Learning from others mistakes

[George Moehlenhoff]

So the house I flipped has not sold and I am at the point where I believe potentially it will be more beneficial to rent out. I have already planned to screen using BP's recommended screening service. Couple of questions here, I was going to us an electronic withdrawl from the potential tenants bank account, what are your experiences with that.

Secondly, I am a total newbie Landlord. What tips/advice can you give me to make this experience less painful? I am hoping to learn from others mistakes. Any and all information is appreciated!

[Rob Gillespie]

George,

This may be a blessing in disguise. This is a great opportunity to sell it on short term owner financing. I do quite a few of these and they are really a great way to make some coin now, residually, and in the future all on the same house.

Here is an example. Lets say you want 100k for your home and you would like 1k per month rent. You can offer it out at 5k down, 100k purchase price, and 1k per month. For every month they pay on time, you will credit them 20% toward the purchase price, so it will knock 200 per month off of the price. You then balloon it out in 36 months. They need to get financing at the end of your deal. In the event they do not buy, they loose all of their credits and their downpayment. You also have them do their own repairs on the property while they are buying it.

I have glossed over a lot of details, but this is a good woking outline. Good luck, you will be fine even if you just rent it. Single family homes are the easiest investments to manage.