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Real Estate Information |
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Investment Property Part I: How Not to Become a Slumlord
After riding the ups and downs of the stock market roller coaster for a while, an increasing number of investors are looking into property investment as a more stable alternative. With hot markets in many parts of the United States, the time may be ripe for you to get into this potentially lucrative trade. I would suggest, however, that you keep reading before you jump on the first property you find. You just might find something in this article that will keep you from breaking the bank and your back. The hope of any investor is to build long-term wealth; this is a fairly straightforward principle and probably the reason you're reading this article. There are however, some rules to play by in the property investment game if you don't want to end up taking a shotgun with you every time rent needs to be collected. I'm talking about how to avoid becoming a 'slumlord'. In order to best relate the rules of being a successful landlord, let me share a story experienced by some extended family members. It's a great example of what NOT to do if you want to get the most out of your investment property. After the story we'll see what rules and lessons we can learn. Names have been changed to protect the identity of the innocent. Ben bought a beater single-family investment property in a very bad area and he his two sons, Josh and Nathan, all got busy. They put in hardwood floors-don't want to have to replace carpet every time you have turn over, right? And then they thought they'd use really good paint-don't want have to repaint every time, right? And then they decided to splurge on good cabinetry and bathroom fixtures-a happy renter is a good renter, right? And to top it off, they put in nice towels on nice racks that said, "We are Family." Renters would appreciate that, right? Right. The first family to move in removed the bedroom and cupboard doors for firewood, tore out the nice bathroom fixtures and sold them at the swap meet, and fired small caliber rounds through the new hardwood floors. Ben discovered this when he received a call that the roof was leaking and he should, "Get your *** down here and fix it!" He patiently tried to explain that roofs do that when you pull shingles for kindling. Other wonderful visits ensued, prompted by similar calls. It only took eight months to get them out of the house; turns out that tenant rights as outlined by the county enumerate more rights than the rest of us enjoy collectively. As the family moved out he noticed that mom and the two older boys all sported matching shirts stitched with "We are Family." The rest carried various pieces of the house. Ben, Josh, and Nathan began to rebuild the house, finding all sorts of interesting changes to its structure. Nothing really serious other than a supporting beam was chain-sawed out (apparently more firewood), tile pried up in one bathroom-no clear reason why, gang signs scratched into all the glass and mirrors that weren't broken and other little surprises. While helping restring some crawl space electrical wire-later found strung in the closet for hangers-Josh found a rusted out .32 caliber handgun. Somehow the tenants had managed to pry bricks out of the chimney, which Ben needed to replace in order to meet code. Apparently someone had driven an M1A1 Abrams up the driveway; there was no other way to explain the huge cracks in a driveway that had remained perfect for 20 years. What can we learn from this horrific, yet unfortunately true story? Rule #1 Rule #2 Rule #3 Rule #4 Rule #5 Don't repeat the mistakes made by Ben and his sons. Granted, getting into the investment property business takes hard work and you'll have to put up with things you normally wouldn't put up with. At the same time there are steps you can take to limit your liability while preventing yourself from becoming a 'slumlord'. In the next portion of this two-part article we will be discussing some of the financial aspects you should be familiar with in order to find the best deal possible on your first investment property. Cameron Brown is an internet marketer specializing in ranking automation. For information on investment property, visit Security National Capital.
MORE RESOURCES: Jake Paul Closes One Of The Largest Real Estate Deals In Georgia History With $39 Million Purchase of 5,600-Acre Ranch Yahoo Finance Real estate inquiries by wealthy New Yorkers into Florida properties jump 50% after Mamdani primary win Fox Business These are the forgotten NYC nabes that became real estate hot spots in the last decade: report New York Post Hoby Hanna: Zillow is ‘overstepping,’ limiting ‘creativity’ Real Estate News by RealEstateNews.com What renters really want | Real Estate Newsletter Inquirer.com Real Estate: Immaculately Maintained & Move-In Ready Home sanangelolive.com Real Estate Newsletter Articles this Week: Months-of-supply is higher than the previous 8 years! Calculated Risk RNR Real Estate Briefs — Texas & more Realty News Report NYC Real-Estate Execs Throw Money Behind Adams to Counter Rise of Mamdani The Wall Street Journal Golfer Bryson DeChambeau's Massive Real Estate Investment Has Eaten Up Most Of The $125 Million He Got Paid To Switch Tours Yahoo Finance Buyers wary of surprise HOA costs now have a safety net Real Estate News by RealEstateNews.com Compass to share exclusives — if brokers, MLSs play by 2 rules Real Estate News by RealEstateNews.com 'Married To Real Estate' Canceled After Four Seasons On HGTV, Say Hosts Egypt Sherrod & Mike Jackson Deadline Senior Spotlight: The Grand Junction Daily Sentinel Tampa real estate investment firm under investigation for potential deceptive practices Florida Politics Real estate investors are purchasing more U.S. homes as high prices lock out would-be buyers CBS News A tale of two Floridas: Real estate industry torn over DeSantis' push to eliminate property taxes Fox Business $400 Million Family Lawsuit Involving Prominent Fullerton Real Estate Figures Part 1 Fullerton Observer Mortgage Rates Predictions for the Next 6 Months: August to December 2025 Norada Real Estate Investments Yes, Your Front Yard Might Be Too Busy—6 Things Real Estate Pros Say You Should Ditch - The Spruce 2025-2030 Five-Year Housing Market Predictions U.S. News Real Estate Department of Taxation and Finance dos.ny.gov Real estate sales in Peoria, Tazewell and Woodford counties for July 12, 2025 Peoria Journal Star SERHANT. hits DC; Elliman snags ‘Million Dollar Listing’ star Real Estate News by RealEstateNews.com OT Real Estate Spotlight of the Week: 1555 Graves Lane The Owensboro Times The Michael Houck Real Estate Guide for July 13th Oil City News Confusing housing stats & real estate nerds Sacramento Appraisal Blog Top 10 most expensive homes sold in Petaluma last week The Press Democrat Real estate boss targeted in San Francisco with smear campaign The San Francisco Standard Mortgage Rates Today – July 12, 2025: Rates Rise Across the Board for All Loan Types Norada Real Estate Investments Real estate CEO warns of growing ‘exodus’ as people have ‘given up’ on California — but where are they going? Yahoo Finance Here are recent property transfers up to $970,000 St. Albans Messenger How downtown Natick MA has become a focal point for redevelopment MetroWest Daily News Agent Spotlight: Katie Coleman The Grand Junction Daily Sentinel Despite signs of market rebalancing, real estate in this NJ town remains hot. Here's why Bergen Record Here are businesses on the move in Marin, Solano, Napa, Sonoma and Mendocino counties The North Bay Business Journal Aspen Real Estate Snapshot, June 23, 2025 Aspen Daily News Where are home prices falling most in America? This SWFL community made top of the list Naples Daily News Top B2B Platforms Transforming Tokenized Real Estate Markets Herald Home prices in Colorado Springs hit record high, even with many homes for sale Colorado Public Radio Blackstone, PSP reportedly among consortium in talks to acquire H&R Real Estate Investment Trust Pensions & Investments Wichita Falls ISD teams with Bishop Real Estate to sell Kirby Middle School Texomashomepage.com Landmark Tax Reform Brings Major Wins for Real Estate National Association of REALTORS® Property transfers: Marion County sales range from $20K to $390K The Marion Star Page C4 Post and Courier Page C2 Post and Courier Page C6 Post and Courier Page C5 Post and Courier Page C10 Post and Courier Page C11 Post and Courier Page C12 Post and Courier Page C3 Post and Courier |
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