Quote:
Originally Posted by lazycash
He should be able to get long term property management for 10% of the monthly rent charged. I agree, any excess damage, tenant payment issues etc... could eat away the few hundred you'd be clearing each month in profit. Depending on the amount you'd put down, if you were able to swipe a foreclosure that needed little clean up, you could clear a few hundred each month between your mortgage and rent and not have to rely on the property appreciating to earn a profit from it. Problem is the local investors/flippers that have cash are swooping up the best deals quickly, very hard for someone living out of state to get in on the action without being there.
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I agree with LazyCash on this, but I follow a strict strategy on dealing with renters.
I prescreen the renters and will wait it out till I find one that feels right. Second, I dont discount rent, but will give the 12th month free, if all the monthly payments have been made on time.
In the distant past, when I rented out the first condo I ever owned, I actually structured, the contract as a Roommate Agreement, which recognized me as a fellow roommate/occupant, giving me access to walk into the property whenever I wanted.
Key is finding a great management company.