2007-01-30 16:05:54 · 5 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
Fail what? Life?
2007-01-30 16:08:33 · answer #1 · answered by T.M.Y. 4 · 0⤊ 0⤋
If this is in response to renting, be VERY careful. Yes they can fail, and fail badly. You need to know a lot more about being a land lord than what your father has said. Van you support the mortgage on the property if there is one, and you do not have a renter. Can you afford repairs to the structure. Are you ready to be called 24/7 for problems in the property/ There is a lot to consider, learn, and learn well so that you don't get burned.
2007-01-31 00:12:41 · answer #2 · answered by Anonymous · 0⤊ 0⤋
You'd have to define failure.
Presumably you would hope to make some specific rate of return on your investment.
Your revenues would include:
Rent collected
Sale price of property
Costs would include:
The cost of the property
Cost of repairs
Cost of improvements
Cost of advertising
Cost of collecting rent
Costs associated with selling the property
Property taxes
Income taxes
Insurance
Most people I've talked to attempt to have a positive cash flow (i.e. rent more than covers mortgage on property + property taxes + allowance for maintenence + operating costs + insurance).
But even then there are risks:
Property may sit unoccupied between renters.
You might not be able to collect enough rent to cover costs.
Maintenance might exceed what you expected.
The property itself might be depreciating.
2007-01-31 00:18:16 · answer #3 · answered by frugernity 6 · 0⤊ 0⤋
Oh yea; just look at a lot of the foreclosures in the daily papers, as well as auctions due to failures. Just look at all of the empty property in any large city, when the slum lords went belly up.
2007-01-31 00:10:34 · answer #4 · answered by The Cythian 3 · 0⤊ 0⤋
What???
2007-01-31 00:10:21 · answer #5 · answered by miztiffany 3 · 0⤊ 0⤋