Thread: Rental Income Idea

I know in one unit I rented, the washer and dryer were added to my rent. I'm sure others do the same. Only thing I thought was odd was the cost $15/mo. I imagine it would cover the costs of the machines (especially if you picked them up dirt cheap on craigslist), but if it broke I think there would be a loss for you. I'm not up on rent a center items. Do they require a deposit? Is that something you could do? If they break something that is clearly their fault, can you charge them the cost of the item? etc etc. I don't think its a bad idea at all if you can fill a need.

Craiglists, garage sales, auctions, etc are all good places for used and new items at a fraction of the price. I could probably spend a friday at garage sales and furnish an entire apartment for less than $500.

Does everything have to be new? Does RAC sell mostly/all new items(never been in one).

My local REI club will be taking a trip to a habitat for humanity restore next month. I haven't been there yet, so I can't comment on there pricing. However, you can see if one is near you and check it out. Can't beat getting a good deal and helping a great charity.

http://www.habitat.org/cd/env/restore.aspx

You may want to check out UBID. I have found some excellent deals there that were quite profitable. I mostly buy car audio on there though. I don't know about their TV prices, but I find some of their projectors pretty tempting . Their fixed prices aren't great, but in auction format there are some nice deals.

Originally Posted by Bilgefisher

but if it broke I think there would be a loss for you.

If you buy cheap enough, it should work out in the long run. If you buy a set for $150, you would have your money back in 10 months(at $15/month). I think, on average, most used sets will last more than 10 months.
I like the idea, it is something I have contemplated as well.

Thanks for the ideas guys. I'm going to have to do some homework. +++++speed

I would be concerned with the liability/maintenance cost of the devices. For example, you rent them a TV, or a computer, or a microwave, and they break Saturday night just before they need it for something very very very important. Now you Mr. owner are responsible for driving down there and take care of the issue.
Do you really want to do that?
In any case I have never used RAC so I don't even know how it works, I am just commenting from my ignorance on the topic.

Thanks Andres. I too have never been inside of one. I guess that says a lot about why we are where we are. I think I may have to go to another RAC store and see how they operate. I'll have to think this one over. Thanks again.+++speed

I believe they structure it as a rent to own. I think the best way would be to require a down payment to try to recoup your initial outlay.

For instance if you bought the TV for $150 then charge $150 down and the rest is icing on the cake. That's how a lot of the buy here pay here car dealers work. You can make great returns on your money. The security of your note or contract would be the TV. Good luck if they stop paying. Hopefully you got your money back upfront.

There's a good book called Deals on Wheels by Lonnie Scruggs. The book is about buying and selling used mobile homes but the concept and the numbers used in that book I believe are exactly what you're talking about. He even mentions it in the book.

Good Luck