I thought I would share my journey of buying an Michigan investment property. I already have a Canton duplex that I rent out to two different sets of people. And many years ago I had a house that I rented out for three years. So I will start
So I do have experience. My first experience of being a landlord wasn't very good.
THEFT ---- I only rented the house and kept the garage to store my possessions. I even stored a boat in the back yard one year. My tenants learned how to break into the garage and steal stuff out of it. The boat was shrink wrapped but somebody cut the shrink wrap and stole the radio, the depth finder, and anything else that valuable out of it.
SECTION 8 ---- I rented the home to a lady that lived with a boyfriend which was a no-no for section 8. So she was conveniently absent and unable to let state inspectors into the house. The renter had changed the locks on the house so I no longer had a key. I couldn't let the state's section 8 people in. it took me six months to get a check from the state because of these issues
DIDN'T PULL CREDIT REPORTS ---- I didn't know how to read a credit report. If I talked to a person and liked them I rented to them. No references. I went on gut feelings.
BEING TOO NICE ---- I bought every story the renters gave me. They were cut back on hours at work. They had been sick. The kids car insurance was due.
I WAS TOO LACKADAISICAL ---- I didn't do yearly checks of the properties. If they were late with rent I didn't jump on it. I let somebody get 4 dogs! I was just happy to have a tenant.
RENTING TO FRIENDS AND RELATIVES. ---- I didn't know if I was moving in with a girlfriend forever so I rented my house to a friend with my possessions in it. Damage and theft were just some of the problems, coupled with late rent and no payments some time.
I hope to teach you by sharing my journey of buying a Michigan investment property.
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My Month of April quote:
"Sometimes the only way to get to the far shore is to lose sight of the shore you just left"
Russ Ravary
"helping make your move easier"
your local Metro Detroit Realtor helping clients like you sell and buy homes through out the entire Metro Detroit suburbs. I love showing and selling Oakland County and Livingston County Lake front homes too.
Well since you got all the Major No-No's out of the way early, it should have only gotten easier.
aghhh! Your right on with all those issues. I can show you some doosey pics of damages on some of my rentals.
Hi, Russ. I'm sorry about your experience. That sounds like something created from My Rental Nightmare on Elm Street with the knife-wielding bad guy living in your home.
I hope your next one goes better. (Will there be a next one?)