2007-01-20 13:51:20 · 4 answers · asked by hayes271 1 in Business & Finance ➔ Renting & Real Estate
Don't buy single-family homes to rent out. Instead, stick with multiple dwellings. If you get a vacancy in a 4-unit apartment building, at least you'll still be getting 75% of the rent because the other 3 units are occupied. If you have a vacancy in a single-family home, 100% of your income is lost while you search for another tenant. It's difficult to keep up with mortgage, utility and tax payments when there's no money coming in !!! You need a strong stomach to deal with difficult tenants too.
2007-01-20 14:04:43 · answer #1 · answered by Bill P 5 · 1⤊ 0⤋
Do plenty of research first and make sure it's something that you want to get into. I would suggest contacting a Realtor in the area in which you are wanting to start to have them keep an eye out for a good buy. There are lots of ways to get rolling though, if you're looking to begin small purchase a duplex or triplex and give it 6 to 9 months and see how it goes. Sometimes getting good renters can be difficult and evictions can be a nightmare. You also should keep in mind that as a landlord you are on call nearly 24/7!!! It never fails that a catastrophe happens when something else has your attention or you're out of town. My husband began his biz about 8 years ago with a boarding house in which he lived in and now has 70+ units with a 6-digit business to back it up. It has worked out for us but there is plenty or liability and responsibility that comes with it. Also be sure to check with your local elected officials to see if there are any programs in you area for tax abatements or additional funding to help with improving a neighborhood BTW in most states if you are dealing with 4 units or more in one building there are government regulations and such to deal with also. :-p yick!!
2007-01-20 14:06:31 · answer #2 · answered by Dani D 2 · 0⤊ 0⤋
You don't have to be a real estate broker to buy homes and rent them out, just do it.
2007-01-20 14:02:01 · answer #3 · answered by Anonymous 7 · 0⤊ 0⤋
Very carefully!
Every area is different.
In So. CA, the market hit it's top in the summer of '05 and is still going down! Many neighborhoods are already down 15%+! Consider that the average sales price in San Diego is appx. $570,000 and you get an average LOSS in value of $85,500 in just about 18Mos!!
The BIG question is will the dropping real estate markets in CA , Vegas, Boston Wash D.C. Fla, N.J., etc. spread to most of the US?
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2007-01-22 05:03:29 · answer #4 · answered by Anonymous · 0⤊ 0⤋