When I was 24 and a single dad working long hours in an auto dealership service department, I used to dream of the freedom of having my own business and not having to wear neckties and suits to work every day to impress the boss. Today, many (many) years later and now working on my own, I tend to dress “casual Friday,” seven days a week.
An elderly couple in Danville had lived for 40 years in their home. They enjoyed their swimming pool for years but the cost had gotten so high for maintenance that they were considering selling their house and buying one without a pool. The equipment was over 30 years old and very inefficient and they had to pay a maintenance company $120/month to clean it. The total cost monthly was $250. They had never even considered removing the pool until their huis te koop Meerssen introduced me to them. I removed their pool and they were able to stay in the home that they loved so much.
Baby boomers are now entering their prime wage-earning years, and many of them are thinking (or have already thought) of buying a second home. Often a couple will choose a retirement home for ‘part’ of the year, thus still retaining their family home and familiar home town base.
Use a qualified home inspector and go over the report with them in detail. Find out their expert opinion regarding the needed repairs. I also recommend that the inspection includes a termite inspection as well. Some inspections include this automatically and in some states it is a separate work order. Find out what your lender requires for the purchase as well.
As a landlord, I’m interested in simplicity. With a studio, there’s simply less that can go wrong – one set of bathroom plumbing, few appliances, etc. And when a tenant moves out and it’s time to paint or re-carpet, you’ll spend about half as much on labor and materials to get the job done. I’m all for just painting 400 square feet instead of 800… how about you?
You will find more modern conveniences and styles in newer homes, not to mention they are more likely to meet residency standards. Typically, a newer house is more efficient in its power and gas consumption as well. It may take a ton of work just to get an older house to the condition where a person could live in it. It can eat up your savings and free time just trying to keep up with the place. Higher quality building materials help the case for more recently built houses in that you will probably not end up with costly fixes later on.
Property Manager: Research, Research, Research! As far as building long-term wealth, you need rentals. And good property managers will help to make sure you rentals continue to produce for you. Make sure the property manager is experienced, responsive, and knowledgeable. Interview them to make sure they meet your expectations and that they actually provide the services they say they do.
There are a lot of people that go into handling the purchase and sale of a home. Any one of these parties can foul up the transaction. Get referrals to find good people to work with.