3 months ?? wow - Landlord Forum thread

3 months ?? wow by chris m on July 29, 2002 @13:48

Leander Leander on 7/29/102 8:30 AM said: >>I'm a full time employee at a large corporation and I'm literally burned out. I'm looking to get into rental properties to find financial independence and hopefully more time for myself. My goal is to aquire numerous rental units and contract the upkeep out to a property management company. >> >> >> >>My questions are as follows: >> >> >> >>1. How do I determine what type of tenants are in a building I'm interested in purchasing? (I'd like to know if the tenants are paying their rent on time or if they're even paying rent at all) >> >> >> >>2. What things should I look for in a property management company? (I need some guidelines in choosing a management company, I don't want to get cheated by an unscrupulous management firm) >> >> >> >>3. How do I find and hire inexpensive but good contractors? >> >> >> >> >> >> >> >>Thanks for any help. I know this may sound insane but my goal is to build up enough cash flow from rental properties to retire from my full time job in 3 months. >> >>chris> >>Thats a pretty ambitious schedule. I've been landlording for a dozen years and its not a laid back profession. Those infomercials make it seem so ez. I would take a basic law course to review contractual law before buying or leasing any property. As for knowing what type of tenant already resides in a unit youre looking at-you can ask for copies of lease/disclosure on rental histories-but unless you make a bona fide offer, the current owners really have no obligaton to present this info. Also, the tenants may/may not remain after the purchase. Lot of variables.. You'll have to interview mgmt companies & contractors. You can ask local realtors & get their opinions but the choice is yours. Mgmt co's cost money-Some work for percentages, others have 'per' cost logic that can add up quickly. Check cost up front before you sign.Ultimately,the responsibility is yours for the property and all that implies. Renting property is money in-money out for some time. Your net worth may increase, but with each property the amount of overseeing and costs, incl taxes goes up too. You dont mention mortaging to purchase properties, that in itself is serious offset to income ratio. Realistically its not always positive cash flow. I think we all have tenants that pay on time & dont complain, but its mostly because the property is kept up and thats their nature. Then you have the 'demonseed' tenants that you spend $$$ evicting and much more on damage. But theres positive too. if your still determined, get a good cpa, good lease, good realtor & good lawyer to work with you and you should be ok. This site has good forms, inexpensive and you should familiarize yourself with legal issues, local codes before buying the 1st property. Good luck!

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