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My ex husband lives in a new townhome in Cary and lives there about 50% of the time. He has been thinking of buying a second property to rent to me at cost so that I can more easily relocate. Right now I'm waiting on a job to open up which could be a while.
Personallly I don't really want to get into the business of renting from my ex for reasons i'm sure you can imagine.
So I can approach this discussion from a practical POV, could he buy a decent property (maybe a townhome or small older ranch) rent it to me until I could buy a home of my own, then rent it to others and make a profit?
Or would this be more financial trouble for him than it is worth?
Typically in Raleigh or Cary you make money on rentals that you have held for quite a while, that have appreciated in rental value so they will carry your debt and expenses.
Or, you can pay cash, and calculate your return more simply.
Either way, to be profitable long term, the owner has to have a strong "landlord mindset."
You have to be willing to evict. Coldly. Or you have to have the financial wherewithal to support non-paying or destructive tenants.
It isn't easy money.
Last fall we bought a tenant-occupied house to use as a rental. So far it has worked well, but the tenant plans to move this spring. We will soon find out what it's like finding a new tenant or not having the rental income for a few months. Hopefully we won't ever learn what it's like to have a bad renter!
MikeJ, thanks, as always, for the words of wisdom. He always fancied himself as a real estate wheeler-dealer, but he really doesn't have the time. I'm sure he could evict...as a CEO he has had to learn to fire people.
But in the end I'm sure the 'bottom line' will be the deciding factor.
MikeJ, thanks, as always, for the words of wisdom. He always fancied himself as a real estate wheeler-dealer, but he really doesn't have the time. I'm sure he could evict...as a CEO he has had to learn to fire people.
But in the end I'm sure the 'bottom line' will be the deciding factor.
MikeJ, thanks, as always, for the words of wisdom. He always fancied himself as a real estate wheeler-dealer, but he really doesn't have the time. I'm sure he could evict...as a CEO he has had to learn to fire people.
But in the end I'm sure the 'bottom line' will be the deciding factor.
Sue,
I don't mean to be entirely negative on it.
It is just that it takes a lot of study and commitment.
Great cash flow generally comes from low end units, and that IS generally demanding of time and attention.
It's not easy being a landlord, especially when trying to find good tenants.
If he goes through it, I can't recommend this group highly enough: TAA (the Triangle Apartment Association).
As part of your membership, you'll be able to purchase inexpensive rental forms that have been reviewed by a lawyer who specializes in housing/tenant laws.
You also have an opportunity to obtain background checks at a reduced rate. You get a simple "grade" back on the tenant that states the probability that the tenant will pay and pay on time.
The association also provides regular seminars and a magazine. Members include owners of single rental units as well as large apartment complexes.
I'm sure he could evict...as a CEO he has had to learn to fire people.
It's easier most times to fire someone than evict someone.
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