Reader Story: Rental Properties for the Average Joe
Published on - January 24th, 2010 (by J.D. Roth) This guest post from Barry is part of a new feature here at Get Rich Slowly. Every Sunday will include a reader story (in the new “reader stories” category). Some will be general “how I did X” stories, and others will be examples of how a GRS reader achieved financial success. Barry’s post is also part of an accidental “real estate week” kicked off by Baker’s story.
For years I’d heard the rental horror stories, about tenants who refused to pay and landlords who couldn’t get rid of them, or tenants who trash their units so badly that the landlord gives up on renting altogether.
I’m sure these things can and do happen. But are they the norm? My wife and I had always wanted to own rental property, but stories like these made us nervous. Maybe rentals weren’t really meant for average folks like us.
Plus, there was the question of cost. My wife and I only make $60,000 between the two of us. Could we really afford to own a rental property? We’d always thought of rental properties as something for the rich. But maybe we had it backwards: Maybe the rich were the only ones smart enough to know that rental properties were good investments. Maybe we need to think like the rich do.
Doing our homework
With our limited income, we felt like we didn’t have the money to put in stocks. Plus, we thought that maybe the income from a rental unit would help us build a nest egg that wasn’t subject to the whims of the stock market. And we really liked the idea of having somebody else (the renters) setting aside money for us every month.
First, we did some homework. While the bank pre-approved us for a loan, we talked with our insurance company, local real-estate agents, and local landlords. This research gave us enough knowledge to go out and look.
We found several houses we liked, but most of them were too expensive. We couldn’t rent them out for enough to cover expenses. It seemed the local investors (rich people) were working closely with the real-estate agents. Agents get thousands of dollars in commissions through the investors, so my one purchase wasn’t anything that interested them. The investors are their bread and butter, so they got first crack at the good deals. I got the overpriced leftovers. My wife and I almost gave up. We couldn’t get a real-estate agent to work with us; we just couldn’t compete with the investors.
Evening the score
Then one day, there was an auction in our area. I went to see how much the house would go for. It went cheap! I’d been looking for long enough to know that if the house had been listed with an agent, it would have sold for a lot more. I wondered if this were a way to even the score.
We asked around and discovered the local investors get so many houses through the real-estate agents that they don’t bother going to auctions. They consider it a waste of their time.
Auctions are scary places to buy houses. There are no contingencies, no home inspections, and everything is final when the auction is done. You have to be sure of yourself when you place that bid. These things alone make it hard for the normal person to buy a home at auction.
The next few months we went to every auction around. We learned how to bid at an auction, and how much houses were going for. We knew we needed $5,000 for a down payment on the day of the purchase, and financing for the rest within 30 days. Because the houses at auction were selling for about 10% less than on the open market, this was our chance to get a good deal.
After waiting for a while, we found a house we liked that was going to be sold at auction. It was in a nice neighborhood. It needed some work, but we knew we could do most of that ourselves. We ran the numbers through our bank and found out interest rates had dropped to record lows because of the mortgage crisis. There seemed to be a perfect storm of low interest rates and people losing faith in real-estate. We felt that this was our chance.
Taking a chance
When we got to the auction, we were scared to death. We’d been to other auctions before, but this one was different. We knew this was the house for us. We wanted it more than any other house we’d looked at.
We arrived well armed. We’d done our math. We knew just how much comparable houses were getting for rent, what the taxes were, how much insurance would cost, and how much we could bid and still come out ahead.
As you can probably guess, in the end we were the winning bidders. We’d bought our first rental property. Now the real work began. We spent two solid weeks doing nothing but working on the house. When we were done, it looked great. We found a renter through word of mouth, signed a one-year lease, and now welcome the challenge of being landlords.
The property has been rented out for about six months now, and we’re very glad we bought the house. Our tenants have been early with the rent every month, and so far things are going smoothly. We did have some furnace problems and a problem with one of the doors, but those were minor. We knew there’d be problems, and we’ve dealt with them as we would have with our own house. It’s nothing the average person couldn’t handle.
Buyer beware?
Owning investment property isn’t for everyone. As with other investments, there are risks involved. But we felt that rental property would give us another form of income to help us on our financial journey. We know it’s not going to give us a quick payback like picking the right stock might. But we’re not looking to get rich quickly. We’re looking to build a nice solid nest egg, and rental property is just a part of that.
Is rental property for the average joe? We think so. What do you think? Do you own rentals? What advice do you have for others who might want to try this to make a little extra money?
Reminder: This is a story from one of your fellow readers. Please be nice. After nearly a decade of blogging, I have a thick skin, but it can be scary to put your story out in public for the first time. Remember that this guest author isn’t a professional writer, and is just learning about money like you are.
This article is about Entrepreneurship, House and Home, Reader Stories
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My wife and I felt we were unable to comfortably purchase the house we thought we would like to live in. We were able to purchase a Duplex, with the extra income from the rental. We found out that being close to your rental is extremely important. Ten years later we were able to purchase the house of our dreams. My advice to anyone looking to own rentals is to read your state’s Landlord Tenant laws very carefully. As a matter of fact I keep a copy at my desk always. I charged the maximum deposit, and gave it back on the last day possible, usually 30 days after move out. We took pictures of before and after. Sending someone digital pictures of before and after, who has left you with a mess to take care of stopped lawsuit threats. Sometimes it seemed that I check my prospects too close and would go a month without renting, but it paid off. We would go over the entire unit with our renter, noting every scratch or dent on appliances or walls and doors. Both the renter and I would sign the handwritten document, and we each got a copy once the rental agreement was signed. That document paid for its self many times over. I think someone here said treat it strickly like a business which is the best advice possible. Per your landlord Tenant of your state, start eviction notice on the exact day you are legally able to after not recieving rent. For me in my state, it was 15days after the due date. If rent was due on the 1st, I gave a 5 day grace period with a 5 dollar per day fee. On the 15th if I had not recieved rent, an eviction notice was give, and they had 30 days after to catch up. Everything was done in writing, and 99 percent of the time, because you had done everything in writing and pictures to back up, the bad renters did not even try and fight.
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Great post.
I had thought about getting into the rental game, but it seems to me that you’d need a ton of fix-it-yourself type knowledge in order to keep costs down (at least in the beginning). That’s one thing that made me steer clear of it.
But again, great post.
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My husband bought a house on some land in a commercial district before we were married. He uses the commercial property for his business and also rents out two of the spaces, which is a nice source of income. His son and daughter in law have lived in the house about two years now. They have financial difficulties and recently were laid off. We’ve received one month of rent in two years. Do we kick the kids and grandkids out or just let it slide? My husband owns the property so we don’t have a payment on it. Just wanted to know how others handled relatives living in the rental properties.
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I agree with Kevin – how does an $80,000 combined income preclude investing in stocks? I don’t understand that statement at all.
I would say that this is a very risky venture – you have put all your eggs in one basket.
And it has only been six months since you bought the place. I would hardly write this as a success story just yet – you have years and years before you can say whether this was a good idea or not. Huge repairs down the road, bad renters, or too much rental competition can eat into your profits and turn a good investment, bad. You just don’t know yet.
I do hope everything works out for you though.
J.D. – I would prefer to hear stories from a landlord with years of experience, instead of a flash in the pan story that has yet to be concluded.
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I’m another one of those live-in-one-side-of-the-duplex, rent-out-the-other and it’s been a good deal for me. I originally purchased this place as sort of a mortgage subsidy for myself as well as to get experience in learning to be a landlord. I very nearly purchased the duplex next door as well but that deal fell through due to some shady dealings on the part of the seller/realtor.
Anyway, I think doing the duplex thing is a great way to get your feet wet in the landlording business. I’ve had some tenants that were better than others but no nightmares really. One way to keep the emergency calls at bay is to maintain your properties. All of the issues I’ve had so far have been minor and by me living next door it really makes things convenient.
I would also advise you to screen tenants very, very well. I tend to take my time finding the right people by doing income verification, landlord references, credit checks, etc. and have turned down many, many people. You have to be careful though that you’re not discriminating (like the guy above who won’t rent to the <25 year-olds…he’d better hope he doesn’t get sued because that is completely illegal). The best way to do this is to come up with a set of criteria and apply the same criteria to everyone that comes through and keep the supporting documentation for a while in case a scorned applicant causes trouble. I use the standard set of criteria put forth by my local apartment association so I’m sure my criteria are legal. Use Craigslist to advertise: it’s free and you get a higher caliber of tenant than using a lawn sign and/or the paper.
I’m enjoying the reader submissions JD. Great idea!
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I have a house to rent but the authors should write an article on how to choose the tenants….That’s what I am interested in.
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Kudos to Barry for taking the plunge.
I have owned a multi-unit house (the area sounds similar to #2/Lise’s post) for 2 years now and it’s been quite successful. It’s not generating much cashflow (around even), but the mortgage is payed in full each month, and the rent also covers basic maintenance/management fees.
It’s been successful so far thanks to:
1) Good tenants – to get good tenants, we bought a house in a friendly, safe area, and made sure both flats were in great condition and above average spec. We’ve had multiple options for tenants whenever there has been a vacancy as a result – creating demand is key!
2) Good managing agent – they take 9% off of the rent, but our agent has kept the place filled (no vacancies in last 12 months), has adjusted rents to market (upwards!), organises prompt maintenance and gives us complete peace of mind – well worth the expense. Money is a tool after all!
3) The Bottom Line – in our local market, multi-unit buildings give better return on investment. It’s a lovely house, but we bought it knowing how the numbers stacked up. Don’t even think about buying without extensive local research into rates.
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My husband and I plan on buying a rental house as soon as we can save up a 20% downpayment and an extra emergency fund…probably another 2-3 years. We’ve rented out our spare bedroom for the last 2 years and haven’t had any major problems. I’ve also seen how my parents’ rental has worked for them.
We’ll be close to paying off our own home and will be able to handle both mortgage payments at the same time if necessary. I feel comfortable becoming landlords since we also have a pension, 401k, two Roth IRA’s, our Scottrade account, and regular savings…as long as our bases are covered, I’m good with branching out.
Plus, it feels good to know that we are doing all of this in our late twenties with a combined income of about $78,000…it is possible for average people to save extraordinarily if they successfully prioritize their wants and needs.
Congrats and good luck to the poster!
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As a landlord of two properties, my opinion is that now is not a great time to invest in rental property. Sure, interest rates are low, but the problem is that the rental markets are flooded everywhere with the recent housing-bubble collapse.
This is not to say that investing in rental property is a dumb move right now. I am merely saying that the rental market conditions are lousy. Investing in rentals could be a smart move for you, depending on your situation (i.e. have large savings for expenses, have the opportunity to buy a great house on the cheap, etc.).
As for myself, I have two properties that I bought while I was in the military. As a single guy, I held onto them when I moved because I could control my personal expenses and still cover rental expenses.
For my situation, the tax write-off has been phenomenal, allowing me to drop at least one tax bracket (and claim additions credits in doing so). However, that is a double-edged sword, I am able to claim a large deduction because I am also posting a large loss for 2009 ($16,000 for the two properties). Note that this is the “paper” loss (includes repairs, interest, insurance, warranties, payments/utilies during vacant months, etc), my actual “out-of-pocket” was much lower.
Personally, I prefer to have a property manager handle the day-to-day management. This is mostly due to the fact that the properties are out-of-state. Also, I can deduct their fee on taxes (typically 10% of rents received), which is well worth it to me (to avoid the headaches of dealing with the tenants on a daily basis). The most important step is to research the firms in your target area and not just blindly choose a manager. A bad property manager can allow your property to be ruined. I prefer smaller property management companys because I feel they take a greater interest in managing your property (due to the fact that your property is a greater percentage of their overall accounts).
Rental income appeals to people for a variety of reasons, but the most prominent is consistent, recurring income. However, you need to realize that unexpected expenses can and do happen, which can reduce/eliminate that income stream.
The bottom-line is: if you do not have the time/money to invest in a house for 30 years or so, you should seriously look into investing in REIT’s or the ilk.
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We bought a house when we moved to this area, moved out two years later, and now it’s a rental. We managed it ourselves the first three years and now we have a management company. We have had problems with every single tenant and have learned a lot about landlord tenant laws (and even more about bankruptcy as two declared bankruptcy after leaving us with unpaid rent, and the third declared bankruptcy while in the house to avoid paying rent for five months).
The first tenant was actually a landlord himself and moved in as he sold all of his properties and got a divorce. His credit was great, but it turned out that it was great because his wife paid the bills and all of his houses were leveraged to the max. He declared bankruptcy as his house of cards was falling down.
The second tenant was a nurse with a single child. She had middle of the road credit and fell behind by lending money to family that didn’t pay her back and she couldn’t ever make it back. She was only a month behind in rent, but she left quickly leaving us scrambling.
The third was the worst. We were vacant nearing the holidays and they had good references. The said they were going through bankruptcy, but that turned out to be a lie (if they had already been IN bankruptcy we would have been protected as a post-bankruptcy debt if they defaulted). They filed bankruptcy two months after moving in, and we found out later they were ineligible and it took five months to get it dismissed so metro-court would hear our eviction.
After we got them out we hired the management company. It took them three months and a drop in rent to find a tenant (our market is really weak right now), but we haven’t had a problem getting our money, there’s just a bit less of it. I have found they spend my money quite a bit more freely than they would if it were their own. But I expected that.
Right now the managers are worth it because we don’t have enough time. We could find the time to call plumbers and fix stuff on weekends, but as soon as you have to evict, or sue for damages, or anything that requires your presence, you have to fit it in with the rest of your life. That can be a problem depending on your job. As a previous poster said: You have to stay up on it. You can’t file eviction ‘sometime this week’, you have to do it now, or your tenants aren’t going to take you as seriously next time.
I also found that many renters are like children. They will get away with as much as you let them. Tell them they can pay you a couple days late this month, they’re likely to try it again next month. That isn’t to say you need to always be a hard-ass. But most people I know err on the side of being too nice, expecting their renters to want to do the right thing and pay their bills. The truth of many (not all) renters is that if they were more diligent about paying their bills they would be home owners. People rent for a variety of reasons, but there is a home owner mentality and a home renter mentality.
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I wonder if somewhere here has done the math to calculate the ROI of their rental properties? Not just “rent divided by purchase price”, but also including maintenance costs, expenses to find renters etc., plus any work you have to put into management (at what hourly rate?)
I’d be surprised if it’s substantially more than what riskier bonds would yield.
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Here is a question for landlords. Lately there have been a recall notice on those roll type blinds, is it the responsibility of the tenant to notify the landlord, or should the landlord know what type of blinds are in the house and be pro-active in replacing them himself without the tenant having to tell him?
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@Lars/#61 – absolutely – I think it’s essential for people do to that before going in!
My own spreadsheet is now eye-wateringly complicated, but very useful.
I initially invested $68K (downpayment, closing costs etc), and have factored in all costs – upkeep, insurance, water bills, etc.
Last year was the second year we owned the house. The ROI was 4.90%. This year will (hopefully) be slightly higher (projected to be 5.21%, barring emergencies etc). ROI generally improves year-on-year as your mortgage is paid down (this depends on exact amortization schedule – I use Excel PMT formula, which gives a good approximation).
This doesn’t include capital appreciation of the property. That has been going up steadily as well, but isn’t something we’re looking at actively because we plan to hold this as an income property for retirement.
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We just picked up 2 rentals out of state. Me and my lady are just average joes punching a clock at a manufacturing plant, both in our mid 20′s.
Both houses have been rehabbed and occupied, professionally managed (out of state). I have never owned a piece of real estate besides these first 2 rentals. I even rent my own living quarters. It’s scary at first, but if you realize that in this business you learn on your own mistakes/mishaps, you’re much better off – because there will be issues from time to time.
I would say I’m much better off than investing in stocks, due to the fact that I’ve lost money in stocks in the past. But at that time I did not know how to insure my positions.
It has been 6 months now, and I haven’t seen my properties in person, but the checks keep coming in – that’s all I care about. And no I don’t think I’m a slum lord, both properties have been somewhat extensively rehabbed with 8-12k worth of work per house, hence I don’t stress over it. That and the manager makes it real easy for me to sleep at night.
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I own two rental properties and use a property manager to rent them. I recommend this at first because they will check the credit score of the tenant and previous payment history as well as manage they daily activity it is more expensive but most everythiing is a write off. I aquired both of my properties by buying the house living in it for a few years, fixing it up, paying down the morgate with additonal payments and refinacing for the lower amount thus reducing the monthly payment and make the rent affordable. This allowed me to create a positive cash flow in the house. I would also set up a bank account that directly desposits the rent and leave the profits in the account until you have about $5,000 for repairs ( after I have a repair fund I leave the money in the account and use it for the down payment on my next primary residents turning my current house into a rental as well) I have used this method for 6 years and am going to buy my fourth house in about another 4-6 years. This will allow me to have retirement vechicals seperate from stock, bonds, mutal funds and a city pension.
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Ouida,
Thanks for the advice on getting an LLC. I will look into that!
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I was a part time property manager of 26 units for 7 years and decided to take the plunge. The first property I bought was a 4 unit for about $9,000 out of pocket, which showed good income but was in a poor end of town and needed constant attention, either collecting rent or doing repairs. It took work, but I was prepared to endure it and put every dollar back into the property. I saw a chance 4 years later and sold the property and walked away with $32,000 which I used to purchase an 8 unit in a better area. This was 15 years ago, so I guess you could say I have quite a bit of experience. I bought another duplex 7 years ago with the profit from the 8 unit. My first rule is that the deal is made on the purchase. My second rule is that I never rent to friends or family. My third rule is that I do not disclose to the tenants that I own the property. I am merely a “Manager”, so I do not get emotionally involved with the situation and they do not try to give me a sob story. I also have an ongoing contest with my wife to see who has the best tenants to put into a unit, (we alternate and have to deal with the tenants we choose). We have no problem leaving a unit empty for months until the right tenant comes along. It is better to get a good tenant up front than have to deal with a bad one on the back end of the transaction. Also, when you have a property with multiple units you are not hit so hard on a vacancy. If you have a single family rental and no tenant, then you have no income, but if you have a 4 unit and a vacancy, then you are still getting 75% of the income. I am now looking at purchasing another 9 units, and all of this work will be for my retirement and my childrens education expenses. I am not getting rich quick, but I will retire securely, and yes, it does take some work, but if it was easy everyone would be doing it. I have tenant horror stories, but me and my wife treat it as a business and do not get emotionally involved.
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We have been a landlord for 14 years and have had up to 20 units at one time. We have been very blessed with only one with $500 damaged which we took to court and received 1700 which was garnised from their wages. I am also a auctioneer and a real estate agent and have help many find very good auction and other properties to buy as well as managed some. One repo. I help a customer purchase for 55000, which I sold for him 10 months later for 96000 and all the while he was renting it for 600 a month. Auctions are a great way to buy properties, In our area we allow you to look and inspect anything you want before the auction. We also have the seller fill out a sellers discloser to be as open as possible.
The true money is made by being patient and purchasing at the right price with the intent to keep it for a rental. Let a good real estate agent know that if he comes across someone looking for that type of house you will sell it at the right price.
We have made more in real estate then any and all other stocks,mutal funds and other investments combined.
Always inspect the home at least two times a year,Take pictures with a date before you rent it and when they move out, charge a big per day late fee, and have a great lawyer that your not scared to call at anytime. Done right it is a great way to get rich slowly
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I really enjoyed this post, as I have read on a number of blogs about the idea of owning rental properties as a way to provide a second source of income.
Along with a few of the other commenters, I wanted to make sure to provide a renter’s perspective. I am currently 25, finishing my master’s, on to a PhD next year, and have been renting since I was 20. I can understand not wanting to rent to someone <25, but it’s also very unfair for those of us who actually are responsible. In my case, my parents had to co-sign the lease of the first place I moved into, both in case of damages, and if I could not pay rent. So that’s one option. Also, many landlords in the Boston area ask for references from previous landlords, and that is another good way to screen any, but especially young, tenants.
My view of landlords – I will never trash a place, but your level of respect for the apartment will determine my level of cooperation with you. A decent looking place can still have a bad landlord, and there isn’t a good way to find that out as a renter. Case in point, I lived in a 5 bedroom apartment, with four other grad students, all in the same program. A sewer pipe in the basement burst. Long story short, we ended up paying for the cleaning because she stopped answering phone calls ($2300, who is the irresponsible party now?), and we were almost at the 24 hour period beyond which the cleaning company would have had to contact the health department and we would have been forced to stay in a hotel (the landlord has to pay for that, but it’s not the best option for 5 students, with 1 cat and 1 dog). Did not receive any response until we contacted with a lawyer, that finally got her attention. The worst part is that a sewer leak is covered by home owner’s insurance, and not something an insurance company can really argue about. So I guess they must not have had appropriate home owner’s insurance.
So please, be responsible landlords, be attentive to your renters. If I complain about the water not staying hot, I’m not being picky, it’s probably a sign of a maintenance problem that just hasn’t gotten to the point of being broken yet (I say this from experience).
Sorry for the semi-rant, but there are issues on both sides of the line. I am sympathetic about one of the commenters’ points that the rental properties near them are not taken care of. That 5 bedroom had the grass cut twice a year. Sorry, but I’m not about to buy my own mower when I’m paying to rent. I did plant flowers, but when the absentee owner decided to do some outside renovations, the workers tore them out. So guess who won’t ever be putting effort into landscaping on a rental property again. And just a note, if you are doing outside work on a house, you should still notify your renters. I didn’t enjoy the high powered washer in the middle of the summer with all the windows open.
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Thanks for sharing your rental story. I have been reading and looking into the RE market for over a year now in an attempt to improve my cashflow. I think this is going to be a key part of personal finance for me and my family in the upcoming years and I look forward to more from GRS on this topic.
And I have to say that the commentors are very polite around here. You’ve built a great blog JD.
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Bought a rental property 9 years ago…best decision I ever made. I wouldn’t be where I am financially without it. Is it work at times…yup. But worth it. I agree with the comment that things come in waves.
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Lars@61 said: “I wonder if somewhere here has done the math to calculate the ROI of their rental properties? Not just “rent divided by purchase price”, but also including maintenance costs, expenses to find renters etc., plus any work you have to put into management (at what hourly rate?)
I’d be surprised if it’s substantially more than what riskier bonds would yield.”
I did, and started a blog (see link above) to share my findings with others.
That spreadsheet saved us and prevented us from buying a Duplex at the peak of the market, when everything was overpriced. Luckily I listened to that sheet and the advice of the Wall Street Journal Guide to Real Estate Investing that differentiated between investing (cash flow) and speculating (relying on appreciation).
I’d be happy to share the spreadsheet, just contact me through the blog.
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When I met my wife in 2003, she had been living in a two family home that she owned while renting out the other unit. It was in an area of the city I wasn’t familiar with even though I had been a resident for 30 years. I also never knew anybody else who had done that. I discovered that the rent from the other unit covered her mortgage, insurance and taxes except for $84 a month, I was intrigued.
In August of 2003 I bought another two family home a mile away from her with no money down and got $751 back at closing. It seemed like a smart deal at the time, but the fact is, No Money Down typically means you really just financed the normal downpayment and closing fees. In six plus years, I’ve been fine, and it cashflows $250 a month so I’m knocking on wood. The only issue is that I bought a home for about 10% more than it was worth…but someone else (my tenants) is paying off the mortgage.
Then in November 2003, I did the same thing again, but this time got a pretty good deal on the home so that I didn’t own more than it was worth. This third home cash flows $200 a month.
In March 2009, we bought a single family home with Cash and we moved there, thus renting out my wife’s initial two family home. So that home now cash flows $420 a month. In six plus years with three properties containing six apartments I’ve only had one vacancy that lasted 45 days. I think I’ve been lucky so far, but it’s working and we’re in our mid thirties, with a paid off primary home, a year and a half away from paying off one of the other houses and we cashflow just under $900 a month. All this on my Project Manager’s salary, while my wife now stays home with our baby triplets.
So, it definitely can be done. It’s not always feasible in every area of every country, but it can be done.
- Charley
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Charlie,
I love that story! I hope to be in your position in a few years!
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I have been a landlord for almost five years now. I have two properties in my home state and I live about four hours away now. I have had about five different tenants with only one being a nightmare one. I am fortunate in which my father used to build and rent properties back in the 80s, so I learned a lot from him.
I will keep this short and to the point of what I have learned so far…
1. If you want to have the least amount of headaches, have a management company handle the day-to-day business of renters. Mine charges me 10% of rents per month. When the renters pay late, they get charged $100, and I get that too. This method provides the least amount of headaches. Management companies are pretty equipped at weeding out bad renters.
2. Don’t get emotionally attached to your properties. They are not there for you to fall in love with. Case in point: the nightmare renters I had were in the first house that I purchased and lived in. They guy sublet my house to other guys and they destroyed it. It took about $5000 to get it back to normal and when I saw the damage I felt personally abused. My dad reminded me that it was part of the game, so I quickly got over it.
3. If you have an LLC, move the properties under it and take advantage of the tax breaks. If you don’t have one, create one.
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@#75 – That list has served me well. I totally agree on no emotional attachment. I treat my houses just the same, they are a vehicle for my money to grow. Having a manager makes this a cake walk most of the time, if he knows what he’s doing. Also, insurance and protection is also a priority. That is why I have a LLC, insurance, and about to look into an umbrella policy just to give it that extra razor sharp edge.
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I’m a below-average Joe. How can I get one of them thar rental properties?
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The government just suspended the 90 day flipping rule. As such, it is the ripe time to buy an REO home that is for sale. We have many on our site and see the rise of this activity at http://www.gohoming.com.
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It depends on your guts to do or what we called “gamble”. I have a 2 properties one is a single house which is the rental is cheap. The other is like a condo but has a smaller room and it’s a boarding house for students. It has 15 rooms and I earn a lot on that. The first main problem is the violence around your property. Yes, it was your obligation and the tax is really surprising but in that case I earned enough for the 2 properties. So make a choice, other wise if you don’t have confidence and guts you can’t achieve your goals.
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