Long term buying and renting

#starter of the week Avi Baram #post4
In my opinion, and once again, my personal opinion, the stable and safe investment.
Looking for a house in a reasonable area, preference for a sought-after area (for the purpose of this topic, the lender or the land man or both. They know the areas, looking for houses that can be returned to the market as quickly as possible with as little investment, (once again, sorry for the rabbit)
My rule is: how much profit your investment yields, how much you will get for every 1000 dollars. The value of the house, which will rise and climb, is a bonus. Even if it goes down a little, the rent will not go down. The rent just goes up. The rental rates range from good areas to less good, and,, no, don't buy in bad areas even if the price is tempting, because then you will get involved with tenants who don't pay, who will destroy your house and then, even what they paid, won't cover the damage. Usually the price of the house reflects the area.
Leases and laws vary from country to country, you will need to follow the laws in that country.
There is no law or method to prevent evictions and legal expenses, or damages, but there is a possibility to reduce the risk, for example, a high deposit, renting at a high price relative to the market, a "month-to-month" contract that gives you the option to evict the tenant at any time, without legal reason, The contract is over and that's it!
In some countries, it is not possible to transfer the water bill to the tenant and it is forbidden to disconnect the water, so they collect a guarantee amount on the account in advance, you pay and collect from the tenant on the day of the rent, and anchor the payment as part of the contract, didn't water pay you? breach of contract.
Are you entitled to do a home inspection with advance notice, the tenant refused the inspection? breach of contract. And you have a legal right to enter the property, with a witness, of course, who will not claim that you stole his treasures.
And in my opinion, the most important! check what the legal evacuation laws are in that country!!!!! Property owners in countries like New York, California, etc., you would prefer to leave the house to a tenant and leave, because his stay costs you money and it is difficult to impossible to evict the tenants.
The house is there to bring you a monthly flow. You just need to make sure that you will not be on a negative return.
How much to pay for the house? Here is the big debate. In my opinion? Try to pay less than the market price to have a safety factor.
Paying less means the purchase, the payment to the lender, the necessary renovations, that the property returns to the rental market as soon as possible, because every month it is empty we will enter the price calculation.
Paying less means checking and calculating the annual taxes, how much the insurance costs, how much the management company charges you.
If you are able to manage your house with a remote control, or like me, with a nearby remote control (all my houses are at a maximum ten minute drive from the house.) If you know what a screwdriver or a drill looks like, know how to hold a paint brush,
If you know the handyman who will do and take care of the property, if you found a tenant yourself, you have profited.
In the next post: So how do you do it!
In pictures: future headaches.