Landlording for maximum profitability and Financial Independence
One of the most asked questions I asked of me, or I see on other forums, is how to hold rental property. Should it be an LLC, S-Corp, sole proprietorship, etc. I cannot speak to all the benefits of each method, but I can speak to what I have done with my properties. You may want to consult an expert (i.e. not me) to determine what is best for yourself.
Here is the way I hold rental property, and the reasons behind it.
Continue reading “How to Hold Rental Property”
When you are a landlord, you need to rent to good people. Screening tenants for your rental property will be the key to your success. The tenant can be of any race, religion, nation origin, etc. Screening tenants will determine the experience that you will have and how much money you have the potential to make regardless of any protected class. After all, making money is the goal of a landlord. Providing housing, is secondary.
I would say that almost all people with a credit score of 625+, and a household income of $45K a year with a rent of ~$1,125, with a minimal criminal background and a clean rental history will make for a decent tenant. Of course, a decent deposit will also be necessary.
Here are a few instances I recently came across with screening tenants, that shows what a landlord is up against in regards to tenant screening.
Continue reading “Screening Tenants For a Rental Property From a Landlord”
A few posts ago, right about last year, I wrote about my plan to pay off rental mortgage debt. I had laid out several of my options, and I ignored all of them. Instead, I continued to pay my regular payment, bought a new rental and paid cash for it, and paid extra on my current mortgage that is targeted to be paid off next. If I would have skipped the new rental, and put that money on the rental mortgage, I would almost have this rental mortgage debt paid off. Instead, I have that money as a 15%+ income producing asset.
There are many reasons to pay off rental mortgage debt, those reasons are all against the many pundit’s advice to stay leveraged. Here are my own personal reasons and what I have accomplished in the past twelve months.
Continue reading “Pay off Rental Mortgage Debt”
I get asked quite a bit whether a real estate investor should buy out of state rental properties. When you do not live in the same state, or even within a few miles of your rentals property, things can get very complicated. You have to learn how to manage out of state rental property, or learn how to manage them when you are out of state.
How do you turn and show a property? How do you check to see of a simple repair is needed? Can you just flip a circuit breaker, or do you need to call in a electrician?
My rentals are all within about 10 miles of my own home, most are within 3 miles. Now that I no longer have a full-time job, I do not want to be tied to my home base. There are business meetings, and conventions in out of state areas that I may want to attend. I may want to set up an off-site corporate meeting for my own company, and yet still manage the properties myself.
Here is a recent example of how I handled several repairs while I was on a trip to Branson, MO. Continue reading “How to Manage Out of State Rental Property”
