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.

Caveat, landlord.

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