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General Landlording & Rental Properties

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Zach Simpson
  • New to Real Estate
  • North Logan, UT
29
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22
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Why Would You Do A Month To Month Lease?

Zach Simpson
  • New to Real Estate
  • North Logan, UT
Posted Jun 16 2018, 22:16

Hey everyone!

My wife and I are very young (both 21) and we have our first baby due in October. To make a long story short: I am wanting to get a headstart on real estate investing. As of now, I am really thinking it is what I want to pursue as my career. I'm REALLY new to all of this and I am just now starting to learn the basics. One common piece of advice I hear on the BP podcast, forums, articles, etc. has to do with "house hacking." So far, it all seems like a great idea. I was looking at a duplex on Zillow and the description mentioned that the tenant living in one of the units was on a month to month lease. My question is why would you (the investor) have someone on a month to month lease rather than a 6 month/1 year lease? Wouldn't signing them on a longer-term lease help avoid vacancies and then having a unit that produces zero income? Is there any advantage to the investor to have tenants on a month to month lease?

I apologize if this question has been asked a ton. I looked around for an answer and I didn't find anything that really answered my question. Thank you all in advance. Any and all advice means a ton to me!

-Zach

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