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Time to Invest in Real Estate?


plenzmd1

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I own a 4 bedroom single family property which I have been renting since 1994. When I first tried renting it I used a property manager but the property manager did nothing - neither when renter ruined property or when they missed payment. I found the tenant so they did not even bring that to the table.

 

After the losers from Texas were not renewed I rented to a local woman recommended by manager. Her boyfriend moved out and a new one moved in. More damage including flooding the basement by moving a wall around the sump pump and having her cat put a sock into it. I almost got paying for basement cleanup, sump pump and damages but my handyman found the sock and despite claims by tenant to contrary there is no way the basement could have gone without working sump pump for two years so money for repairs and cleanup came out of security deposit and out they went at end of lease.

 

I dropped 'management" agency and I was ready to sell having converted personal to business property (by law you can do this and write off depreciation if it is rented 3 ot of 5 years) but some friends asked me to give a friend of theirs a chance. She worked with them and got government aid but took care of her apartment well. I gave her a chance and she has rented the property since. Some problems with aid agency but otherwise she has kept property in good shape even having her boyfriend fix things not charging us and even replacing appliances when needed with her just sending me bill after we approve of replacement. Aid agency actually pays "market" which was higher I got on open market with management company so only real costs I have is taxes, fees and some upkeep.

 

Lessons:

  • Do not get into housing unless you can do work yourself or have honest handyman
  • You need to cash cushion for times when you need repairs or are not renting it
  • Management agencies are not worth the money they leach our of you

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I own a 4 bedroom single family property which I have been renting since 1994. When I first tried renting it I used a property manager but the property manager did nothing - neither when renter ruined property or when they missed payment. I found the tenant so they did not even bring that to the table.

 

After the losers from Texas were not renewed I rented to a local woman recommended by manager. Her boyfriend moved out and a new one moved in. More damage including flooding the basement by moving a wall around the sump pump and having her cat put a sock into it. I almost got paying for basement cleanup, sump pump and damages but my handyman found the sock and despite claims by tenant to contrary there is no way the basement could have gone without working sump pump for two years so money for repairs and cleanup came out of security deposit and out they went at end of lease.

 

I dropped 'management" agency and I was ready to sell having converted personal to business property (by law you can do this and write off depreciation if it is rented 3 ot of 5 years) but some friends asked me to give a friend of theirs a chance. She worked with them and got government aid but took care of her apartment well. I gave her a chance and she has rented the property since. Some problems with aid agency but otherwise she has kept property in good shape even having her boyfriend fix things not charging us and even replacing appliances when needed with her just sending me bill after we approve of replacement. Aid agency actually pays "market" which was higher I got on open market with management company so only real costs I have is taxes, fees and some upkeep.

 

Lessons:

  • Do not get into housing unless you can do work yourself or have honest handyman
  • You need to cash cushion for times when you need repairs or are not renting it
  • Management agencies are not worth the money they leach our of you

 

Ya I hear you, finding a good mgmt. agency is easier said than done. But when you finally do find a good one. They really make your life easier. Especially when you have a nightmare tenant which is what I have right now. The woman has come straight from hell to torture me. And she is a doctor to boot !

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Ya I hear you, finding a good mgmt. agency is easier said than done. But when you finally do find a good one. They really make your life easier. Especially when you have a nightmare tenant which is what I have right now. The woman has come straight from hell to torture me. And she is a doctor to boot !

OUCH! sorry to hear that Fan in SD. I have nightmares about nightmare tenants .....and altho ive only been stiffed once(guy moved out and didnt pay last 2 months and left the place a mess).

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Ya I hear you, finding a good mgmt. agency is easier said than done. But when you finally do find a good one. They really make your life easier. Especially when you have a nightmare tenant which is what I have right now. The woman has come straight from hell to torture me. And she is a doctor to boot !

 

 

Ouch! Thats why I stick with vacation and short term rentals.

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