Make Money As A Slumlord

Make Money As A Slumlord

Make Money as​ a​ Slumlord
Be a​ slumlord? Okay,​ I​ got your attention,​ now the​ truth .​
I​ really don't recommend that anyone endanger their renters with unsafe housing .​
Much of​ what people call slumlording though,​ is​ simply providing reasonable housing for those with low incomes .​
It is​ of​ benefit to​ the​ renter AND the​ landlord.
Why Do People Rent Dumps?
People rent not-so-nice places because they can afford to​ .​
a​ house that needs paint,​ has old rusty hinges on​ the​ doors,​ and a​ dirt driveway - this is​ a​ house that cost less to​ buy,​ and therefore can be rented for less .​
Anything major that the​ landlord does to​ improve it​ will result in​ higher rents,​ and possibly drive the​ renter away.
In fact,​ this often happens .​
a​ few years ago my own town enacted its first rental regulations .​
The fifteen pages of​ new rules included many non-safety-related requirements,​ like a​ minimum of​ windows,​ to​ allow natural lighting,​ bedroom square-footage requirements,​ and no peeling paint.
These things are done in​ the​ name of​ low income renters,​ and yet the​ result is​ always the​ same: higher rent .​
With that and the​ regulations against mobiles homes,​ low income families are moving further away from town and jobs .​
I​ mention all this to​ let you​ know that if​ you​ offer an​ ugly,​ but safe and affordable rental,​ you​ are providing a​ real service.
Why Invest in​ Low Income Housing?
If a​ nice two bedroom house in​ a​ small town costs $130,​000 and rents for $800,​ an​ old mobile home on​ a​ lot will probably cost $45,​000 and rent for $500 .​
Notice that the​ house costs almost three times as​ much,​ but the​ rent you​ get isn't even doubled .​
This means the​ mobile gives you​ MORE CASH FLOW .​
That is​ why old houses and mobile homes (on land) are such good investments .​
It's important to​ note that you'll have more risk and management problems with low income housing .​
Repairs come up more often,​ and rent will be late more often,​ on​ average .​
This is​ why you​ deserve a​ higher rate of​ return .​
Otherwise,​ who would want to​ provide low-cost rentals?
Treat your renters well,​ and make your places safe .​
Do these things,​ and you​ can enjoy a​ good return on​ your investment - even if​ some want to​ call you​ a​ slumlord.

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