Reply #5: Here's my experience.... [View All]

[silverlib]

Care enough about the property to want it kept up and kept up well. Always encourage improvements within your budget. After all, this raises the value of the property.

If you have a good renter - don't raise the rent. I managed to keep a good one for seven years once and the money I saved far outweighed any money that would have been made by higher rent to a not-so-perfect renter.

If you are going to manage the property - live close and be the handyman. This gives you a hands on opportunity to see how the property is being kept.

Furnish air-conditioning/heater filters. Repairs can be expensive.

Also, watch the movie "Pacific Heights." I've had a similar experience and, if you do this long term you probably will, too. (And it's not a bad movie.)

Vacancy rates will vary incredibly over the years.

If it becomes too much of a headache - sell. I did. I had a woman who couldn't afford the rent and was constantly late - I had moved too far from the property and could no longer do the maintenance myself. She was a excellent housekeeper and very creative, so when the house went on the market, I promised 60 days notice, last month rent free and guaranteed deposit return in exchange for her agreeing to keep the house "up for show" and to work with the realtor. (I learned this trick from an old landlord of mine.)