I am basically looking to earn a few units (anywhere a 2 unit duplex to a 6 unit flat) All i really want is the extra income to sit on as a little nest egg with as little hassle as possible. I am a part time Realtor, and full time job, looking for someway to balance things out so i can focus all my attention on real estate. So, from personal advice, is this a good idea or no?
I have considered other investing deals, but i dont want to participate in something that requires time (since i have none) I figure that with a landlord situation, i can just call the maintenance guy, and have them come fix it.

Anyone got any pointers for me. I plan to start looking this week, i have been putting this off for far too long.
What should i look out for?
At least a douple digit cap rate?
High maintenance?
Bad tenants?

comments anyone?

Thanks..

From your questons.... I'm not sure you are ready to be a landlord. You need to understand what your responsibilities would be... in your state, and you must realize that at a licensed agent you will be held to a higher level of assumed knowledge.

It is not something to "dabble" in any more than the practice of real estate.

Before you even consider looking at properties... know what your going to be required to do and how to perform the legal, administrative and other tasks being a landlord mandates. You will need to develop a business plan, have an exit strategy and full understand the cash flow from purchase, through your holding status until some time in the future you dispose of it. With out a plan it is not investment... it is gambling / speculating.

I might have come across as a little less knowledgable than i might be. I took an investment course at the same place i got my RE training. I have read many books rangeing from REI to financing. Although i haven't read anything specific to land lording which was why i was asking for some input. Once i have something more specific to read about, i will learn more. Thanks for the post.

So from what i gather, i need to read up on the administrative tasks and such.

Specifically what the landlord tenant relation is legally and what functions you must preform by law and for your own protection and the protection of your property.

How you would hold the title to investment properties is a subject you need to discuss with your CPA. Most seasoned investors do not hold title in their personal names for liability and confidentiality reasons. Look into Land Trust if you state has specific laws relating to them and LLC's. Combinations are generally best.

SMLRE,

I second Realty Check's suggestion...definitely read up on what your rights are and what your tenant's rights are in your respective state. Don't rush into anything...deals can always be found and only become more obvious once you acquire more real estate specific education.

Spend a day at your county's housing court and sit quietly in the back of the courtroom and observe some of what's going on and the problems landlords encounter. Learn from their mistakes and strive to make it your mission to *not* end up like them...that means taking preventative steps and learning about the systems that need to be in place (i.e. stringent tenant screening; having legal leases that have some teeth in them; right down to how you sign documents when you represent your LLC while doing business) in order for your landlording business to run smoothly.

I've found this Question and Answer forum to be helpful in learning more about asset protection:

http://bbs.mrlandlord.com/assetprotection1/index.mgi2

Other sites/materials that I found to be useful:

www.mrlandlord.com
www.bobbruss.com
www.rentalprop.com

There are also a few great RE message boards out there that you can learn a lot from.

wow, dead on xeno', just what i was looking for. I tried to find a descent forum for landlording but no luck. Thanks!

Can anyone offer reviews on "The Landlord's Kit" that comes with forms? Is it worth it?

After reading a lot more, i think i am going to wait about another month and give it some hardcore reading and learning.

Where else can you get forms?

Be sure it is State Specific...

As far as obtaining the forms, if your a REALTORŪ you probably have access to a full set from your State Association. If not then a meeting with a local and GOOD, real estate attorney may be in-order. Have him develop a set of forms with LandLord enhanced elements.

For my Brokerage business I always use the State approved forms. For my own personal use via LLC's. S-Corps, and Land Trust I develop my own but with its roots in court validated form clauses. This is something I would NOT recommend for someone starting out. I can not use these when I am not a principal.... since I am not an attorney.

Use of Store forms are a great way to end up in court and on the wrong side or at least the weakened side.

State approved forms and contracts are the easiest and safest way to go

I bought the Landlord's kit and used it until I joined my local Apartment Assocation. Tenants really like using Apartment Association forms because they are familiar with them. What they don't realize is that they contain all of the necessary clauses to help protect the landlord.

I liked a book called "Landlording". It's a big yellow book that properly set my expectations. I followed it to the letter most times and avoiding a lot of problems. When I didn't follow the advice, it always came back to bite me. I also signed up for LandlordPortal.com and used their discount on the background checking service.

My main advice:
1. Join some landlord associations so you are not alone and learn from other people's mistakes.

2. Keep up to date on changes in landlord/tenant law and take as much legal training as possible.

3. Keep a good amount of money in the bank for surprise repairs. Some people use home warranties to help with repairs, but the "Top" companies that I've used were horrible.

4. Expect problems.

SMLRE - in addition to getting involved in some of the real estate investing forums , another great idea for both marketing and knowledge purposes would be to get involved in a local real estate club.

i looked for a club in my area, the closest one is a 4 hr drive.

I have been talking to investors (the "we buy houses" add) and been offering my realtor services in exchange for knowledge...

other than that, i just been reading books...

got a request, i just found what looks to be an excellent duplex, been on market for 2 days, and i want to jump on it, i actually already got renters lined up for it

if i post the specifics, could yall give me some advice?

i learn beeter by doing and real life examples, so i think i am just going to jump in to this head first

Hey - please post the details. Feel free to ask some of the investors at our site as well. Anyway, I'm sure we'd all be happy to help you work through the numbers.

ok here goes, it is 127k. Its in the best neighborhood in town, it doesnt get much better.
and for 127k, thats insane. i havent seen it yet, might go look tomorrow.

Each side has 1287 sgft, its 3 levels including basement, its 2 br, and 2.5 baths, they dont say what they are charging for rent..

taxes are 1208, built in 1996.
I guess that doesnt tell you much without the rent figures. But i have been looking at duplexes in the area, they rent for 600, thats with no basement. This deal has over 500 more sqft, so i am figuring i can at least get about 650 out of renters. One side is under lease. And i have a renter as soon as i buy it that will pay 650 for this duplex (she has already seen it)

so lets assume both sides are 650 rent.
I already talked with my Lender, she is running over some figures, but i probably wont hear anything untill tomorrrow...
It has pool and tenis court access, central air...
Good deal or no?

in 99' it sold for 114k
in 02' it sold for 115k

i was thinking an offer of 119
apparently its the trend to list duplexes about 10k above market, because they all close 10k lower lol

it also appears to be in a complex type thing, where there are about 10 duplexes side by side (one building seperated by a brick wall) i know there is a different here with the insurance. If its one building or if its been seperated..
It also has 85/month POA