Do any of you own rental properties?

Currently in the process of trying to buy my first income property. The property was bought and completely redone by a real estate investment company. Both units are currently under lease until April at $ 1400 rent a month. I'm new to this but my goal is to own 3 properties by end of 2020. Just wondering if any of you have any general advice, things I should absolutely be doing, or experience with rentals in general?

Also, have any of you invested in REIT's?

Posted by heliumfiasco

Currently in the process of trying to buy my first income property. The property was bought and completely redone by a real estate investment company. Both units are currently under lease until April at $ 1400 rent a month. I'm new to this but my goal is to own 3 properties by end of 2020. Just wondering if any of you have any general advice, things I should absolutely be doing, or experience with rentals in general?

I suggest looking for reputable property management companies that can screen potential renters, collect rent, and do maintenance themselves (for a fee obviously) on behalf of the owner. Trying to manage properties on your own, can be an utter nightmare.

If you prefer to do it on your own, I would suggest looking into good credit reporting companies, asking for 3 months bank statements that show rent from their previous residence being taken out, and fully looking into any of their reference for employment or personal. There are many people that will fake those, just to get into the house.

I also suggest not renting to individuals that are in college, or around that age. They end up really damaging property heavily.

Posted by Ooops

Know your contracts.

Know your tenants rights law.

Know your taxes.

Know your operating costs and margins

Network with contractors

Know the eviction process

Or

Hire a property management company and just collect a check if your margins allow.

You can also run real estate through a QRP qualified retirement plan.

You still gonna bring up a QRP, knowing full well, 95% of DXP won't know what that is. lol

My sister owns rentals and uses a management company. They take like 7-10% of the rent fee.

Only manage the place if your also living there otherwise, nightmare.

Posted by Ooops

Posted by nikkistar

Posted by Ooops

Know your contracts.

Know your tenants rights law.

Know your taxes.

Know your operating costs and margins

Network with contractors

Know the eviction process

Or

Hire a property management company and just collect a check if your margins allow.

You can also run real estate through a QRP qualified retirement plan.

You still gonna bring up a QRP, knowing full well, 95% of DXP won't know what that is. lol

I know, but if shes buying from an investment company she probably paid market value. I'm trying to save her some money and make it worth her while.

click to expand

True. Property management can be lucrative, but it is a PAIN in the ass when it is bad.

Solid advice. I'm currently googling a QRP. haha.

Now- ive read a lot that buying single family homes for rental properties is a better way to start off, because of lower cash down requirements and typically less money out for repairs (not dealing with multiple units at a time).

This current property is actually a very fair price and below market value. In an ideal school district. The money down requirement on an income property is obviously much more than a single family. So, i'll be talking with my finance guy today about my best options. I didn't intend on going this route but the property is just really nice.

What type of property did you start out with?

Fair housing laws are different if you are a smaller rental place btw, sometimes in your favor.

my advise: learn the laws, federal, state and otherwise. there can be different ones in place.

https://www.thebalancesmb.com/what-is-the-federal-fair-housing-act-2125014

https://www.hud.gov/fairhousing

Posted by heliumfiasco

Solid advice. I'm currently googling a QRP. haha.

Now- ive read a lot that buying single family homes for rental properties is a better way to start off, because of lower cash down requirements and typically less money out for repairs (not dealing with multiple units at a time).

This current property is actually a very fair price and below market value. In an ideal school district. The money down requirement on an income property is obviously much more than a single family. So, i'll be talking with my finance guy today about my best options. I didn't intend on going this route but the property is just really nice.

What type of property did you start out with?

Ours started with a townhouse in a nice affluent area, with a good school system in place. You are likely to get better renters in those areas, as shitty as that sounds. It sounds like yours is in a similar type of area.

I live in Rhode Island.

Yes, absolutely.