Just wanted to write a quick note about property management: It's not for everyone. In fact, if you haven't really studied your state laws pertaining to property management, you might want to stear clear of being a landloard and leave it to the pros. Generally, a professional property management company can be hired for 10% of the monthly rent. So, a $1,500/month rental would cost your $150. Sound like money you could save by doing it yoursef? Here few key questions to ask first: Do you know how long you have to repair an item that is broken? Keep in mind, it could be anything from the HVAC system to the dishwasher or even just a door that won't close anymore. Your state may have a set number of hours (or days) that you have to get the item repaired. Do you know how to begin and/or execute the eviction process? There are state requirements when it comes to giving notice and actual eviction proceedings. Bottom line: Many people think that being a landloard is easy... just collect the rent and make sure the place isn't falling apart. However, it can be much more difficult than it might seem and you can even get sued if things aren't handled properly.

Often this topic comes up when a Seller owes more than they can sell a home for (we call this having "negative equity"). Rater than selling, many people look at renting their home "for a year or two" until they have more equity and can afford to sell. Generally, this idea doesn't work out like they planned... the rent doesn't come on time, the palce gets trashed (way more than the deposit will cover) and/or renters dissappear (leaving a vacant property with a mortgage still due... often trashed). What would have cost the Sellers a few thousand dollars (to sell & cover their negative equity) can end up costing tens of thousands (if not causing foreclosure). I don't generally reccommend turning your residence into your first rental property because it would be difficult to sell (maybe you need to stay put another year and save enough to sell). It can be done, but the pitfalls usually outweigh any potential benefits. If you do choose to take this path, have a real estate professional reccommend a good Property Management company. Being a landloard is a full-time, professional job and not for the inexperianced.

Ryan Cave, The "Caveman"
Truth, Honor & Personal Integrity
214-789-9366
www.CaveRealty.com