Rental property questions

Rentals that do well are Venues, for weddings or celebrations, or executive apartments.

Pick your cliental and find the best rental.
With actual property and not campers, you have some equity.

After I get down frying this place to crisp I be going to your children schools your children friend house

DONT FUCK WITH ME FIX THE CRUMBLE HOLE YOU OWN QUIT WONDERING IF YOUR TENANTS WILL BUY YOU TIME TO SAVE FOR YOU FAKE INVESTMENT

This seems like a good strategy for the current market, should last until the end of the scamdemic and then see what the financial overview looks like. I've recently rented out a townhome that I'll be using the income for to pay for a new home, house of cards but the renters seem quite reliable and if you use one of the main real estate sites you can get really good background and more important credit checks to make sure the people can pay. If it goes to hell I'll sell or rent out the new place and move in with relatives

I have a successful landlady friend.

She checks out the prospective renters car while they are filling out the applications. Prospective renters pays for credit and background checks.

If your car is not perfectly clean and detailed she will not rent to you. She is looking for 5 to 10 year tennants.

If you are police, firefighter, or teacher you have a bid bonus on a FHA foreclosure.

[link to pocketsense.com (secure)]

More like today's salaries cannot pay off a mortgage. Buying property is impossible even if they didn't piss money away.

NO DEBT
Save cash and buy your rentals in cash. That's how you make money in the real estate game

Buy a fixer upper in a good neighborhood. Follow up on employer references and credit report. Don’t allow pets in the beginning until you know the renter will pay in a consistent manner for at least 6 months. Allow one dog or one cat. Have an ironclad l rental agreement drawn up by a lawyer based on the laws in your state.

Get two months security deposit up front, do not give breaks on late payments and always charge a late fee.

I have rental properties. My renters have been renting from me for between 6 and 12 years. We fix any issues that come up immediately. Our renters are hardworking nice people who take very good care of the properties they are renting. Also I have never increased their rent from our initial agreement, and I never will. For some I could charge 50% more; but I know that having properties that are being kept in good order is priceless.

Burned by two renters when we first started renting and know the hassle of going to court to file evictions. Costly and time consuming.

The answer to this question depends on the holidays and the time of year because most renters rent apartments for Christmas to celebrate the holidays with their friends and family. I'm sure it can be a profitable option if you look not on Airbnb but on Belize real estate ( [link to www.playlouder.com (secure)] ). Etro place has given me many opportunities that I am using to find a great property that I will be comfortable living in. I also make sure that my family will also be comfortable in this rental property. That is when the holiday will be more comfortable.

Trailers are Personal Property, like buying a car.
Real Property are real estate properties located on it's own land or like a Condo on "shared ownership" land.

It is an entirely different, legal situation.

If you choose to invest in a property it is very IMPORTANT to treat this asset as a BUSINESS INVESTMENT. It may be advisable to hire a professional and REPUTABLE property management company, at least initially.

If you plan on self managing then you need to learn HOW to manage rental properties, it is not rocket science.

You MUST, through the application process perform credit and reference checks. Depending on where you live you may be allowed to do other checks like a criminal background check, employment verification, banking confirmation etc etc. In some locales there are blacklisted tenants so engage with that.

Obviously you must demand ID and verify that. Many locales have landlord resource centres, engage with them.

What is challenging for many new landlords is asserting and following through on inspections. Here in Ontario, Canada I am required to provide 24 hours notice to enter the unit ( unless it is an emergency) Now...I tell tenants in advance I inspect MONTHLY and I give them Notice of that...in advance.

You can inspect plumbing, heating, electrical, furnaces, literally anything you like. DO IT, but from a standpoint of "being a good landlord" and you can have trades from utilities companies do a lot of it, eg: filters for furnace need to changed twice or 4 times/ year...

Yet, if you buy a house generally just drive by once in a while, if they fail to maintain the lawn/garden....it illustrates they may not be doing well in the interior.

I have rented to seniors that can;t really manage "upkeep" but they pay rent on time all the time. So I engage with senior resources to help them with snow and lawn care...I do want tenants to be comfortable.

I also find people receiving disability support payments also pay on time...have a few challenges but generally know how to access supports.

Newcomers also pay..some tend to overcrowding, it creates a lot of wear and tear BUT as you inspect your 4 bedroom home and see 9 bunk beds...you can act quickly. Same with neglect, hoarding, late payments...you may "feel" you are helping people who are struggline, and you can..BUT YOU MUST say..okay I"ll accept your late or partial payment but I have still have to file a late payment notice or whatever your locale requires.

Here, where I live, if their cheque bounces or they are late. Formal Notice goes out. THAT is business, you can still be flexible. But secure your rights.

Tenant: I'll be a week late with rent
You: I understand but I still have to send out the notice, and please don't do this again. Thank you for letting me know.

BUT know this.
Don't be an anonymous landlord your property has neighbours, if u have bullshit tenants their neighbours will let you know if you talk to them...let them know they can call you if the tenants are being psycho.

Lastly, if there are problems, identify them early and act.

This is all total BS if the governments keep letting tenants have immunity from eviction...eviction here is a LONG process.

As with ANY investment, be prepared for losses.
Can you pay the mortgagor for a year while you also pay a legal team to evict your bad tenants?

I understand your general point in that wages and opportunities have stagnated and I will be the first to admit that today's society is crap and that America is in an economic toilet.

However, Today's rents, even the quite reasonable ones, are even more than buying the house on a 30 year loan. If these same people would settle down for half a second and stop and think and buckle down and make good decisions they could pay the mortgage and insurance and taxes on the house and have money to spare vs. the rent they are paying on a single family home rental (not apartment).

So my question always is - how can they not qualify for a 15-30 year mortgage yet they can pay the rent which is likely more? It always comes back to them being flighty and making bad decisions and having an abysmal credit history and all of the other affiliated behaviors like spending money on junk.

Again, I am not talking about the people who have their nose to the grindstone making good choices but they only make $15 an hour - they are constrained to apartment living and I agree with you. But a lot of the apartment dwellers and single family renters have the house full of $1500 new phones yearly and $500 phone bills and video games and cars way over their head and a bunch of crap like that - they will never get out of an apartment.

You can gripe about being young but I assure you us older people made the choice to go without other things in order to get the house. Keeping the roof over your head and food on the table was always #1. We always bought the old used car etc. and tried to stay out of debt. Debt was a four letter word for us but most younger people don't seem to be able to restrain their spending appetites at all and actually applaud and embrace debt. They think NOTHING of taking loans out on worthless junk.

I had a renter decide she needed vents in the basement. They took sledge hammers and opens a few vents.
I got a contractor to look at fixing it. He called the county and my house was condemned. It had to come down.

You cannot be a small landlord in America anymore, the scum have been trained to destroy your stuff while crying about rent too high.

NEVER rent a trailer

they can be stripped to frame and sold. Some states do not require title.

Start with a small single family in an area where there is a good mix of tenant/homeowner.

Don’t spend a dime on aesthetics.

I always had a great experience with Section 8 tenants. The rent gets direct deposited into my account from a govt. agency so the tenants never missed a payment.

Also Check with your local Department of Corrections officer and tell them you are offering your house to long-term tenants. I was able to fill my place with older felons on disability or SSI. I never have a vacancy. There is always at least one person there paying rent. Most of the year, all three bedrooms are occupied. My best tenants have been with me for 10+ years.

I was able to acquire three more single families by starting this way.

In my area near Vanderbilt U, a couple is paying 3000 a month for a nice 1 bedroom 1 bathroom victorian house. It has a very nice large bathroom, and a modern kitchen.

3000 a month, and they had no problem getting their money. You have to do first last and a security deposit now.
My house, fixed up, would rent for 4500 a month. As is I can't even rent it at all. I would have to move out and get it fixed up to standards. Or I could do it super cheapo and rent it for 2200 a month.

If you hire a management company, they have to pay you the rent, even if the tenant withholds it.

Cashing out on valuable properties right now would be stupid unless you desperately need the cash. If you don't it's best to keep property you know is going to escalate with inflation.

And one of you said section 8 is no good? Section 8 landlords got their checks all during covid. Think about that. They direct deposit the money now, the tenant never touches the cash. You get it directly deposited into your account.

I met a women once about 6 years ago on the road. She had moved to Alabama from California, and rented her California house. Then she began the process of buying cheap rental properties. At the time, cheap 5000 dollar houses were all over the south, no more. She fixed up the 10 homes, put all section 8 renters in, and hired a management company to watch the properties. It took her five years, I met her on the way home to California to go back to her house, now with income set up. All she did was spend the money, she didn't even do the transactions. It can be done but you have to have good instincts and it's best to pay the 10-20% for management.

Trailers are not "Real Property". They are no more valuable than renting cars, etc. Do not do it!!!!!!

OP,
I've been in rentals for 20 years... Here's my advice... I live in East Tennessee, so renting here appears to be much easier than other parts of the country. You didn't state where you live...

But, I WOULD NOT buy a trailer park or rent trailers.

Depending on where you live, I would go for a duplex at first... no more than a 4 plex... just to get your feet wet.

I would buy something that is mid range in pricing... DO NOT Rent to low income folks... just don't. Don't rent to High income folks either... they are too fussy and entitled...

You are looking for middle ground. There's plenty of renters that fit this category. They aren't slobs, know how to respect their property and yours, and not too pushy if your rental isn't perfect... More forgiving and willing to work with you if there are problems.

Equally important is having good maintenance to call upon when needed. Have 2 or three to choose from. If you are buying a fixer upper, then don't go too cheap on the redo... Make your property like YOU would want to live in it.

Respect your tenants, and don't just look at them like a source of money. Don't take the first renter that want's your property unless you are sure they are solid. Learn to be intuitive on the phone with potential renters when they call..... Learn to ask all the questions you need up front... I call it a pre-qualifying phone call, and it's part of my 'application' fee. Take note of their energy on the phone... are they bright and well spoken? Ask....

Why are they moving from their current location?
Do they smoke or have any pets? DO NOT RENT TO SMOKERS
Will they be living by themselves?
What kind of work are they into?
How long at their current job?
What move in date do they need?
" Before I do a background check is there anything you would like to tell me about up front"? They will usually tell you.
What do you estimate your monthly income to be? ( My standard requirement is that they need to make 3 times the amount of the rent, for instance)
Can they provide a rental reference?

This can all be a part of your first phone call with them... learn to ask the questions most important first, that might be a deal breaker for you... Like they smoke, or they have a pet (if you don't wanna allow pets) That way you can get them off the phone quicker.

Don't get too friendly with your tenants... keep a respectable distance... makes it easier to enforce your rules and them less likely to take advantage of you.

DO NOT spend their deposit money on yourself!! And always keep a reserve built up for unexpected maintenance...And don't get into a situation where you have to be fully occupied to make the mortgage on the property...You need some reserves to carry you through for various reasons.

I have 68 units on a 5 acre spread. All in one place. Easier to manage than houses. I keep them up and do my best to bring each unit back to the newest it can be after each tenant.

Most people that hear about rentals only hear about the train wreck tenants...There are plenty of those.. But I have to say that there are more good renters than bad ones...It's just that no one wants to hear about the ones that do as they should. All landlords like to tell their war stories about the bad ones.

Rentals have been very good to me, and I do care about my tenants living in good, clean apartments that are maintained and looked after. There's good tax write offs, passive income is taxed much lower... etc.

Best of luck.. but stay away from low income. Cockroaches and bedbugs are NOT what you want to deal with.. Not saying that doesn't happen to higher income folks, but you get my drift. If you want section 8 stuff later on, then look at that AFTER you get your feet wet with a couple of rentals..see how it goes... Keep your rents UP to market standards....

There's more I could say, but this is enough.. Best of luck!

Flip houses for the profit and then use those profits to buy and rent commercial property.

A commercial tenant must keep the place looking good for their customers and as a general rule won’t intentionally damage the property.

I would call buying a rental (and subsequently selling it five years later) the single best financial decison I ever made. It was completely self sufficient in terms of expenses, didn't cost me a dime other than the $70,000 I loaned myself to get it started. Take care finding good tenants and build a relationship with them. I never once had an issue which wasn't manageable. tenants want a good landlord as much as you want good tenants.

I sold this spring and walked away with just under $350,000 cash. DO IT

The best thing I've ever done was to SELL my rental properties. Never again.

Too many think that you are a 1%'er because you hustled and bought a property and they haven't managed to do so because they spend their money on frivolities like phones pot and videogames and yet they resent you for it like it is your fault.






yep, I spent my money on "frivolities" like paying cash for medical care after a serious spine injury while serving in the armed forces.

it took them NINE years to determine my case while paying me about $300 per month on their "temporary disability."
unfortunately, I was just about bed-ridden that entire time and my financial life went down the drain.

but yea, FRIVOLITIES.

I rented for over 15 years and never caused any damage, always paid my rent on time, always got my deposits returned.

The problem is there are no Regulations on any of this -- I have to pay for every asshole this jaded commenter rented to as if it was MY FAULT for what they did.
When I've done NOTHING to deserve it.

Did you ever consider that people rent because they cannot afford the upkeep of a house? Physically or financially?

it ain't like you just pay for the home, move in and everything is a-ok. it's one thing after another.
landscaping, painting, electrical, plumbing, hvac, roof, etc.

and if you don't have any savings because you were busy SERVING YOUR COUNTRY and getting seriously injured in the process, you're some kind of LOSER because you are renting.

maybe you people DESERVED what your tenants did to you?
maybe the OP is not an asshole and would actually charge FAIR RENT (I've never seen it yet, though), reasonable deposit, and rent to people like ME.

let OP keep his dream and maybe he will be LUCKY enough to have someone like me as a tenant.