I have bought one home I’ve lived here for a bit and bought it to since it’s right on campus and got a very good deal on it and am renting it to college kids, for a good profit I might add. it is on campus and I am making good money with it. I am looking to buy another property in the nearby city and have a few I’m looking at. Wondering if anyone else owns rental property and how they feel about everything. If anyone has any ideas on reading or anything else. Thanks BB
You couldn’t pay me to do that. Every college group home I have ever been in was a destroyed shit hole. Fixing stuff/cleaning up after your tenants leave doesn’t sound like fun. Maybe you are making a killing(more power to ya), but from what I’ve heard from the people who do rent these places, I’m amazed the property owner can ever pay the taxes on the dump.
After costs and everything else added in and prorated for month to month I’m taking home $502.98 a month and thats including My overestimation of the damage they cause( rent’s $2150 and Mortgage with taxes and insurance are $1267.72 got a very good deal), I get their parents on the line for them also by them Co-signing, take a large security deposit, and drop by the property like every three or four weeks.
This is the first one and am looking at more. I was trying to see if anyone had any ideas of the % return on investment I should be seeing to be happy. It really depends on the condition of the property you give them in. If you give it to them in great condition and choose carefully you have a little control. we’ll see it might get destroyed and then I just have to charge them ridiculously.
I own a rental, used to live there and couldn’t sell it when we bought our new house so it was our only option. So far (knock on wood) everything is working out great for everyone. They pay us like $300 a month more than we pay for the property and are really good tenants (again knock on wood).
It’s a boyfriend and girlfriend with a young daughter, she’s a teacher he works for the railroad. I drive by now and then to make sure they are keeping up with the outside work.
The wife and I are considering buying a few duplexes to rent out. With the real estate market the way it is people cannot afford to buy so more people are renting $$$$$$.
Yea - we have a summer home in Pennsylvania that we recently turned into a rental property - it’s great, and the additional income is awesome. The house has no mortgage so it’s all profit.
Just make sure you have a good lawyer and use a solid real estate company to get your tenants. Do your background check and make sure you get a security deposit. Sounds like you already have it well under control. We also have a property manager who takes care of any issues the tenant has.
I definitely may consider buying more property in the future when I’m done with school. It’s definitely a good way to build wealth. There are risks of course, but as long as you don’t overextend yourself, real estate is usually a solid investment…
You can do the management your self if you are good at maintenance do it or find someone, small contractors work well. And if you do not want to do the leasing use a realtor and pay them commission on every rent check you get, Do your own credit checks and be thorough.
I have a town home I purchased back in 05 which Coldwell Banker manages for me. They take 10% of the monthly rent and take care of all issues with the renter. They also covered all advertising costs and only charged the ten percent once it was rented. This covers the mortgage payment for me and let’s me build equity in it until the market opens back and I can sell it whether that’s one year from now or three or more.
My fiance owns a very nice custom built rancher outright. We lived in that until we had our home built and moved in lat Dec. We now have Coldwell Banker managing that for us. We took out a small loan on that home for a down payment on our new home and the rent covers that loan payment with some left over. We will also sell this home when the opportunity arises.
As far as renters Coldwell Banker did credit and background checks on all applicants. This doesn’t offer 100% assurance of no problems but greatly minimizes the risk of getting deadbeat tenants. In my town home there is a young military couple who have already expressed interest in purchasing it in the next year or two. In the rancher home is a young couple with children who both work for the Dept. of Corrections which means job stability and good pay. They love the rancher and the wifes mother lives up the street. They have also expressed strong interest in buying the home and want to build up their work history before getting loan approval as one of them is fairly new to DOC.
It seems to have worked out fairly well for us in our situation. I have talked to other people who own homes that aren’t as nice and have to rent at a lower price. I have heard many horror stories from this group.
Interesting stuff guys.
Not really on topic but does anyone ever have any tenent horror stories?
I got a comical one (since it wasn’t my palce) about a place my sister rented out for a couple years to a young couple on welfare with a kid.
After kicking them out for falling behind on rent, my sister discovered that they had let dogs shit and piss in the house… everywhere and it was apparent that they never cleaned it ever, the childs room even had shit smeared on the wall, the plumbing was fucked, the toilet was overflowing with shit literally, there was a shit bucket in there also that they had started to use, clothes were every where, counter top stove was busted, railings on stairs busted, walls and floors were brown with dirt, and get this they took the furnance exhaust pipe (went through roof) out for God knows what and here’s the kicker, jsut left a gapping fucking hole in the roof so it could rain and snow in there.
another one not quite so bad, there’s this guy i know that rents a place out to his daughter and her common law, the place is heated with wood heat only, and apparently this march they ran out of wood and for whatever reason wouldn’t purcahse any, so what did they do? they cut the railing off the deck and then started on the deck floor boards, haha.
so moral of story dont rent to friends or family cause you always get screwed
The Moral of the story is drop in every once in awhile. My whole thing is I want them to know me. I got a separate pre-paid cell phone and thats the number I give them but they have it. I am going to and have been dropping by at least once a month. Go inside and bullshit or just say hi and check the place out. in DE as long as you give them 24 hours notice you can go through.
I don’t care whats going on I’m going to check the place out and see if anything is wrong with the place their fault or otherwise. Take care of it early so it doesn’t become a bigger issue.