Investor · Fort Worth, TX · Member since 2011 · 1k+ posts · 450 votes
Last night, I worried about my rental and soon to be rental as I was going to sleep. They are older houses. Both are in good condition, but both still have original plumbing and electric. No ground wire, galvanized fresh water and cast iron sewer.
So, even though I have no plans of replacing these things until they are needed, have some cash reserves, fully expected these items to need attention in the somewhat near future, I just laid there and wasted a few moments of my life (and sleep) worrying a little bit.
So, I was just curious, how many of you worry or feel scared occasionally (even if it is not logical) - and about what?
Note Investor · Pasadena, CA · Member since 2009 · 849 posts · 544 votes
14y
Worry about the things you can control, and don't worry about the things you can't. It sounds like you have plans for cash reserves, so it's unlikely you're going to find yourself in a financial bind, which is the worst kind to be in.
Rehabber · Albuquerque, NM - New Mexico · Member since 2011 · 283 posts · 38 votes
14y
Well, although I haven't done anything, I already have a fear that when I fix up a house, it will not sell. At all. Like, never in my entire life time unless I discount it so much that I will be in the negative.
And when you get into the negative in REI it seems to be a lot of negative when it happens.
Even though I have my market data, DOM's, and know the theory of how to make a house stand out from the competition in terms of style and what not I just have a fear that it will take much longer then 4-6 months to sell.
Is this irrational considering DOM's in the neighborhoods I'm targeting are around 81 DOM?
Real Estate Investor · Cheyenne, WY · Member since 2012 · 64 posts · 19 votes
14y
I fear a lot more than I should.
I've got properties that I bought back before the crash, been carrying a negative for awhile.
The other properties cover the negative, and they are in great locations. So I just held them.
At least I think I'm worried, I am now on blood pressure med's. I guess that's proof.
Most things in this world that you worry about, you shouldn't. And most things that you don't worry about, you should, at times.
Funny isn't it.
Note Investor · Pasadena, CA · Member since 2009 · 849 posts · 544 votes
14y
Worry about the things you can control, and don't worry about the things you can't. It sounds like you have plans for cash reserves, so it's unlikely you're going to find yourself in a financial bind, which is the worst kind to be in.
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
14y
When I worry about anything, I will generally ask myself, "What's the absolute worst case scenario?" Generally, when I really think about the worst that can realistically happen, it makes me feel better.
For example, if you're worried the worst case situation is that the house will burn down and people will die, it should comfort you to know that you have LOTS of smoke alarms in the property (you do have LOTS of smoke alarms in your rentals, right?) and you have insurance to cover property damage -- so the worst case is that you'll spend time and effort rebuilding and you'll need to help your (still living) tenants find a place to live. Not worth stressing over, is it? :)
Investor · Fort Worth, TX · Member since 2011 · 1k+ posts · 450 votes
14y
Originally posted by J Scott:
When I worry about anything, I will generally ask myself, "What's the absolute worst case scenario?" Generally, when I really think about the worst that can realistically happen, it makes me feel better.
For example, if you're worried the worst case situation is that the house will burn down and people will die, it should comfort you to know that you have LOTS of smoke alarms in the property (you do have LOTS of smoke alarms in your rentals, right?) and you have insurance to cover property damage -- so the worst case is that you'll spend time and effort rebuilding and you'll need to help your (still living) tenants find a place to live. Not worth stressing over, is it? :)
Hmmm...comforting....lol!
Actually, I do have lots of fire alarms and I do have insurance. Somehow the thought of a fire burning down the property and killing the tenants is not comforting, haha!
Investor · San Ramon, CA · Member since 2011 · 1k+ posts · 569 votes
14y
I need more cash reserves *blushes* Gotta stop buying properties... #6 is supposed to be under contract today, #7 should be by the end of the week based on the conversation with the seller last night. I have #8 lined up with owner financing and 10% down if I'd stop spending the cash elsewhere I would close that one.
Sorry, I'm suffering from buyer's exhaustion. I thought I was going to wait a year or two before buying my 2nd property... not buy 7 properties in 9 months!
Investor · Fort Worth, TX · Member since 2011 · 1k+ posts · 450 votes
14y
Originally posted by Nathan Emmert:
I need more cash reserves *blushes* Gotta stop buying properties... #6 is supposed to be under contract today, #7 should be by the end of the week based on the conversation with the seller last night. I have #8 lined up with owner financing and 10% down if I'd stop spending the cash elsewhere I would close that one.
Sorry, I'm suffering from buyer's exhaustion. I thought I was going to wait a year or two before buying my 2nd property... not buy 7 properties in 9 months!
Nathan Emmert, I've seen your progress on these forums since your first purchase and you have certainly jumped in with both feet. Sounds like you have got the tiger by the tail and been able to land some serioulsy good deals. I wish you would write a blog discussing each deal and how you acquired it.
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
14y
The ground wire is actually not necessary, if you replace the receptacles with GFCIs and use the labels enclosed with the GFCI the read "No Equipment Ground" or "ungrounded circuit" (or something like that) - and this will meet electrical code. The only place where I believe the ground wire is necessary is in wet and outdoor GFCI installations (for example bathroom, kitchen, laundry, near the garage door) - and I'm not really certain that the ground is required even in those instances. Code will require grounding across water meters, hot water heaters, etc, so those must be attended to also.
Galvanized water supply is something I don't like, because the pipe is corroding from the inside, and eventually the corrosion can lead to blockage of the pipe.
Iron waste pipe is somewhat more modern than alternatives like say clay ...
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
14y
Originally posted by Brian Hoyt:
Originally posted by J Scott:
When I worry about anything, I will generally ask myself, "What's the absolute worst case scenario?" Generally, when I really think about the worst that can realistically happen, it makes me feel better.
For example, if you're worried the worst case situation is that the house will burn down and people will die, it should comfort you to know that you have LOTS of smoke alarms in the property (you do have LOTS of smoke alarms in your rentals, right?) and you have insurance to cover property damage -- so the worst case is that you'll spend time and effort rebuilding and you'll need to help your (still living) tenants find a place to live. Not worth stressing over, is it? :)
Hmmm...comforting....lol!
Actually, I do have lots of fire alarms and I do have insurance. Somehow the thought of a fire burning down the property and killing the tenants is not comforting, haha!
You said it yourself -- YOU HAVE LOTS OF SMOKE ALARMS -- so you DON'T need to be worried about anyone dying. And you have insurance, so you DON'T need to worry about the house burning down. You've taken the steps you need to take in order to be able to safely cross those worries off your list.
So, now what's your worst-case scenario that you're concerned about? Is it really that horrible? If so, what can you do to mitigate it? Then move on to your next concern...
The key is to control the really bad potential cases and not worry about the ones that aren't so bad.
Investor · Member since 2009 · 132 posts · 30 votes
14y
Just like any business, there are going to be things that go wrong, and you will have some sleepless nights. Focus on running a stand up business, with integrity and ensure you go above and beyond when it goes to tenant safety and disaster prevention. Check smoke detector batteries, provide a CO detector, put a fire extinguisher in each unit, carry adequate insurance, install hand rails, have a solid lease, get a big balloon policy and do the right thing. Beyond that, bad things can happen, but its beyond your control.
Also, if you quite buying rentals and open a grocery store, you could have somebody fall and get sued, it can happen anywhere in any business/industry. You might as well stick with a business that is the most profitable based on you skill set and motivation!
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
14y
Like my grandma, I worry about lots of stuff. She said "I'm a stew-er". Me to.
But lots of stuff that's out of our control and lots of stuff that could happen that would affect us a lot more than the things we try control and worry about.
All too often, though, its a few hours of sleeplessness not a few minutes.
Investor · Little Rock, AR · Member since 2010 · 628 posts · 251 votes
14y
Hang around my mother a while. She can always name the worst case scenario........
Me "I feel a little ill today"
Mom "I hope your gall bladder is not failing"
Me "??"
Been that way all my life. But, I didn't put an eye out or get my hand cut off. And, I don't know where my "permanant" record is to see what was put on it 45 years ago.
Don
Investor · Orlando, FL · Member since 2012 · 431 posts · 106 votes
14y
Originally posted by Nathan Emmert:
I need more cash reserves *blushes* Gotta stop buying properties... #6 is supposed to be under contract today, #7 should be by the end of the week based on the conversation with the seller last night. I have #8 lined up with owner financing and 10% down if I'd stop spending the cash elsewhere I would close that one.
Sorry, I'm suffering from buyer's exhaustion. I thought I was going to wait a year or two before buying my 2nd property... not buy 7 properties in 9 months!
You certainly don't let any grass grow under your feet. Nice work.
Investor · Reston, VA · Member since 2011 · 683 posts · 191 votes
14y
I am a worrier. I was born that way. I worry about many things; not just RE. I'm with @J. Scott. I tick thru the things that could be/are worrying me and discount them one by one, often using the "worst case" thought process.
Rental Property Investor · Manteno, IL · Member since 2009 · 2k+ posts · 2k+ votes
14y
I have to say that I am in the same boat as you. Can't help but want to analyze (i.e. "worry") about the properties sometimes.
Usually the biggest thing is when I have late payers and I call and leave a vmail. I'll play out all the scenarios and get to the one where I'm going to have to do an eviction.
Now that I have more properties, I noticed I don't stress as much about the issues as I used to though which helps quite a bit. Before, $1,500 was a huge issue. Now, its just part of doing business.
But I don't see any way not to "worry" a little bit when you're dealing with SFH tenants. At this point, I just accept the fact that about once every month or two, I'm going to wake up about 3 am and won't be able to get back to sleep because I'm thinking about some tenant or contractor or village inspector. :-)
Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
14y
In the old days, I used to worry about all the what if's. I found out it was exhausting and really quite useless. There are always enough "actual" current things to worry about without stacking on top of that the what if's. My daddy taught me to always plan for the worst and hope for the best and that has served me well in my lifetime. As many of you here on BP know, I do seriously believe in being prepared in all aspects of my life and that includes real estate investing. I learned that part when I was 12 years old and a Boy Scout.
Each morning when I wake and am able to fog the mirror, I know it will be another great day! Rich
Renter · Oceanside, CA · Member since 2012 · 4 posts · 1 vote
14y
A quote I like to try and remember when I am worrying:
"Worry is like a rocking chair it gives you something to do, but it doesn't get you anywhere."
Not always successful remembering it when I need too. But when I do, it reminds me how useless worry is. For a site full of RE talk, I would hope we would let not out free rent space in our heads to such a bad tenant as worry.
Investor and Architect · Ramsey, NJ · Member since 2010 · 305 posts · 84 votes
14y
I sometimes do. I think it depends on my mood.
What I think was more worrisome to me was when the place was vacant while looking for tenants. It was Jan, Feb, March, the coldest, darkest months up here and there was just an uncomfortable feeling about no one living in it.
From that experience I learned see tenant's as caretakers and notifiers if something goes wrong.