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We bought a townhome in Mooresville today. Got it for about $10k less than the comps, so we feel pretty good about it.
I guess it's time to start reading up on NC landlord laws. Well, maybe it was time before buying it. Better late than never.
I know we had some discussions in the other thread "Tenant won't leave."
I'll go back through that, but if anyone has some suggested reading I'd appreciate it. We're going to use a property management company, at least for a while, but we obviously still need to learn the ins and outs...before we buy 1,000 more and become wealthy slumlords!
Having a difficult time to say the least with our own rental situation. So all I can say is good luck. Being a landlord is like a box of chocolates. You never know what you're going to get.
Better read up on the concept of immediate positive cash flow vs depreciating asset. Most aspiring slum lord tycoons seem to get tripped up on this concept.
Using a property management company (may I suggest T.R. Lawing?) is your best idea. Yes, they take a portion of the profits, but, it is SO MUCH easier!! They are the ones that take the calls at 3.00am to fix the clogged toilet and they are also the ones to properly vet out the potential renters.
I would recommend them because there are 2 rental properties in my neighbourhood that use them. One is owned by friends of mine that live in upstate NY. Both properties are rented to AWESOME tenants...and both properties look better than they did when the owners lived there!! I hear that they are quite particular and that is what is needed at this time.
If you want to "learn the ins and outs" jump in yourself and don't use a property management company. What are you managing? One two apts? What makes you think you can't be as smart as the property management person that will be assigned to your property?
There is a treasure chest of information on laws, case history, management techniques, forum boards on the net. In addition this is your investment and your money...why give up a % of what will prolly be very little money?
That being said I use a property manager in one particular set of properties I own out of state because I only visit once a month and that's just not enough attention for 25 units.
On the other hand the properties within driving distance of my home and office I do myself and learned everything I know because of 15 years of doing it that way. (BTW: how would you know if a property manager was doing a good job if you don't know what they are supposed to be doing?)
I think that pink primarily focuses on flipping properties, not renting/managing them.
I have been a property manager here in Charlotte. The laws here are very pro-tenant and you can loose a LOT by poor management of the property or by doing the wrong thing. There are also a lot of scam artists out there that know the laws well and work to get over on you (the landlord). That is why a licensed property manager is usually the best way to go. (at least at first).
There are classes that you can take at the local community college and you can also learn from your professional property manager.
If you want to "learn the ins and outs" jump in yourself and don't use a property management company. ....
Best advice on here. Once you know the ropes, then you can effectively decide what a property management company should handle if you ever need one. To the OP, your biggest challenge will be getting into a positive cash flow situation. You really need to sit down and have a business plan for this and hopefully you had this before buying property. This is where the investment part comes in. If instead you don't mind losing money each month, with the idea you will sell it for a profit later, you have instead entered into the land speculator business.
I don't know if it has been said, but get good home warranty program that covers repairs to the home. Invest in Angie's list and look up which services the area the townhome is in. The one I have is excellent for my area of Charlotte but I don't know if they go north. PM if you want details.
But the plans covers plumbing to AC and smaller appliances. This will be a better "investment" than a property management company. And cheaper too. More money in your pocket.
Only other advice is to really check the credit application, actually call the previous landlords. Don't give someone a break if bad credit. If they think nothing of not paying bills, they will use that same reasoning on not paying rent at some point. Tough I know but true.
The ones I would give a break if they are building positive credit and have at least 2 years of positive credit, then you know they are truly making a change to be better. But not less than 2 years.
I will probably get flamed for posting this but IMHO. But I do believe that people don't enter a lease with the intention of not paying rent.
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Better late than never.
