Good stuff, thanks man.
That's crazy about the embezzler guy. I'm thinking a PM for the first year or so is a good idea ($60 a month is worth it)
Who's in the rental house business?
- Thread starter lilcoop03
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Good stuff, thanks man.
That's crazy about the embezzler guy. I'm thinking a PM for the first year or so is a good idea ($60 a month is worth it)
Eviction 101
If they are slow pay or no pay. Send 240 volts to 120 volt outlets to destroy all electronics. Repeat process until they leave.
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If they are slow pay or no pay. Send 240 volts to 120 volt outlets to destroy all electronics. Repeat process until they leave.
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I bought a 2-family in the town that I live in back in 2013. One tenant was there when I bought, the other I got within the first month, they've been there ever since, no major issues, they've never missed a payment. I make about $1000 per month profit. I sacrificed a couple more years at home instead of moving into the nicer side and built my own house 2 years ago. Rental income almost pays for the mortgage for the house I live in.
Not sure what the market is like where you're from but here it seems like the prices are all too high for an investment property. Especially if you want something a little nicer so people can move right in. Something to consider.
Not sure what the market is like where you're from but here it seems like the prices are all too high for an investment property. Especially if you want something a little nicer so people can move right in. Something to consider.
Its more appropriate to call it a wiener fight
i have one rental property near columbia SC. i have rented it for 4 years but now im prepping to sell.
make sure you calculate all your expenses to the T then gone ahead and raise those by 40% for a more realistic picture.
in general its almost impossible to cash flow on "cheap" single family homes. Large cap-ex expenses and repairs will likely destroy all your profits since there isnt much headroom at only $600/mo. a/c unit cost the same to fix wether the house rents for $600 or $1200, but one will be a much higher percentage
also be aware, in SC the property tax rate is 3x higher when you rent a house instead of living in it. Insurance will be also be higher and it generally increases every year. Your cashflow might be ok today and horrible 5yrs from now.
tenant screening is luck of the draw, my 1st tenant destroyed my house and complained about anything and everything. 2nd tenant was way better.
be careful self managing. There are alot of tenant-landlord laws on the books that change constantly and you can open up yourself to a world of hurt if you deny someones rental application or file an eviction improperly or various other reasons.
A/C unit is small, pretty new and tested well. So I hope I'm good with it at least for a while...
I'm aware of the tax rates, I have calculated it to be around $1200/year. The house is in the county, not city so no city taxes... I have insurance quoted at $800/year with a $110,000 replacement cost.
I think this is a great opportunity and challenge for me. That said, If I wasn't getting it so cheap I would probably look for another one to start with.
I think the best way to look at it is you are buying properties and building wealth using someone else's money. That's pretty solid motivation. Of course, bad tenants can make it a nightmare no doubt.
I may hire the local PM, they screen all tenants and do the evictions, etc
Wow... Thats peanuts! Can I come buy like 10 homes there and rent them all!? Lol My tax in 2018 on my rental was $11,200.
Exactly! Someone else is paying for that rental house and possibly for the house where you live. Yes it will be very easy money at times and then other times it will be a headache. As long as the easy money times outweigh the headache times then you're good.
My father has owned at one time 130 rented units over about 30 buildings in the metro Boston area. From the backbay all the way west down the marathon route. He didn’t end up using a property management firm until he had 20 or so units. No matter what someone was always in court and he could have hired his own construction company to keep up with all the necessary maintenance and repairs.
The PM firm he used handled all advertising, leasing, and rent collection.
He would purchase them and completely renovate and replace all appliances. Basically building a brand new apartment.
He’s sold off quite a few over the last 10 years or so and is back to managing himself.
I’ve talked to him at length and he says 1-3 units or homes isn’t worth the headache. Having 5-10 starts to make it worth it but it becomes a second full time job.
He’s has been able to handle this while running his electrical firm so his schedule is somewhat flexible but it still is a 7 day work week.
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The PM firm he used handled all advertising, leasing, and rent collection.
He would purchase them and completely renovate and replace all appliances. Basically building a brand new apartment.
He’s sold off quite a few over the last 10 years or so and is back to managing himself.
I’ve talked to him at length and he says 1-3 units or homes isn’t worth the headache. Having 5-10 starts to make it worth it but it becomes a second full time job.
He’s has been able to handle this while running his electrical firm so his schedule is somewhat flexible but it still is a 7 day work week.
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I had 3 rentals a while back. Judge ordered we well them in the divorce.
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Nah it can be tough at times. I had one guy call me and say hey got a DWI and got fired. Moving back home. Literally one day notice. I was cool with him throughout the tenancy if he got behind. He kept paying me after moving out to cover his debt. Dude literally packed a backpack and left. Didn’t even take his toothbrush. I came out ok so no biggie.
Odd thing is, I got ****ed the worst using a realtor.
I plan to always have enough rentals to max the 25k per year loss. Saves me a boatload in taxes.
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If caught, you’d likely get arrested, then have to pay restitution to the tenant AND put them in a hotel until repairs to your house were made. It absolutely sucks in some states that the law favors the tenants.
You just put the wires back. 20 min work.
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Have heard too many nightmares with residential rentals to go into it. I would contemplate commercial or vacation rentals though.
Just exchanged last house for a vacation condo. Been doing this for 30 years. Can be a pain in the butt if you are tight on income. I did it myself at first but with screening tenants and collecting rents and maintenance it was a job. I then got a pm to take care of everything. At first it was costing money but had a good job so could cover it. Once it started creating cash flow it was good to go.
I've got a rental that was my first house. 2.5 bedroom, 1.5bath, 1900 sq/ft. Renting it at $750 and had 50 phone calls on it the day I put it up to rent. Its old and needs some updates but isn't horrible. I manage it on my own. I will say that I've had good luck with my renters and have only had 2 in 8 years. I tried to price it so that people can afford it and want to take care of it because they know they won't find another deal like it. I pocket about $1k each year. I still owe on it though so the renters are paying all the bills on it. I've been looking at picking up another property or two in the near future once prices settle. I've also thought about selling it because i probably have 60k in equity in it.
You have three income areas on rentals like these:
Positive cash flow-$100 per door is good
Principle loan pay down
Tax break.
It adds up.
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Positive cash flow-$100 per door is good
Principle loan pay down
Tax break.
It adds up.
Sent from my iPhone using svtperformance.com
I once heard a story (so it could be 100% fake but it still made me laugh). It was a craigslist ad in a college town, saying "re: don't rent from address XXXXXXX" I was looking for a room, so I clicked the post. Person was claiming they paid a $500 deposit for a room in this person's house and $500 for the first month's rent. Security deposit was to be the last month's rent if given a 30 day notice. Ok, sound fine....but then he claimed that 2 weeks in the homeowner (who thus lives in the house) called 911, claimed the renter threatened him, and filed a restraining order thus is instantly couldn't go "home" if you want to call it that. He was able to remove his belongings with the police being there, and then just moved elsewhere after crashing on some friends couches a couple nights.
...so that's how you evict someone fast, still "live" there at least on paper, and then file a fake police report.
...so that's how you evict someone fast, still "live" there at least on paper, and then file a fake police report.
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