anyone own rental properties on here?

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diymirage

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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 would imagine that you could charge much more than $100 over the mortgage payment. Housing rent prices are at an all time high. You need to find someone that you know that rents houses. The lease/rental contract is crucial to your success. I have a friend who rents 9 different houses and he has been screwed over a few times, luckily he had a great rental agreement and it saved his butt many times.
 
I own no such such, but rent in many places is high now days and I would find out exactly what that house would rent for. Figure property taxes, any insurance costs and what maintanance and repairs would likely cost you.
I would also figure in IF this house is likely to appreciate based on what and where it is.
 
Not anymore... The idea is buy low not high....

understood, but i am not looking for a quick flip, this is a long term investment
(and a few other things come into play aswell, that make this the right time for us)
 
I have had several rentals over the years. 100 over the mortgage will not break you even. Maintenance and repairs will easily eat that away... Right now, you might find that the rent you get will just cover the mortgage. BUT I am in California, and I do not know what kind of property you are considering. IMO to make the most from this kind of venture, You need to be a slum lord. No offense intended. But you get the idea. Low income housing. BUT keep up the property maintenance wise...for the write offs, and keeps your property desirable to renters.. my 2 cents...
 
One of the main advantages of renting a house are the tax write offs. That's why you need to talk to a friend that rents houses. My friend has told all about it but I can't remember all the tips he gave me.
 
And, if you do not use a property management company, be prepared for all kinds of head aches....and issues...
 
JMO, not a good time to buy houses. Interest rates are only one piece of the puzzle.

States vary regarding who the law tends to favor, landlord or tenants. If you are in a tenant friendly state, it makes getting a bad renter out more difficult.
 
When I was looking into doing this (I haven't) i was told two things...

1. Property values "historically" go up around 7%/yr over time. you'll have ups and downs but over time, the avg was around 7.
2. Rent is typically set around the same as what a house payment would be (ish) for that home based on the comps etc.

Those that "do this" will know better/different but I thought I'd toss this in for discussion sake at least.
 
I have had rentals for about 35 years. Houses & duplexes. I am down to one now. I think it is a great deal.

You have the right goals to start. It likely won’t make a lot of money for awhile. If you buy in an appreciating area, you can build good equity.

A few things to consider:

1. Are you good at home maintenance? If you can’t do most / all of it, that can chew up you profit quickly.

2. Do you have some cash reserve to pay for unexpected expenses / vacancies?

3. Do you have the personality / tolerance for the renal business? I have had nice renters & scumbags. Can be pretty hard to tell them apart sometimes in the beginning. Can be difficult dealing with them. If you will need to drive by it every day to see if it is still ok, it is probably not the deal for you.

4. Rental contracts are generally unenforceable. I have never collected a dime from anyone who owed me money. The best you will likely ever get is to keep their deposit. Even if you go to court and get a judgement, how do you collect from someone with a negative net worth?

I am not trying to discourage you, just want to make sure you have your eyes open going in.

Investment properties generally have less favorable financing terms, need more money down & have higher rates. The best rental house may be the one you are living in, if you can make that work.

On the positive side of this, most of your tools become tax deductible. You can make good money an build a lot of real estate equity. It just takes time and patience.

I would be glad to talk with you, just pm me if you want to chat.
 
Mortgage payments generally stay the same, real estate/rents go up.
I have owned several rentals, I always purchased a house with a suite-able full height basement, or able to shoot a master suite up thru the roof.
Then re-mortgage for the down-payment for the next one, and the next one.
Think long term.
We averaged one every 4-5 yrsish.
Headaches, - you bet, lotsa them.
Get "applications" at a viewing, .
You need to research each and every tenant ! !
Don't get lazy, go to where they live now, and look over the yard, go up to the door, knock on the door, and say they forgot a space on the rental application (bullshit) -you just wanna peek inside where they live now !
Check with their employer, see if their future is bright.
You want folks that worked at their present job for years, and the same for the spouse.
DON'T Be LAZY ! !
IT'll cost you big time ! !
GO OVER and personally pick up the rent check EVERY MONTH !
Look around the yard.
The "insurance" company may require you to walk thru every 3 months or so .

In the 80's, I once went over with a golf club, and smashed all the windows outta a house, that hadn't paid rent in over 3 months, and wouldn't move, eviction notice, sheriff and all. No power/water for months !
They were gone the next day ! ! Lol
Made lotsa $$$, had lotsa regrets !!
I encouraged my kids to do the same, and would definitely do it again !
 
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It's a stupid time to buy a house as an investment in my opinion (even if long term). Keep in mind that, should interest rates go up, you can always refinance later if rates drops again. But once you pay too much for a property, you're stuck with that higher price.
 
They were single pane, needed replacing anyway .
The look on their faces was worth every penny
There was "something" very satisfying about that event !

="Slowswinger, post: 1973739681, member: 36180"]Next time try removing the exterior doors. It cost less to repair.[/QUOTE]
 
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Guy I knew had a tenant decide to install a pool in the back yard, but all he did was dig a giant hole. Every door is going to get slammed to death and random holes kicked in walls. Plus whenever they move out the fridge is full of garbage. Minor stuff but I get to hear about it all the time
 
I own a rental house.
I own it outright as it was left to me by my grandfather.
I've had a renter(s) in it for quite some time now.
I've got stories, made some mistakes and learned from them.
What do you want to know?
 
If you are fortunate enuff to have a tenant that always pays on time, keeps the place tidy, will change their own light bulbs, do light maintenance, and mow the lawn, if you provide a nice self-propelled mower, - do WHATEVER it takes to minimize their rent increases, if at all, - and buy them a Xmas present .
Seriously .
Good Luck .
 
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In the 80's, I once went over with a golf club, and smashed all the windows outta a house, that hadn't paid rent in over 3 months, and wouldn't move, eviction notice, sheriff and all. No power/water for months !
They were gone the next day ! ! Lol

The good ol days. Do that now, especially in California and you'll have a huge lawsuit on your hands. Especially with everyone having a mobile camera unit to record the Tiger Woods moments. You can't turn off utilities and make a place uninhabitable. I do know one person that paid an illegal to ram his truck right through a house when the tenants weren't home. Place was a tear down after that group was leaving anyways. Just trashed it.

Another got SWATTED.

It can be lucrative and also a giant PIA.
 
The good ol days. Do that now, especially in California and you'll have a huge lawsuit on your hands. Especially with everyone having a mobile camera unit to record the Tiger Woods moments. You can't turn off utilities and make a place uninhabitable. I do know one person that paid an illegal to ram his truck right through a house when the tenants weren't home. Place was a tear down after that group was leaving anyways.

Another got SWATTED.

It can be lucrative and also a giant PIA.

I didn't shut off the utilities, they didn't pay them ! !
 
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If you have money to invest in purchasing a rental property, I'd strongly suggest investing that same amount in something else. You are going to get a smaller return but without any of the headaches of being a landlord. My brother and I both had rentals and it is a royal PITA. You have been warned.
 
If you are fortunate enuff to have a tenant that always pays on time, keeps the place tidy, will change their own light bulbs, do light maintenance, and mow the lawn, if you provide a nice self-propelled mower, - do WHATEVER it takes to minimize their rent increases, if at all, - and buy them a Xmas present .
Good Luck .
The very best renter I had was a nice older lady.
Rent was never late, the lawn was beautiful, I never ever worried about her. I showed up to collect rent once, she had replaced the storm door. I asked her why, she told me that she had damaged the door when she replaced the stove. Wait, what??? I asked her why she replaced the stove and she told me that she didn't like the old one. It was out in the garage.
Anyway, I told her she should have said something. The stove had been there since the 90's anyway and the appliances probably needed to be replaced. The door was even older, likely 1970's and I would have replaced that too.
I tried to repay her, she wouldn't take it.
The day she left sucked.
If there is any one single piece of advice I can give is, don't rent to lesbians! Never again!
 
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