Advice for rental investment

j.sparrow said: "Hi, Would anyone have any suggestions as to which cities/areas produce high rental returns?"

lil dickie said: "Commercial or residential?"

FirefighterB said: "Yeah, a little more information about where you are, what you're looking for, and what you've got money-wise, would go a long way, man."

thezster said: "You are geographically limited to a driveable area if you want to control rental property (residential) - unless you're willing to give up a major portion of your rent to a management company. Even that doesn't guarantee you a good return on your investment, as they will simply find and screen tenants, collect rents, and advise you of problems as they come up. I've been a landlord once in the past, and swore I would never, ever do it again - as good tenants are hard to find - maintenance is incredible with questionable tenants - and the negative cash flow (before tax deductions) didn't help out my short term financial situation at all. From my experience, don't plan on making any $$ off rentals other than the long term capital gains you might get from your property appreciating over time."

Aligator said: "Speaking as an experienced landlord: You can get a reasonable return on investment in most markets. But I am saying RETURN ON INVESTMENT - that means you must invest your own money not the bank's money. As far as I have know you will not be able to go to the bank, borrow the money, and then make anything off of it. You may appear to make money at first, and it will certainly look like you're going to make money on paper, but the realities of rental property are that (A) you will not get 100% of the rent and (B) things will break. ON THE OTHER HAND...We have 2 nice units that are paid for and generate good income every year. If you can get into the rental industry and stick with it long enough to get things paid for you can do well. Our rental units do not appreciate much - if at all. We built them as a pair of townhomes in 1982, lived in one side and rented the other. And that plan worked. We got them paid for and the rest is history. If you are going to get into it, buy good property. And buy small property. Target single mothers.......I have and have always been happy that I did. And single mothers do not rent (very often) 3 bedroom, 2 bath homes. Unlike most landlords, I like my renters. We are good friends with them and have not had to look for a new occupant for 2 - 3 years. One rentor stayed with us 6 years, another 5 years and so forth."

newinvestor123 said: "[QUOTE=Aligator]If you are going to get into it, buy good property. And buy small property. Target single mothers.......I have and have always been happy that I did. And single mothers do not rent (very often) 3 bedroom, 2 bath homes.[/QUOTE] Damn, that's good advice... it's indexed in my brain now - Thanks Alligator."

thezster said: "That "is" good advice.. though targeting a specific tenant can be legally troubling.... if you're not careful. I agree with the single mother concept - though you have to realize they're looking hard for a new hubby - and probably won't be long term.... but heck, what is these days...."

AlfredSokol said: "Yeah, if you target anyone, keep it to yourself! You know how touchy these times we live in really are."

Heather said: "I know a guy that bought a bunch of properties with borrowed money and he's singing the blues right now. Alligator - you have a point. If the properties are paid for outright now owing a bank is a good thing. You still have a monthly bill to pay out.."

Aligator said: "Aligator will now lay claim to being altruistic. The targeting of single mothers was, in fact, a business decision but it was based on the idea that if the doo-doo got in the fan for this group of people then I may be in a position to help. I was raised by a single mother in a time when I was the only fatherless child I ever knew. It wasn't fun. MY assumption that I would be called upon to forgive rent, reduce rent, and delay evictions has proved to be correct. I've done all of those and will do it again, I'm sure. I'm also Mr Fixit. Unclogging commodes, unclogging grease traps, installing safety devices, providing lawn care (that's a big one to single moms) are all part of the package we offer. I can make a case that not only is this a way to silently contribute to the public well being, it is also a sound business practice. I virtually never have an empty unit and my competition - those hard nosed business types, so proud of their business acumen - can not make that claim."

newinvestor123 said: "Can't argue with helping people and making money at the same time..."

lil dickie said: "[QUOTE=newinvestor123]Can't argue with helping people and making money at the same time...[/QUOTE] Heck yeah. Its like making money...only better! :roll:"