Stressing about rent and tenants

[John T.]

Hey All,

New landlord here. I have bought 3 duplexes in the past 2 years. To this point I have been lucky in that no one owes me any money and I haven't had to file for an eviction. On the other hand, I can't stop worrying and stressing when someone is a few days late or when looking for new tenants. I think that this is probably due to my budget and current savings. I have been budgeting to buy as many houses as possible as fast as possible and it is wearing me thin. On the other hand I know this is my path to financial "freedom".

What are financial/psychological techniques that you all use to keep a low stress level? I have considered a management company when I have acquired enough properties, but that will be some time down the road since they're expensive.

Thanks

[Eric G.]

If it's causing you lost sleep and you're stressing out, then you are over leveraged. I'm stressed out for you, frankly! As previous posters have mentioned, good screening is key. However, things can happen anyway. If you can't absorb three months of non payment, or a possible plumbing nightmare, then you are cutting it too close. Before you expand further I'd recommend saving a reserve fund for each of your properties. If you intend to finance future properties lenders will want to see that anyway.