For Easter I gave both of my boys (8 and 9 yrs old) $12-14, found in Easter eggs I had hidden. After they had found them I gave them a challenge: “Find a way to double what you have in a month and I’ll give you $5”. They went into action thinking up ways they could do this, and how they could employ their friends to offload some of their efforts. So far, this is what I’ve seen.

They had me go to the store with them, where they bout a lot of candy.
When we got home, they set prices on the candy and left for the day (they did this again the next day too).
Half way through the weekend I was being asked to go back to the store because one of their products had just about sold out.
By the end of the weekend, they were at the point where they had recovered all of their costs, and starting to make a profit. (even donating part of it to church).
If they continue this way, maybe I’ll have to give them the $5 a little sooner than I thought

If only I knew what I know now, I would have never bought in to rental property the way I did. A few years ago I had bought a few houses around the area I live in. Some I think I did well on the purchase, others, though I don’t think the price was bad, I think I should have gone with my gut.. not feeling on them. In the end, I wish I had talked to some people who had owned rental property for a few years or longer first before getting into it. Here are the things I wish I knew before hand:

1. There are a lot of tenants that are not like you where when you rented (honest and always on time with the rent). Many once falling behind a little on the rent will try to string you along with stories and lies about how they will have money soon.
stories and trends I have heard:
1. I’ve heard this in both good and bad area’s and now unless I see proof do not trust tenants to tell this:
a. the tenant falls a little bit behind in the rent
b. about a month in, sometimes 2 you get a call asking if they can prepay a few months of rent (1-6mo is what I’ve heard)
c. 2 days to a week after the call about prepaying they call and claim that they have been robbed (100% of the time there is no damage or indication of a break in)
d. at this point they either call and claim they can’t live there anymore, or abandon the property.
*** past experience has been that at times there is some damage, but always has only been damage caused by the tenant.

2. Tenants will lie about all kinds of things to put off paying the rent.
a. “I can’t pay all of this because I had to pay for the power/gas/water/etc”
b. “something happened with my paycheck…”
c. “I was robbed and they stole the check” (as a note, this person gave me a cashiers check from the bank that predated the date he claimed he was robbed and they stole the check)

3. Tenants rarely leave the house/ apartment as clean as they got it. I’ve seen some that were so bad that I had to run outside to throw up.

4. If you replace flooring, do install carpet. I wish I learned this early on! If you install carpet, you will just end up replacing it every year, your better off with pergo flooring or some soft of tile or stick down tile. it’s cheaper and easier to install and will last much longer!

5. After evicting someone it is up to you to keep track of where they went, and dragging them back to court to try to get paid… Also, of the people that owe you money, only a small minority will pay you back (all the more reason to be fast to evict).
a. as a note people who depend on programs like section 8 usually will pay you back quickly, their ability to stay on the program depends on it!
b. Section 8 is a good program to get tenants from, though you NEED TO DROP BY THE PROPERTY OFTEN! if they do not keep the apartment clean or are dirty and cause an infestation it can cause them to be moved from your apartment!