Should a First-Time Buyer Be a Landlord?

About 3 month ago the son of one of my investors came to me with an idea of becoming a landlord, “if mom can do it, why not me”

I’m a single student in my 20’s who lives at moms home, I don’t do drugs, gamble or drink and I work in two jobs. I see that you help my mom and uncle with their real estates purchase and I want to follow their steps

I am thinking of buying a three-bedroom, $100,000 house in a good neighborhood.

OK. here are my questions.

  1. Are you buying cash or finance
  2. how much profit do you want every month
  3. if finance, do you have 3 to 5 month of reserve
  4. are you going to hire a property management company
  5. have you talk to your mom about the risk?

I had talk to his mom before and she asked me to guide him.

Now here is the funny thing.



  1. I want to put a 3 to 5% down
  2. I want to keep half of the rent
  3. I have 2 jobs and I go to collage and my credit is ok because I buy everything cash
  4. do i need one
  5. she works in 3 jobs and she manage the 3 homes by her self


“To be or not to be” Becoming a landlord

a nightmare

It can’t be that bad right?


I applaud your desire to invest in your financial future. And landlords get generous tax breaks while collecting rental income. But from what you’ve told me, I recommend holding off buying a home. Managing a property—which includes screening tenants, collecting rents, paying bills and keeping the lawn mowed—while you are going to school and work is difficult.

As a homeowner and landlord, you will have many expenses besides taxes and a mortgage. Assuming you put 20% down on a $100,000 house in Victorville, you will have to pay an estimated $4,938 in closing costs. You also will have to budget for repairs and maintenance—expect to pay between 1% and 3% of the home’s purchase price each year—as well as for repainting and freshening the rooms when tenants move out. You will need insurance, and if you have a homeowners association and Mello-Roos taxes you will have to pay dues. When you sell, you will have to pay a broker’s commission, probably around 6% of the selling price, and some fix-up costs.

Rental income will help to defray these expenses, but you cannot depend on a steady stream. There will be periods when one or more of the rooms will be vacant, and you may have to shoulder some extra costs to evict someone who doesn’t pay the rent. You should have about six months of mortgage payments in reserve to cover these possibilities. You also should have cash on hand to handle expensive emergencies, like a furnace that conks out in a cold snap. Since you will have to tap family funds for a down payment, it doesn’t sound like you have enough of a cushion yet.

That doesn’t mean that you should give up on the idea of owning property. Just postpone it until you are on a more solid financial footing. In the meantime, continue to familiarize yourself with various neighborhoods and properties, talk to lenders. Then you will be in a better position to make your moves.

“Building Relationships One Home At A Time”

If you plan to buy or sell a High Desert home or property contact Hector by Email or call me at 877-611-2288. Put our record of customer service, real estate experience and state-of-the-art technology to work for you in the city of Adelanto, Victorville, Hesperia, Apple Valley or the entire Southern California Area.

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Hector Reyes, Short Sale Specialist
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All SoCal Homes | Victorville, CA 92392


About Hector Reyes

Hector, a lifelong resident of Southern California, began his career in 2006. His comprehensive background includes nearly all aspects of the Real Estate industry. He is fluent in Spanish and specializes in assisting home buyers and sellers with their Real Estate needs. Hector believes in educating clients about the process of a residential sale and purchase and is dedicated to providing a customized approach to each client's needs. He uses his experience and knowledge to ensure a seamless transaction. In his spare time, Hector enjoys spending quality time with family and friends. Enjoy the benefits of local, experienced service for your Real Estates needs. Contact Hector today! Contact Hector for all your Real Estate needs DRE Unique Identifier #01832572 (877) 611-2288 Cell (714) 231-9061 Toll-free (877) 611-2288
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2 Responses to Should a First-Time Buyer Be a Landlord?

  1. An interesting discussion is value comment. I think that you should write extra on this subject, it won’t be a taboo subject but typically persons are not sufficient to talk on such topics. To the next. Cheers

  2. Le Shiigi says:

    WONDERFUL Post.thanks for share..extra wait .. ?

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