To Rent or Not To Rent...PART 2

Where was I, oh yea, you wanted to borrow my Proof of Funds...

On a more serious note.... Rentals.... My S. Philly Property Manager, yea, property manager, oh, you never heard of such a thing? Hold on, anyway, my PM says that for some strange reason, with home sales down, the expected surge in renters hasn't materialized. So where have they gone? Hmm, maybe they're all out looking for a Proof of Funds so they can buy a house!

Anyway, back to the good old days when buying rentals and hopefully seeing them cashflow and appreciate was standard fare... Where have all the good old-fashioned investors gone? All converted to wholesalers or on the sidelines? Seems to me a lot of people are trying to dump portfolios. Nothing like the good old investor adage of buying high and selling low.... Well, not exactly, most all will make considerable profits on their portfolios, I just find it odd to look to sell off now when most likely holding for another couple years should see considerable increases if only the modest value reductions of the last year are reversed. But, hey, they're all smarter than me.

So what is hindering buying rentals? Perhaps 70- 75% LTVs? Perhaps the wary eye of the banks towards honest people just trying to make a buck? Dunno. Maybe it's some very poorly performing Realtors hindering the process? I know of a particular street in South Philly with four rentals for sale that have no lockbox, the keys the Realtor provides don't work and the properties keep undergoing price reductions. Hmm, maybe they'd sell if someone would let a prospective buyer (me!) in!!!

Yes, we knew at some point I'd just use a posting to go on a rant.... Had a rough day, wa wa!

Back to that thing called a Property Manager. Find a good one and USE him/her! Do NOT be a landlord if you want to stay sane and not get bogged down in the BS of landlording! Pay the 5, 6, 8%. Let them deal with the BS. Just make sure they're doing the job! Proper reports, timely checks, keeping after the tenants, etc.... A good one is as hard to find as a good contractor, yup, make sure you send them a turkey for Thanksgiving!