anyone own rental properties on here?

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I know an ol Navy Vet Biker/ Guitar player that has an ol 57 Coronet...he takes the doors off for " Paint" and adds so much water they never dry! Lol. " if you would have paid the rent , I could have gotten decent paint! Don't touch my door!" He's a trip....
My excuse was that I didn't have the money to pay the guy that fixed them because they didn't pay the rent. It definitely takes a lot of patience to deal with some of the situations that happen with rentals. I am surprised that the board do gooders have not criticized any of these posts.
 
Oh, wait till the government decides you can't evict tenants for not paying the rent cause theres a pandemic going on... Now tell the bank your not able to pay them cause the tenant doesn't have to pay his rent....LMK how that goes... Glad I sold my rental years ago.... Well maybe I should have waited till the price topped out.... But thats the thing, whens the best time to sell?
 
Nobody knows the troubles I've seen. Nobody knows but a landlord.:thumbsup:
 
We have 2 1100 sq/ft block houses built in 1999/2000. They are across the street from each other.
We've had the first since 2006 and the second since 2015.
We are about 15 minutes away.
Not too close to be up in their business, but close enough to be there quick if necessary.

There is a sweet spot for rent. not enough and you attract trash for tenants. Too much and you get "white glove" tenants.

The lease is very important (keep this a work in progress). Your state, county and municipality statutes are also very important.

In general, if you are not making double what the sum of your expenses is, it's not worth it.

Train them to pay and pay on time. FL has a "three day" eviction statute.
If they are 3 days late, they get a certified 3 day eviction letter.
You can't charge a late fee in FL, but you can word the lease so that the rent is different if paid at different times.

Sure, we have had ups and downs but it has been an overwhelmingly positive experience for us. Those two properties pay entirely for themselves plus, they pay 100% of our living expenses- House payment on primary residence, taxes and insurance on that, electric and water bill, and even the cable/internet bill.

Our tenants stay longer than average (2.5 years IIRC). Unit 1 has had the same tenant for almost 10 years. Unit 2 has been there for 3 years but just moved out. We got over 150 applications for that property, and just rented it to an out of state couple with a 790 credit score and a new, 67K engineering job nearby. We raised to rent $250/mo and still undercut comps.

My wife and I have complementary skill sets. She does finish/trim carpentry and cabinetry, I do electrical, heavy mechanical and plumbing. The wife has become an excellent property manager.

I have a relatively extensive spreadsheet that calculates return on investment including sales price, down payment, rent and insurance, plus repair fund for current and future issues. We use this to estimate whether a potential purchase is a good investment and how long it will take to get our down payment and up front repair costs back.
 
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hey guys, i am considering buying a small house as an investment property

put a renter in there, hope to charge $100 or so over my mortgage and build some equity, make a little bit of money


i seem to remember reading some of you guys have investment properties, so any advice you can give me, im all ears

I married my second wife 26 years ago. We both had houses, so I floated the idea of renting my house out. She told me about the experience she and her late husband had. They went to the get rich seminar, and decided to go for it. Bought a decent house in a good neighborhood, researched the tenant well, and started the "rental" journey. The guy losses his job, they stop paying rent, She and her husband are too nice and don't evict. Finally the family leaves, the basement is full of trash, and unreported water leaks have ruined all kinds of parts of the house. They fix up the house and sell it at a loss. Needless to say, I sold my house and bought some farm land in South Dakota. I have also seen the effects of buying high and having the housing bubble burst. Not pretty and it took my friend years to recover. Not all of us are cut out for being a landlord. Good luck to you what ever you decide.
 
You also need to make sure you are cut out to maintain/manage a rental property.

Some are and some just are not.
 
There's 2 sides to the coin.

Plenty of ******** landlords who want too much for shitholes and or don't fix anything without raising the rent the next yr.

An example of how some of you landlords fail and are out of touch...
Power companies are giving away new doors and windows, washing machines, fridges, water heaters... because landlords think "if it's not broke, dont fix it"...meanwhile the tenant goes broke heating and powering the place...windows rattling with every shutting door...buildings that aren't level where blocking up your bed is required to keep the blood flow even 'head above feet'..closet doors that come off the tracks when you open them...hair painted onto the walls as well as cob webs..old tape...mismatched faucets,door knobs, bad patches, shelves chipped up and painted over.

Essentially... it's like renting/selling used shoes....they don't get nicer..only more worn...yet the property value is up because of demand??? Lmao
In ways it is the biggest scam running today.
Ask yourself... would you want to rent a worn out car to travel in? Maybe one with dents, bad tires and a window that won't close?
I don't think so...let alone pay a premium .
Scam.
Opportunity has no conscience.
 
Sec 8 is a Pain in the ***! Only do that with OPM..as in Property Management. Sure, you'll get a check, every month, but most of the people have unruly kids that break ****, they can ( and will) stop you checks for bs reasons. The tenants can complain to them. They are some people that need it, others have made it a lifestyle

I live beside it. Ruined my quality of life at home and drastically reduced my property value and its all legal. Take any emotion out and make it business. It's a great loophole for property owners. It's happening everywhere. Short of them doing major structural damage the rest just gets repaired when they leave.

But the reality why would they leave? Government is picking up the payment. That's what I would do with rental properties....

JW
 
We encourage prospective tenants to contact the utilities, who will give an average electric bill for the address.

In FL, certain items can not be included as part of the rental property including window treatments and appliances.
If they are included, a separate "tangible property" tax form must be submitted.
We provide them "free for the use of the tenant, throughout the term of the lease".

Some of the reasons our tenants stay longer than the average term is that we keep our properties in good repair, and are responsive and timely.

We actually enjoy the "renovation" period between tenants.
 
Keep your rents at market price when they move in and let them grow below market a bit, so people realize they have a good deal and motivation to stay and keep you happy. Treat your renters like valued customers, be responsive and take care of the property.

They will pay the place off for you and your family. It works.

Well said, and I will add, never raise the rent on anybody. They may just be getting by, so if they are good renters, pays on time the extra cash is not worth it.
 
Ok, let me add some details

It is a duplex we are looking at
One side will be homesteaders by my nephew, short term (he just got married and they need to be on their own, so that is why now is the right time to do it)

At this moment, both sides have tenants
one who is cool, and gets to stay, the others not so much and will have to leave

(then being out is a term of the sale)

when my nephew moves out, wheneverthat is, we intend to rent out both sides


the house is in a great part of town, close to the lake so that should help attract good renters I think



oh yeah,, where do I get a crystal ball that tells me who will be a good renter and who won't?







Mostly what to avoid

Also, what to reasonably expect
Sorry I meant to respond yesterday.
What to expect? Anxiety is a good answer.
Anger, that's going to happen. But, if you get a decent renter, it won't be as bad.
Someone posted a bunch of tips on here, and they were all good and valid.
Post number 13 in fact.
Just go ahead and count on the 1st 5 to 10 years as a loss.
You're going to have to pay a mortgage, insurance, pest control, landscaping and have money for wear and tear as well as any repairs. Hot water takes a crap, guess who pays for that? You get the idea.
Vacancies happen. Expect to drop anywhere from $500 to $2500 between renters.
I replace carpet every 10 years. Gas stoves seem to last forever, refrigerators about 10 years. Sometimes more often.
No pets! Lesson learned!
You can't just come out and say no kids, but......... I tend to lean towards older tenants.
I've let kids come, but that usually means a pet is going to get sneaked into the house. A secret puppy is usually a indoor puppy and the reason you replace a carpet.
No unauthorized long term guests. If they're not on the lease, you don't want them there.
I do a walk thru every 3 months for "insurance and fire marshal" reasons. I really do check the smoke detectors and replace batteries. I also make sure things like the hot water heater, the central air system aren't blocked. I replace filters as well. Flip light switches etc.
How do you avoid turd tenants? I wish I had a good answer.
I do run background checks on people. I've found people on the pervert list, people with felonies, people with credit scores so low I didn't know they went that low, people with evictions etc..
I've called employers, some with good luck, some not so much.
I've visited their current home. Apartments can be deceiving. Current landlords, well I've learned that can be an issue to. I rented to a couple, talked with their landlord and they gave me this glowing review! Three months in, I had issues. I called the old landlord back and the reason they gave such a super recommendation was because they were in eviction process and wanted them out sooner than later. She saw an out and took it. BTW, I've taken a page from that book as well.
Speaking of evictions, what are the laws in your state? Are they pro renter or landlord. I'm in Ohio and we have the 3 day eviction policy. It takes longer than 3 days, but it's effective. Oh yeah, an attorney is another expense. Once you do get a deadbeat out, there's the whole matter of getting paid. Pretty much count on loosing that money while you go thru court.
Speaking of which, utilities! I give tenants 3 days to change the utilities. Another lesson learned.
You need to call everyone, gas, electric, water, etc. Make sure that the utility co knows that the address is a rental. That helps.
Something I never thought would happen was the COVID no eviction moratorium.
I literally had to go to the county welfare office, pick up, fill out and have my current renter sign the paperwork because she "didn't know what to do". Bullshit!
I was getting excuses, and $200 one week, $400 another, the remainder split up over the rest of the month. I went to pick up rent this past Monday. Guess who didn't have all the rent, but had an excuse and a new car sitting in the drive way. My attorney will be serving the eviction notice by this Monday. That's a thing too. You're not in this to make friends, but to make money. Those two cats don't ride in the same car together.
Throw your religious beliefs out the window. I've never open a bible and found the rent money. You won't either.
Don't low ball the rent. Find out what the comps in the area are. If most people are getting $600 a month, maybe that's not the place you want to buy in. Remember, you get what you pay for. That goes for renters as well.
I did partner with a guy several years back on a 12 unit apartment building. He bought me out and I was happy to leave it.
A few months after we parted ways, he told me about the tenant he had on the 3rd floor.
This guy became an issue fighting with others and flushed a few bags of quickrete down the toilet. I think the plumbing bill cost Ken somewhere in the neighborhood of $20K and took 4 months 10 years ago. All of Ken's tenants had to leave during all this. Imagine going to eviction court and losing 11 of 12 times.
Those are the things off the top of my head.
I'll think of others I'm sure.
Keep in mind, I don't have a mortgage. I inherited the house. My money situation is unique. I only pay myself once a year. I set $$ back for insurance, rainy day fund, improvements, regular maintenance what ever else might pop up. This year, after I paid the house back, I'll walk away with $900. This year sucked.
 
Our lease says the rent may be increased up to 5% per year if costs such as insurance and property taxes increase.
Most people understand that (and they hear it up front). Figure out what percentage you may need to use.
Over time though, a long term tenant will realize a savings if the market is going up.

We have a $300 non refundable pet deposit per pet- up to 2 cats or one small dog.
Both properties have fenced back yards.
We have made exceptions for exceptionally well behaved larger dogs.
There usually will be some damage, and the $300 may not cover all of it, but it helps, and sometimes it does cover related repairs and some is left over.
 
We also charge for additional adults and require their names to be on the lease (if they exceed a maximum "visitor" time threshold).
We have a maximum occupancy based on local codes.

The tenants that just moved out had 2 cats and a small dog plus a bird.
They did not tell us about the second cat or the dog.
When we discovered them, we charged an additional $300 for each, which they paid.
We were not too happy to learn about the bird, which was about 2 months before they moved out and they had already given notice.
(we have a $500 early termination fee if agreed upon advance notice is not given)
However, there was virtually no damage from any of those pets other than hair around and under the frige.
$900 in our pocket.
 
I'm curious if you folks with rental properties own your primary residence outright.

Does it make sense to take on a mortgage loan for a rental property if you're still paying off the loan for your primary residence? Thoughts?
 
All my properties started out mortgaged, and re-mortgaged.
My first property I had saved $7k of the $21k price, big up and down duplex with full height unfinished basement.
Got married, moved in, spent 2 -3 years building a rental suite in the basement.
Re- mortgaged for enuff for down-payment on another home, the rent from the basement paid what I borrowed.
Same thing, finished basement rental suite, shot roof up for a mstr suite, now 3 bdrm, re-mortgaged to buy lot to build family home, did same again and bought acreage,
Sold 2 to buy motorhome and pay off mortgages, spent 5 yrs cruising the USA, sold another when I retired early.
The banks loved it cuz by improving the property right away, it was always worth more than the mortgages, and bottom line was no matter what happened, I always ended up with one home free and clear.
Yes I had the "quick-crete" down the toilets, and used kitty litter filling the hot air vents, and "pet rooms" you pulled the 4 corners of the carpet together, and try to get that sack of **** out the door.
Limit rent increases to when changing tenants.
Rents go up, mortgages don't. ( Rates were near 18% waaay back when I started, 1970)
The worst night mares were the "welfare" cases that KNOW how to work the system . . . Hence the golf-club . . .Lol . . Funny now, NOT then ! !
Good Luck .
 
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I'm curious if you folks with rental properties own your primary residence outright.

Does it make sense to take on a mortgage loan for a rental property if you're still paying off the loan for your primary residence? Thoughts?
I do have a mortgage.
The rental I own was something I inherited. I seriously considered just moving into that house, but its to far out from where I want to live.
 
I'm curious if you folks with rental properties own your primary residence outright.

Does it make sense to take on a mortgage loan for a rental property if you're still paying off the loan for your primary residence? Thoughts?

It all depends on what profit the rental makes.

If your primary residence is at 3% and you are making 25% profit on the rental, then absolutely yes.

Remember my criteria- If you can't make double what the mortgage, taxes, and insurance are, then for me it's not worth it.
...and that you also need to factor any short term repairs, plus contingency for long term repairs, or basically a slush fund pile of readily accessible cash.

We recently refinanced the latest one for much less than the current value, and paid off the earlier one.
The total outstanding balance stayed the same, the term stayed the same, our payment went down $230 a month, we knocked $8,000 off the loan amount to be payed back...plus we now own a house, free and clear.

Did I mention that these 2 rental properties make the payment on our primary residence?
So, no I haven't paid off the primary. Remember that big pile of easily accessible cash I mentioned above?
 
Here in Canada, money borrowed to make money, the interest is tax deductable, hence the mortgages .

A good accountant can save you way more than they cost .
 
Watch the movie: Pacific Heights from 1990 with Michael Keaton....
 
I bought a house during the last housing peak with the intent to keep as an investment once we got transferred after 2 years. It has taken up until just recently to finally make a profit over the mortgage payment every month. It's a tough call because these low mortgage rates and creeping inflation makes it a good time to invest in a real asset but those same things coupled with an uncertain political climate has risk.

We use a major property management company and it has been worth every penny. The amount you will lose in deadbeat renters, repairs, lawsuits, and extended vacancy will quickly outweigh their 10% fee. I have several friends who tried to play landlord and got burned.
 
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