Rental Properties as Investments

[Triumph]

So how many of you hillbillys own and operate rental houses. I'm thinking about looking into this in okc and maybe some small towns in OK that I'm familiar with.

Anyone have any luck with this, any advice?


Also I had an idea that I would like to have critiqued. You know when you got to most main streets, mainly in small towns, you always see those old brick buildings. I'v always noticed that almost all of those old buildings have an upstairs part which most of the time seems empty or being used for storage. Well my idea as to look into buying theses spaces and converting them into loft apartments and selling or renting them out.

I don't know is that a stupid idea?

[proud gonzo]

i only know a couple of people who have rental properties and they say it kinda sucks. it's okay if you have good renters, but if you're lucky enough to get renters from hell, it's very bad.

[BajaOklahoma]

Loft living is big in Dallas and Addison, but will it fly in a small town?
Most of the people I know in smaller towns want yards and single family homes.

[sooneron]

The demand for lofts in small towns has to be small. I don't think the amount that you could charge would be worth what you put into the property.

[olevetonahill]

Your on the right train just trying to take the wrong track .
Buy the most run down POS in a decent neighborhood ( not 1tc ers )
Fix it up sell at a profit , then repeat the steps ;)
You try to rent to folks, you get the shaft , been there done that :eek:

[Jimminy Crimson]

IN.

Bad tennants are the succ!

If you're just jumping in, keep the properties in the general area where you live. Makes it easier for maintainance and keeping an eye on things.

Definately not for everyone, though.

The more desirable small towns already have peeps doing the loft thang. A lot of towns where you would find available space, aren't as attractive to people who choose to do the loft thing.

[sooneron]

Just don't spend your money on a spec house!
http://images.tvnz.co.nz/tvnz_images/tv2/programmes/the_sopranos/edie_falco_d.jpg

[Triumph]

What the hell is a spec house anyway?:les:

[SoonerInKCMO]

Built on speculation of getting a buyer after it's completed.

[GDC]

I've got apartments that are profitable but a constant headache. My rent houses are less troublesome because we contract with the state to keep disabled folks. Very little tenant turn-over and the checks are automatic. That's the way to go if you can.

[Petro-Sooner]

Dads owned rentals since I was a kid. Just like gonzo said, renters from hell are the succ. But just apart of the game IMO.

[Petro-Sooner]

.

[etouffee]

our family ran a property management firm for years. most of our clients were people who got into rental property, realized what a PITA it was, and decided to pay us to handle it, thus giving up most or all of the profit they were making on it.

[Taxman71]

The problem with rental properties is that you generally only make money on the deal when you sell them and, as said above, can lose money and hair before then. If you are able to purchase a house below-market and make enough from the rental income to pay most or all of your mortgage payment, you realize a nice profit when you eventually sell the house.

On the other hand, you are much better off investing elsewhere if you are looking to pay cash for a rent house. The exception of course is if you think it will appreciate greatly and just want to offset your expenses in the meantime.