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What Should Be Considered Before Owning a Rental Home?
Posted on 12/1/15 at 10:24 pm
Posted on 12/1/15 at 10:24 pm
Looking for advice from the board. I am interested in knowing what type of costs and considerations I should be aware of before dipping into the realm of owning a rental house. I currently do not own any property and I am renting at this time. The idea I am toying with is to continue renting where I live, but take ownership of rental home in the area as well.
6
Posted on 12/1/15 at 10:29 pm to RickAstley
Why not learn about owning a home, by buying, maintaining, and living in one first?
Posted on 12/2/15 at 7:54 am to Stingray
I am not opposed to that approach, and that is a possibility if I were to buy a rental I am eyeballing. The house I am looking at requires some work which I might benefit more by living there and seeing what needs repair.
Posted on 12/2/15 at 9:22 am to RickAstley
Positive Cash Flow, cap rate, age of property, location of property, condition of property during inspections, etc. Those are just a few things to consider.
Posted on 12/2/15 at 10:31 am to RickAstley
Maybe consider a duplex, live on one side and rent out the other?
Might be a good way to tip toe into the water?
Might be a good way to tip toe into the water?
Posted on 12/2/15 at 11:12 am to RickAstley
Posted on 12/2/15 at 11:04 pm to RickAstley
quote:
What Should Be Considered Before Owning a Rental Home?
My pops owned and managed a small apartment complex back in the day. When I brought up this exact question later on when I was feeling entrepreneurial, he answered me with "Would you mind getting up at 3am in the morning to repair a sink and its plumbing that some numbnut renter ripped off the bathroom wall?"
Posted on 12/3/15 at 10:29 am to CroakaBait
quote:
"Would you mind getting up at 3am in the morning to repair a sink and its plumbing that some numbnut renter ripped off the bathroom wall?"
That's why they have property managers with a contact list of maintenance people to fix things. Or you could have your own list of contractors and call them out yourself as needed. Not everybody manages or fixes their own stuff. Stop waving that broad brush. I'll venture to guess you never got into RE investing because of that one statement right?
Posted on 12/3/15 at 12:06 pm to RickAstley
Best free resource to learn about this is biggerpockets.com
Posted on 12/3/15 at 9:20 pm to nolatiger711
Bigger pockets podcasts and forums all day. Every answer lies there
Posted on 12/4/15 at 10:33 am to theoldwiseone33
Thanks for the responses and the suggestion of reading biggerpockets.com. I've spent some time on there the past 2 days and it is very helpful.
Posted on 12/4/15 at 11:16 am to RickAstley
quote:
I've spent some time on there the past 2 days and it is very helpful.
Got on biggerpockets.com and started a thread on TD and bought our first property about a month later. About to close on our fourth in the next week or so. Not sure where you are located but research the areas you are planning to buy in and make sure you will have steady stream of renters in that area. It has been a fun year for me getting my feet wet in the business.
Posted on 12/4/15 at 12:18 pm to stevengtiger
quote:
stream of renters in that area.
correct. always check owners versus renter percentages. also keep track of economic stability in that area. those are all factors to consider before investing. go where the money is. do not limit yourself to just where you live.
Posted on 12/4/15 at 12:36 pm to Fat Bastard
quote:
Not everybody manages or fixes their own stuff. Stop waving that broad brush
Just giving one point of view from someone who lived in a town where property management companies didn't exist, that's all.
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