Jump to content

Rental properties - advice?


ivanhurd
 Share

Recommended Posts

Hi all, I recently got picked up for retraining into a different job in the Air Force (super excited btw), the reason I'm posting this is because we got to this place in Feb and bought a house with a VA loan thinking we will be here at least a few years. The job that I'm retraining into isn't located at this base so we will be moving for sure within the next 6 months or so. Basically what this means is that if we try to sell it we probably won't get anything out of it, so it will probably not be worth it to even put it on the market. For a while tho I've wanted to buy a house as an investment and I think it will be super easy to rent the place since the area and base is growing. I guess to make a long story short, do any of you have experience with rental properties and can you give me any advice whatsoever. I really have no clue where to start on being a landlord as far as where I would go to draft contracts and all that jazz (short of getting a lawyer). Any help you can give will be greatly appreciated...thanks!

Link to comment
Share on other sites

Some renters like to call the homeowner with ever little problem. For example: Renter calls my father complaining that the AC has quit working and not blowing air at all. Dad sends me over to check out the problem. AC filter was about 2" thick with dust and totally blocking air flow. He had been there 2 years and had NEVER changed the filter.

Then there was the time a renter flushed a whole box of condoms at once and plugged the crap works all the way to the septic tank.......but that is another story.

Like JerolW said, who is gonna answer these calls?

Link to comment
Share on other sites

Mine charges me 10%. I suggest you buy a home warranty (I think mine is about $400 a year), so far it has paid for heat pump, dishwasher, clogged central vac and 2 garage door opener issues in 3 years. Make sure the management person is associated with a real estate company that the Home Warranty salesperson frequents. The H.W. salesperson can only make money if the agent/manager is pushing their product...now you have an in if the warranty folks do not respond quickly.

just know this; no matter how long the lease is, the renter can (and will ) leave anytime and all you get is the deposit.

Good luck!

Link to comment
Share on other sites

Any idea what kind of percentage rental agencies get? And I should be within 8 hour drive. Do you think it'd still be a good idea to go that route?

Indeed... it is right around 10%. you'll have to run the numbers to figure out cost versus income advatanges, I dont think anyone can make a blanket statement that one or the other will be best for you until you see the numbers.

Link to comment
Share on other sites

Look for an apartment association in the area. They are often connected to the state and National Apartment Association. The local office and fellow members can be a HUGE help.

If I am long distance from a property I would prefer to not be any further than I could drive there and back in a day. You would certainly need to get a property manager IMHO.

Link to comment
Share on other sites

Then there was the time a renter flushed a whole box of condoms at once and plugged the crap works all the way to the septic tank.......but that is another story.

Definatelt annoying, but you do have to give the guy credit for his stamina.

Ah, yes, yes you do. [Y]

Link to comment
Share on other sites

Unless the house has Killer location & IF the local economy is vibrant & growing ,

you are taking on a Huge risk vs the out come as a investment .

Not being in the same area takes away the ability to monitor the site .

If you have a worst case scenario , the Property Management company really just collects the rent .

They will not help out in any major losses .

Not trying to pee on the parade , but plz keep these issues in mind .

Link to comment
Share on other sites

^^^If I wasn't completely confident that I could rent the place out I wouldn't even attempt it. I live near an Air Force base that is growing, so new people will be coming in all the time looking for places to rent. If push comes to shove we will allow pets. The pickings around here are slim for that which is why we ended up buying in the first place.

Link to comment
Share on other sites

I would sell it, and take the hit. How upside down are you on the place? The kind of people you would likely sell to would be landlords in the area. If the area is growing, they would take it off your hands to add to thier portfolio.

There are many reasons I say this. One is that people will tear the hell outta that place, and you will be left with something you have to spend $25,000 on to be able to sell it for a loss. Also, every cent you make on rent will go either to fix crap that breaks or to realtors.

I have been there and done that. Get rid of the property...

Sorry if I am not telling you what you wanted to hear. I am just being honest.

Link to comment
Share on other sites

^^^You may be right, but the way rent is in this area I should be albe to do alright with it. With our VA loan we didn't have to put any money down and some fees got added to the loan, so we are a couple thousand upside down on it. To me, it may be worth it to hold onto at least until the housing market swings back to a seller's market. Selling it is something I've thought of too...we'll see what happens when the time comes up.

Link to comment
Share on other sites

Using the management company is the way to go if you can afford it.

I have a condo that I do this.

The hardest thing I have to deal with is opening the email to look at the amount they deposited in my checking account.

Plus the best thing with doing this is they do not take crap from tenants. Things you might let slide they would not.

Some of them even do background checks or credit check on them first.

And some have maintenance services. Change filters, fill water softeners and fix simple household problems.

Link to comment
Share on other sites

been there...done that...was 22 as an e-6 in the army....was told I would be at my gaining unit for at least 5 years and the folks there in my job tract where there for 5 to 15 years.....so I bought a house...18 months later I got picked up for a special assignment because I was in the top 3% of my branch. Tried to rent the house and what a night mare....even with a rental company. Before deciding on going the rental route you need to google the laws in your state about evicting tenants. Its not an easy thing to do and there are folks who look for rentals in which the owner is out of state. They pay a month or two fo rent and squatt until they are finally evicted.....many, many, many months later. Unfortunately...laws prevent you from saying anything that excludes a demographic group from renting...so you can't say "for rent, military only, no civilians".

Link to comment
Share on other sites

I have seven houses and two duplexes on a block on which I live. I should say 1 1/2 duplexes, since an apt. burned recently and also damaged the one next door. Rather than be an absentee landlord, I would select a worthwhile charity and give my money to them-at least it would be a positive investment.

SSH

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

 Share

×
×
  • Create New...