Investing as a new couple

General Landlording & Rental Properties
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Investing as a new couple

Tyson Phung
Member since 2020 · 2 posts · 0 votes

Hello all!

My wife and I just bought an investment property in a different state our family is in. We plan to rent the property out and maybe Airbnb a few years later.

My question is, is there anything that we need to worry about for screen of potential tenants in the state of Florida? I did some research about Florida and it seems mostly the same in all states.

We had made up an application form for candidates and a $50 fee for background check and credit check.

Then once we find one, we will draft up a rental agreement.

I really want to get into real estate investing. However, the strategy that a lot are using is to leverage their debt and buy more property. For me it seems really risky. I feel you would lose it all if the market crashes or there is another hold on rental payments. Can someone give me some insight ? And it seems like you would need a lot more than 1 rental property if you want to make money.

How how does this work?

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  • Jasmine Delves
    Denver, CO · Member since 2022 · 201 posts · 77 votes
    4y
    One thing to be aware of in Florida is that they have very explicit laws that prevent the discrimination of service members.
    If a rental application is submitted by a service member, it must be processed within 7 days after submission. If they aren't notified in writing of approval or denial within this time frame, the lease will automatically go into effect (regardless of your own screening process).

    Hope that helps!
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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    4y
    Quote from @Tyson Phung:

    Hello all!

    My wife and I just bought an investment property in a different state our family is in. We plan to rent the property out and maybe Airbnb a few years later.

    My question is, is there anything that we need to worry about for screen of potential tenants in the state of Florida? I did some research about Florida and it seems mostly the same in all states.

    We had made up an application form for candidates and a $50 fee for background check and credit check.

    Then once we find one, we will draft up a rental agreement.

    I really want to get into real estate investing. However, the strategy that a lot are using is to leverage their debt and buy more property. For me it seems really risky. I feel you would lose it all if the market crashes or there is another hold on rental payments. Can someone give me some insight ? And it seems like you would need a lot more than 1 rental property if you want to make money.

    How how does this work?

    Welcome, Tyson!

    One of the best things you can do is start educating yourself on how to manage a rental. My #1 recommendation is "Every Landlord's Legal Guide" by NOLO. Tons of practical advice and it links you directly to your state laws. There is one book that covers 49 States and a different one for California. You can also read Brandon Turner's book for sale here in the BP bookstore.

    You also need a strong lease agreement. You can bounce around the internet trying to find one, get one from a friend (or stranger), or even buy one from an attorney. However, I recommend you purchase the Lease Agreement Package from BP because it's written by experienced investors and approved by an attorney in your state. I've looked at hundreds of leases and it's one of the best I've seen.

    Any form of investment comes with risk. You have to educate yourself on how to mitigate the risk. If you're unable/unwilling to do that, then you should consider a different investment vehicle that meets your needs. Nothing is better than real estate, but it does take some education and work to get the most out of it.
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