Rental Property

[Mike K]

Good info. I just went with a rental property manager, because I work out of country. So far my property manager has found quality tenants, so I have not had to do any repairs after a tenant has left. Unfortunately, my house seems to attract people looking to rent while their house is being built, so I have not had any long term tenants.

[kingjason]

I am curious as well. None of the houses around me appear to be selling. The one next door to me has had several upgrades and placed back on the market over and over, yet 2 years later it is still empty. I'm thinking if I want to move without incurring two house payments, I'm going to have to become a landlord.

Yep same here and I am looking to move in this market.

[Stng5Pnt8]

We are signing on our 2nd home tomorrow. Got an excellent deal on a house & killer rate!

We decided to try out with renting our current home coming May 15th.. Definitely taking notes on this thread!

Wish us luck guys!

[Treasure Chest]

We are signing on our 2nd home tomorrow. Got an excellent deal on a house & killer rate!

We decided to try out with renting our current home coming May 15th.. Definitely taking notes on this thread!

Wish us luck guys!

Good luck!

[Treasure Chest]

me 3...

From what I gather it is hit or miss with finding decent tenants. Some folks who rent in my area really take care of the place and other just have their shit everywhere and you know they are trashing the house. Pretty scary to think you can have people destroy your shit and you may not get even.

There are ways to separate the good from the bad. It was trial and error for the most part. We did learn that reletting expenses are pretty much the same, whether a tenant is there for 6 months or a year. I just hated spending the time and money on reasonable wear, so I went to a 1 year lease pretty early on. Charging a $35 application fee was a first defense at weeding people out.

I always had a release of employment, credit, and rental information on my applications. If you don't have access to someone who can pull credit reports, have applicants go to the credit bureau and pull their own. If you go this route, your application must state that it must include a copy of their driver's license, credit report, their last <however many> months of pay stubs, employment, professional, and landlord references, and the money order for the $35 application fee, or it will be rejected.

I had a list of non-discriminatory requirements listed on my application that were in my lease; gross income requirement of four times the rent, no cosigners, roommates had to submit separate applications and fees, and each had to qualify separately.
I also outlined a maximum occupancy restriction of no more than 2 per bedroom, a 2-vehicle restriction, a no sublet clause, and an unauthorized occupant/overnight visitor restriction. That way, no one could come after me for unfair housing practice, and they were all things that were in my lease agreement.

In this kind of market, there are so many foreclosures that it affords you enough applicants to be selective. The only problem is that you don't want to use anything that you don't have in writing as a basis for your decision, so your selectivity is only as good as your application process. You're required to be in compliant with the Fair Housing Act in giving out applications and selecting a tenant, so outlining high expectations will limit the number of applications you get back.

[03mustangdude]

I've heard people say its better to use a rental agency to do all this and if you find a good one you dont even have to deal with the property whatsoever

[David]

My dad probably has 30+ rental properties that he manages on his own and adds more every year. If you keep up with everything its a pretty easy quiet dollar to make. However, weeks like we've just had with weather like this it can be trying.

[03mustangdude]

My dad probably has 30+ rental properties that he manages on his own and adds more every year. If you keep up with everything its a pretty easy quiet dollar to make. However, weeks like we've just had with weather like this it can be trying.

how so? with the damage?

[94form2000z]

I have had two rentals, and I cannot wait to sell my last one. It's much more of a pain in my ass than anything. I have easily put back all if not more money than I make from it, back into it. I am hoping the market turns around over the next 4 years so I can make a few $ on the sale.

I use a property management place to find tenants. I used to use them to manage but really it was a waste of money. They do all the checking out of potential tenants and present them to me for approval.

It is a good option to use if you have any thoughts of moving back into the home, or if you are at a point that selling the house would not be lucrative for you. If I was to do something with real estate to make money it would be flip houses.

[Grape]

we own one that is free and clear left to me in a will........still not worth it, used to own a few more, what a giant pain in the ass for questionable return. Then something breaks or one goes vacant for a month and you are in the hole.

[Grape]

My dad probably has 30+ rental properties that he manages on his own and adds more every year. If you keep up with everything its a pretty easy quiet dollar to make. However, weeks like we've just had with weather like this it can be trying.

dude weeks like we just had are a renters dream if you have insurance, hopefully they all burned to the ground.

[MutherjuggZ]

Sure would be nice to have an investment forum! Kidding of course....

On a more serious note, my neighborhood has been up and down but don't think any of the houses have been on the market too long. There was a foreclosure late last year and it is sold and already has renters in it as of recent.

My goal is to get some exposure to this and take baby steps. I wouldn't mind having one property, get a feel for it and then possibly start expanding. What I want to know is the specifics apart from the obvious normal expenditures and repairs you will have. I have done a little research and compared to houses in my area that are for rent and it looks like I can get almost $400 more than what my current escrow payment is. Now being the novice I am, I have no idea if this is decent, good, or terrible when you factor in all the costs associated with renting.

I know quite a bit about rental properties since I help out on the real estate stuff here all the time. Feel free to holla if you wanna chat

[David]

how so? with the damage?

Yeah. If you manage your properties yourself, tenants obviously light your phone up with problems. Dealing with all the insurance crap and so on.

[03mustangdude]

is it more lucrative to start with cheap properties ie like trailer homes or stick with real brick homes. Reason i ask is i have a quarter acre in granbury sitting their doing nothing and have free income to build a trailer home on it to rent out but haven't thought itd be worth it.
Neighborhood is mix of everything guy next to my property has trailer home guy across has brick house.

[347Mike]

Thanks Kim.

This answer is for anyone who can answer it:

I think I already know the answer to this but do you typically need someone in the rental property or a contract signed in order to be approved for another home? I know there are a lot of things factored into this like credit score, networth and income but I am curious as to what all is factored in and how hard it is to have two mortgages.