I know these are two seperate types of rentals, but feel starting out small in these two specific niches / areas will provide recurring rents and longer term renters.

After reading the other responses here it does seem that the problem needs to be dealt with or else it will keep recurring with each new tenant...Aly maybe you could post the outcome and how the tenant reacted, it may be helpful to some of us...

Even on the shows where they have big winners, when you break it down to an hourly return, I don't think the dollars are huge.You're not building your net worth, you're not generating recurring cash flow...sounds like a colossal waste of time for the average person who aspires to make more than $25,000 a year.A lark, a hobby, a fun way to spend an afternoon...maybe.

Any monies posted by you and him if you split the work costs in the property are what we call refundable contributions to the trust since they are non-recurring.

If you get a recurring buyer that you trust then maybe you can slide on it, but it'll only take you getting burned by your buyer on the day of closing one time and then you will ALWAYS require non-refundable earnest money.Originally posted by Tom Jones:I forgot, one last question.What happens if the end buyer, seller, or I, or all 3 are unable to make it to the closing table for any reason at all.

Is this particular expense a recurring theme in your rehab purchases?

Hopefully he won't do that;- There's no reason to believe that the $1.7T will be recurring, as much of that was a one-time bailout to spur the economy.

Those who advocate the "50% rule" recognize that there are a number of expenses that are recurring and non-recurring; the non-recurring ones can be difficult to ascertain at first - new landlords don't realize them until they get hit (or maybe "bit" is more appropriate) by them.It could be that in this instance, "cash flow" means that PITI is covered and there is some money left after that.

When something needs to be paid for, whether it is on a recurring basis or not, me or my secretary will input a debit and note which property.

Find an institution that offers bill pay and set up recurring payments.