Renting Out Your House to Tenants
by Steve Crabb
Rental Property Buying and Management Tips - I have bought and lived in two okay houses in good neighborhoods. As owner occupied homes, the interest rates were low.
Doing mostly minor remodeling and landscaping, I made both houses presentable as rental homes and then preceded to rent them out through a management company.
Both houses doubled in value in less than 6 years. Refinancing granted me $140,000 in (tax-free) cash out and the loan was restructured at a higher non-owner occupied interest rate.
With one house earning positive cash flow and the other negative, we just about break even every year at tax time. The management company also provides a clear statement of expenses for our accountant.
I plan on continuing this get rich slow strategy every 5 years or so. My wife doesn't like the hassle so I have the management company call me direct and so as not stress her out with the miscellaneous expenses that come up.
Be sure to price the house rent a little under the market rate to keep your tenants.
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