Category Archives: Rental Property
Someone pointed out that I am long overdue for a financial update on my rental properties. You’re absolutely right. Since buying the second rental property last year, so much has happened that I haven’t taken the time to evaluate just how they’re doing financially. It’s time to share.
For those of you who have not been around for the past three years, I now own two rental properties containing three units. These homes are located in an economically depressed area in Pennsylvania. Did I mention that I live in New York City?
I decided to buy both of these homes strictly as investments. In order to do that, I raided my 401(K) in the form of loans to finance my purchases since I did not have the cash on hand and because it’s incredibly hard to find financing for homes valued at less than $50,000. You can read more about that decision in Why I’m Buying Rental Property While Still In Debt. Anyway, it’s time to get to the finances.
A few years ago during the big mortgage meltdown, I became a homeowner for the first time. Although I purchased my first home, it was not one that I planned on living in; I had made the decision to become a real estate investor. Since then I have added one additional investment property bringing my current real estate holdings to two homes with three units. My brother also purchased a rental property in the same area with three units.
Being an investor is not all about sitting at home collecting rental checks; nor is it about handing your property over to a management company to deal with. My brother and I have had to learn, very quickly, how to spot issues before they become serious problems. The most common issue that we have run into involves rental scams.
As a landlord, I tend to focus on scams that originate from renters, but after establishing the site, MyTenantFromHell.com, I have also seen complaints about landlord scams a well. Today I would like to share with you the most common rental scams that I have seen online.
I’m kicking one of my tenants out of my house at the end of the month, but that’s a whole different story. I’ve already listed the house for rent to get the ball moving. After listing the house, I have received emails, texts, and phone calls from just about everyone in the ZIP code as well as a few of their distant cousins the next town over. I mean a lot of people.
One person sticks out more than others. She called as I was busy making the usual 3 hour drive into Pennsylvania. She loved, loved, loved the photos of the house and thought that it would be perfect for her and her daughter…but was I accepting Section 8 tenants? Reluctant to rent to Section 8 participants (send me hate mail after reading), I told her that the house was not child proof as the windows did not have safety bars on the second floor. Not to worry, she said. Her daughter was 21. Crap! What excuse to use next?
AS you know, I’m just about finished with my new rental property. Whether you’re renting out a home, an apartment in your own home or even an empty room, you should do your due diligence before letting a perfect stranger into your property. I figured now would be a good time to share this infographic with tips to follow before renting out property.
Be sure to click to enlarge.
So, I bought a house yesterday.
I know that it was less than two weeks ago that I told you that I had been thinking about buying a second investment property, and now here I am telling you that I’ve gone ahead and done so.
It was a quick process, really. I had been looking at homes and contemplating buying something for about two months. Finally, on Tuesday, May 1 my brother texted his realtor asking him to send me a list of available homes. I saw the house and put a verbal offer in on Saturday, May 5. All of the papers were signed and the deed exchanged on the 21st, only because I delayed the closing by 4 days.
I mentioned in my review of April that I’ve been considering purchasing another investment property. I’ve come to this decision after a very long thought process and a multitude of discussions with my brother. We’ve crunched the numbers together and what came out at the end made so much sense to us, that I’m willing to share it here with you.
If you listen to the news, it would make you run in the opposite direction of buying property at a time when you probably should be running directly to real estate. Apparently many of you do not watch the news either because, according to the U.S. Department of Housing and Urban development, existing home sales were up 5.3% in the first quarter of 2012 versus the same time last year. The housing affordability index is at its best, because of low housing prices and record low mortgage interest rates. The average interest rate for a 30-year fixed-rate mortgage was 3.88% during the first quarter of 2012. If you’re in a stable financial position and have been waiting for the right time, now might just be the best time to buy.
It’s been some time since I updated everyone here on my rental property. I’ve been doing updates on My Tenant from Hell instead, but now that the house is all finished, you can see how I took my rental property from this…
…with the help of just one other chick! Guys, watch out for us ladies.
If you haven’t already seen it, it’s time for part 3 of how I got rid of my tenant from hell where I kinda, sorta almost illegally change the locks. Whoops! Go to My Tenant From Hell.