As a real estate investor, 3 years ago I thought I was the "golden girl" finding these great 50K single family home properties in Indiana renting at positive every year. It was a no brainer! 10% down and I'm cash flowin!
Well, in the midst of big autos crash and burn, me the individual investor is being heavily affected. 2 out of my 4 tenants have stopped paying for the last 2 months due to financial hardship and layoffs and I am now faced with evictions and small claims court. Thank the Lord for my great property management company that handles all of this, but my heart skips a beat every time I see their number pop up! What next! This is why I cringe. On the bright side, my 2 other tenants have been paying their rents for now. Just have to ride it out....
Lessons Learned:
1) Avoid investing in residential areas supported by Big Auto (duh!)
2) Prepare a reserve fund of at least 6 months just in case of situations like these
3) Always screen your renter-check credit and rental history
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