Whether you’re not quite ready to sell your home (waiting for prices to go even higher?!), or a job opportunity has taken you to another city, you might find yourself interested in becoming a landlord to make financial ends meet “Being a landlord is fun, not at all time consuming and can provide enough returns that you can quit your day job and just collect rent checks all month!”
You’ve likely heard this throw from a relative or from any of your closed one and thought that it might sound a little too good to be true. Guess what? It is. Owning investment properties is difficult, time-consuming work, and it can be very hectic and ruinous to your finances if you are not careful in your activities.
However, even though it does have some milestones to achieve, it can also be very financially rewarding on a long-term basis. With some tough grind and intelligent moves, just about anyone can retire with many properties that provide a nice income stream. So if you’re willing to get your hands a little dirty, being a landlord might just be right for you.
Following factors should be considered when determining whether being a landlord is right for you.
Buy quality!!
If you want to be victorious in your real estate possession, like any other profession you have to understand that real estate is similar, the more you put into it, the more you get out of it. And the process starts with buying straight away quality; cash-flow positive properties located in fair credit quality areas.
Buy quality!!
If you want to be victorious in your real estate possession, like any other profession you have to understand that real estate is similar, the more you put into it, the more you get out of it. And the process starts with buying straight away quality; cash-flow positive properties located in fair credit quality areas.
Intelligent investors know that purchasing a good property is actually a lot harder than you might think. If you go on your own and buy some property for sale, but will that property produce positive cash flows, sufficient income and investment returns for the time and risk you are taking on as the owner? Majority real estate investors really do not make very much money on their possessions. Bad tenants, renovations gone off track, poor cash flows and Home owner associations issues can all make an owner wish they had left their money in the bank.
So in order to become a landlord you should ask following question to yourself before making the final decision.
Is it possible for me to spend quality time let say the next six to eight months, every weekend, driving neighborhoods, touring open houses, learning about property management, digging out real estate deals, making offers on properties, then going through the securities and due diligence process to take ownership of a good quality property?
Is it possible for me to spend quality time let say the next six to eight months, every weekend, driving neighborhoods, touring open houses, learning about property management, digging out real estate deals, making offers on properties, then going through the securities and due diligence process to take ownership of a good quality property?
If you’re not willing to do all these stuff, you think its time-consuming work to find those diamonds in the rough; you probably will lose money on your purchase and should just avoid becoming a landlord in the first place.
Supervising and managing your property!!
Again, majority of the people perceive that renting their property is an easy task, and that all residents will always pay on time and never cause any hassles. Consult some your property agent who is expert in doing this stuff on regular basis and disclose the facts!!
Again, majority of the people perceive that renting their property is an easy task, and that all residents will always pay on time and never cause any hassles. Consult some your property agent who is expert in doing this stuff on regular basis and disclose the facts!!
Like all the landlords you also have to bear the potential issues such as floods, overflowing toilets, broken appliances, etc., and you, the owner, have to deal with those problems. The only solution to these issues is to maintain good relationship with your residents, if you treat your tenants well, hopefully they will return the favor and your life will be easier and your ownership will be a lot more flourishing.
You also have to maintain proper database for all the rents in order to save yourself from future hassles, hire maintenance people, advertise and lease the property, pay bills and file your taxes. So there is a lot more to it than you think.
Now, ask yourself again: Do I want to deal with all those issues? You could just leave your money in a mutual fund and probably do just as well.
If you do want to take on the challenge, purchase five to seven properties in the next two to three decades and probably retire comfortably just about 30 years from today. Just about anyone can. But is it the right “job” for you? Are you ready to be a landlord?
If you do want to take on the challenge, purchase five to seven properties in the next two to three decades and probably retire comfortably just about 30 years from today. Just about anyone can. But is it the right “job” for you? Are you ready to be a landlord?
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