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What kind of tenants are going to live in a 60k property? Id be careful of low income housing, especially as a first rental. I have a two family rental that I manage and do most repairs myself. Make sure you have the appropriate insurance coverage
So can you give an example of what it looks like
1. Have a real estate attorney in that area write your lease. This is not something you want to DIY. You can prevent 90% of problems by having a SOLID LEGAL lease agreement & then FOLLOWING it.
2. Have a property inspection done. A lot of investors skip this because they don't want to pay for it. Call around and interview a few people and find someone who is experienced with rental properties. Attend the inspection. Just because there are repairs to be made, doesn't mean you can't start renting. Just let your renter & property manager know.
3. Get personal referrals for property managers. Quality and cost of this service varies wildly. Make sure you understand what they will be handling and what you will be handling.
4. Pre-decide that you are not going to get emotionally wrecked when problems come up. They will come up. It will be OK. It's a learning process.
Thank you so much! 1) do you know how much ity is to get a real estate attorney do do them
2)i have been told this multiple times. So if I do an inspection and there are some renovations needed, its my best interest to do it? What if there are tenants arleady living in therev
3) thanks! From my understanding, their job is to make sure to get rent out of them if theyre being stubborn? Plz lmk if im wrong
RE: Insurance
You want to shop policies using an insurance broker. They charge a small fee on your premium, but will save you way more than they charge by shoppin quotes from multiple carriers.
At a minimum, you need a landlord policy and umbrella liability policy. The landlord policy covers the structure the umbrella policy covers if you someone sues you. You can usually require your renters to carry renter insurance & I know some charge renters a fee to cover "Rent Default Insurance" if they don't meet a minimum credit score or deposit. Make sure an attorney writes this into your lease.
Wait so can you explain how much would landlord policy and umbrella liability policy is gonna cost me?
How much can i ask for them not having an insurance and is insurance only for damages? What if theyre not paying rent just because ‘they cant’? Can i have a clause that not paying rent will result in termination?
Coach
I invest in upstate New York. If you’re buying a house for 60k you are 9/10 buying in the slums.
Yup its def not the nicest area but i know few people and the cashflow is def nice
Really not enough info. Property management has pros (services they provide) and cons (cost / dent in ROI).
Rather than Ready, Fire, Aim - make sure you've spent enough time aiming. Are you targeting cashflow or appreciation? What are your performance goals? How are you managing risk (vacancy, Capex, downturn in market, etc)
I know people have mixed feelings on him. I'd say his real estate stuff (older) is good. Recent stuff wouldn't be relevant. And again, just getting into that ecosystem of people who know how to evaluate deals and execute.
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