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Real Estate Information |
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Investment Property Part I: How Not to Become a Slumlord
After riding the ups and downs of the stock market roller coaster for a while, an increasing number of investors are looking into property investment as a more stable alternative. With hot markets in many parts of the United States, the time may be ripe for you to get into this potentially lucrative trade. I would suggest, however, that you keep reading before you jump on the first property you find. You just might find something in this article that will keep you from breaking the bank and your back. The hope of any investor is to build long-term wealth; this is a fairly straightforward principle and probably the reason you're reading this article. There are however, some rules to play by in the property investment game if you don't want to end up taking a shotgun with you every time rent needs to be collected. I'm talking about how to avoid becoming a 'slumlord'. In order to best relate the rules of being a successful landlord, let me share a story experienced by some extended family members. It's a great example of what NOT to do if you want to get the most out of your investment property. After the story we'll see what rules and lessons we can learn. Names have been changed to protect the identity of the innocent. Ben bought a beater single-family investment property in a very bad area and he his two sons, Josh and Nathan, all got busy. They put in hardwood floors-don't want to have to replace carpet every time you have turn over, right? And then they thought they'd use really good paint-don't want have to repaint every time, right? And then they decided to splurge on good cabinetry and bathroom fixtures-a happy renter is a good renter, right? And to top it off, they put in nice towels on nice racks that said, "We are Family." Renters would appreciate that, right? Right. The first family to move in removed the bedroom and cupboard doors for firewood, tore out the nice bathroom fixtures and sold them at the swap meet, and fired small caliber rounds through the new hardwood floors. Ben discovered this when he received a call that the roof was leaking and he should, "Get your *** down here and fix it!" He patiently tried to explain that roofs do that when you pull shingles for kindling. Other wonderful visits ensued, prompted by similar calls. It only took eight months to get them out of the house; turns out that tenant rights as outlined by the county enumerate more rights than the rest of us enjoy collectively. As the family moved out he noticed that mom and the two older boys all sported matching shirts stitched with "We are Family." The rest carried various pieces of the house. Ben, Josh, and Nathan began to rebuild the house, finding all sorts of interesting changes to its structure. Nothing really serious other than a supporting beam was chain-sawed out (apparently more firewood), tile pried up in one bathroom-no clear reason why, gang signs scratched into all the glass and mirrors that weren't broken and other little surprises. While helping restring some crawl space electrical wire-later found strung in the closet for hangers-Josh found a rusted out .32 caliber handgun. Somehow the tenants had managed to pry bricks out of the chimney, which Ben needed to replace in order to meet code. Apparently someone had driven an M1A1 Abrams up the driveway; there was no other way to explain the huge cracks in a driveway that had remained perfect for 20 years. What can we learn from this horrific, yet unfortunately true story? Rule #1 Rule #2 Rule #3 Rule #4 Rule #5 Don't repeat the mistakes made by Ben and his sons. Granted, getting into the investment property business takes hard work and you'll have to put up with things you normally wouldn't put up with. At the same time there are steps you can take to limit your liability while preventing yourself from becoming a 'slumlord'. In the next portion of this two-part article we will be discussing some of the financial aspects you should be familiar with in order to find the best deal possible on your first investment property. Cameron Brown is an internet marketer specializing in ranking automation. For information on investment property, visit Security National Capital.
MORE RESOURCES: Residential real estate developers cut jobs as downturn deepens The Globe and Mail Compass to share exclusives — if brokers, MLSs play by 2 rules Real Estate News by RealEstateNews.com Russian Demand for U.S. Real Estate Surges 78.5% The Moscow Times What renters really want | Real Estate Newsletter Inquirer.com Nantucket’s Workers Are Living on the Margins The New York Times Commercial real estate update: As big box brands buckle, the three A's can save the day Tallahassee Democrat Real estate inquiries by wealthy New Yorkers into Florida properties jump 50% after Mamdani primary win Fox Business OT Real Estate Spotlight of the Week: 1555 Graves Lane The Owensboro Times Here are businesses on the move in Marin, Solano, Napa, Sonoma and Mendocino counties The North Bay Business Journal Despite signs of market rebalancing, real estate in this NJ town remains hot. Here's why Bergen Record Property transfers: Marion County sales range from $20K to $390K The Marion Star Real estate sales in Peoria, Tazewell and Woodford counties for July 12, 2025 Peoria Journal Star $1.225 million Symmes Township home sale among the week's top property transfers Cincinnati Enquirer Homes in Lubbock County sold for higher prices recently: See how much here Lubbock Avalanche-Journal Homes in Cumberland County sold for higher prices recently: See how much here The Fayetteville Observer A Look At Plymouth Co Real Estate Numbers WATD 95.9 FM Real Estate Transactions sungazette.com NYC Real-Estate Execs Throw Money Behind Adams to Counter Rise of Mamdani The Wall Street Journal Berkshire region real estate sales – July 11, 2025 The Berkshire Edge Business Spotlight: Trujillo Commercial Real Estate Group The Paso Robles Press Agent-built AI chatbot serves up real advice with a sense of humor Real Estate News by RealEstateNews.com Berkshire County Real Estate Transactions for June 23-27 The Berkshire Eagle Westmoreland County Real Estate Transfers The Latrobe Bulletin LOCAL REAL ESTATE TODAY 7.11.25 KQEN News Radio TIM SCOTT REAL ESTATE - 83275 Caledonian Record Florida real estate: See the most expensive home sales across the Treasure Coast in June Treasure Coast News Don Fenley: Tri-Cities housing market sees uptick in June Kingsport Times News Property transfers: June sales range from $11K to $5.8M in Crawford County - Bucyrus Telegraph-Forum Property transfers: June sales range from $11K to $5.8M in Crawford County Bucyrus Telegraph-Forum A tale of two Floridas: Real estate industry torn over DeSantis' push to eliminate property taxes Fox Business Real estate investors are purchasing more U.S. homes as high prices lock out would-be buyers CBS News Weekly building permits, real estate Boca Beacon Tampa real estate investment firm under investigation for potential deceptive practices Florida Politics Homes for Sale in Manhattan and Brooklyn The New York Times RLTY: Reasonable Real Estate Income For Now (NYSE:RLTY) Seeking Alpha Dawson County weekly real estate transactions, July 11 Central Nebraska Today EG Real Estate: 8 New Listings & 5 Sold East Greenwich News How a legal battle of real estate titans affects home buyers Straight Arrow News Department of Taxation and Finance dos.ny.gov SDCERS to lift infrastructure allocation as it trims real estate IPE Real Assets Jackson State To Offer Real Estate Course Radio NWTN 2025-2030 Five-Year Housing Market Predictions U.S. News Real Estate NEO's industrial real estate market loosens slightly but remains tight Crain's Cleveland Business Mortgage Rates Today: The States Offering Lowest Rates – July 11, 2025 noradarealestate.com Queens real estate trends: What buyers are looking for, according to Compass agent Thomas Caramanno Queens Post Real estate news: 18-unit apartment complex in Surf City fetches $7.4 million Orange County Register Michael Guthrie discusses real estate uncertainty amid Charlottesville zoning freeze Cville Right Now The Seyon Group Acquires Industrial Portfolio in North Andover for $12.5 Million Boston Real Estate Times Patrick Cadle joins Grist Real Estate Mountain Messenger Hawaii residential real estate experts on negotiating and marketing homes in 2025 The Business Journals New Hampshire housing market sees 65 straight months of growth The Laconia Daily Sun Navigating Trump's Tax Megabill: Winners and Strategies in Real Estate, Manufacturing, and Energy AInvest Developer, neighbors worked together to decide how a key corner of Austin will look The Business Journals TRS Texas commits $675m to real estate Private Equity Real Estate | PERE Real estate feels weird right now — but not broken Rome Sentinel Real estate boss targeted in San Francisco with smear campaign The San Francisco Standard Confusing housing stats & real estate nerds Sacramento Appraisal Blog Local casino architect lists home in The Ridges Las Vegas Review-Journal |
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