Being a landlord, tips?

[theOHIOSTATE!]

Just had my best and final offer accepted for an investment property in the NWest suburbs. I am not assuming it's a done deal yet, but things are looking very good and i'm closing super fast (less than 30 days at this point), so it's sort of a whirlwind for me. When I bought my condo, it was like a 6 mos. process with a longer close, so things felt a bit more gradual as I went from touring places to buying in about a month on this deal.

It was a pretty hilarious process, but I am proud of how I handled some seller hijinx.
(not a brag, i'm old enough to be doing that by now and have bought a property previously)

Anyone out there a landlord?

Im lucky my folks already have some properties and have gone through it for awhile, and I am primarily drawing on their advice, but more input is always better.

So, what are your best 3 pieces of advice?

Anyone need a place 6 mins from Woodfield?:lol:

 

[Omeletpants]

Good luck as a aspiring slumlord. If you need some extra rats I know where you can get them

 

[gpphat]

Just had my best and final offer accepted for an investment property in the NWest suburbs. I am not assuming it's a done deal yet, but things are looking very good and i'm closing super fast (less than 30 days at this point), so it's sort of a whirlwind for me. When I bought my condo, it was like a 6 mos. process with a longer close, so things felt a bit more gradual as I went from touring places to buying in about a month on this deal.

It was a pretty hilarious process, but I am proud of how I handled some seller hijinx.
(not a brag, i'm old enough to be doing that by now and have bought a property previously)

Anyone out there a landlord?

Im lucky my folks already have some properties and have gone through it for awhile, and I am primarily drawing on their advice, but more input is always better.

So, what are your best 3 pieces of advice?

Anyone need a place 6 mins from Woodfield?:lol:

6 month process???? was it a short sale? from ratified contract it usually takes 45-60 days for a typical sale.

What type of property are you buying?

 

[theOHIOSTATE!]

Good luck as a aspiring slumlord. If you need some extra rats I know where you can get them

I meant the 1st place I ever purchased...the entire process from starting to look to close took that long. Sorry, working on literally 3 hours sleep and worked out last night. I am probably going to get pneumonia, but oh well, i'm going to die a landlord!

Buying a townhome deal....not going to give out really detailed stuff on the board, but asking is fine.

 

[Tjodalv]

No, landlords do not receive tips for their services. You're welcome.

 

[gpphat]

I meant the 1st place I ever purchased...the entire process from starting to look to close took that long. Sorry, working on literally 3 hours sleep and worked out last night. I am probably going to get pneumonia, but oh well, i'm going to die a landlord!

Buying a townhome deal....not going to give out really detailed stuff on the board, but asking is fine.

I know with association fees townhouses can be tricky as rentals, but at the right price they can be profitable and are low maintenance because of the association fees. I advertise all my units through Zillow and haven't had any issues renting them out that way. I also do a credit check on all applicants. Try and do as much of the work yourself if you can.

 

[theOHIOSTATE!]

I know with association fees townhouses can be tricky as rentals, but at the right price they can be profitable and are low maintenance because of the association fees. I advertise all my units through Zillow and haven't had any issues renting them out that way. I also do a credit check on all applicants. Try and do as much of the work yourself if you can.

I have done the preliminary work of looking at the disclosures they make to prospective buyers, and their reserves have increased yr over yr for the last 4-5 yrs, so that's good.

Ya, with some of these properties, I really don't get how they sell them when they're priced under 200k, with 500+ HOA's?

My lawyer will look at the rest of the HOA disclosures now, or that's what I believe happens. Those are the minutes/or where they are forced to disclosed any planned projects for the forthcoming year.

 

[gpphat]

I have done the preliminary work of looking at the disclosures they make to prospective buyers, and their reserves have increased yr over yr for the last 4-5 yrs, so that's good.

Ya, with some of these properties, I really don't get how they sell them when they're priced under 200k, with 500+ HOA's?

My lawyer will look at the rest of the HOA disclosures now, or that's what I believe happens. Those are the minutes/or where they are forced to disclosed any planned projects for the forthcoming year.

I know some HOA's have a limit on how many units can be rented out, I'm sure your lawyer will look into that also

 

[theOHIOSTATE!]

That's been answered, as well as parking for up to 4 cars which isn't optimal, but doable.


As far as monthly cost, I am more worried about taxes going up since it was rehabbed recently, but they didn't pull any municipal papers, so that's a good sign.

Taxes did go up 11% last yr, but they also were very low before.

 

[Guess Who]

I used to rent a mobile home. I had one real good renter for several years. Then the last one trashed the place and didn't pay rent. I had moved by that time and was working all over the country so I couldn't keep tabs.

1- Background check. Make them pay the fee. Shows they are serious.

2-Maybe offer a small discount if they pay on the first each month.

3-Don't collect the rent in any fancy vehicle. If you have an older vehicle, let them see that one. If they are late tell them the bank is on you're ass and you need the money. A friend has about twenty rentals in Gallup, NM and he says it works out pretty good for him.

 

[Omeletpants]

I am probably going to get pneumonia, but oh well, i'm going to die a landlord!

If you die, can I have the townhome?

 

[Burque]

If you die, can I have the townhome?

No, you only like the stock market. No real estate for you.

 

[RacerX]

OSU - happy 2018 my friend, this is right up my alley and happy to discuss. Congrats on the investment and good luck closing.

As far as tips in the abstract setting, pretty useless without further info including existing vs. projected cap rates (cash flows), your leverage (rates), concentration in your overall personal asset portfolio, etc.

In other words, too personal and this isn’t the forum to drill down into that hole.

Feel free to shoot a DM to me if you wish.

 

[Omeletpants]

No, you only like the stock market. No real estate for you.

I do have some real estate funds and Taco lives in a condemned building in Cicero

 

[Camden Cutler]

do the minimum charge the maximum

 

[airtime143]

I meant the 1st place I ever purchased...the entire process from starting to look to close took that long. Sorry, working on literally 3 hours sleep and worked out last night. I am probably going to get pneumonia, but oh well, i'm going to die a landlord!

Buying a townhome deal....not going to give out really detailed stuff on the board, but asking is fine.

Get ironclad contracts in place regarding outs for you if behavior becomes an issue. (following association rules etc.)
Do the walk through with them and take crap tons of pictures.

Introduce yourself to the neighbors and give them your number- if the tenants **** around and piss people off, you want to know before the association takes action against you.
Do all rent by check or funds transfer... cash transactions can be tricky to track at a later date.

Also- put a requirement in there to notify you of any new tenants that move in, and reserve the right to do a background check before allowing it- you get a scumbag or a criminal that causes trouble in the neighborhood in there, it is a minute possibility that the association could hold you liable and levey a fine or punishment.

 

[Burque]

Get ironclad contracts in place regarding outs for you if behavior becomes an issue. (following association rules etc.)
Do the walk through with them and take crap tons of pictures.

Introduce yourself to the neighbors and give them your number- if the tenants **** around and piss people off, you want to know before the association takes action against you.
Do all rent by check or funds transfer... cash transactions can be tricky to track at a later date.

Also- put a requirement in there to notify you of any new tenants that move in, and reserve the right to do a background check before allowing it- you get a scumbag or a criminal that causes trouble in the neighborhood in there, it is a minute possibility that the association could hold you liable and levey a fine or punishment.

How do you assess a new property that you are thinking about purchasing?

 

[BaBaBlacksheep]

Meet the applicants in person before accepting.
Absolutely ZERO sob stories accepted. It doesn't matter how tragic their story is or what their excuse is for bad credit.... if they're not fucking perfect.... wait for the next one.
Make sure you get references. Make sure you call those references and speak to them.
As someone said before.... make them pay the application fee upfront. No personal checks. Cash or certified.
No pets.
Write in the lease that you can make regular visits to inspect the property.
Call their employer and verify.

 

[bearmick]

do the minimum charge the maximum

Do not listen to this.

 

[airtime143]

How do you assess a new property that you are thinking about purchasing?

one was a no brainer- bought one next door because I hated the renters and my mom needed a place to live.

The ones I have for income I have been pretty close to the rental price (gross) X 72 = amount I will spend on the place (purchase and rehab)
I have a good handle on the going rental market the area I live and buy in, so it works out pretty well. I price my places 50 bucks lower than average and pick up the water and garbage bill out of my pocket.

I do all the work myself, so that saves a ton of money- I wont buy anything that needs more than I can handle.

..to add to it- I doubt I would buy in a subdivision with a strict association. my area is very rural so work trucks and boats and whatnot are just fine. I am fully unprepared to buy in an area with a thousand rules on what can and cannot be in the driveway.
Had a buddy who's car got towed out of his driveway in a townhome he rented- the reason...He had a snowboard rack on his suv.
No ladder racks or any other racks allowed, under penalty of tow. **** that.