I Freaking Hate Rental Properties!!!

Well today is Sunday and for most people it is a day to relax and recoup for the upcoming week. I do apologize if you have to recoup to go back to the boss! I remember dreading  Mondays thinking about having to get back to the office and being confined to that desk. Thank God I don’t have to do that!

You won’t believe what happened to my last night. I have my family an d we were getting ready to head down to the ocean front. It is funny how my wife and I think a like; we both went to check the mail at the same time. Now normally when you check the mail you are expecting some cool things. In my instance it is always nice to get a check from a title company for like 10K or something. Its even not rare for my wife to get a little note from her mother with a couple dollars or something along those lines.

That was not the case yesterday. My wife was reading a notice with a very concerned look on her face. It was a summons from our local city. Oh get this, there was not ONE but TWO summons One for me and one for my wife. It said to find out more information you have to call the warrant division of the police department! It also said they could not give you specifics but you would have to come down to the police station in order to get more information. Anytime you get something like that it is a little bit of a wake up call!

So we get down to the police station and present our summons to the lady at the front desk and she calls a police officer to serve us our papers and give us our court date. All this type we are wondering what the heck did we do! The officer tells us it is one of our properties we own in the area and it is a CLASS U MISDEMEANOR. Again another reason to freak out but all this meant was it is unclassified.

Apparently one of our properties was given a code violation for the pool on the property and that it needed to be drained. Now the tenant I have at that property is on a lease option in which HE is responsible for the repairs but apparently he was not doing that. It is still ultimately my responsibility and being the man that I  readily own up to it.

So I am having to deal with this whole matter and will get it resolved and probably have to go to court and end up getting a fine for like 500 bucks or something like that. I am hoping I can just prepay the offense or whatever it is.  The worst part is that I may have to spend all day in court which is a complete waste of time! My time is worth more than the 500 bucks and yours is too if you are investing in real estate  by wholesaling houses.

The point to this whole mess is that I thought I could build wealth by acquiring rental properties. This is definitely not the case! The fact is that my rental properties have been nothing but a headache and have cost a ton more money than they have made me. The only advantage is that they have help offset my wholesaling income come tax time!

Don’t make the mistake of buying rentals until you have some good cash built up in the bank. This is not a blog about investing in rental properties but I will give you a helpful hint. If you are going to invest in rentals you need to have at LEAST a 6 month reserve for each property. Believe you me you will need it to. Tenants don’t pay and the mortgage company needs their money. So guess what? That’s right you get to pay it! That means if your mortgage is 1,000 bucks a month you need to have at least 6K in the bank in reserve for that one property. You want two properties you better have 12K in the bank.

So don’t make the same mistake I did! Wholesale some properties and put some money in the bank and then if you absolutely have to go buy some rental properties!

So we go down to the police station

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  • pierre S.

    Hey alex,
    first of all , thankyo for all the free stuff.
    I would like to know , are you a buyer as well ?
    I am just starting out and I want to know if I can put you on your name on my list. Thank you in advance.

  • admin

    Hello Pierre I am mainly a wholesaler but I will look at all properties. However I do not have buyers in all markets across the country. What market are you in?

  • Adam

    hello. I would like to know what demographics to look for on any type of properties. and I like your blogs keep em comming with a little more informational value.thank you

  • I’m with you on rentals! Don’t know how much money and sleep I’ve lost on tenants not paying! Guess I’m going thru a ‘good phase’ right now as all my properties are rented and tenants are current. However, I’ve experienced the other side, not fun! Wholesale first, build cash, then ‘graduate’ to rentals if you want.