House #14 – Our First Rental

P7010012It took us buying 14 properties flips or wholesale before we where ready to do a rental and this was actually going to be a flip until we took our main contractor to the property.  He liked it so much, he told my business partner that he wanted to rent it!

After much discussion and some budgets we decided that the pros out weighed the cons and we would try our hand at being a landlord.  We are going to close escrow on this property on Thursday and envision about two to three weeks of repairs required and $10-15,000.

The kitchen (pictured on the left) is the worst part of the property.  It is a 4 bedroom 2 bathroom property with a pool.  My least favorite part is that it has a terrible gravel roof that looks terrible, but it still is in great condition.

With the 4 bedrooms and 2 bathrooms, it’s on a 10,000 sq foot lot and has a detatched two car garage.  We really like this property and think it will appreciate really well (and cashflow in the meantime).

Getting ready to rent I am a bit nervous.  This is totally foreign to me, a background check, rental agreements, and all the legalities involved. Having a previous relationship with the renter also complicates matters, in some elements it’s nice, but there is also potential flaws but we have weighed our options and think it makes sense.

As we move forward I will update you with our findings…

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