Investor in St. Louis, MO

[Mike NA]

Hello. I've been investing in multi-families in St. Louis, Missouri for a few years now. While I can see the long term benefits, being a landlord has been very trying. I'm actually pretty frustrated right now. I'm having major problems finding tenants (see my post in the landlording forum area), and despite the best screening (evictions, credit, etc.), I'm about to evict the second tenant in one building this year.

I guess I'd just like to hear from others. Are there other people having the same problems? Is this something specific to St. louis? I don't know if I should just cut my losses and start selling my properties (They would actually be quite profitable if they were fully rented).

Am I just stewing in investor hell here, or is this normal?

[Bill McKee]

I have had good success attracting good residents by offering them a way to occupy the home, deduct most of their payment (interest and taxes) for tax purposes. And I do it without "selling". I offer a share of any future appreciation, so long as they keep their end of the bargain.

IF you were looking for a home, but didn't meet criteria for an agency loan, wouldn't you be interested if someone offered a way to get all the benefits of ownership:

1- move in for closing costs, plus 2 payments,
2- the portion of their monthly payment of interest and taxes is deductible
3- they receive, let's say, 50% of FUTURE appreciation
4- protect title against BK, judgements, IRS liens etc during the term

Much more .. but the point is, now you're attracting people with an ownership mindset who agree to maintain the property in exchange for tax deductions, potential appreciation, and opportunity to improve the property for "forced appreciation".

You benefit by having a far less involved management and maintenance problem, motivated occupant, far less issue with "rent" being late, and if you do it right, you can duplicate this cookie cutter anywhere and make big bucks. 8)

The way I learned how to do this: www.landtrust.net

I became a member of the NARS system and for me, it takes away most of the problems you find with renting the traditional way. It does take more time to fully understand all the ways this system can be used. But once you understand the benefits, it's awesome.

Bill in OR.