I know some people are telling you don’t do it. It’s a hassle. I’m getting IN the business and not using a property management co. I’m doing it all. I have a buddy that has over 30 and he does it all himself.

What he said.

I agree with you completely. I just think most renters aren't a young engineer and teacher wife who are saving up to buy their permanent house. That would be rare.

Some people would bitch about having to bend over and pick it up if they found a $100 bill on the ground. Every job is a hassle at times. If you keep an eye on things you won't have many problems. As long as the $ numbers work for you its just like any other investment.

I've had good luck with renters so far. You might consider owner financing and sell it. In the long run you will make more off it plus they will take better care of it. But if rental prices are very good get a contract drawn up for a one year lease and give it a go.

Pros: with a good renter it’s great
Cons: there are not many good renters.

I had good luck owner financing a few. Get a good down payment and get about 5% interest. If they miss a couple payments take it back

I have seen several models considering both the real estate side and the "market" investment end. From a pure money standpoint investing the capital makes more sense unless you see considerable appreciation in the value of the property. By the time taxes, maintenance, insurance, and other misc. costs are considered it has a hard time keeping up.

Now, with that said, there is no way I would simply dump a big sum in the equity market right now. But, run some projections and see what it looks like. Maybe your home would be the exception to the general rule.

. We even do a drug screening.

Make sure to either; A)go online and print yourself out a very good lease agreement; B)get a lawyer to draw up a lease . I prefer B.

Follow all the steps in the lease, don't let anything slide.

Keep a watch on the property, ie. just ride by and make sure everything is on the up-and-up. You don't want renters having too many people staying over all the time. (That should be in the lease where they can't do that)

My wife and I own 3 rental house and a condo at the beach. We protect ourselves with very good lease agreements and we screen the applicants ourselves.

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Ive owned hundreds of rental properties, from rental houses, duplexes, 3, 4,5,6 ,7 & 8 Family dwellings to even apartment complexes. We never used a management company and always managed our own.

We actually bought most of ours from the bank after the owners lost them BECAUSE they used outside management companies who ran the properties into the ground and lost the owners money, and eventually the property.

If you cannot manage one rental house then I would sell it instead.

Otherwise you are trusting your property and money to not only one third party....the tenant, but another..the property manager.

The pros are cash flow , but the cons are your property can really get damaged if you arent even going to be managing it yourself. Heck, it can get destroyed even if you are managing it if you get one wrong tenant.

Its a great business but like any there are risks.

How many actually pass a drug test?

Hoyt, knowing you...I would just sell the property take the check and move on. You dont need any more headaches.

I would not rent anything residential that's too big, real nice, or something I had much money tied up in.

The ones I know that have worked out well with good return are either older mobile homes or small sized, low cost basic houses.

A friend of mine put about $20,000 into nicely fixing up a 2500+ sq ft house then renting it. Thought he selected good tenants, but within 6 months the house was heavily damaged.

Been there. First one was good. Next 2 were idiots!,,

Be very picky who you rent to and do periodical checks as someone said.

May want to check on this. Since you have lived in the house, you can sell tax free now. Once you rent it for a while, I think you get taxed based on the original basis in the house if you sell. May make sense to sell and buy a rental or rentals to increase your basis if you are uncertain and think this may not last too long.

Check back with us after you have done it for a while.

You are correct. You can only collect a deposit equal to a month's rent. It's all about how you deal with stress. Vet the renters best you can. Should be able to find some quality people as many are coming into Huntsville for business.

Owner finance is a better option.

My parents have a rental property here in Auburn, their tenant base is vet students.
I tell them, someone spending that money putting Dr in front of their name isn't likely to trash the place, so far I've been right.