OT Renting houses
 

With all of the members.... someone has to have first hand experience, if not 20.

Thinking of renting out houses.

Found a neighborhood down the road, houses selling in the 180's to 190's, built, no owner. That would be approx 1000$ a month payment. Taxes were just raised to 300 a month (approx).

Houses are being leased out around here for 16-1800$ a month. So say over a 5 year term, 30k in $ from the house PLUS the appreciation.

Growing area, last time I checked, we were 8th fastest growing in the nation, 1st in Ohio.

So, from those who have done this..... Headaches? Not worth doing? Anyone have any tips? Have a close friend of the family who is a realtor, who is able to list it for a very very good price.

Anyone?

Ps, Dads idea, not mine, will be in his name.

Screen your tenants very well. If you are dilligent about selecting your tenants, it could be a profitable venture. If you don't, it will be a nightmare. I represent residential, retail, and commercial landlords for a living, doing lease enforcement actions. I do not know the landlord & tenant laws in Ohio so I cannot speak to that issue but you should speak to a local L&T attorney to know what it takes procedurally and what it costs to remove a tenant. In DC it could take me a year to get rid of a tenant. Can you afford to float the mortgage for that long??

Don't you just love how laws that were meant to protect the tenant can be used to shaft the owner.... :hothead:

we have had several of them best bet is a 3 bed 2 bath ranch. go with either brick or vinyl siding so you dont have to paint and run credit check on all tennants and check references as well.

We can thank the F------ lawyers! :hothead:

Actually, you can thank the phucking legislature, they draft and pass the laws. The phknlwyrs merely manipulate the laws.

Didn't most, if not all, legislators start (low)life as phucking lawyers to begin with? duhh! :p

Maybe this is my twisted way of looking at things in life, or maybe it's just my redneck view of things from the "real" world.

Who the hell considers $180k plus homes rental property?

You can buy 2 new homes at that price where I come from. Decent homes at that.

I'll catch hell for this, but had to say it.


Buck

Here 180k is a 3-4 br 2 1/2 bath house, nice neighborhood, 2 car garage.

Or should we look for auction 50k houses?

I have 8 rental properties, some commercial and some residential, and it's a good investment if you have the up front monies. Alot of banks want one third down on property you are not going to live in. You think you have good tenents and have done your homework on them, and when they move out you find they were a little rough on the place, ie. it's not mine what do I care. But I have some that think the place is theirs and take very good care of it. My personal theory is I want someone that is going to live here not stay here.
Also taxes are higher because it is commercial property, not just residental but comm. res. property. Insurance is about the cheapest thing.
Mike