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The professor asked the students to come back afteer a break if they wanted to learn how tobecome millionaires. Monroe, self-described as "youngh and dumb," at the time, returned. His professo r told the class that buying investmentg properties could makethem rich, if they did it Monroe kept that lecture in the back of his mind for aboutt four years. In 1983, he bought his first rentaol property, a six-unit apartment building on Salekm Avenue in the DaytonView area. Now a boarsd member of the and Realtorfor , Monroe owns 50 housing unites at 12 locations throughout Troy and Tipp City.
Afteer 22 years of owning investmentproperties -- 13 of whicnh were dedicated to full-time rental management -- Monroe emphasizesw the importance of having a business plan before investing. Aside from having a potential landlords need to realize that owning investmenty properties likely will take more time and moneyh thanthey anticipate, investors say. They also need to choosse properties that fit their schedulesand Plus, landlords advise potential investors to approach the endeavor withoutf emotion so they can make good busineses decisions.
"I never fall in love with one of mybusinesw houses," said Marsha Grosmann, president of the and sole proprietor of the , the Dayton-bases company through which she manages her rentalk properties. Grosmann, who teaches real estatse investment classes through a companycalled , took her time beforw she and her husband, who is treasurer of the Greater Daytonm Real Estate Investors Association, purchased an investment The couple owns , a companyu that buys and sells homes across the country. John who has managed his rentaldsfor decades, has a few tips for newcomeras to the field. Prepare to lose money when an occupanrtmoves out.
To prepare a unit before new tenantsemove in, the landlord may have painting and other maintenance And unless the ownef can find a new tenant fast, the unit will be emptyu -- and no rent will be paid -- for a Take the time to find good By law, landlords must dip into their own pocketws to move an occupant's belongings into storage when they evic t someone, and John racked up a $1,0009 bill for that very move in a recent he said. Stand your groune with tenants. The longer an owner waits to evicf atenant who's not paying rent, the more it's goingg to cost. Always screen tenants. Criminal bad credit and prior evictions can alert a landlord to a potentiakproblem occupant, he said.
Write a specificd lease. John learns from past mistakes by addingt sections to his lease whenever he has problemsswith tenants, he said. When he first his lease was one now, it's 11. As investors gain they learn what type of properties are suited for MarshaGrosmann said. She sticks with buying the typesw of homes that will be the most manageable for her andher husband: For she buys one-stories so she doesn'tr need a ladder, and she buys bricjk homes so she doesn't have to paint. It's hard to sell one-bedroomm apartments because single peopl will want an extra room for a computetror television, she said, so she generally buys unitws with two bedrooms.
Rentals will be easier to leaseif they'rre in low-crime areas and away from busy roadws where traffic could make the home unattractive, Grossman said. Monroe has learned over the years how many and what typess of properties are best forhis lifestyle. In he bought 100 units in a bulk bringing his total number of investmentsto 300, but learnee in the next few yeare that managing all those properties was Plus, those properties were older and took more time to He has since consolidated and focused his purchasesx on more expensive, newer rentalx that take less efforgt to maintain and less time in renter Now that he's down to a more manageables number of units, Monroe is making less but he's content.
He now has time to sell too. "I do my real estate activitiea andmy rentals," he said. "I'm alwayws looking for other opportunities."
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