Rent Moratorium, any of you stuck with deadbeats?

[yeahbaby]

My FIL had rental properties. I watched what he went through with deadbeats. No thanks.

 

[Sigblaster]

I had a rental property once, for three years. Selling it was one of the happiest days of my life. It's just not worth the hassle as far as I'm concerned. Good luck to those of you who do it.

I haven't read every post in this thread, but if I had a non-paying renter, I would do everything legal in my power to make it so uncomfortable for my deadbeat tenants that they'd just leave on their own. Central air? Not anymore, the outside unit/ heat pump is sitting in my garage. Window screens too, so if you think you'll just open the windows to cool the house down, buy bug spray. Pretty sure I can't remove your front or back door, but I can probably remove all the interior ones. Not sure I can remove your stove or refrigerator, but if I can, I will. I think I have to provide hot and cold water, so I will, in one bathroom sink. All other plumbing will be removed, except for one toilet. I could probably think of more. These are just off the top of my head.

 

[fullmetaljesus]

My wife and I purchased a really run down Victorian home in a historic district with cash. I spent the next three years learning how to fix things, while living there, spending what would have gone into a mortgage updating the home. We ended up selling the home and using the proceeds to purchase properties in Indy and Ft Wayne. Looking back however, we should have utilized the proceeds to put down payments instead of purchasing in cash. We were debt adverse back then and didn’t fully understand how to best leverage cash.

I’m new to real estate, but learning quickly. I’d be happy to share what little I know.


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Thank you

 

[Sigblaster]

Can I ask a slightly off topic question?


Those of you with rental properties, how did you get started? Did you get a bank loan and use rent to pay the mortgage or did you pay cash for the homes? Basically how did you kick it off?

Here's how I got mine. When I got stationed here in 2000, we bought a house that we planned to live in for three years and then sell, because 3 years was supposed to be the length of my assignment. I managed to get a three year extension on my tour, so I bought another, more long-term house and rented out the old one. That extension would take me to retirement, and we had fallen in love with Indiana and planned to stay here. When I retired from the Army, I sold the rental.

Now that I'm close to my final retirement, we're looking to buy another house, then sell this house later. There is no gosh-durned way I'd consider keeping this one as a rental. Not in this political environment. Not in this housing market.

If you are thinking about it, I urge you to reconsider. It's not the easy money that some people think it is. I'm pretty sure some landlords here will agree with me, and some won't. You're either going to have to sacrifice your own time to deal with your property, or pay a property manager to do it. Either way, you're going to have to spend money, and I've seen people get bitten by trying to spend money to make money on rentals.

 

[churchmouse]

Can I ask a slightly off topic question?


Those of you with rental properties, how did you get started? Did you get a bank loan and use rent to pay the mortgage or did you pay cash for the homes? Basically how did you kick it off?

We bought 4 walls and a roof the 1st 5 we did. Tax sales and bank foreclosure properties. A couple were family’s wanting to cash out and let clapped out property’s go. We paid cash. Fixed up the property and moved to The next. You have to have the right people as in paint dry wall roof HVAC etc.
when we were in this $8 to $10K could buy a shell. Throw $10K at it doing as much as possible yourself maybe $12 depending on the conditions of the kitchen/bath and you are set. We could do the windows in these boxes in a weekend. Doors were sometimes a drag depending on who had lives there.
the Hispanics are in and out in a day on the roof even a tear off.
skin the entire insides with 3/8” drywall after you pump the walls with insulation (from inside) and the Hispanics can knock that out like lightning. New interior doors the the carpet. Buy your materials right
If you need to buy a better property outside your cash reserves then get a mortgage on the completed unit and sell it on contract.
lots of ways to do this but it’s a full time deal. CKW was a loan officer for a mortgage company so she was hooked up.
We sold off rights the curtains fell and the bubble burst. We carried 3 on contract and they were mortgage a few years ago.
several original families still live in the houses.

 

[fullmetaljesus]

We bought 4 walls and a roof the 1st 5 we did. Tax sales and bank foreclosure properties. A couple were family’s wanting to cash out and let clapped out property’s go. We paid cash. Fixed up the property and moved to The next. You have to have the right people as in paint dry wall roof HVAC etc.
when we were in this $8 to $10K could buy a shell. Throw $10K at it doing as much as possible yourself maybe $12 depending on the conditions of the kitchen/bath and you are set. We could do the windows in these boxes in a weekend. Doors were sometimes a drag depending on who had lives there.
the Hispanics are in and out in a day on the roof even a tear off.
skin the entire insides with 3/8” drywall after you pump the walls with insulation (from inside) and the Hispanics can knock that out like lightning. New interior doors the the carpet. Buy your materials right
If you need to buy a better property outside your cash reserves then get a mortgage on the completed unit and sell it on contract.
lots of ways to do this but it’s a full time deal. CKW was a loan officer for a mortgage company so she was hooked up.
We sold off rights the curtains fell and the bubble burst. We carried 3 on contract and they were mortgage a few years ago.
several original families still live in the houses.

Thanks, I'm starting up a side hustle now. If it does well I'm thinking **** rolling those profits into house flips or rentals bit that's a few years out of I do well, just doing the faint little research on that now. Gotta focus on the hustle before I can get there.

 

[churchmouse]

Thanks, I'm starting up a side hustle now. If it does well I'm thinking **** rolling those profits into house flips or rentals bit that's a few years out of I do well, just doing the faint little research on that now. Gotta focus on the hustle before I can get there.

Wishing you all the luck. As with any profitable endeavor the players abs leaches are out there sucking up the deals. When we did this in the mid 80’s it was much easier.