You have heard it all before. Some of us have even said it ourselves – “Being a landlord can be a pain.” Most people in this country will agree that it makes a lot of sense to buy property and invest in real estate. We also know all the benefits of investing in real estate. You probably have heard that real estate is the “IDEAL” investment.
- Equity Buildup
Income is the main reason and benefit for investing but, real estate has a very big drawback – “BAD TENANTS”. I’ve heard all the horror stories and the warnings from other people who say; “Don’t ever be a landlord; it will make you crazy” or “The day I sold my properties is the best day of my life” or “Tenants will break everything” or “Tenants don’t pay their rent, they steal from you, and skip out on you”. Remember the movie “Pacific Heights”? Anyone who has ever invested in real estate or has had a friend who invested in real estate has a “tenant from hell story”. The sad part is that these complaints and stories are true.
As you have probably guessed, I have my own stories and have had a couple of tenants from hell. Most of my “normal tenants” in the past 30 years of investing have been okay. Notice I said okay, not great. They stay a year or two; they pay their rent between the first and the fifth most of the time. Most of them left their rental in okay condition. Okay, meaning I still had to clean up after them, clean up their junk, paint the units and strip out and replace all the carpeting. Then there were the tenants that were very far from being okay. They did not pay their rent on time; they were slobs that destroyed my property. The old saying is true, “One rotten apple spoils the whole barrel”. It wasn’t long before these rotten apples caused me to get burned out. I was spending my time managing, also known as running adult day care centers, and no longer looking for deals and investing in real estate.
Real estate investing is a game. It is all in the numbers. If you want to be financially independent you have to keep buying properties and building your portfolio. But, the more you buy, the more tenants you have, and the more chances you have of getting the “tenant from hell”. Even if you never get the tenant from hell and all your tenants are “okay” when you start building your portfolio, buying more property and getting more and more tenants, even the okay tenants will burn you out. It was because of being burned out by these okay tenants that I decided not to go down the same path that every other landlord was going down. I was no longer going to be a general practitioner; I was going to be a specialist – a housing specialist with a niche of providing housing for those in need. I developed a system of getting much better than okay tenants; I was getting GREAT TENANTS and MORE MONEY. When I say more money I am talking about a lot more money, doubling or tripling my cash flow without buying more property.
The system I am talking about is “The Landlord’s Guide to Special Needs Housing”. To learn how YOU can get two or three times more rent and much better tenants, don’t miss my presentation at the AOA Trade Show and Landlording Conference on May 19th, at the Long Beach Convention Center.
Nick Sidoti™ AKA “DR CASHFLOW™” has been investing since 1979 and the national expert on student and special needs rentals. He has lectured to thousands at real estate conventions across the country since 1981. Nick has been profiled and featured in the KIPLINGER FINANCE MAGAZINE for his innovative ideas on increasing cash flow with Special Needs Housing™.