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Author Topic: How to rent SFH without landlording question  (Read 12439 times)

Offline propertymanager

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Re:How to rent SFH without landlording question
« Reply #15 on: October 22, 2006, 01:29:16 pm »
xburbx,

No, I don't sell my rentals, although I have sold a few extra deals when I had more deals than I could do personally.  At this point, I believe that I can easily manage and maintain 50 rentals by myself (I'll know soon).  My goal is to have 100 rentals by 2010, but I'm sure that I'll need some help by then.  I currently work about 4 hours each day (mon-sat) on the rentals, including management and maintenance.  I usually work 11am-3pm doing various things (painting, laying carpet, plumbing, etc  -  whatever is needed).  It's a nice pace.  (When I started, I worked six 12 hour days).  

Blondie,

With the management experience you've had, you should do GREAT with your REI business.  Just make sure you use the real numbers - no guru nonsense for you!

Good Luck,

Mike
www.1MinuteToRentalPropertyRichs.com 
This No-Hype, No-Nonsense Book is a step by step course in making money and building wealth with rental properties!  Everything from buying properties at a discount to dealing with terrible tenants.  Now In Paperback!

Offline xburbx

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Re:How to rent SFH without landlording question
« Reply #16 on: October 22, 2006, 01:44:25 pm »
What kind of cash flow do you have propertymanager?  Why did it take more time at the start of the business when you had less properties?

Offline blondie777

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Re:How to rent SFH without landlording question
« Reply #17 on: October 22, 2006, 02:10:21 pm »
Property Manager-you could buy an apartment community right now.  You can go to Loopnet.com, and e-mail all the realtors, and you'll find an owner that will carry 20%.

I am really really sick of managing.  Not rent collections, not reports, or dodging bill collectors, but the complaining about neighbors upstairs, next door, a building over.  I need a break from that!

I was going to flip, now I'm looking "at the very beginning stages" of buying a high dollar lot in Austin, building and selling.

Hubby has HVAC certified, plumbing, re-hab and new construction for multi-level.  If I flip would like to start with houses that have  market value of about $100k.

Would really love advise on the building part=)
« Last Edit: October 22, 2006, 02:15:20 pm by blondie777 »

Offline propertymanager

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Re:How to rent SFH without landlording question
« Reply #18 on: October 22, 2006, 03:33:51 pm »
xburbx,

In guru fantasy world, I have cash flow of more than $200 per month per rental.  Unfortunately, guru world doesn't quite extend to my area of Ohio and I only have about $100 per month per unit.  

I had to work harder in the early part of my business because we were rapidly expanding and everything had to be rehabbed.  We are now expanding more slowly and it is easier to keep up.  Also, I'm better at getting great deals that don't require as much rehab.

Blondie,

My only suggestion to you is to carefully evaluate your market and its potential future.  The RE bubble has burst in most of the country and has a long way to go to hit bottom.  New construction and pre-construction deals were the way to make money over the PAST few years, but are very risky now in most of the country.  If you're confident that your local market has a lot more demand or if you have a niche market you can exploit, the go for it.  That would be suicide here in Ohio.

On the other hand, I believe that we're getting close to the perfect opportunity to be a landlord.  Rental demand seems to be increasing and millions of homeowners who bought houses with gimmick loans will be losing their houses.  In addition, the real estate fad is over and millions of new landlords want out BAD!  The big problem remaining with rentals is that the population is increasingly descending into a moral abyss.  The lowest class of our population has been breeding at a phenomenal rate, encouraged by our socialist welfare state.  The current (and I believe the future) tenant pool is terrible.  The biggest challenge that I have in filling rentals is that applicants can't pass our criminal and previous eviction checks.  

Of course, being a landlord would mean that you would be forced to continue dealing with the stupidity that you described above.  Believe me, I understand.  Fortunately, I have just about gotten numb to all the stupidity.

Mike  
www.1MinuteToRentalPropertyRichs.com 
This No-Hype, No-Nonsense Book is a step by step course in making money and building wealth with rental properties!  Everything from buying properties at a discount to dealing with terrible tenants.  Now In Paperback!

Offline blondie777

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Re:How to rent SFH without landlording question
« Reply #19 on: October 22, 2006, 06:33:27 pm »
I really really appreciate your advise.  We have 12 acres in a small town right outside of Austin.  I was thinking of buying about six mobile homes at about 5k, rehabbing and  renting them for cash flow.  (I know that they are not an investment.)  My husband will deal with the residents, me the collections.  

That's awesome that you are expanding in Ohio, I'm from Nebraska and I can only imagine how hard you have to work.

Thank you again for the advise, I'll make sure and study the market. I love opinions, because I am new, and really am soaking every thing I can in right now.

Tanya

Offline propertymanager

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Re:How to rent SFH without landlording question
« Reply #20 on: October 22, 2006, 08:19:22 pm »
Blondie,

That sounds like a great plan to me.  Is 6 the highest number of mobile homes that you can get on 12 acres?  I'd try to pack them in as tightly as possible.  Mobile home tenants are pretty far down the food chain.

Good Luck,

Mike
www.1MinuteToRentalPropertyRichs.com 
This No-Hype, No-Nonsense Book is a step by step course in making money and building wealth with rental properties!  Everything from buying properties at a discount to dealing with terrible tenants.  Now In Paperback!

Offline blondie777

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Re:How to rent SFH without landlording question
« Reply #21 on: October 23, 2006, 12:27:15 pm »
You are right.  Okay let me ask you this...You have 100k cash, what would you do with it?

Offline Bluemoon06

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Re:How to rent SFH without landlording question
« Reply #22 on: October 23, 2006, 12:33:08 pm »
If your not in Texas, you can owner finance. =)

Iam in Texas and my last 3 houses were owner financed.  I use a trust.  We place the deed into a trust and we sell interest in the trust.  This is the same methodology used for country club memberships.  The restrictive laws on executory contracts drawn up by our state legislature and signed into law by our governor only apply to real property.  A trust is personal property and since they are buying interest in the trust the law doesn't apply.  

The information provided in this post is for entertainment purposes only. The application and impact of laws can vary widely based on the specific facts involved. Given the changing nature of laws, rules and regulations, and the inherent hazards of electronic communication, there may be delays, omissions or inaccuracies in information contained in this post. Accordingly, the information in this post is provided with the understanding that the authors and publishers are not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. Before making any decision or taking any action, you should consult a lawyer certified in real estate by the Texas board of legal specializations.
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Offline Rich_in_CT

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Re:How to rent SFH without landlording question
« Reply #23 on: October 23, 2006, 12:43:27 pm »
Nice disclaimer, longer than the post.  LOL

Offline blondie777

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Re:How to rent SFH without landlording question
« Reply #24 on: October 23, 2006, 12:44:00 pm »
Ok-You did that on Purpose! >:(Blondie I am. :-\

That went way over my head.  I would love to learn about that.  Could you either explain that to me like I'm two, or give me some sort of link?  I posted a new thread some time ago, looking for someone to buy the house I am renting and owner finance it back to me.

I was told that it is against the law in Texas.  The owner of the house, who is also a realtor, said that the house will appraise at $135k, and I would like to offer $115k.  We are getting free rent right now, and would like to keep it that way, until we recover. (Our house burned down, the insurance company is paying our rent.)

So if you want to buy it, and put it in the trust, and somehow give us an option to buy, that would be awesome! ;)

Offline propertymanager

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Re:How to rent SFH without landlording question
« Reply #25 on: October 23, 2006, 04:02:58 pm »
Blondie,

If I had your 100K and a plan to do the mobile home thing, I'd try to put more than 6 on 12 acres.  Would local regs let you put 24 or 48 on there?  I'm not knowledgeable about developing a mobile home park, but I think that it is a great idea.  I'd like to buy one here in Ohio myself.  I have been looking.....

Mike
www.1MinuteToRentalPropertyRichs.com 
This No-Hype, No-Nonsense Book is a step by step course in making money and building wealth with rental properties!  Everything from buying properties at a discount to dealing with terrible tenants.  Now In Paperback!

Offline blondie777

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Re:How to rent SFH without landlording question
« Reply #26 on: October 23, 2006, 04:19:20 pm »
Mike,

You can get mobile homes here anywhere from free on up.  The move is around $1500.  I do think your right, the mobile home park is the way to go (for cash flow).  People every where are trying to just get them off of their properties.  

There are not that many rules in Lockhart, its also a small town right outside of Austin.  I was thinking of  owner financing, but in Texas the laws are really strict as far as that goes.  If the "Trust" is for real, it sounds good, although I've seen other posts saying that it would be questionable in front of a judge.  I need to look into that.  Just don't know where to start, other then paying my attorney $300 per hour.




Offline propertymanager

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Re:How to rent SFH without landlording question
« Reply #27 on: October 25, 2006, 06:29:01 am »
Blondie,

Check with successful investors at your local (closest) REIA.  Someone there will be intimately familiar with the legal issues in your area.  

Mike
www.1MinuteToRentalPropertyRichs.com 
This No-Hype, No-Nonsense Book is a step by step course in making money and building wealth with rental properties!  Everything from buying properties at a discount to dealing with terrible tenants.  Now In Paperback!

Offline blondie777

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Re:How to rent SFH without landlording question
« Reply #28 on: October 25, 2006, 10:10:01 am »
I'm going to start REI Club hopping, until I find the right one.  There is another member that is knowledgable, and has been really helping me out with the trust thing.

 




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