Looking to become a slum lord, does anyone have any tips?
First, buy a building that is up to code. Since you’re aiming to be a self-described slum lord, that means you won’t be repairing or improving any more than necessary, and you don’t want to be forced by the city to make changes. Don’t do Section 8 housing unless you know someone with experience, or are extremely confident than you know what you’re doing. Don’t buy buildings for 7% cap rates like everyone else – aim for 12%+. I know someone who bought a fairly reasonable property (one I can enter without feeling in danger) with a 20% cap. That’s what you want to aim for.
