landlord horror stories

[LivingAlmostLarge]

Have you ever lost money being a landlord? Have you ever cashed out because it wasn't profitable? What happened? Would you share the numbers? How did you end up in a bad landlording situation? Fell into it?

I only hear the success stories of how easy it is to make money but it can't all be 100% success right?

[MooseBucks]

Have you ever lost money being a landlord? Have you ever cashed out because it wasn't profitable? What happened? Would you share the numbers? How did you end up in a bad landlording situation? Fell into it?

I only hear the success stories of how easy it is to make money but it can't all be 100% success right?

My family has owned numerous rental properties over my life and I've had one since I was 19. For my parents some tenants trashed the place and others stayed for years with no issues. I've had two tenants in mine over the past 11 years. My first tenant was great until he lost his job and committed suicide in the garage. I was the one who ended up finding the body so that wasn't a great experience My current tenant is a seasonal late payer but never complains or asks to have any thing repaired. If you're managing it yourself make sure you have contractors you trust and can call at anytime when something goes wrong.

[rennigade]

My first tenant was great until he lost his job and committed suicide in the garage.

Talk about being committed to his work.

[HundredK]

I have a friend whose property management company for his various homes just skipped town with the last 3 months of his rents. So there's a cautionary tale - be careful who you hire to manage it.

[TexasHusker]

Have you ever lost money being a landlord? Have you ever cashed out because it wasn't profitable? What happened? Would you share the numbers? How did you end up in a bad landlording situation? Fell into it?

I only hear the success stories of how easy it is to make money but it can't all be 100% success right?

I wouldn't term it easy, but the total return can't be duplicated by most other investments.

If you are buying real estate for income, it's not really a matter of whether it's 100% success, but more about what your yield ends up being. That is a function of the price you paid, how well you pegged the true rent amount, how selective you were with tenants, and repairs and maintenance.

[bennkar]

I used to live in a townhome next to a nice place that was then bought by a some immigrant who thought it was the way to riches. He would rent it out at a high rate, and would only get those that wouldn't be accepted other places. I would have to live next to the ruckus, and then after a year or so they would be kicked out and the place was trashed. Then two months of repairs and replacing appliances and the process would start all over again. Wash, rinse, and repeat. After I sold and moved out I heard he finally gave up and sold the place.

OK, probably doesn't answer your question exactly, but that moron definitely lost money.

[rennigade]

I wouldn't term it easy, but the total return can't be duplicated by most other investments.

If you are buying real estate for income, it's not really a matter of whether it's 100% success, but more about what your yield ends up being. That is a function of the price you paid, how well you pegged the true rent amount, how selective you were with tenants, and repairs and maintenance.

Please reread ops question because you missed the boat.

[97guns]

my first investment property was a tri plex in NORTH las vegas that i picked up around 2000 and kept it for 5 years, i had no idea north las vegas turned super seedy at night as we never looked at night. At first it was doing great but after a year or so the property manager turned sour and started nickle and diming me, i went through 3 more managers in 4 years with all of them taking advantage of me not being in town. it went through some really bad tennants too, one kicked in the sheetrock to turn 1 unit out of 2.

i ended up dumping it without loosing any of my principal investment and it turned out to be a valuable lesson for me on my next RE investments

[TexasHusker]

Please reread ops question because you missed the boat.

Thanks for setting me straight. It's reassuring to know that I can count on you.

[LivingAlmostLarge]

Do most people then investing in RE never lose money? Is it the appreciation?

[snafu]

I think you need to talk to someone in the Landlord Association who can explain the risks. I believe you need patience to listen to long winded complaints, the skill sets to fix basic, repetitive items and a list of god specialists to fix the major items. Location is an very important feature.

[james.hendrickson]

I had a triplex in DC Back in 2008. I rented the basement to one single mom who had a couple of kids. The week after we signed the lease, she told me she lost her job and wouldn't be able to make the rent. A few weeks later, her kid flushed a washcloth down the toilet which backed up the plumbing in the entire building. I had to call a plumber and get the main drain line snaked out, which lasted till like 2:00AM.

Eventually this lady fell three months behind on the rent - she owed me like $2,100. I told her I wouldn't go after her for the $2,100 she owned me if she gave me her dvd movie collection and moved out.

She eventually left. I got the DVDs.

I bought a pearl and silver necklace for my wife with the deposit money she did give up and watched those DVDs while drinking a beer.

As a side note, that building was also in a rough part of town, we had a couple of people sneak around the back and drop a deuce in the back carport. That wasn't so much fun to clean up.

The park across the street was also also characterized by occasional drug deals. The cops got called a few times, due to fighting/drugs.

The lesson here: own real estate in good neighborhoods where you don't have to deal with deadbeats.

[97guns]

Yeah lesson #1 I learned from my N Las Vegas deal was don't buy in bad areas, my tenants woke up one morning to find a dead body in the street gutter