Has anyone been involved in rental properties for income?

How did you get started?

You can feel free to FM if you feel more comfortable.

Has anyone been involved in rental properties for income?

We have a 2 family house that we rent out. As far as getting started, it's the same process as buying a home that you will live in. You have to put 25% down for a 30 year conventional mortgage though. And the homeowners insurance is higher. I would calculate your mortage, taxes and insurance and see if the rents you collect will at least equal that amount.

Rental properties for income/housing programs

Thanks for responding.

I don't know how realistic it even is, but I am looking into it more as a housing program for the elderly and disabled.

Kind of like I would provide the housing, but work with programs who provide case management to the tenant, and also pay the bulk of the rent.

Since I don't have that kind of $$$ just lying around I am guessing I would have to look into business loans, business partner(s) and such.

This is a very long-term plan but it's definitely a need right here on Long Island.

Re: Has anyone been involved in rental properties for income?

That's amazing that you want to do something like that. I'm sure you would make a better landlord for this population. I know a lot of times based on their aid and income they end up living in crappy homes with slumlords.

Re: Has anyone been involved in rental properties for income?

Thanks.

Yes, it's definitely something that my colleagues and I have been discussing doing as a side-business.

I know there are people who do this and actually prefer renting to our people. They know that A.) they are doing a good deed and B.) they benefit too because it's often guaranteed income.

I am just wondering though if anyone has any kind of personal experience.

Re: Has anyone been involved in rental properties for income?

I have toyed with the idea of purchasing some investment property in Florida to rent out. I will eventually purchase something as I really do want to be a landlord, I just haven't had the time to really go for it. Also would like to have some more emergency funds available which I am working on.

A few things I would note, you definitely need money to put down and make sure you have a sufficient nest egg for times when you have no tenants or even worse, non paying tenants.

You obviously want to make sure your potential rental income is sufficient enough to cover all expenses related to the house so you at minimum break even.

You want to make sure you are HEAVILY insured, not only on the house itself but also a large umbrella plan. If I am a landlord, the very minimum would be 1 million, and I would likely look at 5 million in coverage.

I would also likely form some sort of s-corp or llc and purchase the house under that if possible, not only for tax purposes but for liability as well. I would be treating this strictly as a business and I would probably try to talk with an attorney to advise me on the best way to handle the house purchase.

I would also make sure you are working with a good accountant.

Re: Has anyone been involved in rental properties for income?

Sent you FM.

Re: Has anyone been involved in rental properties for income?

Re: Has anyone been involved in rental properties for income?

Yes we have a rental property. We listed it with a real estate agent and got several calls from the state to place disabled people there. Ultimately we rented to someone else.

Typically for an investment property mortgage you have to put min 20% down, 25% will get you a better rate. Only a few banks will do investment property loans now and you have to have great credit.