The tenant pays your mortgage payment. You won't make a lot of money while you have a mortgage. But, where else can you have someone buy and pay off something for you?
Click here to discover how other sellers successfully did a short sale and avoided foreclosure. http://columbusohshortsaleadvisors.com/
You start to make real money after the mortgage is paid off. In addition, some properties are so cheap that the rent will pay off a 15 year mortgage. So in 15 years you have a free house.
Rentals are a great hedge against inflation. Notice how gas prices are going up again? The prices of everything else increase with gas prices. Food, clothes, electricity, and everything else goes up.
That means your house will go up in value over the long term. But, you locked in the price when you bought it when prices were lower.
I don't want to make it seem like rental properties are a no brainer. There are some risks involved. No one should buy a rental property unless they are prepared and understand the risks.
The Cons of Rental Property
Problem #1: Leaky toilets. This is the first thing you should be aware of. We have seen that most problems are not emergency problems.
Many landlords work around these problems by hiring good help in the beginning. They find a good handy worker and negotiate on the price before any work is done.
Problem #2: Management. You can find a good property management company to handle everything for you. But, you still have to manage the management company.
If you do not have extra time to manage problems, then rental property is probably not for you. Some people like this buy larger properties and hire better managers.
They meet with their manager once a month and let them handle everything. This works for them because they bought a larger property with better numbers. That extra money can be used to pay a better, more competent manager.
Problem #3: Collecting Rent. This is where many people mess up. You have to be persistent and firm. If you are a sympathetic person, and prone to give people a "break, then rental property is not for you.
Problem #4: Evictions. This is the bad side of the rental business. Most evictions occur because you didn't pre-screen a tenant well enough.
You must budget enough so that you can afford an eviction when it happens. An eviction will cost you 2-3 months of rent. That is why you must have a rainy day fund for situations like this. Thinking about a short sale?
I can help you short sale your property and get back on your feet. Send me an e-mail at robin.lemmons@kingthompson.com. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at 614-741-2495.
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here. http://columbusohshortsaleadvisors.com/
Thinking about a loan modification? Our Columbus loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy.
Thanks for reading this, Rick and Robin Lemmons.
Rick and Robin is a Real Estate Team at Coldwell Banker King Thompson.
Phone: 614-741-2495
Email: robin.lemmons@kingthompson.com
A Zest For The Best
View My homes for sale at www.rickandrobin.com.
Rick & Robin Lemmons specialize in helping Columbus Homeowners short sale and never pay the bank another penny. Columbus Loan Modification Help, Columbus Short Sales, Columbus Short Sale Realtor. Columbus Short Sale Realtor. Columbus OH Short Sales. Columbus Realtor. Columbus OH Short Sales. Columbus Realtor.
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Important Notice
Rick and Robin Lemmons, Coldwell Banker King Thompson, and the Stop Foreclosure Institute are not affiliated in any way, shape, or form with the government. Our services have not been reviewed or endorsed by the government or your lender. Most lenders willingly work with agents on short sales. Why?
Because most short sales are beneficial to a lender. If you accept our offer to help you on a short sale, your lender may not agree to a short sale or to modify your loan. We do offer a loan modification kit.
However, the likelihood of negotiating a modification is like everything else in life. It takes work and persistence to convince your lender to modify your loan. No matter what you or we do, your lender may not approve a loan modification.
We do not recommend that you stop paying your mortgage, because this will cause damage to your credit and could cause you to lose your home. Because we know avoiding foreclosure is so important to any homeowner, we recommend that you speak with the appropriate legal or tax advisor before making any decision.
This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing.
You have the option to reject a short sale or loan modification from your lender if it does not meet your approval. If you decide not to go thru with the short sale, then you do not have to pay us our fee. We normally make a real estate sales commission for helping you on a short sale.
The views expressed here are Rick and Robin's personal views and do not reflect the views of Coldwell Banker King Thompson.
This information on Getting Your Finances Back On Track After A Columbus Short Sale. Pros & Cons Of Buying Rental Property is provided as a courtesy to our viewers to help them make informed decisions.
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