My wife has worked in property management heading the rentals and evictions division. Just like any other business there are good and bad clients. The problems landlords face is actually being able to evict tenants who don't pay rent in a timely manner. Then there are the ones who disturb other tenants, bring bugs in, and destroy the property like holes in walls etc... Evicting someone today is whole procedure that takes time and money. The laws where we live are in favor of tenants no landlords, and sadly some of the people know how to work the system. Expenses like legal representation at the rental board, sheriff to put them out if ruled, and cleanup is all out of the Landlord's pocket. Not to forget all the rent never collected. Here is what I consider to be an amazing way to retirement income with revenue property.
Just imagine purchasing a property in smaller towns, close to a university or college, and having 5 students paying you in rent totaling $2500/month. They are going to cause some damage and painting requirements once gone. Knowing this ask for more of security deposit. Since they have no credit the parents will be on the hook for the rent, $500/month per student. These are student they're not going to bother you as much for repairs. I'd guess if you never showed-up at the property they would elated. It's no difficult getting tenants new students or 1st year don't like dorms. I believe there are less problems overall. The lease would be more specific in what they can or cannot do like parties, amount of people in the house, or if they don't find anther roommate rent goes up etc...
The other side of this is making revenue while paying-off the houses, and appreciated value as the years go by. If you are in your 30's with a good job, can buy 10 properties over time that can be a great retirement fund. By the time you are in your sixties the houses should be paid-off. Why not get a reverse mortgage collect 55% of your houses value, and not payback until you sell in the future. I have no idea if they'll do a reverse mortgage on 10 revenue properties, but worth a shot. If worse came to worse after so many years the properties would be worth a small fortune anyway. No matter how you do it this could make a retirement income using revenue properties.
Just imagine purchasing a property in smaller towns, close to a university or college, and having 5 students paying you in rent totaling $2500/month. They are going to cause some damage and painting requirements once gone. Knowing this ask for more of security deposit. Since they have no credit the parents will be on the hook for the rent, $500/month per student. These are student they're not going to bother you as much for repairs. I'd guess if you never showed-up at the property they would elated. It's no difficult getting tenants new students or 1st year don't like dorms. I believe there are less problems overall. The lease would be more specific in what they can or cannot do like parties, amount of people in the house, or if they don't find anther roommate rent goes up etc...
The other side of this is making revenue while paying-off the houses, and appreciated value as the years go by. If you are in your 30's with a good job, can buy 10 properties over time that can be a great retirement fund. By the time you are in your sixties the houses should be paid-off. Why not get a reverse mortgage collect 55% of your houses value, and not payback until you sell in the future. I have no idea if they'll do a reverse mortgage on 10 revenue properties, but worth a shot. If worse came to worse after so many years the properties would be worth a small fortune anyway. No matter how you do it this could make a retirement income using revenue properties.
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