Yikes - buying our first investment property!

[Spookwriter]

We have a blind lady in one of our rentals...best move I ever made.

Been there 7-8 years. Never a problem. We check on her every few months,
just to be sure the house is okay. Something she may not be able to see...
(no pun intended)

On one hand, I do consider her as a friend. And I hope she feels she can count
me as among her many friends. At the same time, it's also a business. As a business
move, for my renters who have over two years with me, I give one month in the year
as rent free.

Also had a mobile home...bought it for a niece. The age old story...marriage gone
bad, nowhere to go. Bought the property for her, put the mobile home in, driveway,
septic. Within three months...with no rent paid...she went back to her husband.
Wanted me to sell the place and give her any profit made. Silly...

All income from the rentals goes into a separate bank account, used for the expense
and upkeep of the properties. I take no monthly profit as such. But when it builds up
enough I may look at buying another piece.

I will say that I've turned a better immediate margin on mobile homes. A stick house
is the better long term investment, but the odds of finding really good long term renters
seems slim.

Tear up one of my mobile homes, I'm out a few grand. Destroy a stick house, I'm out a wad.
Do most of the repairs myself, except the furnace/ ac systems.

 

[Spookwriter]

Let me go on to say that among my friends who are landlords,
the general consensus is that a single property will net you very
little. Almost not worth it.

In owning two, you will net even less. One will eat the other.

In three or more you will begin to see a worthwhile income.

I know a few who prefer to only rent "trailer spots", thus having
almost no headaches as a landlord. Their income is not as large,
but neither are their investments.

It all depends on the goal you have in mind.

 

[chics in the sun]

I am going to disagree with a few people regarding pets. I also allow indoor pets, within limits. I think it gives you a bigger pool of renters to chose from, and sometimes pet-owners are in a more stable point in thier life. When I put an add up for the duplex, including that it has a great big fenced in yard, I got three middle aged women with dogs right away, all of them great options. The one with three dogs? Nope. But the one with the rescuded pit mix? I went with her, and she is absolutely the nicest woman. A lot of times people with pets are limited as to where they can find a place, and as long as they are responsible for the pet and you get a pet deposite, I really think it gives you more options of potential renters.

And good point with buying used - I have bought all appliances used, I just try to get ones that are nice looking/ coordinated with the rooms. I find a nice looking place also brings in better tenants - I even *gasp* paint the walls with COLOR instead of white.

 

[ChickBond 007]

PBJ -- so excited for this new journey for you. You'll be great landlords, I just know it.
Post some pics of the new hacienda.

 

[pbjmaker]

Mrs. Turbo :

I just read the previous posters.....

When we first started I tried to put nice stuff in the house and it just got trashed...... We finally took the shed out of the back yard and made us a new chicken house, and I buy low end ceiling fans, stoves.....you name it because you will have to buy a new one again and again. I look at the used appliance shops when the stoves and fridge go out....

Well the first buyer fell through so my husband put a bid in anyway. He bid asking price hoping that everyone else bid low.

We are BIG fans of Habitat for humanity store. At ours you can get new doors for $5 (interior) We definately will have to replace all the ceiling fixtures, etc. When the previous owners were evicted they ripped them all out. I have never figured out why they do crap like that. They are angry that they screwed up their own life so "Nanner, nanner take that bank man - you can't have the lights?"

The garage on the house is VERY nice, nicer than the house. It is 2 1/2 detached with built in shelves and partial drywall.

These houses are from the 1950's so they all have nice hard wood floors - might redo those rather than carpet.

I do know that I will be in charge of the mowing - we are only three doors down. I told my husband that can be a good thing, but it also could be a bad thing.​

 

[chics in the sun]

How exciting. And yes, keep the wood floors. Much easier maintanance. Figers crossed!