Anybody into the renting houses biz in here?
 

If so please step in :thumbsup

I'm considering expanding into that market but have some doubts...

Real Estate is where its at my friend...dont let anyone tell you different :thumbsup

I have section 8 properties that I had convreted into rooming houses/apartments. My dad has been doing this for many years so I just followed his lead. He also did all the rehab/construction work. I have had them for just a year now. I pay the mortgage for one and then payoff the cost of renovation and have very little in my pocket. The renovations will be done being paid next month so now I will bring in a nice bit of extra income.

After the summer I plan to buy 2 more properties. One of the properties I did pay for cash $10,000 so I only have one small mortage payment. Having Tenant in the ghetto can be trying and there are lots of hidden cost from repairs and deadbeats. The section 8 property of course gets paid by the government but sometimes it is hard to get the $100/month they may owe on their own.

DEA has his shit together - real estate pwns

I have friends that do the same. It is crazy but they too have a tough time collecting the $90ish bucks

but..be careful still...every industry has its pitfalls!

I have many investment properties.

What concerns me the most is how you "control" what the people you rent the properties do to the homes...I mean there are lots of fucked up people in this world (starting with uni students ;) ) rofl

btw thanks for the feedback fellas

Not much you can do. First make sure the lease is specific about repairs and what they can touch renovation wise in the house...I put in a Hooking/Drug Dealing policy.

Most of all I have spies....good tenants that do not want to live like animals. Another thing I do is schedule quarterly bug/rodent extermination so I can get in there with an exterminator and have a look at the place.

At the end of the day it is a crap shoot. I had a lady who had a leak under her sink and never said anything. I only found out when the warter bill came and it was $200 more than it should of been

talk about head ache, what/when they dont pay?

That would be least of my problems...advanced payment all the way or else -> street

mindoza - are you collected for taxes?

I think I should look into invest in the mid-term into renting bussiness since the city were I live while small has lots of students..umhhh

buy a book on landlording before you do anything.

I own several up here in Canada. Mostly triplexes, fourplexes and five unit apartment buildings. We're starting to look more and more at larger buildings but they seem to move fast on the market, by the time they're listed they are sold.

DH

Residential or commercial or both?

DH

When I decide to go to Toronto and Van (sometime next year), I will try to get you too hook me up a place then :winkwink: :thumbsup

I own and rent several places, mid-range 200K-500K. These are not typically people that fuck with the places, although it can happen. I have a property manager for all of my places that keeps an eye on them and inspects when he does routine maintenance. Plus I do credit checks, security deposits and sometimes will require references. It's a great business to be in if you find the right places. It isn't as easy as people make it out to be if you really want to be successful at it and luckily I have trusted property managers and real estate agents so I don't have to spend any time on it myself.

its the way to go, here in Toronto. Let the house pay it self off, and make cash from it after. I was showing a property for $299,999 it had 3 apartments in it... The clients didn't react fast enough, 3 days later it sold for $350k!!!!!!! they got $50k extra!!

I work with Remax under Lolita Paster. If you interested I can get you her card.

Remax are also huge here..damm this guys are everywhere

It isn't that simple. There are processes and laws that must be followed. It can be a real bitch kicking people out when you need to.

I have 11 rented properties, another in development. I buy townhouses at auction. Use my familiar contractors to get them to code. I then rent through a local estate agent (realtor) who handles everything : find the tennants, doing credit checks, and responding to any needs the tennants might have (they want a window fixing, etc). I rent to professionals, no children, no pets, no smoking. I'm fully insured.

It has now become an easy routine. Find a good deal at auction. Contact my foreman. 1 month to 4 months later, present my realtor with the property.

You can make good money from students (i have friends who do this) because you can charge on a per room basis. You basically buy a large townhouse (6 or more bedrooms), get it up to code with the basics, then hand details over to local college / university. They will usually be able to fill it for you for 40 or more weeks a year. You earn more on a per room basis.

Where I live property is very expensive. A basic 1 room aprtment is £150K ($300K). But I ALWAYS get under 50% of market value at auction; its my criteria for a good deal. Despite market fluctuations you know you have good captial appreciation and a steady, risk free income.

My advice : talk to someone in person who does this. And, best advice I can give, ALWAYS stick to your budget when developing properties. Develop for the market, NOT for you. Remember not to develop a prop that you would like to live in; develop one that your intended tennants would like.

Kristian - your rules seem to be a bit harsh no?

Also what is the percentage of income that goes to the real estate agents taking care of everything basicly?

In the UK I believe the standard % is 10% for fully-managed, but I've never sacrificed that much.

Harsh, but its a landlord's market, and around here the most profitable demographic are single or married professionals; in other areas, the most profit might be with students or families. It just makes life much easier when tennants leave a prop as they found it. And kids or pets, or yellow stains from cig smoke, just mean I have to pay for a clean up crew...and Im cheap. :)

I dont know where you live, but I have a mate who lives in a tourist spot up in north wales. He rents out vacation props. This is great if you have a mostly year-round vacation spot. For instance, he rents this house in llandudno at £600 per week. Ordinarily, on a 6 or 12 month lease, it'd only fetch that much per month, maybe less. The work there, I suppose, is in keeping it full as much as possible, maybe working with a tour operator. Another idea for you to consider though.

It really all depends on your budget, opportunity costs, and the local demographic. A good way to start is to visit some local realtors. Find out whats most popular. Ask the realtor for a checklist of things that add value to props and also which are the best areas. They're always helpful cos they will likely make money from you in a few months. :)

I have 6 single family homes.

Ask away.

Kristian - thanks for the detailed reply I appreciatte it

JD - first of all, are you paying taxes on those properties, I mean passing recips, paying IRS for the activity of leasing,etc.. What do you recommend when it comes to first investment.

Keep in mind this is something i'm thinking on the next years but I think I might aswell start gathering information now ;)

Taxes are on me...Property Taxes are not something you would collect from tenants. You have to consider all your costs prior to setting the rent cost. I work with low income, section 8 it is not something you can use an agent to rent nor could I find many tenants that would pass a credit check.

real estate is a big industry

I am full time real estate investing
I could fill up this board just with some comments
I won't do that for now.

buy all the houses you can
buy the creative way all the homes you want no money down
that's what I recommend
no banks needed.

What is it needed for you to post some comments then :thumbsup :2 cents:

I'll be entering that market in a few weeks actually and I plan on using the equity I build up in my properties to invest in others. I plan on buying a few outright so it should be fun i'll update how it's going in a few months.

can make a lot of money on real estate...dont rent to college kids :thumbsup

i just made an offer on a 3 bedroom house down the street from me that just lowered the price, hopefully i get it.

I tend to disagree on that one. If you manage to have decent students you can get much more money by renting rooms instead the whole house :2 cents: