Slum lord versus Land lord
Is there a difference? I should say so – Big Difference. All you have to do is reach back in your past thoughts and remember some of those “gritty” dramas and cop shows that aired during the 70’s and 80’s.
The Slum Lord has a certain way of carrying themselves. Wife beater t-shirt – younger daughter. They seemed un showered and were always sweating with long curly chest hair and gold chains.
And don’t forget about the apparent “dead beat” that was unable to pay them, so hence the Slum Lord entering “stage left”, during the movie or TV episode.
Investors not flipping but renting and holding?
Becoming a Santa Clarita Valley landlord is a more attractive proposition these days. Investors are seeing value in real estate, knowing the philosophy of buying low and selling high is a true possibility at the moment. The biggest difference between buying now and buying before the recession is that you will have to hold on to a property for longer, as home values are not expected to rise as rapidly as they once did. This is where being a landlord comes in.
Recouping costs associated with investing
Rental properties allow you to recoup some of your investment costs. In addition, the high numbers of foreclosed homes has left many one-time homeowners as renters. This is decreasing the vacancy percentages in areas around the US and making being a landlord more and more attractive. A large REIT, Mack-Cali Realty Corp, has recently refocussed its attention from office space to multifamily units as a result.
Preparation is not always a “life saver”
Do you know “life savers” candy? They are in the shape of “life preservers”. You can prepare for every life changing event you know of and have heard about. However, preparing and experiencing are two different things. Same goes when it comes to being a landlord for the first time.
The strength of rental properties at the moment has many considering this form of real estate investment, but it is important to realize that being a landlord is not for everyone. If you can be prepared for the worst, empty units, repairs, bad tenants, etc., then you stand to ride out the bumps easier. In the long run if you can buy today and hold on to a property for the next 5 to 10 years you will most likely be happy that you took the gamble.
Check the current Santa Clarita Cities rental inventory
This way you can get an idea as to what real estate rentals are in our local market and what the market will bear when it comes to “rental or lease” amounts.