Be a slumlord for Bryan College Station Investment Property? Okay, I got your attention, now the truth. I really don’t recommend that anyone endanger their renters with unsafe housing. So if that is what you think is a slumlord – don’t do it! No one should have to live in a pit but much of what people call ‘slumlording’ is simply providing reasonable housing for those with low incomes. It is of benefit to the renter AND the landlords of Bryan and College Station.
Why Do People Rent Dumps or a Slum?
People rent not-so-nice places because they can afford to. They rent properties that are in an “affordable” range. Maybe it is a house that needs paint or has old rusty hinges on the doors or maybe a dirt driveway. This is a house that might cost less to buy, and therefore can be rented for less. Anything major that the landlord does to improve it may result in higher rents, and possibly drive the renter away.
These things are done in the name of low income renters, and yet the result is always the same: higher rent. With that and the regulations against mobiles homes, low income families are having a hardest and harder time finding a place to live. I mention all this to let you know that if you offer an ugly, but safe and affordable rental, you are providing a real service in a strange way.
Why Invest In Low Income Housing?
If a nice three bedroom house in a Bryan, TX costs $130,000 and rents for $900, an old mobile home on a lot will probably cost $45,000 and rent for $500. Notice that the house costs almost three times as much, but the rent you get isn’t even doubled. This means the mobile gives you MORE CASH FLOW. That is why old houses and mobile homes (on land) can be such good investments.
It’s important to note that you’ll have more risk and management problems with low income housing. Repairs come up more often, and rent will be late more often, on average. This is why you deserve a higher rate of return. Otherwise, who would want to provide low-cost rentals?
Treat your renters well, make your places safe, and plan to have a little money put away for repairs. Do these things, and you can enjoy a good return on your investment – even if some want to call you a Slumlord of Bryan College Station OR just simply a College Station Real Estate Investor.