anyone here rent out houses? I need advice

[Realtor]

I'm looking for tips and possibly more help on buying a house solely for the purpose of renting it out
can anyone give any tips or advice ?
I know location location location
take a look at this house and tell me whatcha think? Any input is highly appreciated

19 Lindsey Dr
$33,500 | 2 Bed 1 Bath
http://www.realtor.com/search/listingdetail.aspx?mprid=6275155113

 

[Lockout]

Do you currently have a home you own??
Are you going thru fda,usda? Most of them you will have to agree this is not for a gain and you will be living in such home.This is their way of stopping the sharks out there.

I have a rental home, and I have to say that it is hard if you plan on buying a cheap house.Because you will be getting cheap ass people that don't care.I went and bought a 175k home and had to do nothing as far fixing it up for renting.And the people that will be renting this home out are those that have plenty of money but bad credit.These are the types you want as the ones renting anything less then 1000 are going to be section8 kinda people and well good luck and hope you have a savings account and a great lawyer.And even if you have a great lawyer good luck getting anything from those type people as they don't have any money to begin with.

My rent is 1400 a month and I have a married couple with 1 child.Father works for delta and mom is a teacher and the kid is 4 years old.They are top notch people and just went through hard times when fathers business went down hill ( home builder) and lost everything.They pay on time and paid the deposit (1400) and first months rent.

I have a account just for this home, and everything they pay goes into that account for repairs and such.I didn't roll the home owner insurance and taxes into the loan and do it myself.This account is for the taxes and insurance too.
I do NOT pocket anything from this as it is for this home only and future for this home.

The profit later in life will be part of my retirement

You need to check with your finance person and see about getting a loan for buying a home for profit and see what they say....

 

[Realtor]

Do you currently have a home you own??
Are you going thru fda,usda? Most of them you will have to agree this is not for a gain and you will be living in such home.This is their way of stopping the sharks out there.

I have a rental home, and I have to say that it is hard if you plan on buying a cheap house.Because you will be getting cheap ass people that don't care.I went and bought a 175k home and had to do nothing as far fixing it up for renting.And the people that will be renting this home out are those that have plenty of money but bad credit.These are the types you want as the ones renting anything less then 1000 are going to be section8 kinda people and well good luck and hope you have a savings account and a great lawyer.And even if you have a great lawyer good luck getting anything from those type people as they don't have any money to begin with.

My rent is 1400 a month and I have a married couple with 1 child.Father works for delta and mom is a teacher and the kid is 4 years old.They are top notch people and just went through hard times when fathers business went down hill ( home builder) and lost everything.They pay on time and paid the deposit (1400) and first months rent.

I have a account just for this home, and everything they pay goes into that account for repairs and such.I didn't roll the home owner insurance and taxes into the loan and do it myself.This account is for the taxes and insurance too.
I do NOT pocket anything from this as it is for this home only and future for this home.

The profit later in life will be part of my retirement

You need to check with your finance person and see about getting a loan for buying a home for profit and see what they say....

Very much appreciate your input will PM you tomorroe

 

[moreammo]

yea i echo lockout... that house is fine if you are ready to deal with evicting ppl and semi remolding the house with each tenant... however i will say its possible you get lucky and get a good tenant in which case you could stand to make a decent profit off of such a home. something i have learned it no matter how finicky i am with who i rent to you just can nvr tell what kind of tenant a person will be. oh nvr rent to family or friends... just dont do business with those groups of ppl... trust me

 

[Lockout]

yea i echo lockout... that house is fine if you are ready to deal with evicting ppl and semi remolding the house with each tenant... however i will say its possible you get lucky and get a good tenant in which case you could stand to make a decent profit off of such a home. something i have learned it no matter how finicky i am with who i rent to you just can nvr tell what kind of tenant a person will be. oh nvr rent to family or friends... just dont do business with those groups of ppl... trust me

This is my rule and in my contracts for my tenants

I have the right to inspect my home at anytime without warning ( I give a warning ) just have it in there to protect me.
I inspect my home every week for new tenants, and then I will move every other week.As long as you keep inspecting your home every week or other you can tell by looking around if they are starting to tear anything up.And if they do you can start with warnings, and tell them to fix it and you will be back to inspect.If they don't,then you can start to get rid of those type people before things gets out of control.

The ones that rent homes and don't inspect until the tenant wants to leave, well it's to late and damage could be a lot and costly.But if you're active land lord you can prevent things getting out of control and stop it.Also I do NOT allow pets at all!!! and my limit of kids is 2.

I also don't allow anyone else living there or staying other then the ones on my lease.
So if they think they can rent out rooms or have other people move in, well they will be kicked out for breaking my lease.

 

[Lockout]

I have three homes right now, and looking in buying 5 more in the next year or two.My goal is to have at least 7-10 rental homes when I retire.Then when the market gets back up and the homes jump up.I look forward to cash in and well retire early.
I am about to list one of my homes for sale soon ( next month) and then I will be moving into my mtn home in Blue ridge.The other homes I want to buy is around the blue ridge area/ canto woodstock area.

I would never own a home in the hood and rent out.You're setting yourself up for failure.
remember section 8 is good for you if you decide to buy in the hood as they will collect and find you tenants and take out the funds and send you a check.But good luck if you decide to go that way.

 

[Lockout]

Also if you're not a handyman now, this is the time to start learning.I do all my maintenance and repairs and have all the tools to do so.But if you're not and don't want to learn hope you have someone with great deals.As things can get expensive.

I had a home that I rented out a long time ago in the hood.I had to replace walls,counter tops,ac unit,septic tank....Talking about costly repairs and not getting nothing for rent either.
You can't get much on deposits these days as most don't have much to give, so the deposit wasn't there.I did most all the work myself including the septic tank and saved me tons of money.I learned my lesson from this home and sold it and never looked back.I will never rent to the section8 crowd ever again.

 

[Mtber1172]

Also if you're not a handyman now, this is the time to start learning.I do all my maintenance and repairs and have all the tools to do so.But if you're not and don't want to learn hope you have someone with great deals.As things can get expensive.

I had a home that I rented out a long time ago in the hood.I had to replace walls,counter tops,ac unit,septic tank....Talking about costly repairs and not getting nothing for rent either.
You can't get much on deposits these days as most don't have much to give, so the deposit wasn't there.I did most all the work myself including the septic tank and saved me tons of money.I learned my lesson from this home and sold it and never looked back.I will never rent to the section8 crowd ever again.

I have a friend who owns several rental homes and he went through the exact same thing you did with Section 8. He said he'll never ever ever ever do that again.

 

[beaker]

I had a rental home once. Tenants paid for the first 6 months, then stopped. Took me 3 months to get them out. And after I did, it cost me 10K to fix the damages. Sold the house for a loss to get out from under that headache.

My advice, don't do it unless you have the stomach for dealing with deadbeats, and don't have an emotional attachment to the property as it's gonna get torn up. Also, don't do it if receiving the rent money is a must in order for you to cover your own bills every month, otherwise when you do get the non payer, you're struggling to pay your own bills.

 

[Lightfoot]

Don't do it. It will bring you nothing but problems. That is my experience with tenants. The rent you get will go back into it in repairs. In the past the only way people made money with single family rental houses was in value appreciation. Now that is gone. Many with people that had with rental houses with debt are now bankrupt.