How I added a new income producing property to my portfolio

[Joseph Ball]

I added a new income producing property to my portfolio for NOTHING.

No down payment.

No closing costs.

No money out of pocket.

No overdue taxes.

No title search.

Motivated Owner.

For many years, I have owned and managed my own rental properties. I have a small portfolio of houses, duplex, mobile homes, along with a few vacant lots.

I have long held the policy that, if you rent from me, take good care of the property, call me only for major repairs, and always pay rent on time, I will not increase the rent. I know this is controversial and you are free to debate me on this policy. It is just that I don’t like turnover, and I enjoy happy tenants.

So, this is what I do.

One of my rentals is in a small nearby city, and I have owned it for years. When I bought the property (I will tell you, in a future article how I bought this $45,000 property for $5,000), there was an older couple who had rented for many years. On fixed income, they never called me once for any repairs. They always paid early or on time-never late. So, I maintained their rent at $525 per month.

Recently, the wife passed away and the surviving spouse went to a nursing home.

I hired a neighbor to clean the place, and I posted it for rent for $1,050-just to test the market.

My phone rang off the hook.

I rented it within 48 hours for $1,050.

Know what $1,050 is?

That is double the rent I have been collecting.

So, it is as if I purchased another rental property, yielding $525 per month, for nothing down, no closing costs, no title search, no overdue taxes, willing “Seller”.

I still maintain my policy, but this gives me pause to think about it.

What would you do?