New to Rentals Low on Time

2 Replies

Hello,

I'm looking at buying a new home, and renting out my current one. It won't meet the 50% rule, but I would be wiling to do the landlording myself to save some cash. All the quotes I've gotten from property managers is first month's rent and 10% of the rent each month.

I'm in Orlando, and need to learn a lot. What are some good resources and how do I determine if I need an LLC? Would it be best to get a home warranty as well?

Rough numbers per month
Rent: 1600-1800
PITI: 1360
HOA: 75
Equals no margin and likely negative when vacancies and repairs are taken into account.

Fairly new home, built in 2006, and I just replaced the AC in 2013 for the downstairs.

My income can cover the two properties, and I'm ok doing this as long as I net money between the mortgage being paid down, and the tax breaks help me out.

@Eduardo C. ...It's an easy way to get started, but consider self manage to learn the business. Find a local RE meeting..The Ultimate Beginners Guide on BP has lots of info as well...I read as many RE books as possible for insight...Good luck!

@Eduardo C.

That is how we are got started. Our first house only cleared $200 a month. We managed it ourselves and therefore helping us increase the buffer.

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