Hello, I'm a slumlord

[Sylvia B.]

We had a conversation with a guy today and it went something like this:

"Hey I saw you hauling some lumber the other day. Whatcha building?"

"We bought a rental house and I was fixing a safety hazard." (Concrete step at entry. 6" tread, 9" risers)

"Ah. I don't do repairs at my rentals."

"Really?"

"Yeah, I rent to druggies. Whatever is there is what they live with. They don't complain."

I just can't wrap my head around it. Renting to druggies is his plan. And he's proud of it.

[Thomas S.]

Being a "slum lord" has very little to do with cash flow. The lowest class properties generally have the highest cash flow in the industry. The reason they do not waste money on upkeep is because the tenants generally destroy everything nice. Minimum repair to meet code keeps the money flowing and the class of tenants have little grounds to complain... or choice..