Hands On Real Estate Investing

We own a 3 bedroom 3 bath townhouse in a suburban area with good schools. We have had the same tenant for 23 years. The reason the tenant stayed so long is because we rarely increased the rent, and when we did, it was just an extra $25 or $50 per month. We appreciated that the tenant didn’t complain much, and generally paid their rent on time every month. The tenant was paying $1,200 per month, however the market rent was $1,800 per month. We made a conscious decision to begin increasing the annual rent by $75 – $100 per month to bring the rent closer to the market rent. Once the rent reached $1,600 per month, the tenant decided to move. It took a couple of months to clean, paint and replace the flooring. We listed the property for rent at 1,995 per month and received an application from a prospective Section 8 tenant, a family of 5. Both parents were receiving Social Security disability, and rental assistance from HUD. We conducted our background screening and discovered that their credit scores were in the 500s (fair) … The cautionary tale continues in Part 2 …

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