Any landlord mommas out there?

Twiggymommy · August 2014

Hey guys!
When I found out we were having ds2 so's family gifted us about 100 acres of land, out right! It had a few run down old buildings on it but we bought a pre-fab house and so fixed it up.

But now we're thinking, we don't reallyNEED 100 aacres so we're thinking of buying a few small trailers or pre-fabricated houses and renting them out for the extra income... But we don't know the first thing about being land Lords.

Can any of you landlord mommas hive some advice, or pros/cons of doing it. We know it's going to be work epically if something breaks. But we think at 22 and 23 with 2 kids this would be a great way to start saving!

Thanks ladies!

LoveBeingMama · August 2014

Never been a landlord, but I can tell you it's the last thing I would have wanted to do at 22 and 23 if I had 2 kids.

Yes, you can make money after a big initial investment if, and only if, you can find renters willing to pay your price. Make sure you know the rental market in your area very well. What if you can't find renters? What if they stop paying and you have to move to the eviction process? What if they trash the place? Do you have enough saved to cover the costs of these things happening? You may have months, if not years, of owing more than you make. It can be very risky especially if you don't know what you are doing. What about repairs? Will you do the repairs or hire someone to manage them? It can be a very time-consuming job to look after rental property.

If you do decide to do this, start slow. Don't buy "a few" houses. Start with 1. You don't want to get in over your head before you know anything about being a landlord.

Spin313 · August 2014

We rent out our old house, but use a property management company.

Twiggymommy · August 2014

@Spin313‌ what exactly does a property management company do? Lol I'm curious and may look in to that.

@lovebeingamama and @mamaalysson‌ like I said I know that it's not going to be easy lol. But tall gave us some good things to think any thank you!

notkateanymore · August 2014

Yes and it's a giant pain in the ass. I don't recommend it as a way to build savings at all.

LoveBeingMama · August 2014

If this is what you are thinking of doing to start saving money, what money do you have to purchase and invest into these rental homes?

The more I think about this, the more I think it's a terrible idea for you.

Kneeknee · August 2014

Can you rent out the extra land for farming or hunting? Not sure where you're located but many people around here do that. (Iowa)

cmrand4 · August 2014

We have been renting a condo we own for two years. It's a major pain in the rear. After repairs, taxes, cleaning, and our time, we hardly make anything. Be aware that renters will NOT take care of the place like you would. There will be extra wear and tear because they have no investment in the place. Carpet will be trashed, hardwood floors and walls all nicked up. Last winter we had a pipe break in the upstairs unit. It caused 17k in damages. We learned the hard way that insurance doesn't cover rental units the same way that it covers a home which you occupy. It got fixed in the long run, but only after about 3 months of big headaches.
It's paying the mortgage but we'll have to rent for another. Our last renters got divorced and lost his job so they didn't pay the rent for three months. You have to have a back up funds for when renters don't pay. Also know that eviction is a long process. Where we live, the law in written in favor of renters, not landlords. so a renter could stay in a property for months without paying. Getting a judge to sign off on an eviction and then finding a sheriff to assist in coming to the door when a renter wont leave willingly in a very messy process. Just be aware and have renters sign a water tight lease.

orangegoggles · August 2014

We have a property we rent. Its ok because the house is payed off so after taxes there is still a good chunk that goes into savings. They are friends though so we don't have many of the same worries as other renters. They've been there for a few years with no plans to leave soon. We could probably make more money with random renters but I like that I really "know" whose living there and such.

I would sell some acreage if possible though I suspect that might be weird because the land was gifted to you and it might be weird for them to see you make a profit right away from it or not...I don't know.

mrsrobinsontobe · August 2014

I can share a positive experience!

Although it's not without it's issues, we have been renting our condo successfully for the past six years. When we moved to our house, we considered selling, but the selling market was terrible. The rental market, however, was booming...still is in this area. We make about $400 a month over the mortgage payment...so it's turning a profit for us. We have a three-year lease right now, which is awesome...and we've been very fortunate with tenants thus far. The location being right on the water and the high cost helps us to attract more responsible/stable tenants. Our plan is to have it paid off in 15 years....just in time for college tuitions!!! That said, if I were you, I don't know if I'd want to put trailers on my property. I'd worry about the population you might attract with little children at home. Besides, if I were you, I would not want to take on such a daunting task of building, etc. If it's ok with your family, I'd sell of some of the property!

Spin313 · August 2014

Twiggymommy said:
@Spin313‌ what exactly does a property management company do? Lol I'm curious and may look in to that.

Basically, we pay the company a fee and they act as the landlords. They find/screen the potential tenants, collect rent, and deal with most problems.

Twiggymommy · August 2014

Whoa that's a lot more responses than I was anticipating. Thank you all. Since a lot of the answers /questions yall had were very similar I'm going good to answer the questions instead of the person if that makes sense.

I wouldn't feel right selling the Land because it's been in sos family forever. As for finances I have a little left in my trust fund which would be enough to buy 1new trailer outright with still enough left for an emergency..(in hind sight it would have been nice for my parents to teach me the value of a dollar before throwing me out in to the world with a debit card. I blew a good chunk of the money on purses)
We never even thought about renting just the property. I don't think I'd want to read the it has hunting land although so hunts in the woods in our property but with 2 small kids strangers hunting on the property would freak me out. Maybe for farming though? I didn't know that was a thing.
So is a regional manager of a pizza place. And also works for my family's business on occasion so much easier would probably have to offer hire a handy man of some sort even though so could probably do repairs himself, it'd be when he got to it instead of right away lol.
And yes, we are able to afford the taxes on the land. We don't have any kind of mortgage or loan payments to make so we take what we were paying for rent at our apartment and put it in its own account, and by the end of the year it should be a little more than the taxes/yearly car payment.
We know we're very young but we both watched our families struggle to make ends meet and we decided we didn't want that for us and our kids, we're trying to live as debt free as possible.

The other thing we were thinking of doing was opening an in home daycare center... I'm 2credits away from getting my associate degree in early childhood development and I assume is have to get them before starting it up. Maybe we'll go with that instead.. Hmmm

LoveBeingMama · August 2014

Please also do a lot of research before opening an in home daycare. It, too , is a lot harder than people seem to think; it isn't just a quick solution for more income. I'm not saying you shouldn't do it, but really think it through first.

lexusolsen · August 2014

I used to ruin an in home daycare. Some things to consider- What do you need to do to be licensed? How much will licensing cost? Can you afford to wait for clients or have a plan for time in between them? Is there a need for home daycare in your area? It sounds like the properties are really spread apart, will people be willing to drive that far? You will need a contract outlining sick time (for you and your family as well as clients), vacation time, drop off and pick up hours, late fees, and supplies. Do you have a dedicated play space inside and outside of your home? Will you use your children's toys or buy daycare toys? How many kids will you need to watch to make it profitable? What's the going rate in your area?

bumpuser8448316 · August 2014

How old are your kids? I'm very wary of in home DC providers who also have their own kids. I don't like the thought of "hey! I can just watch other peoples kids so I can SAH with mine." Sorry. I know 3 people who run an in-home DC and all of them did it for years and started when their own kids were grown, not as a way to finance being a SAHM

LoveBeingMama · August 2014

I think she has a newborn and a 3 year old? Maybe I am mixing her up with someone else.

bumpuser8448316 · August 2014

LoveBeingMama said:

I think she has a newborn and a 3 year old? Maybe I am mixing her up with someone else.

Yeah, nope to the daycare thing then. You cannot possibly be a good DCP when you've got a newborn. I really think the whole "I'll run a daycare/baby sit other kids" goes back to the age old SAHM question- you simply cannot get paid to be a SAHM. If you need money, get a job.

Twiggymommy · August 2014

Again we don't NEED the money, we try to live under our means. It's not about the need for the money it's more about wanting to save as much as possible. Do I love staying at home with my kids? Yes. Do I expect to find an "easy" way to "get paid to stay home?" no.
We made the decision together when I got pregnant with ds2 that I wouldn't go back to work after having him. We both agreed that would be the best option for everyone and I am very happy to stay home with the kids. Like I mentioned, I was going to school for early childhood development. I had always planned on opening a nursery school or daycare at some point, and I still have a few credits left any way (I wouldn't even start the presses of opening one until I have that degree even though all I technically need are a few certificates that I already have and a business license) . It's not like I woke up one morning and was like "zomg I could totes get paid to stay home with my kids"

As always thank you ladies for giving me things to think about with my so. He's still pretty set on putting a rental home on the far side of the property, I'm kinda trying to convince him we should just rent the land out for farming but who knows?

lexusolsen · August 2014

@Twiggymommy‌ The year I did daycare was a hard year. The hours are long. 10-12 hours often. I needed a bigger vehicle and car seats. Even then I was limited with where I could go. How many places make it easy to watch three or four little ones at once? There are only so many enclosed playgrounds in my area. Parents would be late coming to get their kids, late with money to pay me or forget more diapers. Getting that many kids on the same nap schedule is hard too. IME getting babies and toddlers to nap in the same room can be a challenge too. It seemed like an easy solution because my mom did it when I was growing up but she had a built in support. My aunts also did daycare and they would hang out together and at each other's houses.

bumpuser8448316 · August 2014

Well if you don't need the money then wait until a better time. Finish school, get your kids into preschool or elementary and then open a daycare. In the meantime if you need to save money, cut expenses and adjust your budget so there's $$ left to save.

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