HUD Properties/Interested in renting out apartment type homes
Expert: Steele V. Propp - 8/24/2013
Question Hi Mr. Propp! I don't know if I'm in the right location to ask this particular question so please redirect me if necessary. I am interested in the future in owning real estate property and renting out something similar to apartment homes at an affordable rate to anyone. I am not interested in section 8 or anything like that. I would like it to be available to anyone with the income and they can pay weekly or monthly. I live in Mobile, AL and there is a similar establishment here called Peach Place Inn that does something similar to what I would like. My main issue is I don't have any experience in this field and don't actually know where to start and how I should begin researching. I have my Bachelor's degree in Psychology and in next week will have my Master's in Information Systems and Technology, so obviously that is far from the field I would like to pursue. I am a strong Christian so think I would like it to be a bit more ministry focused. I am just not interested in charging ridiculous rates for people to just live somewhere decent but of course, I don't want to get in the hole with trying to be too nice either. I was looking at hotel properties in Mobile that are closed for whatever reason. I would like to buy something like that and fix it back up to make a suitable establishment. In your opinion, how should I go about doing this?? What kind of licenses or certifications would I need (besides the obvious business license)? How do I find out what is the minimum amount I could charge tenants?? From research on other businesses, I believe for anything you have to charge a said amount which I didn't know until a couple years ago. Thank you for any and all assistance.
Answer Let me say right off the bat that I am not a commercial real estate expert and that is where I think you should go after this message. It sounds like you have an admirable plan and I congratulate you and wish you best of luck.
Typically multiple family dwellings do require alot of hoop jumping. Your City will have licensing requirements and that means the dwelling(s) must meet Code. A commercial real estate person should be able to give you local rents and an idea of requirements. I would contact the local board of Realtors and ask for a list of agents versed in rental investment properties. You can also check the internet.
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Thank you for the information. I will contact a commercial real estate expert to see what I should do next.
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