Tales From The Crypt: Landlord Edition, Part 1

FINALLY! After six months of jumping through hoops, I've successfully closed on my first rental property. Let's recap, shall we?

My agent found a fourplex that had been purchased in 2010 and remodeled in 2011. Back in October of 2015 I was denied my first loan due to how I did my taxes for the previous year because of my side job. I amended my taxes, got the ball rolling again and closed in early February 2016. Because I got denied the first loan, the seller (also RE Agent) was unhappy because that cost her a month of rent for the open unit I would have moved in to. I'm buying with an FHA so it's required to live on the premises. Not really my problem but we worked out a deal that cost me about 3/4 that month of rent. Didn't care at this point as I just wanted to close on the house and get it done with. 

At the closing table the seller informed me that two of the three units had not paid their pet deposits, and one of the units was a caretaker that got a $300 per month discount. Oh, and that the utilities paid by the landlord are much higher than they originally told me. Would've been great to know while figuring my numbers. Not only that but the only tenant that's month-to-month is Section 8 and they're the ones I have to have vacate in order to move in. I know it's business, but I feel bad because it can be hard for Section 8 tenants to find a new place to live. The previous landlord didn't have a very strong lease so there was nothing in there about what happens to leases if the property is sold or transferred.

After the closing I was so excited I went straight to the property. First thing after walking in the front door? I smell marijuana and cigarette smoke. Awesome. I post notices to inspect a couple days later and head out. Upon inspection, all goes well except the part where I found out the caretaker has not one dog, but two dogs and four cats. Overall, a few things that need to be addressed and cleaned up, but for the most part I'm really excited that I can finally get started with my first investment. 

My advice? Expect a few unforeseen headaches right off the bat, suck it up, and have a good attitude anyway. No matter how prepared you are going in, things change, people make mistakes, and there's nothing you can do about it.

Got a good Tales From The Crypt style story? Post it in the comments below!