This reminds me, though, of a special loan for rehabs to elderly low-income people. I believe I read this in that book by the guy who wears the silly suit with all the questions marks that there were special loans if you rehab and rent out to old people and/or ill people. I will have to re-read that.
In any case, renting is sounding like a huge headache. I would of course like to make a good living but also take pride in my homes.
In the book “Fix it and Flip It” the author says something to the effect of if you keep the place fixed up, people will want to keep living there and therefore keep it nice but I guess that is not true in all cases!
Then again, when I rented out my old condo to a “professional” I had to bug him to pay his rent every month even after the grace period.
I INVEST IN DETROIT ALL MY PROPETY ARE IN LOW INCOME AREA. IT NOT ALL THAT BAD I GET REALLY GOOD DEAL. YOU MUST KNOW HOW TO SCREEN YOUR TENANT,DONT LISTEN TO NO STORY BECAUSE EVERYONE HAS A STORY TO TELL AND SOON THAT THEY ARE LATE START EVICTION DO WASTE TIME BECAUSE TIME IS MONEY
EVEN IN THE GOOD AREA YOU WILL FIND SLUM TENANT SO AM HERE TO KILL THE MTYH THAT DONT BE AFRAID TO MAKE MONEY JUST MAKE SURE YOU SCREEN YOUR TENANT
There are several programs for the elderly. I’m in Texas, and our web site is TDHCA. There are different ways the owner can benefit from this, but I do not know about all of the programs.
The Tax Credit program that we are in can also be geared directly towards the elderly.
There is a maximum income.
Lets say just for easy numbers that an average household of one makes $30,000 per year. The Tax Credit program is geared to help low income people. So lets say you join the program that says that you can only rent to elderly people that make 60% of the median income for a household of one )assuming the elderly person you rent to has only one person, if they were two the max income would go up.
So. The average annual income for a one person household in your city makes; $30,000. You can only rent to someone that makes under; $18,000
30,000 x’s 60% = $18,000
There are different levels of income limits. In my city, its mostly 30%, 40% and 60%. Our owners don’t have to pay taxes. Not sure how it works with homes, but the manuals are very good at explaining the programs.
The elderly can have as 1 dollar to 1 million in their account, but you do not look at that, you only look at the interest from their money as income.
I ended up investing in an area that I wouldn’t even visit before for 3 years I’ve been living in this town (Louisville KY). Nevertheless being a foreign exchange student with no credit history my options were limited. I ended up buying a 3-plex with fire damage. Beautifull victorian mansion for $17k because the guy was willing to finance part of the price. To my surprise the area is much more decent than it appears when you first drive come here form the nice part of town. There is tons of good people too. I ended up living in the house since me and my wife liked it so much and we fixed it a little too good. We bought another one for investing and will definately stay here since I feel I have an edge knowing the area and prices really well.
From my observations about 50% of investors are succesfull and another 50% fail miserabely in this area. Neighbour of mine has a gorgeus historical house with 5 units and he treats his tenants very well visiting the house often and keeping it in top shape. He makes tons of money. His tenants stay with him for years.
Others buy a junker, slap some green paint on it, rent to a drug dealer and expect a success. Those usually fail and they piss me off too because they ruin the neighboorhood that has some potential to it.