Rental Tips???

Question

I have just put in an offer to purchase a house in downtown Winnipeg Manitoba, walking distance from a university and a large hospital. It is a 4 bedroom fixer upper, 1400sq ft, full unfinished basement and built in 1882. I purchased it for 32000$ and it needs about 10000$ work. Taxes are low, about 290$ a year. The tax assessment for the house is assessed at 35000$ for the house and 15000$ for the land. So it's assessed at 50000$ and I'm paying 32000$. I think I could rent it out for about 650 to 700$ a month plus utilities because it's so close to the school and 4 bedrooms. House is fairly solid but needs some cosmetic work. Floors, new doors, a couple windows and an addition that needs new everything. This is my first purchase and I intend to rent it out. I plan to eventually own several rental properties. Can anyone give me tips on anything to do with rentals, tenants and fix up work? Did I get a good deal? ANYTHING would be really appreciated!

Answer 1

Be sure to ask for references for any contractor you hire for the work. You don't want to get a bum contractor. Make sure they are licensed (if they do that in Canada) and insured. Read their warranty carefully so that they have to fix anything they screw up.

Be sure to get every little detail in your lease. Deposit and last month's rent upfront. Do a comprehensive walk through (before and after) and be a nazi about it when they move out. One lease that all four sign rather than a separate lease for each tenant (or you will get stuck finding a new tenant and be out the money).

Give your tenants a rent due date and stick to it. Get EVERYTHING IN WRITING.

Answer 2

I just got out of the landlord business.

I do rehabs now, and avoid renting them out for several reasons.

Renters are the biggest pain you'll ever run across. If you fix it up enough to rent it can you turn a profit on it more quickly by selling it. Even in a slow market generally you can sell a house if it is good shape, renting it our depreciates the value quickly as tenants fail more often then naught to mow, keep the yard clean, maintain furnace filters, clean AC, etc, etc, ..

If you've done all the work, speak with the top real estate producers in your area, AVOID part time realtors as these people won't do what it takes to sell it at the price you need. You may pay a premium for a good realtor, but it will be rewarded by the shortness of which you have the house on the market and paying mortgage.

Answer 3

You probably should research all these things BEFORE you buy a house, but too late for that. The key to success for you now is finding quality tenants. Check them out thoroughly before you rent to them.