Friday, March 8, 2013
Buy a rental home?
The economy is improving a tad so many people are snapping up homes to rent out.
These can be a bargain because people can't see how they will look when cleaned up--says Ellen James Martin, AZ Republic, Mar 25, 2012.
People assume tenants ruin places. This is not always true. But it can be a fact.
You need to distinguish between beatup properties and those who show poorly.
First, find a motivated seller--maybe the mortgage and upkeep is more than the rent.
Visit when the tenants are out. Some renters try to prevent sales--and can sabotage showings.
Hire a good inspector...even property managers overlook things.
Get estimates for all major repairs the inspector finds.
Try to find a house where problems are only superficial--such as needing paint.
I once knew someone who bought a house to rent out--someone had just thrown kitty litter on a closet floor--no box--that smell never left.