I bought my rental properties for $100,000 less than they should have been listed at at the time. There is a reason why I bought these properties at such a discount, which I will outline in this post. And now that I’ve owned the properties for over a year, I know exactly where the previous owner went wrong, and why he abandoned ship when he did. Here are just a few of the fatal mistakes that the previous owner of the properties made which caused him to lose on his real estate and have to sell at a $100,000 loss:
I had a discussion with a co-worker the other day about the moral struggles that come with owning rental properties.
The debate started when I began to complain about previous tenants of mine (I try not to complain too much about tenants if I can help it, but sometimes it just comes out). I told him a horror story about one of my units. The tenants were avid meth users that I’d inherited from the previous owner. His lack of proper screening practices meant that I was left to deal with them after taking over the property.
I originally thought of buying rental properties solely as an investment. I don’t know about you, but when I think of investing in something, the first thing that comes to mind is the word “passive”. The words flow together so well…passive investing.
While investing in real estate can be somewhat passive, it can be very non-passive (for lack of a better antonym) as well.