To make the big bucks in this business, you must hold onto your rent producing properties. Flip-flopping and selling off assets might sound a little more sexy, but its short lived at best. Selling works in direct opposition to retaining income, depreciation credits and avoiding the tax collector. Combined with appreciation, these are the main ingredients for wealth. Obviously, keeping properties requires handling the tenants, who pay you their money every month – but as your collections grow, landlording becomes much more tolerable, and eventually, more fun.
When you ask folks who are successful long-term real estate operators what made them that way, I’ll bet I can tell you their answer. It’s their ability or skills to handle the people who live in their properties! Do it yourself investors like me don’t become successful without landlording skills. No one is born with these unique set of skills, but it’s nearly impossible to succeed without them. You don’t have to be greedy to become a wealthy landlord. What you must be is a fair-minded business person. Fair-minded means that rents are collected in a timely manner and your houses are maintained properly by the tenants who lease them. It’s your business to make sure rents are collected and the rules in your rental agreement are followed. Knowledge will allow you to gracefully handle most tenants’ problems