Should I Buy A Rental Property?

[linds_15]



This is true.

id have to disagree with this, it really depends on how big of a house and where the house is relative to the school. i got to a small town school and 1. the party hosues are known because they have landlords that allow it, the landlords that are more strict dont have tenants that throuw parties because the hosues are usually nicer, and they dont want to trash it
i lucked into getting one of the best hosues in comparison to all my friends and we'll have people over, have a good pre, but by no means through a rager

my landlord makes a ton because he maintains his houses well, has strict but reasonable contracts, and of course everyone has to sign a 12 month lease and absorb the cost of not being their in the summer

 

[KPO89]

I am thinking of attempting the same thing in NYC. I will most likely buy an apartment and when I move away (3-5 years) rent it out. I plan on moving to the West Coast and will still maintain a property in the City. May even continue to do so in the long run with more rentals. NYC property investment appears to be a solid choice. Especially in the boros where gentrification is happen at an accelerated pace.

 

[Khayembii Communique]

I decided that I wanted middle-class professionals and/or families that are generally responsible, easier to deal with, drug-free, relatively drama-free and take good care of the place. So I look at areas that are in good, desirable locations (close to shopping, highways, other amenities) and in good, desirable school districts. The desirable locations will attract both young, single, clueless, drama queens too (who doesn't want to live in good areas?) as well as responsible people, but the good schools will filter out the first demographic and you will get more responsible tenants. I have 2 rental properties and both are in top school districts, one that even has a magnet programs for advanced students. The properties are always in demand. I have one tenant who has been there for 7 years and found a good tenant for my other property within a week. Of course, the properties have to be nice, clean and priced right for the neighborhood.

That's pretty much my target tenant, I think.

The key is to screen, screen, screen. Tenants are like a spouse. If you get the right one, you'll be happy. If you get the wrong one, you can go crazy!

What's your screening process?

My current landlord handles things really well IMO. 12 month lease, must give 2 months notice if we decide to break the lease so every year about 3 months from when our lease is up they send us a letter of intent basically asking us to sign saying we're either staying or leaving that we have to turn in 2 months before the lease is up. Their screening process I don't really remember, though (I think they were sold on myself and my roommate when we told them we were both engineering students set to graduate a few months after we first moved in).

Would it help for me to talk to them about this (they're also my neighbors so I know them rather better than most other people know their landlords, and they're nice people) or would they not give me any information because it's basically like me competing with them and means that I'd be moving out? I never knew how landlords viewed that kind of thing and if they'd help me out.

If you aren't handy (plumbing, electrical, general home maintenance) then you should stick this idea right into the garbages.

I'm pretty handy, and anything I can't do I'm confident I could learn pretty quickly. My dad is a certified master plumber and contractor/building inspector, which will help. I'm also thinking about going for plumbing and freon licenses. I've done minor repairs to my apartment and my parents' house and have done major repairs with my dad on his house (we rebuilt his chimney, re-sided his house, took out a wall and built a bathroom, among a few other things).

 

[mkarim]



What's your screening process?

My property manager handles it. Basically he advertises in FMLS, where he knows the prospects have already been prequalified. FMLS seems to bring a better class of tenant than does Craigslist, although I know people who have had success with the latter.

Would it help for me to talk to them about this (they're also my neighbors so I know them rather better than most other people know their landlords, and they're nice people) or would they not give me any information because it's basically like me competing with them and means that I'd be moving out? I never knew how landlords viewed that kind of thing and if they'd help me out.

If they are nice people they might help you and give you good advice, but more than likely they will see that you are planning to move out. It would be better to join a local landlord association.

 

[DYZYN]

Hold off for a few more months. Interest rates aren't going anywhere and housing prices are still sinking. We may be heading for some stagnation/mild dip in the coming months.

Also, credit markets are pretty free at the moment, so securing a loan with good credit and an 'ok' down payment shouldn't be too hard.