I am thinking of getting into multiunit rental properties. Can anyone share good or bad experience?

Question

Hi,

Any finance tips would be appreciated as well, but I am specifically interested in your 'quality of life' type answers.

Some people I talk to say they would "never want to be a landlord" and others think it is the best way to make money.

I would employ a management company to be the point of contact with the tenants and am strictly looking at it as a finance business.... ROI all the way.

Any "Do it!" or "Don't do it" recommendations? Why? How has it affected your life, for better or for worse.

Thanks!

Todd

Answer 1

I worked for Nationwide Lending. I dealt with a lot of people who were looking to pull the equity out of thier homes to invest in money-making properties and a lot of them were looking into duplex's in NYC.

If your going for four or more aprtments in the building it becomes commercial. But it is a great way to make money.

You have to be determined though. Any time there is a problem, those you are renting to are going to run to you for answers and quick solutions.

Right now, i actually work for century 21 (a real estate business). One great thing about using a real estate company is that they do credit report checks. Not only that, but when people seek their agents to help them find homes, the comission on rentals is usually one months rent. so you know the people who are going to be renting have their stuff together.

If you are going to hire people to maintain the building, it makes your job alot easier.

If its your first time you should probably look into dealing with a duplex first.

The fewer the better. Just dip your toes in the water before diving in.

Get back to me if you have any other questions