All Forum Posts by: Greg Parker

Working out well for me.  You just have to have ground rules.  Depends on your personality.  If you are a pushover, it will not work out well.  If they know you will kick their butts to the curve and call grandma if they don't act right, it works.

In my personal rentals, I have, brother-n-law in one, nephew in one, employee in one, friend in one. All at way lower than market rent rate.  My other tenant is an elderly lady with a pet turtle.

You have to help friends and family.  You may need them some day.  And, they all know my wife will personally go throw them out on the street at a moments notice.  No lease required on these, they have the fear of Natalie that helps them make good decisions...lol

Lol, not a good area.

Might want to put some maintenance costs in those numbers. 

"My door lock stopped working"...translation, "I lost the key and kicked the door in".

I would suggest about $800/year for random maintenance calls.  

"My smoke detector fell off the wall"...I burnt up your stove and snatched detector off wall.

"A lawnmower broke my window".....my 2 year old broke it.

"My AC stopped working"......."i never changed the filters you gave me"

"My sink is clogged"........."I poured 8 gallons of grease in the sink".

I have a list a mile long....lol.

Pros-

guaranteed rent.  And, average sec 8 stay is 7.5 years.

Cons - 

There are usually a lot of folks living there.  Not that they intentionally trash the house, but it is just lived in hard.  High turnover cost.

https://www.biggerpockets.com/markets?market=Montgomery%2C%2...

You are at the right place.  Go through all of the forums, search keywords, podcasts.

@Alecia Loveless

Yep, I have found that financial advisors tend to give advice that benefits them, not you.  Stick with the low coc return and play the long term appreciation game.

The better the neighborhood, the better the appreciation.  And, of course you need some cash flow to save up for the AC, roof, capex.

Definetaly raise that deductible to 5 or 10k.  Be sure to have 1M liability.  You may be able to decrease the 1M on each house if you have a personal liability policy of 1M.

That is thinking outside of the box.  Love it.  Said a friend, naturally I would not condone such behavior. 

I have a couple of good ones in Montgomery, al.