We're mom & pop with a triplex in L.A. near the harbor, just 3 blocks to the coast and a small beach. We've tried to get away from long term 1-year+ leases due to how toxic LA gov is towards rental property owners, and went all furnished mid-term, which means more DIY time for us managing things but also results in higher rents than unfurnished, long-term. One tenant we have we new had poor credit but seemed honest, hardworking - just had a divorce and was trying to get a better job and pay off debts. I asked him why not rent in a cheaper area, and he said he liked how our area was relatively safer and wanted the simplicity of furnished/utilities included. He put down 2 months' deposit (we usually just ask 1) and moved in 2-3 years ago. We had to stretch out payments and he's been late over half the times but has always come through. Last year he got a tech job he says paid over $120k so things are looking up. He still drives a beat up car, which I consider a very good sign.
It's tough because you want to help someone out by giving a little more time, but if they screw you, then the very long (many months) eviction process hasn't even started....all those months with no rent, paying their utilities, and tenants getting evicted may even decide to damage a few things on their way out just to F with you. I feel bad for someone forced to move because they no longer can afford, but I also feel it's their own fault for renting a place they can barely afford even when times are good, and have no emergency fund built up. These are people that don't watch Graham Stephan's channel, that's for sure !!!!!!!
The other 2 units have been guests staying an average of probably 2-4 months and all have consistently been on time.
Wow, thanks for sharing your experience Tobe. It's great that you managed to help out that tenant. Like you say, it can be a tough call, especially for owners who are dependent on that income... and if you don't know if that payment isn't going to come through, eviction becomes a hard decision.
I am concerned about selling the home I'm currently living in ( which is a duplex) and buying a new home. I thought about renting it out . I know I can create income from that. I guess my question is, do you think that it is wise to go forward with this when the buying market is not stable?
living in a unit of a 2, 3, or 4-unit MFR is absolutely the way to go for wealth building. When you get to the next level - whatever that is for you...maybe 7 figures net worth? Then if you want to splurge go for the SFR. That's the Graham (and my) answer anyway ;)
We're mom & pop with a triplex in L.A. near the harbor, just 3 blocks to the coast and a small beach. We've tried to get away from long term 1-year+ leases due to how toxic LA gov is towards rental property owners, and went all furnished mid-term, which means more DIY time for us managing things but also results in higher rents than unfurnished, long-term. One tenant we have we new had poor credit but seemed honest, hardworking - just had a divorce and was trying to get a better job and pay off debts. I asked him why not rent in a cheaper area, and he said he liked how our area was relatively safer and wanted the simplicity of furnished/utilities included. He put down 2 months' deposit (we usually just ask 1) and moved in 2-3 years ago. We had to stretch out payments and he's been late over half the times but has always come through. Last year he got a tech job he says paid over $120k so things are looking up. He still drives a beat up car, which I consider a very good sign.
It's tough because you want to help someone out by giving a little more time, but if they screw you, then the very long (many months) eviction process hasn't even started....all those months with no rent, paying their utilities, and tenants getting evicted may even decide to damage a few things on their way out just to F with you. I feel bad for someone forced to move because they no longer can afford, but I also feel it's their own fault for renting a place they can barely afford even when times are good, and have no emergency fund built up. These are people that don't watch Graham Stephan's channel, that's for sure !!!!!!!
The other 2 units have been guests staying an average of probably 2-4 months and all have consistently been on time.
Wow, thanks for sharing your experience Tobe. It's great that you managed to help out that tenant. Like you say, it can be a tough call, especially for owners who are dependent on that income... and if you don't know if that payment isn't going to come through, eviction becomes a hard decision.
I am concerned about selling the home I'm currently living in ( which is a duplex) and buying a new home. I thought about renting it out . I know I can create income from that. I guess my question is, do you think that it is wise to go forward with this when the buying market is not stable?
living in a unit of a 2, 3, or 4-unit MFR is absolutely the way to go for wealth building. When you get to the next level - whatever that is for you...maybe 7 figures net worth? Then if you want to splurge go for the SFR. That's the Graham (and my) answer anyway ;)
You must have read Aesop's Fables with all the parables/fables that you have ready at hand at all times!
Thanks for the article.