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Old 06-12-2008, 10:45 AM
 
Location: Huntersville
1,521 posts, read 4,923,021 times
Reputation: 299

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Do you live in Charlotte now? If so start thinking of price point. Think of how you plan to finance, how you plan on marketing, are you going to do it yourself, think of exit strategy so you can move on. How long do you plan on keeping the property, what are you going to do when the phone rings at 10.30 am on a Tuesday morning because the water heater is leaking. What you going to do at 11.30pm on a Sunday evening because the A/C is not working.

Bottom line is get your team together from Lawyers,lender,RE Agent, Repair guys etc etc.... once you start going you should be able to automate most of it.... Except banging on doors and chasing down rent... Even the best tenants have a reason why they can't pay until next week....
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Old 06-12-2008, 10:57 AM
 
Location: New Jersey
1,181 posts, read 3,042,848 times
Reputation: 464
Don't get discouraged. It can be difficult, but it doesn't have to be.

My family has been in this business for decades and yes, it is a lot of work, but so is running any type of business. It's the age old debate of the benefits of working for yourself vs. working for a paycheck.

With all things in life, it's a risk. You're doing the right thing. Do your research and make your decisions based on that. I did like the advice that John offered (in another thread) about # of units. Consider a rental property with at least 2 units, so if one is vacant, you still have income from the other. The more units the better.

Out of all the business ventures to embark on, I do believe this requires some of the least effort, but you have to have enough capital to sustain.

In terms of starting your research, I think it might be good to take a look at property values of multi-dwelling units, then put them up along side the rental costs in those areas. That will get you the gross margin to expect in that area.

The other thing to consider is the type of area you want to own a property in. It might be more profitable to be in a neighborhood that you might not be comfortable driving through. What are you willing to do to start this business? Are you willing to buy in an undesirable area and accept section 8 payments?

All research and decisions you need to make. I hope you have lots of success.

Good Luck!
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Old 06-12-2008, 03:28 PM
 
125 posts, read 497,458 times
Reputation: 42
To the OP;

Don't let the naysayers get you down.

It's a business that anyone can get into, BUT you have to do your research, get your education, and set realistic expectations.

You may be aware, but in case you're not, buying at auctions is going require cash or some pretty costly financing, and the same goes for bank owned (REO) foreclosures. Since most are in a state of disrepair and have limited time frames to fund the purchases, conventional financing is typically not an option.

Also, you asked about what areas are profitable. That all depends on what your exit strategy is, what your investing goals are. To some, an area of town which commands negative cash flow but has great potential for appreciation is profitable, to others (like myself) it is the opposite.

Best of luck in your ventures,

Dan
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Old 06-12-2008, 04:00 PM
 
Location: https://t.me/pump_upp
250 posts, read 524,124 times
Reputation: 253
The key is finding quality tenants.

Like me, for example.

I have been in this rented house since Dec 2004. In that time I have carpeted every room, painted every room, put in a new kitchen floor, counter top, sink, faucet and stove. The office bedroom was reetly painted and wainscot put around it, with cedar trim top and bottom. The main bedroom has been carpeted, painted and now has matching crown and baseboards. The existing open deck is now a screened, roofed patio. I put in a door on the stairway to the second floor to help keep heating and cooling costs down. I painted the outside of the house and the shutters. I built a brick fire pit in the back yard. I also painted the basement. I steam clean the carpets every year. I have never been even LATE on a utility bill.

My rent deductions to date?

ZERO.

In the Ohio renter's code, the landlord has to give me hot and running water. toilets that flush, and heat. Anything cosmetic is not required. My landlord is so tight she squeeks and has NEVER offered to knock $100 off my rent here and there. To be fair, 3 school levies have passed here and they only raised my rent one time in going on 4 years.

And then I read about tenants who stick the landlords with utility bills when they sneak out in the night, trash the property, etc..... In my case the last tenant STOLE the washer and dryer when they snuck out of this place.

So I told you all that just to say this. Do your research on who you rent to rather than being SO concerned with never having even one month go by with an empty property and you should do fine. If you rent to ex-cons who set up a meth lab or deal drugs in your house, that's your fault and you'll get what you deserve.

Buy a house in a good area and I will rent from you if I move. You'll never hear from me unless I need plumbing done or the roof starts to leak. I take pride in where I live and make sure it's kept up. Of course right now I need to rent sheep for the grass because my mower won't start.....
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