buying houses and renting them?

[fgms]

Anyone know specifics on this? What type of down payment is required when you buy houses as an investment? Can you start a business and the business actually be the home buyer? Any info?

 

[SlightlyGoofy]

I have paid cash for the houses that we rented out so I cannot answer that particular question however I can give a few tips that might help.

It is not that easy to make money by being a landlord. Having a certain temperment and being very handy would help greatly.

Around here you tend to look for houses that are way underpriced and use them as rentals. I read one time that you should expect to charge 1% of the purchase price as monthly rent to make money. $100,000 house $1,000 a month rent etc.

The lower rental properties seem to generate the most expense (older and more in need of repair and renters who sometimes are less than reliable).

Nothing quite like getting a call late on Saturday on an overflowing toliet and several abusive phone calls following until you can get a plumber there on Monday afternoon (he would not come any quicker to our private home either). $300 later the diapers that they flushed were removed. Good luck trying to recoup the fees, at least for us.

BTW, the only time we really made money on some of our properties were when they were empty and we were able to take a tax loss. Is why I am no longer in that business. I am neither handy nor tough enough to be a landlord. When I was a renter I used to turn the heat down (was included in the rest way back when) and do some repairs myself but I never ran into a renter like I was. Good luck.

BTW, if you have been watching those late night tv commercials you might want to get real advice from people who are in the business.

Slightly Goofy

 

[seashoreCM]

Typically you need to put down 20% when financing a rental property.

You should have prospective tenants fill out an application listing their previous landlord or previous two landlords with phone numbers. The application should say that they give you permission to pull their credit reports. Inability to contact a former landlord is an acceptable excuse for declining a tenant.

Do not be "my first Sony" correction "my first landlord" to a prospective young tenant. You may decline a tenant for not having any rental history.

If a prospective tenant on move in day or at the last minute asks for more time to come up with the first month's rent or security deposit, decline him immediately on the spot. That is a sure sign of financial instability.

Disney hints:
http://members.aol.com/ajaynejr/disney.htm

 

[fgms]

I was just looking for info when it comes to making multiple purchases. We already have one house that we have rented out for the past 6 years so we are aware of what goes into being a landlord etc.. Fortunately we have made profit that is why we were considering buying more.

 

[4formickey]

check around for the downpayment. I found a company that asked for 0 downpayment. Some of the renters are very,very special. They will call you for every thing.I found out that it my be best to just give them a roof and let them suppy their own appl. My tenant is section 8 and her entire rent is paid by this program. On a monday night I painted the basement floor for inspection on wed. Tueday they had a party on the damp floor and messed it up. They knew that the paint ws not dry but they wanted to have their party. When I informed them that the floor had to be repainted , she looked at me like I was crazy.This is one of the many stories that I can tell. Hair weave in the toilet, the cable was on before they move in. Must have cable! You must learn to fix things yourself or you will not make any money.Sometimes I wish that they will drop a match on the floor and forget to call 911. Most renters now a days do not that much for their home. It will alway become your preoblem in the end.

 

[fgms]

We have had good renters the past 6 years. The one in there now is great. Luckily we have also never had anyone to be late on a payment either. We supply the appliances in the house-refrig, disposal, dw, washer and dryer. It also has a pool and that has been fine also.

I just wondered about the down payments when you start buying several.

 

[ajksmom]

Just because it hasn't been a headache for 6 years now please don't think that it won't ever be. We own a few properties and over the years have had some wonderful tenants, but it takes just ONE to cause alot of problems...
In terms of financing, I believe 20% down is the norm. If you contact mortgage brokers in your area you may find ones that require less.
Do you have any equity in the property you already own, enough for them to use that equity as the down payment? That is how my DH and his partner purchased the last few properties. They also operate this as a business, an LLC, and the business owns the properties.
My DH isn't home now or else I'd pick his brain for you. If you have any other ?'s you can PM me and I'll get some more information from him.

 

[alisonlee3]

Hi I just saw that you are from NJ.Where in NJ are you looking to buy properties? I am a real estate agent. I can email you some listings if you would like. I primarily work in hudson,bergen and essex counties. I could also refer you to a mortgage company.

alison

 

[alexcturner]

Hi, We have been buying properties for approx 2 years. I have enjoyed it more than anything I have ever done. We have bought properties where we live and rent them out on 1 to 5 year rentals. We also just bought a property very close to Disney that we are renting out on short term rentals. This is a whole new ballgame! I am learning, but I would be happy to answer any questions you have. To answer some of your previous questions, we always put at least 20% down and amortize over 15 years. Some we have paid cash for. I always want my properties to cash flow, but it would depend what your goals and intentions are.