The banks, despite receiving billions from the Fed continue to hold onto their money and not lend to investors. This requires some creative real estate investing ideas to circumvent the problems. Here are a few ideas for real estate investors:
The first rental property that I purchased during my second attempt at being a landlord had a fire last week. The tenants had just moved in 5 days previously and had a fire in the fireplace. They went to sleep at 1:30 and the smoke alarms woke their kids at 4am. Luckily the previous tenants had moved and I had replaced the smoke alarms (the previous tenants had disabled them). The smoke detectors saved the lives of these tenants.
Unfortunately for the tenants they did not have renters insurance. However, I did have landlords insurance policy which covers loss of rental income. My policy also has a clause which requires the insurance company to cover any upgrades required to meet building codes. This is a lifesaver since my locality requires that any time a building permit is issued upgrades to older homes are required.
How do you go about buying a house for rental property investment? Basically, it is the same process for buying a house that you might live in. However, you must know local rental incomes for houses and it is best to buy what many call a "starter" home. This makes it easy to use rent to own investing to ensure that you receive the highest rental income possible.
Hi, I'm Paul, an engineer by training. I've worked for a Fortune 500 company for 30 years in R&D and have several patents. I'm a father of 4 teenagers ranging from 16 to 19 who would like to go to college. I would also like to retire someday but after a divorce separated me from half my net worth, I have little left for either my childrens college tuition or retirement and lots of debt. I have spent a lifetime searching for a way to make money outside of my job and tried businesses and investments that I will discuss here. I currently am starting to re-invest in real estate and hope to document my progress (and hopefully success here).