being a landlord
I’ve been thinking a lot about rental/investment properties lately and wanted to pass along some knowledge. Owning an investment property isn’t for everyone, I learned that after talking with a friend last weekend. A novice may look at the small picture of owning a rental property and see pure cash flow. This can be a great asset to your portfolio but be forewarned, there are definitely risks associated with owning property. Also, you set yourself up to be the landlord – unless you hire a management company which can cut into your profits. Are you set up to be a landlord? Can you fix general house problems? Leaky sinks, clogged toilets, broken windows, etc. Can you be available in the middle of the night if a pipe bursts and starts to flood the basement? Assuming you use your rentals for some side income and still have a day job – are you flexible enough with your work to handle these emergencies? It’s not for everybody. If it is for you there is a GREAT potential to add to your investment inventory these days with the low mortgage rates. Any time people are giving away money (loosely speaking) is a good time to reach out and take it. Good luck, landlord!
It is always a bummer when my tenant calls and they have house problems, “the ceiling is leaking” is an example of something I had no idea how to deal with, but thanksfully a quick phone call to a handy man took care of the problem. I think being a landlord is fun, there are always new challenges and experiences.