Reply to I am considering buying a rental property. Talk me out of it.

Forum Index » Money and Finances

Reply to "I am considering buying a rental property. Talk me out of it."

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous]It's all about the tenants.  Good ones will make your property cash-flow positive, and then it's up to you to manage that via repairs, improvements, etc etc.  Your ROI will be in your hands, to make the right decisions, DIY things at times, get a good handyman/electrician/plumber in place etc

Bad ones will bankrupt you if you don't have the cash on hand to outlast them.   Tenants have time on their side, all they have to do is wait you out until you finally get the sheriff to come after them.  Depending on how savvy they are, that process can take a few weeks or a few months.  You need to be able to weather that cash burn, be able to make repairs on the back end, and hold the property vacant until you are able to rent it again.

People say have cash on hand for repairs, unexpected expenses, a month or two of vacancy - that's all assuming everything is normal, and it happens anywhere from 70-95% of the time depending on your unit and area etc.

But the 3-7% of the time it goes south, it really goes south - and that's what you need the cash for, to be able to weather that storm[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics