Who's in the rental house business?

[lilcoop03]

Looks like I am buying my first income property this week at a great deal..

Who has experience here?

Do you use property managers or manage them yourselves?

ALL relevant info is welcome as I am new to the business.

 

[13COBRA]

Looks like I am buying my first income property this week at a great deal..

Who has experience here?

Do you use property managers or manage them yourselves?

ALL relevant info is welcome as I am new to the business.

Commercial or residential?

 

[JetmechF16]

I have one, only kept it since it was my first primary home and is in a great rental neighborhood. I manage it myself since I live on the other side of town. It's all about finding the right renters, I use mysmartmove.com to obtain credit and criminal background checks. You can list for free on Zillow, I got a ton of hits just off that site.

 

[Blk04L]

Single family, condo, townhome or apartment?

If residential, I have decent experience dealing with renting out houses.
Self managed.

How close are you to the rental property? Minutes, hours, across the state? What shape is it in, and what type of income bracket are you targeting? Will it appeal to lower, middle or higher income level folks?

From what I've seen it's a crapshoot dealing with folks. The people who seem sane can wreck a house and then bounce, and the security deposit may not cover it.
We have one house on a 1+acre lot, with decent landscaping out in the rural parts of the county. One tenant we found out was having **** fights there. Another trashed the place and we assume their kids came back and spray painted walls etc...

People who at least through background checks were clean.

Now, both places have had solid tenants with no issues with keeping it looking tidy and paying on time.

 

[gt347mustang]

Subscribed. Looking at renting out my primary residence in the future and moving to a new home.

 

[lilcoop03]

Commercial or residential?

Residential

 

[PhoenixM3]

Looks like I am buying my first income property this week at a great deal..

Who has experience here?

Do you use property managers or manage them yourselves?

ALL relevant info is welcome as I am new to the business.

Managed all our properties even while living overseas. A well written lease and thorough tenant screening is key.

 

[BlckBox04]

subb'd too. I was thinking about this recently with my current place.

 

[lilcoop03]

Single family, condo, townhome or apartment?

If residential, I have decent experience dealing with renting out houses.
Self managed.

How close are you to the rental property? Minutes, hours, across the state? What shape is it in, and what type of income bracket are you targeting? Will it appeal to lower, middle or higher income level folks?

From what I've seen it's a crapshoot dealing with folks. The people who seem sane can wreck a house and then bounce, and the security deposit may not cover it.
We have one house on a 1+acre lot, with decent landscaping out in the rural parts of the county. One tenant we found out was having **** fights there. Another trashed the place and we assume their kids came back and spray painted walls etc...

People who at least through background checks were clean.

Now, both places have had solid tenants with no issues with keeping it looking tidy and paying on time.

It is a single family home..3 bedrooms, 1 bath. I live 10-15 minutes from it. It will appeal to low-mid level income folks. It should rent for $600/month, maybe $650...Comps in the same neighborhood are in that range. The house is pretty damn solid. Just had an inspection done. It just needs cleaning up and I guess Ill throw a fridge and stove in it.

 

[lilcoop03]

It should pay for itself in 4 years (5 at most)

 

[13COBRA]

Residential

I wouldn't hire a firm to run them until you get 5+. Less than that, it doesn't pay off very well.

 

[lilcoop03]

Single family, condo, townhome or apartment?

If residential, I have decent experience dealing with renting out houses.
Self managed.

How close are you to the rental property? Minutes, hours, across the state? What shape is it in, and what type of income bracket are you targeting? Will it appeal to lower, middle or higher income level folks?

From what I've seen it's a crapshoot dealing with folks. The people who seem sane can wreck a house and then bounce, and the security deposit may not cover it.
We have one house on a 1+acre lot, with decent landscaping out in the rural parts of the county. One tenant we found out was having **** fights there. Another trashed the place and we assume their kids came back and spray painted walls etc...

People who at least through background checks were clean.

Now, both places have had solid tenants with no issues with keeping it looking tidy and paying on time.

I would be so pissed.

 

[Blk04L]

I would be so pissed.

Yea, definitely was a rough stretch, as I believe both were back to back. Luckily the **** fighting guy kept the house in ok shape lol. Just beyond random. Fought the roosters in a small horse stable surrounded by palmettos.

 

[My94GT]

My wife and I rent out her condo that she owned before we got together. Only reason we kept it was the location being a generally older crowd. We also took a lower offer for a single widowed renter vs a family for hopes of less wear and tear and so far I feel it was a solid choice. Logistically were very close to the unit so it’s easy to manage.

Our current house we will likely sell off once we move as it’s just a larger upkeep then I’m interested in dealing with to rent.

We have a realtor that I knew help us list it and run the background, credit check and contracts. Her fee was the first months rent and it was money well spent. I think if we didn’t have such a good tenant we likely would sell it.

 

[blownstang4.6]

It is a single family home..3 bedrooms, 1 bath. I live 10-15 minutes from it. It will appeal to low-mid level income folks. It should rent for $600/month, maybe $650...Comps in the same neighborhood are in that range. The house is pretty damn solid. Just had an inspection done. It just needs cleaning up and I guess Ill throw a fridge and stove in it.

What's your location? That's extremely cheap for a full house. That would be $1800 in my area. I have a 3 flat rental property and get $3300 a month from the 3 apartments, which is a couple hundred lower than what others charge in the area.

 

[blownstang4.6]

It should pay for itself in 4 years (5 at most)

How so? That's only $39k you'd get over 5 years. Is that what you're paying for the property? What about maintenance and fixing things that break? In 3 years I've sunk $30k into my property, but that did include a new roof and all new windows.

 

[lilcoop03]

Yea, definitely was a rough stretch, as I believe both were back to back. Luckily the **** fighting guy kept the house in ok shape lol. Just beyond random. Fought the roosters in a small horse stable surrounded by palmettos.

LMAO at SVTP censoring **** fighting

 

[lilcoop03]

How so? That's only $39k you'd get over 5 years. Is that what you're paying for the property? What about maintenance and fixing things that break? In 3 years I've sunk $30k into my property, but that did include a new roof and all new windows.

Small town in upstate South Carolina. The house appraised for $45k but I'm getting it for $25k. Lucky deal on an estate deal.

 

[lilcoop03]

 

[MG0h3]

Been land lording since I was 22. I’ve used prop managers on some, not on others, and switched back and forth on the same property. You can always use a prop manager for the first year (this is standard contract but confirm with yours) then take over yourself once you have a feel for things.

Bigger pockets.com is a good resource.

As mentioned before the manager will take all your positive cash flow in most cases on your typical property/rent income scenario. Won’t on yours due to the low price. Either way I avoid them now unless absolutely necessary (out of state when a tenant leaves or something).

Anything can happen and a lease won’t stop a shithead from trying to **** you. First renter ever was a female apartment complex manager. She knows the drill...good to go right? Wrong. Showed up with a money tree check second month. Had a dipshit realtor put a legit criminal in a house a few years ago. He had filed bankruptcy a week before moving in. Realtor washed her hands of it 2 months later when he quit paying. I then hired a prop manager to evict him in court and I won all the lost money but he literally said in court “I’ll never pay”. Guy had done 9yrs for embezzlement lol. Guy is dead now and I’m glad.

Its a nice way to have passive income and I love the tax break; you won’t get much of one due to the low price. Buy more. I sold two last year and am looking to buy again.


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