how to invest in rental houses?

[Stephen]

I am getting old I guess, been thinking about early semi- retirement a lot lately, I want to retire when I turn 40. (4 more years, wishful thinking especially after seem the last retirement thread)
I know notting about the rentals, but want to learn more about it. Can anyone who been there done that give me few pointers. I have the financial mean and very good with fixing stuff!
Stephen

 

[CODE_3]

Let me know if you need any help finding houses.

 

[mtnboomer]

I've done it - and I'll never do it again. But, if you do get into it, just one little piece of advise - DO NOT RENT SECTION 8! A lot of people think, "Okay, I'm guaranteed my rent money and DHS will pay me to fix the house after each renter, so what's the problem?" The problem is that the majority of Section 8 housing renters are highly destructive, and many, will conduct illegal acts in your house thus inviting LE to seize your property. Between the enormous and constant repairs and trying to keep your property from being taken, you'll likely never make much money. Been there, done that - ain't gonna do it again!

 

[JB Books]

I agree with this. I've bought 8 homes in the last 9 months. All new construction (2007-2012), mostly full brick, 3 bedroom, 2 bath, 2 car garage, in good school districts. I've put them all on 10 year notes. I get a better tenant. Also, it will be easier to sell them individually. I'm hoping to pick up another 7-10 this year.

I've done it - and I'll never do it again. But, if you do get into it, just one little piece of advise - DO NOT RENT SECTION 8! A lot of people think, "Okay, I'm guaranteed my rent money and DHS will pay me to fix the house after each renter, so what's the problem?" The problem is that the majority of Section 8 housing renters are highly destructive, and many, will conduct illegal acts in your house thus inviting LE to seize your property. Between the enormous and constant repairs and trying to keep your property from being taken, you'll likely never make much money. Been there, done that - ain't gonna do it again!

 

[Jestik]

Send Oldkar a PM on these forums.

 

[excat]

One of my friend's does the rental house thing. One thing he does when it comes to pricing/lease, he'll price it a little high, then when they ask if there is any room to come down on the rent, he'll say if you sign an extended lease he can lower the rent slightly to whatever he has preplanned. It's actually cheaper if he gets slightly less money over an extended time, vs letting the house sit vacant for several months waiting to rent. If they only want a 1 yr, he won't lower the price, to try and have some breathing room if the house sits vacant for a while after they move out.

He only does nice rentals though. No sec. 8, or any of that crap. Has houses in OK and Arkansas.

 

[Stephen]

This is what I was thinking. Newer house a little more expensive on the rent will keep out the bad renters.
I am thinking about in Moore, ( good school)

 

[Rod Snell]

This is what I was thinking. Newer house a little more expensive on the rent will keep out the bad renters.
I am thinking about in Moore, ( good school)

You still need to really background check and filter the applicants, since there are more than a few out there that will agree to any rent, sign anything, and less than a year later you're having to evict them for non-payment and repair the damaged property. Compared to the money I've made in other investments, the return is less and the hassle more than I bargained for. IMHO You need to either love doing it or buy a bunch of houses and farm them out to professional management, with minimal participation on your part. Personally, I would prefer NOT to have gotten into rental property. YMMV

 

[JaredC]

I've done it - and I'll never do it again. But, if you do get into it, just one little piece of advise - DO NOT RENT SECTION 8! A lot of people think, "Okay, I'm guaranteed my rent money and DHS will pay me to fix the house after each renter, so what's the problem?" The problem is that the majority of Section 8 housing renters are highly destructive, and many, will conduct illegal acts in your house thus inviting LE to seize your property. Between the enormous and constant repairs and trying to keep your property from being taken, you'll likely never make much money. Been there, done that - ain't gonna do it again!

I disagree. We still have 2 Section 8 homes we rent in the Fayetteville, AR area and we couldn't be happier. We have had them for about 6 years I guess and never had an issue. The tenants are great and once you learn the system, its easy.

 

[Stephen]

I've done it - and I'll never do it again. But, if you do get into it, just one little piece of advise - DO NOT RENT SECTION 8! A lot of people think, "Okay, I'm guaranteed my rent money and DHS will pay me to fix the house after each renter, so what's the problem?" The problem is that the majority of Section 8 housing renters are highly destructive, and many, will conduct illegal acts in your house thus inviting LE to seize your property. Between the enormous and constant repairs and trying to keep your property from being taken, you'll likely never make much money. Been there, done that - ain't gonna do it again!

You still need to really background check and filter the applicants, since there are more than a few out there that will agree to any rent, sign anything, and less than a year later you're having to evict them for non-payment and repair the damaged property. Compared to the money I've made in other investments, the return is less and the hassle more than I bargained for. IMHO You need to either love doing it or buy a bunch of houses and farm them out to professional management, with minimal participation on your part. Personally, I would prefer NOT to have gotten into rental property. YMMV

The problems is that I don't have any other skill after worked at the food service industries for 15 years. Care to share some other investment ideas?