Secrets of a Millionaire Landlord

Review From User :

This small, quick tome deserves 5 stars in my humble opinion. The author advocates a "get tough" method of landlording.

I've read several similar books, and it has always struck me funny that such books advocate getting crappy houses in great neighborhoods for absurdly cheap prices. How great of a neighborhood does the neighborhood need to be to qualify

Shemin's advice provides a different perspective, which was helpful to me. His business plan includes low- and low-middle income neighborhoods. This jibes better with what I've seen in practice, where the real "steals" seem to be in low-income or transitional neighborhoods. It seems like you're more likely to get 3 $60,000 houses for $45,000 in a working-class neighborhood than getting a $180,000 house for $135,000 in a desirable, competitive neighborhood. That's how it seems to me, anyway.

This is similar to Shemin's strategy, and is why I found the book so helpful. Besides, with three $60,000 houses, the odds of you pulling in $600/house even in a working-class neighborhood are pretty good, but the odds of pulling in $1,800 on the $180,000 house are less good.

Nevertheless, those adopting this strategy are potentially dealing with a different set of problems than higher-end landlords, and need strategies to manage their properties accordingly. This book does a good job of setting out those strategies. It proposes a "tough and kind" approach, where good tenants are rewarded with kindnesses and problem tenants are treated according to the eviction protocol.

I don't agree with everything in the book, but it's good food for thought. There may be more problems in renting in working-class areas, but it seems (from reading and talking about landlording) that the returns have the potential to be better in these areas.

Media Size : 1.4 MB