What makes a slumlord
IL · Member since 2010 · 46 posts · 1 vote
Ok for the landlords out there question.
I did math on a bunch of properties and saw in my area the only way to make positive cash flow on a property is that it starts around 6+units which is like 800k starting, and the only other way is slumlord in crappy neighborhoods and who says you will get any rent money from these guys?
What am i missing?
Please define "crappy neighborhood".
My rentals are working class, mid to lower income housing. I provide a clean house at a fair price. They cashflow well. I have had my share of good tenants and bad. i am not a slumlord. I reinvest some money into maintenance on my units. I have them cleaned between tenants.
I have friends that have high end rentals. They have their share of good tenants and bad.
To me, a slumlord is a person that takes the cashflow and never does any maintenance on his property and runs them into the dirt. Then he wants to sell them at top dollar and is outraged as to why he isn't successful. Just my opinion.
Bill, fair enough. This couldn't have been timed more perfectly with a deadbeat tenant at my most in-demand house in the nicest area (nicer than where I live, which is probably wrong) threatening to pull the slumlord card on me to break her lease get her deposit back. Probably put me in the worst possible mood for this thread.
Mike, read Mr. Luithy's response. I won't pretend to know what all his responsibilities are, his position is like or his daily job life is like but I have read his local paper interviews in the past and imagine he has a full time job and a half, especially at a time of war. He's found a way to do that while being a landlord.
A full time job is only 40-50 hours a week. That leaves 118 to 128 hours a week.
Theres some good Cash-flow properties in Indiana but i have no idea what the neighborhood is like. Any ideas what I should do? because I dont want to see a perfect property and go down there and there gangsters everywhere, im not trying to be a slumlord
Mike,
What are your goals with investing? Are you looking for cash flow rentals? I am guessing that you are based upon this thread but that is a question that only you can answer. If so, I would recommend that you begin looking in Indiana for several reasons:
1. It is close enough to make a day trip to check on your investments.
2. Property taxes: Indiana raised their sales tax to lower the property taxes.
3. Reasonable landowner friendly courts.
4. There are plenty of locations that meet or exced the 2% rule without needing to pack a weapon to view your property.
I know Ft Wayne and there is a ready supply of quality homes available for investors.
I am familiar with Indianapolis and there are plenty of quality rental areas there as well.
Tim is working another area of Indiana.
I can assist you if you need contacts here in Ft Wayne. I am sure that you could reach out to Marc in Indy and check with Tim on the area that he is working.
I understand your concern: Sure Indiana is great but where do I start?
I would definitely recommend that you get educated on whatever area you choose to pursue. There is plenty of assistance here on BP.
You will also want to decide if you are interested in buying and rehabbing or if you are looking for turnkey investments. You will also want property mangement since you are out of town.
I can put you in contact with the realtors, property manager, contractors, and insurance guys that I use here in Ft Wayne.
I am sure there are others here working other parts of Indiana that could help you with their contacts.
I will leave you with one last bit of advice: It is far better to say: I am sorry that I missed that deal as opposed to I am sorry that I bought this deal.
I do not want to imply that you do not want to take action but making a mistake buying the wrong piece of property can sometimes take a long time to overcome.
Best of luck to you.
Chris
When I buy a rental, I spend the up front time to make sure it is up to my standards. I also put in new appliances and fixtures. I get very few calls for repairs.
Most maintenance is caused by tenants, and billed to the tenants anyway.
As for being a slumlord, I agree that its the property and tenants, not the area. If you keep your house maintained, and keep good tenants, then your not a slumlord. There are very few places in Indy that'd I'd be afraid to walk through at night.
Every owner I've worked with has nothing but good things to say about our system, afaik. Well, not counting the one we had to send to collections for payment, but they were slumlords!
I posted some areas in Indy to look at in another recent post, or you can PM me.
www.rentometer.com can sometimes help you see rent rates.
Thanks guys have been soooo helpful! If you could shoot me a some PM's on some areas to consider I would appreciate it.
I couldnt help notice you guys were talking about Indiana, would you know any area that meets the 2% and the 50%? I was looking around the Fort Wayne area, possible some others. Thanks!
BTW did someone move this post before? i could of sworn i posted it on this topic