All Forum Posts by: Cheryl Butler

So sorry to hear this happened to you! That sounds like a lot of damage. Was it in a finished lower level?

Great episode! I like Paul's take on speculating vs. investing. I've never seen my real investments as "risky", but have never been able to explain that to anyone without giving mini lesson in real estate. Paul summed it up so smoothly. While I always love the enthusiasm of young investors, I really appreciate the wisdom that comes from those few extra years in the trenches. Thanks BP team and Paul!

There's nothing glamorous about property management, but if you want to do it, you should give it a shot...but I wouldn't recommend giving up your lucrative day job yet. I manage multi-tenant office buildings at my day job, but I have a property manager who takes care of my residential rentals. Why? I think I would be too easy on my residential tenants and they would wind up taking advantage of me. I never have a problem evicting someone from their office, and if there's a law suit I couldn't care less because it goes to the owners attorney and I wash my hands of it. 

I don't think prolonging the situation is a good solution for you. You should decide whether to rent to them or not, and without feeling pressured since poor credit is not a protected class. Maybe you need to get your comfort level up vs. waiting for someone better. The last time I was doubtful I asked for a co-signer, and the tenant produced one with a very high credit score. Or you could also ask for additional security deposit money, or two months rent up front. 

Any time you are renting a low income property, you are going to get applicants with less than desirable credit scores...that's why they are living in low income properties. Do you run a background check? I would also consider their driving record and any other criminal activity. If they seem responsible in other areas of their lives I would take that into account. Also, not knowing if your property is in a B or C area it's hard to say whether it would be worth the wait.

Let us know what you decide, and how it turns out.

I use hotpads in addition to Zillow. What I like about hotpads is you can see how many times the property has actually been contacted in the past week, so you know if the property is really getting activity at the current asking rent.

Welcome Parris! BP is loaded with resources. Don't miss the podcasts...they're not only educational, but very entertaining as well. What kind of rentals are you planning to invest in?

If you buy a new one you either have to match the uppers or paint everything the same color. I'd go on craigslist or OfferUp and find uppers and lowers that someone pulled out of their kitchen and was selling $100, or giving away for free.

@Diana Boling Ohio is a great place to invest because housing is very affordable compared to other areas. Your return is so much higher here because you are paying much less for your product, and contrary to what you may hear, there are still plenty of great deals to be had! Also, it's got a strong economy and rental market. My only regret is that I didn't start buying sooner. 

@Michael Noto Thanks for sharing your story! I can't wait to see the final finished product. 

@Mike Dymski You have to watch his little video on YouTube to understand the math. He mentions it in the show "From Broke to Retired in 15 Years".