My unwanted business partner, the IRS has come a calling for back taxes.

A definite step up from the family of horrors that came before (had to clean up poop smears and replace screens that were burned through with cigarettes...that were expressly forbidden in the lease). 

Section 8 can be a great tool, makes a lot of sense to go that route after getting burned by a professional tenant.

If you're mentally and financially prepared for that, you will be ok.If the rent range in your area is $1200-$1400, then run the numbers as if the property will always rent for $1200.If the property management fees in your area range from 6-8%, run the numbers at 8%.If you think repairs and maintenance will amount to $100 per month, set aside $150 per month.Having some disciplines like this will keep you sane and allow you to continue to scale instead of get burned.

Financial freedom, and no longer paying/burning money towards rent.

I have seen so many Landlords get burned by making verbal agreements with their tenants only to get burned.Whether the tenant is a licensed contractor or just a handy Tenant, keep the rent and work separate.

UTILITIES: Tenant must keep utilities on until check out procedureis finished.LIGHT BULBS: Replace burned out bulbs or a $1 per bulb chargewill be taken from the security deposit. 


The numbers will always be worse right after a new property is acquired while you work through inherited bad tenants and deferred maintenance.Wait till the day your cleaning cat poop out of kitchen cabinets, or dead fish out of a fridge because the electric bill did not get paid, or a dirty toilet because the water bill did not get paid, or rolling up carpet to burn so the exterminator can kill the fleas, or a renter turns the water back on while the plumber is working in another room so they can flush the toilet.

Radiators are just cumbersome to layout furniture around (and can burn you if you touch them while running) and the baseboard heaters I have seen, mean you can't get furniture all the way against those walls.

Just make sure they send you a copy.We would NEVER put utilities in our name as we've had too many owners cry broke and burn us.