Re: Rentals - Posted by Marcos
Posted by Marcos on September 19, 2003 at 09:46:28:
Low income rentals are a cash cow for those who can handle it. Honestly most people can’t handle it. I have had both. To me the extra cash wasn’t really worth it.
There are numerous problems with low income rentals. They have been discussed ad naseum here. Hal Roark from New Orleans who no longer frequents here was a specialist in Section 8 rentals. Most everyone else will tell you not to bother.
Realize that on paper, low income rentals look like they will cash flow like crazy. However, the costs associated with collecting these rents can easily be double to triple a more affluent area rental.
If you are a very rigid and disciplined landlord, you can be successful in low-income rentals. That seems to be the secret to success. Sometimes however the low-income rentals can be a godsend. I had a quad in a pretty bad area, where one of the tenants had been there for 22 years, and another 14 years. Another quad, had two tenants who had been there for six years each. So, if you find the right tenants, and that’s the biggest problem, and you provide them with quality housing at a decent price, you can make cash hand over fist. However that’s easier said than done.
I recommend you go to www.mrlandlord.com and ask the question there, or check the archives.