and what i mean by that is like if you buy a home or two or three and lets say you have them on the market for 7 years before you go to sell them and it has increased in value BUT tenents move in and out considering this would you still make a proffit when you go to sell the house in 7 years
2007-02-07 07:58:48 · 5 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
I have a couple of friends who have done this; they buy rental homes, rent them out and then sell them when the time is right. They do make money but it isn't easy. They manage the rentals themselves, which means they have to do landlord duties, which includes getting calls on weekends or evenings if something goes wrong, they have to screen tenants and monitor the way the tenants take care of the houses; they have to deal with things like bounced rent checks, tenants who move out in the middle of the night without telling, and other problems.
They also have tax consultants they periodically go to and an attorney to deal with legal issues. They've been doing this for more than twenty years and have made a fair amount of money doing it, but it's hard work too.
2007-02-07 08:07:02 · answer #1 · answered by Karin C 6 · 1⤊ 0⤋
If it appreciates enough, you can make money. If not, then no.
Depends on the local market, but most of the time you can't get rents much about what the mortgage is (unless there's been market appreciation) plus your costs as a landlord. So, vacancies hurt.
Don't forget taxes!
If you're buying as an investment, assume that you'll lose money on the rentals and you'll make your money off market appreciate... if it appreciates.
2007-02-07 16:04:46 · answer #2 · answered by Jay 7 · 0⤊ 0⤋
Yes, my cousins into that type of business. The thing is while there are tenants still living in the home/s fix everything you can while there is still money coming in. Once the tenant/s move out hurry up and find another buyer. Make sure you choose the right tenants as they move in and out so that they are not damaging any part of the property.
2007-02-07 16:17:58 · answer #3 · answered by mrsdeanslist 2 · 0⤊ 0⤋
Unless you have money down, its hard to rent for what the mortgage and taxes cost you. Figure in just one month of vacancy every two years, and you're not making enough for it to pay for itself.....that is, until you sell.
2007-02-07 16:56:36 · answer #4 · answered by Anonymous · 0⤊ 0⤋
sounds like you like to make money coming and going and that is good, just make sure the tenants know that they will need to make anoother way for themselves
2007-02-07 16:02:57 · answer #5 · answered by sodgirl6763 4 · 0⤊ 0⤋