFs) that hasn’t had its proper title transferred. You aren’t buying land in the legal sense; you’re buying the right to occupy it.
I had done this once before, buying a house and lot with rights only for ₱150K and selling it for ₱300K years later. But every property is a different animal. With rights-only, you carry the risk while waiting for an official title. Before you sign, you must:
- Verify occupancy: Confirm who is actually living there and if they recognize the seller.
- Check the Barangay: Ask about active disputes or government projects (like new roads) that could affect the claim.
- Expect “Title Limbo”: Resale is harder and prices are lower because the paperwork is perpetually “in talk.”
The Entry Cost: A Lesson in Foundation
My purchase price was ₱250,000, paid in five installments. It felt manageable until the supposedly “minor” renovation started.
“Livable” for a family is very different from “rentable” as a business.
In the first 60 days, I spent ₱166,143 on renovations, roughly 1.5 pesos for every peso of the purchase price.
The Renovation Sprint (April – June 2024):
- Structural: ₱20k for bathroom labor; ₱13k for stairs; ₱3.2k to widen walls.
- Systems: ₱25.8k for full electrical rewiring and submeters.
- Finishing: ₱17.2k for walling/paint; ₱16.1k for ground floor repairs.
Seeing those numbers hit my bank app didn’t feel good. It’s like I was handing over a suitcase of money, trusting it would find its way back.
The Full 23-Month Picture (April 2024 – February 2026)
| Purchase Price | ₱250,000 |
| Initial Renovation | ₱166,143 |
| Upgrades (Aircon, Cabinets, etc.) | ₱36,180 |
| Maintenance & Management | ₱35,900 |
| Total Expenses | ₱492,995 |
| Total Earnings | ₱107,520 |
| Net Position | -₱385,475 |
After nearly two years, I am ₱385,475 in the red.
3 Hard Lessons from My Google Sheets
1. The “Favor” vs. The “Investment”
Trusting family history is not a substitute for a professional inspection. A 30-year-old settlement house carries 30 years of deferred maintenance that doesn’t care about your family ties.
2. Renovation Creep Is Brutal
I budgeted for cosmetic fixes, but got structural reality. Every week in May 2024, I was approving unplanned expenses. My advice: budget 60–70% of the purchase price for renovations, not the 20% you hope for.
3. “Passive” Income Is a Full-Time Side Hustle
From managing renovations from a distance to coordinating gate welding through my property manager, this is active work. And then there are the human moments: in August 2025, my tenant got sick. I logged the rent as ₱0. That empty cell in my Google Sheet is the stark reality of being a small landlord in the Philippines
What the Numbers Don’t Show
With a monthly rent of ₱6,500–₱8,000, I won’t recoup my ₱492,995 until at least 2031, assuming there are no vacancies or major new repairs.
But the ledger doesn’t capture the win that matters: my in-laws have started a new life, and I’m providing a decent, affordable roof for families who need it. I’m not sharing this to scare you off; I’m sharing it because no one showed me this math before I signed.
Real estate at this level stands as a masterclass. I’m still enrolled, the Google Sheet is still open, and the tuition is paid in receipts.
What would you do differently in my shoes? Have you ever bought a property that turned into a “lesson”? Let’s talk in the comments.
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