any landlords on here?

[Porno Joe]

Would love to get some opinions if there are some landlords on here

I have the chance to buy a house, which I hope to turn into a rental property. the house will basically need a full remodel. I'll be doing all the work myself. Its about a mile away from my current house, so im close to work on it and close to keep an eye on it once its rented.

Pros:
its incredibly cheap, im buying it for less than the land is worth
the house is over 2000 sq ft
sitting on over an acre of land
house is structurally sound

Cons:
needs serious rehab- not currently rentable
will need a new furnace


I just cant see a "bad" side to this, other than its a going to be a lot of work for me. I understand a larger house may be harder to rent, but I'll be into the house so cheap that I could just undercut the rest of the market. Thoughts?

 

[Mikey]

I heard the housing market will dip over the next year. But who really knows. If it is profitable, go for it. Remember it will be less time for family and everything else you are doing but the rewards can be great for them too down the road.

 

[OregonDMAX]

As long as you know for sure it has no structural damage or any major repairs like a roof or something like that then it should all just be cosmetic. Is it septic or sewer? That's a big one because septic systems come back to rape you layer if they haven't been maintained or overworked.

That's basically what I did, bought a bank repo, painted the entire inside with new carpet and tile and rented it out, the rental market where I live is just insane.

It all depends where you live, where i m at the market is fully recovered and going nowhere but up.

 

[catman3126]

As long as you know for sure it has no structural damage or any major repairs like a roof or something like that then it should all just be cosmetic. Is it septic or sewer? That's a big one because septic systems come back to rape you layer if they haven't been maintained or overworked.

That's basically what I did, bought a bank repo, painted the entire inside with new carpet and tile and rented it out, the rental market where I live is just insane.

It all depends where you live, where i m at the market is fully recovered and going nowhere but up.

I have a rental here and it is really easy to rent mine too.

 

[Porno Joe]

Also, I forgot to mention I'm buying this off of basically my step father, so its not like he would try to screw me over and lie about the house condition

 

[MACKIN]

As far as renting or the renters REFERENCES REFERENCES REFERENCES! With out good ones FORGET THEM!

 

[catman3126]

Yes and a big deposit and don't give you tenant an inch when it comes to following the rules and make them sign a rental agreement and do month to month. that way you can kick them out with 30 days notice (or it least in oregon) oh and have you late fee set up so it adds 10$ a day for each days late after the initial 50$ or what ever you decide for a late fee.

 

[jrkrace]

Depends on a lot of things....How many bedrooms,debt load, well or city water, sewer or septic, rental market you are after...

I personally think there are a lot of rewards if the purchase is right. If you clear a decent amount each month and sock it away, you should do ok. If it's a Section 8 or HUD market, and city water and sewers, there can be a potential for some expenses that was not figured down the line.....

 

[Chevy1925]

rental market out here is nuts. in the next few years i plan to move out into a much nicer house but ill be keeping this house im in now to rent out till i feel the housing market is reaching a peak again, then sell it off. i bought this place so low, i cant loose money even if the econ drops as low as it did these past few years

 

[gardnerteam]

Owned rentals for 45 years - as many as 20 homes at a time - in the old days I owned rental homes that were far better and larger than my own home. Two ways to make money: income if you have a very strong rental market & appreciation if you have a market where homes keep going up. Where I live - prices have increased about 400% + in the last 15 years, took a big dip in 07 to 12, then have come back and and are on the verge of running away again to unhead of highs. Rents used to be marginal at best, but for a couple of years have gone skyhigh (hot market, little land available, influx of retired and wealthy people and most important, people who had to move out of houses forclosed on and want houses, not multiple units). My rentals that went for $895 in 2007 are now $1800, and rising. Owned over 100 rental homes, and NEVER TOOK A LOSS ON A SINGLE FAMILY RENTAL HOME! Do it!

 

[TheBac]

I always wondered what you did for a living, gardnerteam. :thumb:

 

[bigjohn]

Can't go wrong joe if your getting it cheap.

 

[Porno Joe]

Thanks guys.

i checked the outside of the house out, and I see a few potential issues, but I dont think its anything big.

The good news is that I work with a guy who is a PA cerifited home inspector. He said he would check the house out for me for free. So one night next week I'm gonna run him by the house. As long as he tells me there are no major issues, like severe water damage, or a bad foundation or something crazy, i'll prolly pick it up

 

[mike diesel]

Buddy of mine owns a rental out here in a dumpy part of salt lake. 1200sq ft, 2 bed, 1 bath..destroyed back yard..not too great front yard..decent on the inside but nothing special. In the middle of the hood..has no problems renting it out for 1300 a month. His mortgage on the place is under $500. Has no intentions of paying it off anytime soon, strictly an income property. He could sell the house tomorrow for $165k no problem. If I had the cash to invest in some property, I would be all over it.

Im building a brand new town house right now and planning on, in about 7 years, refinancing to get the payment down where I want it, then renting it out and buying myself an actual house. I like the idea of someone else paying both my mortgages.

 

[btfarm]

Check out Landlord Station for a good binding lease format. We use it for a rental home on 3 acres here in Illinois. It covers all the things you will need the tenant to comply with. Very little editing is needed to add specifics.

 

[Porno Joe]

Welp looks like my landlord dreams are over

went out last night to check the house out. had a guy I work with that is a home inspector come with me.
one corner of the house foundation is crumbling away. you can just brush the foundation with your hand and watch it fall to the ground.

anybody have any experience with foundation repair? I'm trying to see if its can be saved or if the house has to be demolished. Supposedly the house was originally built around 1870, so there is a small part of me that hates to tear it down. On the other hand, I'm not going to buy a house that needs $20k in foundation work plus another $50k+ in rehab.

 

[PureHybrid]

Sandstone block? My parents put a new foundation under the old farm house, its a PITA but they wanted to save it, rest of the house was excellent. It can be worth it, but only long term. Can't do that and try to flip it.

 

[Fingers]

Sounds like a rubble foundation. Normal to be soft like that. Depends on how stable it is if it needs to be replaced. Usually, they are fine. If they are not sagging or bulging, they can be dealt with easily.

Those types of basements are always damp. Nature of the beast.

 

[Porno Joe]

Yeah, there are other issues with the house-

like the "addition" someone put on in the 50s- the floor is caved in laying in the basement.

The roof leaked at some point (its repaired now) but the damage was never fixed. I just have this nightmare of walls completely filled with mold.

Like I said the home inspector is a buddy/new guy at work. he said in his opinion, it wasnt worth it as a rental.

I think I still want to get a second opinion on the foundation. Jon- know any good structural engineers in the area?