What to Avoid when buying a Rental Property

[jwc160]

"Avoid townhomes, houses, or condos"? What options remain? Why then do you include the rest of the list? I guess I'll have my real estate agent remove my offer on that condo that I wanted. Now I'll just wait until I have enough money saved up to buy a hotel.

[MrAlanKendall]

@jwc160

I avoid the single family residence because the maintenace is more per unit and the management is more per unit. In the case of a duplex, three-plex or four-plex, I can pay one tenant to show the vacancies and call the maintenace personel for repairs and drains without my involvement. In the case of multiple units I do target single story duplexes/homes because they stay rented longer than two story appartment buildings and have less problems than flat roofs and plumbing leaks.

[tatsumakisempyukaku]

I heard a lot of don't don't don't. What does your list of don'ts actually leave for me to get into? I mean we all should play it safe, but I don't want to be so paranoid that I end up never getting anything. Seriously though, what can I get?

[MrAlanKendall]

@tatsumakisempyukaku

I have a video, "What to look for in Buying a Rental Property" on Youtube.

[gdrepair16]

I have yet to see a house with a basement in California...

[bumblebeemoi]

Although excellent advice, regarding size of units, you essentially said avoid 2-3 bedroom units as well as one bedroom/studio ones also! That leaves NOTHING! Please explain. I assume that one bedroom ones are best (as in a 4 unit)

[MrAlanKendall]

@bumblebeemoi

One guy bought 242 rental properties close to the beach all one bedroom apartment complexes because the single professional takes good care of your property. People that are willing to pay 200 dollars more for a one bedroom have more furniture and it does not fit in a bachelors unit (a bachelor unit does not have a bedroom). A single person does little wear and tear. People in one bedroom units landscape and do minor repairs. One bedroom units are low vacancy and low maintence.

[Francesca5000]

Awesome list. Thank you.

[bumblebeechris]

man what do you mean flat roofs only last a few years?

i want a rental property with a flat roof

[MrAlanKendall]

@bumblebeechris

Toys get thrown on flat roofs and children climb on the roof to get their toys. Cable companies staple cables directly to the flat roof punching holes in them. Water also collects on a flat roof and it is likely to leak with a small fracture. Inclinded roofs do not have these problems and tend to last over 20 years. Abused flat roofs last under 10 years. Flat galvanized roofs are the exception and they last many decades.

[TheUntouchables6]

So basically, don't try to rent out your property. you just described every property in New York City!!!!!!!!!!!!!!!!!!!!!

[markdigan]

Get a realtor to help you find a qualified tenant, get a lock box to let the vendors in. Work smarter not harder.

[khh1964]

Wow, it's so much easier in the midwest, sounds like L.A. is flat out tough to deal with