My fiance and I are thinking about buying a triplex that has 3 units- a 3 bedroom, a 2 bedroom and a 1 bedroom. It is in a small town (about 2 thou ppl).
We have a 5yr old son, and a baby on the way this summer. We have the opportunity to buy this triplex for a GREAT price (under $130k) and are seriously considering it. It is in good shape, only needs new paint and some landscaping (so says the home inspector). We could easily rent out the 2 smaller units to pay for our mortgage and utilities.
My ? is- pros and cons of being a landlord in the same building as your tenants? Is it worth it, as a first time home buyer (though we rented a room in a house we rented for a few yrs, no problems with that)...
Also, what lease terms are standard for apartment rental?
We were thinking- pets allowed with a deposit, 60 days move out notice, own utilities (its seperately metered), paint allowed w. approval, etc...
So, being a landlord- worth it or not?
THANKS!
2007-03-18 13:29:02 · 7 answers · asked by melaniecampbell 3 in Business & Finance ➔ Renting & Real Estate
Calculate how much cash is left each month after you pay the mortgage, insurance, taxes, if its positive, buy it.
60 days move out notice might be too much, especially if its a 30 day rental, check your state laws
If it gives you some cash, and it has a chance to appreciate, buy it.
Living in the unit might make prospective tenants uncomfortable, but they shouldnt mess it up as much
That lady that says its not a good place to raise a kid, etc. is blowing smoke.
If you live in it, you will get a cheap mortgage, because it qualifies as your primary residence.....If you keep doing this every 5 or 10 years into a bigger place, you will have a solid cashflow to work as your social security...your kids wont have to worry about supporting you when you are old....isnt that a great way to raise a kid?
2007-03-18 13:41:54 · answer #1 · answered by Anonymous · 0⤊ 0⤋
My advice would be to set up or use a property management firm if you do this. Living in close quarter with your tenants will cause you to get close to you and they WILL take advantage of you at the most innopportune times.
RE: Standard leases really depends on where you live. Be competitive with the other rentals in the area. I always kept the nicest rental and priced my units $10 less than others in the area and my places were always full and no complaints.
Otherwise I say go for it. Even if you manage it yourself, the experience will be worth it.
2007-03-18 13:35:16 · answer #2 · answered by Tadow 4 · 0⤊ 0⤋
Sounds like a pretty good deal. The paint thing, I do like this: You can paint but only if it can be covered in one coat of paint. Depending on your floors, I would make the decision abou the animals. I don't allow animals that are not fixed. They tend to pee on everything and it's hard to repair. You should be satified with 30 days notice. Check state law about landlord/tenant rule. Aside from some people having trouble living next door to their landlord, it sounds like a good deal. Get a lawyer that you can sustain a relationship with and try to make a long term plan to keep the property but move out of it within a few years.
2007-03-18 13:36:19 · answer #3 · answered by donewiththismess 5 · 0⤊ 0⤋
I bought and rent out the house across the street from my family. Having it that close has been a good deal, because I can keep an eye on the renters (and they know it, which is also a plus). I havent had any problems, though I have EVERYTHING written in stone. My wife and my father, who lives iwth us, are nice to them. I have made it a point to be very businesslike with them and have made it CLEAR (to them and to my family) that any questions they have about their rights and responsibilities are directed ONLY TO ME. My wife has a tendency to be a pushover, and dad is much too helpful for his own good.
Get a standard rental form, then add anything you can get them to agree to. No pets. I am a dog owner, but most people are NOT RESPONSIBLE with pets at all. Get as much deposit as you can, because some people do lots of damage. And keep a backup fund, because you never know when something is going to break (water heater, stove, refer, furnace, AC, a water pipe, who knows).
2007-03-18 13:35:54 · answer #4 · answered by lucyanddesi 5 · 0⤊ 0⤋
Hi. My husband and I are landlords, but we don't live in the buildings. Yes, the rent covers the mortgage, but we're really not making a profit after upkeep, taxes, insurance, etc....just breaking even..Thats ok though, it's a long term investment for us, and when we retire, it will be all cash flow, considering the mortgage will be paid off. I guess the pro of living in the building is that your tenants would be on their best behavior! The ONLY con I can think of, is you'd miss out on the rent that you'd receive otherwise...tough decision, but good luck!
2007-03-18 13:34:13 · answer #5 · answered by karen p 3 · 1⤊ 0⤋
Common walls will drive you crazy when the neighbors are your tenants. I don't know why you would want to raise your kids in this environment. Seems like you would take your money and get a nice/safe backyard, worry about schools, etc. If the only way this can go down is if you occupy a unit, then I would say no. You and your "husband" or partner will end up fighting over how to manage the property or "poor" tenants and it isn't worth the head ache for a young family such as yours.
2007-03-18 13:36:28 · answer #6 · answered by econgal 5 · 0⤊ 1⤋
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2016-10-19 00:52:35 · answer #7 · answered by ? 4 · 0⤊ 0⤋