Cash Renters
I have the chance to buy another group of properties that has very good cash flow. It is an investor who has held the units for 10 years but is getting married and the wife doesnt want to live in the state. The duplexs are built like a brick outhouses. They are located in a lower middleclass blue collar neighborhood. 1/2 the area is hispanic, 1/4 old white folks, 1/4 white blue collar. The hispanics are mostly migrant/domestic workers. The units are rented month to month with no rental agreement. The vacancy rate is very low. the rents are 550-650 a unit. He collects cash from them. The units are clean. The other investors in this area conduct this agreement free practice in this area. The vacancies are low because they can fly under the radar and dont require a bunch of residency requirements. Is providing homes to hispanic families under these conditions acceptable? I know there are alot of angles here.
I myself dont see the problem. If they pay rent on time and take care of the place what more do you want. As long as they are not dealing drugs or causing a problem for the other tenants.
Anyway month to month is more like a extemded stay hotel. Do you know of any hotels that require you to prove you are a legal resident?. If you were thier employer you could have problems but dont see it as a landlord or innkeeper.