Hello and welcome to this site Arthur! The more units you can buy, the better it is and any vacancies will hurt less. If you can make it happen starting off on apartments is no different than starting on a house, it can just make you more money and have more units at every address. The experience language before buying apartments is a myth. One of the reasons I would approve of a residential multifamily property is with a "house hacking" loan that is guaranteed by the FHA. Its location and the demand runs a close 2nd as well if you insist on houses you need to quickly own several of them in high demand areas. If you have to make any repairs just do what is considered average in that area.
Your ability to do any needed repair or rehab work must be done quickly so you can rent the property out sooner as opposed to later. Not giving any details makes your question harder to answer. Shop around for the best loan interest rates and any repair costs. It is usually better to have a pre-approval loan letter done prior to making any offers. Acquiring more education will give you more confidence and make you sound like you know what you are doing to the seller and the Lender. It might be better right now to Fix and Flip (including quick flip) over Buy and Hold.
Good luck to you!
I think what Above is saying is you made a mistake buying a single 👪 🏡.
You should sell it and buy a muti-family.
One vaCancy on a 500 unit is no big deal. One vacAncy on a single is Huge.
If you already bought the place there really aren’t any pros and cons to discuss. Get it rented to a qualified tenant ASAP and start collecting money.
Those saying having a single property is bad are being ridicules. If you are not over leveraged vacancy isnt a big deal at all.
1st recommendation get a property manager. they are the middle man and it takes away a lot of the issues that arise when a tenant tries to take advantage of you and they will in one way or another (late pay, frivolous repairs, ect.)
2nd Price it right, dont over price it, it will sit too long, tenant will not stay long term. Dont under price, will hamper your ability to maintain the property as well as make enough profit to make the venture worth while.
3rd don't ever let emotions get involved in this BUSINESS. Your tenants personal problems are theirs don't let them be yours. and visa-versa. have a solid lease/contract and live up to those terms and make them do so as well.
Read Brandon Turners How to Manage Properties book (the yellow one). Its a good step by step
Thanks for responding and apologize for not touching the topic. Have a house rent ready, just want to know what to be prepared for from anyone with lessons and experience when becoming a landlord?
Hello again Arthur! Thank you for your response. i would just recommend giving quality response to your customer's concern and to respond fairly quickly to any complaint or maintenance issue. Having good customer service will pay off in the future as well as making a good first impression. Best wishes to you!
Originally posted by @Amy Beth :
@Arthur Buffington. I think the most important detail is to do proper screening of your tenants. And do not listen to sad stories from potential tenants whom do not meet your rental criteria. They often turn out to be a future eviction.
Be sure to check to do a background and credit check on all tenants over the age of 18 whom will be living in the property. And do not allow anyone to sign tbe lease or hold the property for someone until they pay their security deposit and first months rent. If they can’t afford to do that then they can’t afford your property and you need to keep looking for a tenant whom can. It always amazes me when a landlord posts on this forum asking for help because they allowed someone to sign the lease with a promise that they would pay the security deposit and rent later and then weeks go by and they have not been paid.
Arthur, Amy has the answer, short and sweet and to the point.
Screen, verify, accept no sob stories.