Zero Risk Real Estate: Creating Wealth Through Tax Liens and Tax Deeds

Hold and Rent Strategy

There is a lot to be said for simply fixing up your new property and leasing it out as a landlord. You have put in a great deal of time and effort to acquire this asset, and you have a relatively low investment compared to the long-term potential return. You can not only collect monthly payments but also enjoy the initial built-in equity and have the satisfaction of watching the value of the asset grow over time.

But becoming a landlord brings its own set of challenges. Repairs, maintenance, locating and qualifying tenants, collection of rents, and of course, the occasional eviction. If the property is local, or you have a good property manager in the area, this can be pretty profitable.

The following are some of the major concerns of being a landlord.

Making Repairs

When it comes to being a landlord, two things in life are inevitable: death and repairs. Don’t even consider a property management business unless you’re sure that you can pay for repairs. Landlord and tenant laws require that you make serious repairs quickly. If you don’t, you could be held liable for additional damages.

The worst thing about repairs is that they normally creep up on you suddenly and often cost a lot to get the damage fixed. For example, if your tenant calls at 11:30 pm to tell you the water heater has busted and is flooding the house, you have to immediately send an emergency repairman to shut off the water and dry out the carpet.

Since it’s after hours, he’ll charge you double ...