Rental Property Investor · Sacramento, CA · Member since 2011 · 2k+ posts · 1k+ votes
You can boost your equity by reducing expenses - but will you try?
Help fill the Innovation Shortfall by accepting my dare to reduce your rental's expenses by the equivalent of $100 per month AND providing supporting documentation.
I'll throw in a $20 Home Depot gift card as a trophy to the first 10 BP members who can figure out this riddle. But we'll all win from learning from each other.
Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
13y
If you have a larger multi family where owner pays utilities, you can install a RUBBS system which is a utility bill back system placing utility responsibility on tenants.
Institute a tenant referral system that offers tenants a one time rental credit (you pick amount) for referring a new tenant. (For multi family properties obviously)
Negotiate a discount on your property management fees (works best when you have multiple doors).
Phoenix, AZ · Member since 2013 · 76 posts · 35 votes
13y
We've used Cost Segregation Studies for our clients. Depending on the asset type, age, etc. you can shorten the depreciation timeframes under current IRS rules, as well as "catch up" on certain items of the aspect.
Phoenix, AZ · Member since 2013 · 76 posts · 35 votes
13y
Originally posted by Paul Falbo:
We've used Cost Segregation Studies for our clients. Depending on the asset type, age, etc. you can shorten the depreciation timeframes under current IRS rules, as well as "catch up" on certain items of the asset.
Rental Property Investor · Oklahoma City, OK · Member since 2013 · 1k+ posts · 412 votes
13y
Al Williamson. You're on. Listened to your podcast the other day, did some research and just committed to converting all my RV insurances to ACV. Net savings in the neighborhood of $3000 annually.
Rental Property Investor · Milwaukee, WI · Member since 2013 · 6k+ posts · 4k+ votes
13y
I came up with another cost-savings measure I used on one of my rental properties. There were some trees that needed to be cut down, but I only had the trees cut down that were NOT by power lines. The ones by the power lines the City came and did for free. That saved me about $200.
Always check with the City to see what services they provide at no charge, versus paying for them yourself.
Another tip -- if you have a honey bee infestation, DON'T hire an exterminator to kill them. Find a local beekeeper and most often they will come and remove them at NO CHARGE.
Rental Property Investor · Sacramento, CA · Member since 2011 · 2k+ posts · 1k+ votes
13y
Will Barnard thanks! I'll add that to the list. I knew you would come through for us.
Paul Falbo clever idea. Please share a success story. I want to know more.
Deborah Burian I'm not sure I know what RV and ACV stand for. Please define those terms. You sound like the first winner. Send me the documentation when you can. Oh, I got dibs on the first interview with you.
Dawn A. I'm going to add your idea to my Clever Tips list. Thanks
Phoenix, AZ · Member since 2013 · 76 posts · 35 votes
13y
Please refer to the link below for a concise, yet simple, explanation of the process.. I first read about it some 6 or 7years ago and passed it on to our clients. As a third party management company, we are always looking for ways to reduce costs while maintaing the highest level of service to our clients and their tenants. We do not perform the analysis and recommend professional engineers or firms specializing in the process.
Three of our clients, who are long term investors, have used the process. As stated in the article, it is expensive. The Clients do not share their returns with me; but, they are happy with the procedure and the results, as it does accelerate, and/or recapture some overlooked depreciation.
I would suspect that it would not be worthwhile for flipping or short term investments; but, I'm not a CPA or tax advisor.
To @dawnA, Great idea on the bee removal. Just make sure the beekeeper takes the bees and leaves the honey for you. One time we got over 80 lbs of honey and comb.
Rental Property Investor · Oklahoma City, OK · Member since 2013 · 1k+ posts · 412 votes
13y
Dawn A. What you said! It's a little scary but the insurance agent and the banker both thought is was the right thing to do as well. If your banker's on line, you're probably ok.
Rental Property Investor · Sacramento, CA · Member since 2011 · 2k+ posts · 1k+ votes
13y
Joe Bertolino please:
1. Comment on Deborah Burian plan of converting her polices on ACV.
2. Tell us the story if you've ever seen this done?
3. Go on record as accepting the $100 challenge (come'on now!)
Investor · El Dorado Hills, CA · Member since 2012 · 1k+ posts · 1k+ votes
13y
Regarding ACV = it depends on the types of property and area of the country you are in. If you have lower end properties in an area where similar properties are easy to find, then ACV makes sense. Here in CA where prices and inventory swing quickly and cities throw in "green building" requirements regularly... you would be nuts to attempt it.
The only real ugly claim I recall is a investor in Napa with an ACV policy he wouldn't move because my RC quote was $180 high. He had a fire and the new ordinances required interior sprinklers and AFCI electrical. They paid him $160k (the ACV from 12 years before when he bought the policy and never increased coverage) and the quote to rebuilt to current codes was $480k. He took the $160k and sold the lot/burned dwelling for $160k. The new buyer rebuilt for $400k and immediately sold it for $867,000... but hey, he saved $180 on his insurance for a few years.
For the $100 challenge, I am waiting on a quote for solar on two of my four plexes. I was told there is no out of pocket cost and it will save approx $300 per month between the two properties but I am waiting on the dirty details.
Rental Property Investor · Oklahoma City, OK · Member since 2013 · 1k+ posts · 412 votes
13y
Joe Bertolino, that's the case here. We would never re-build, we would just find another house and they are readily available if you have some cash. We're in tornado alley and also, as it turns out, hailstorm central so insurance is sky-rocketing in the region. Lost 7 roofs in one storm last year... 50 cent and larger hail, windows shattered... we got a good look in real time at the coverage differences and the savings just makes sense.
Idea for saving money for landlords who provide garbage collection... i havent purchased my property yet, but in reviewing the current landlords expenses i ran across a $150 a monthe dumpster service for the property. BAM $150 fixed expense not going away and likely to increase in the future. My idea to mitigate this expense was to purchase a pull trailer that hooks up to truck via hitch. prefer one with a ramp that drops down for easy unloading. I would build a box on this to protect from elements with a sliding door just like on dumpsters to keep critters out. in my area there is actually a free dump. once a week or however frequent needed dump it for free or pay maint man to do it. have your money back in a year. Bout 750 for new trailer, couple hundred for building on to it.
Investor · Kingwood, TX · Member since 2012 · 97 posts · 21 votes
13y
Al, Loved the podcast. I would just remind everyone to review their property tax assessed value. Periodically challenging your assessment, if needed, can save you considerably.
Specialist · Kirkland, WA · Member since 2013 · 1k+ posts · 817 votes
13y
Joe Bertolino,
I didn't actually get a quote on solar panels because the research I did said it was gonna cost my 3-5k per roof to install panels on my plexes. Of course the best thing would be to be in an area where you can also install a battery so that you can charge the tenants for power, and then sell the rest back to the power company. The upfront cost is beyond my budget but it could add another revenue stream or two to the property. Plus the tax benefits. I'd be interested in hearing about how the process actually plays out for you.
Investor · Maui, HI · Member since 2009 · 13k+ posts · 3k+ votes
13y
I'm to busy spending money!! Picking up a new 5-plex in the coming week! But I'm still game :) I got my wife on it now, as well. So I'll see what she comes up with!
I'm very interested in dropping my property tax amount! Steven Hamilton II any tips on how you did that!?
I am paying $10 per month for an "e-fax" service. Anyone know a good free version that still gives me a dedicated fax number? That would be a start!
Peachtree City, GA · Member since 2013 · 60 posts · 1 vote
13y
Originally posted by Brandon Turner:
I'm to busy spending money!! Picking up a new 5-plex in the coming week! But I'm still game :) I got my wife on it now, as well. So I'll see what she comes up with!
I'm very interested in dropping my property tax amount! Steven Hamilton II any tips on how you did that!?
I am paying $10 per month for an "e-fax" service. Anyone know a good free version that still gives me a dedicated fax number? That would be a start!
Peachtree City, GA · Member since 2013 · 60 posts · 1 vote
13y
Originally posted by Joe Bertolino:
Regarding ACV = it depends on the types of property and area of the country you are in. If you have lower end properties in an area where similar properties are easy to find, then ACV makes sense. Here in CA where prices and inventory swing quickly and cities throw in "green building" requirements regularly... you would be nuts to attempt it.
The only real ugly claim I recall is a investor in Napa with an ACV policy he wouldn't move because my RC quote was $180 high. He had a fire and the new ordinances required interior sprinklers and AFCI electrical. They paid him $160k (the ACV from 12 years before when he bought the policy and never increased coverage) and the quote to rebuilt to current codes was $480k. He took the $160k and sold the lot/burned dwelling for $160k. The new buyer rebuilt for $400k and immediately sold it for $867,000... but hey, he saved $180 on his insurance for a few years.
For the $100 challenge, I am waiting on a quote for solar on two of my four plexes. I was told there is no out of pocket cost and it will save approx $300 per month between the two properties but I am waiting on the dirty details.
Originally posted by Troy Fisher:
Joe Bertolino,
I didn't actually get a quote on solar panels because the research I did said it was gonna cost my 3-5k per roof to install panels on my plexes. Of course the best thing would be to be in an area where you can also install a battery so that you can charge the tenants for power, and then sell the rest back to the power company. The upfront cost is beyond my budget but it could add another revenue stream or two to the property. Plus the tax benefits. I'd be interested in hearing about how the process actually plays out for you.
Here are two articles discussing a new initiative from Honda where they are offering a really great deal to customers of new solar installations:
Honda makes very favorable financing available to new installation customers thus making your upfront cost zero or near zero.
They're offering it to current or previous owners of a Honda or Acura vehicle as well as those who have simply registered on either of their websites: honda.com or acura.com.
For now, this offer from Honda is only available in 14 states and those states are Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Maryland, Massachusetts, New York, New Jersey, Oregon, Pennsylvania, Texas, Washington, and the District of Columbia.
Accountant, Enrolled Agent · Grayslake, IL · Member since 2011 · 5k+ posts · 2k+ votes
13y
Brandon Turner,
Simple bring your new HUD-1 from your closing to the local assessor. If that doesn't make you happy then take the 10 minutes to fill out your appeal form.
West, MI · Member since 2012 · 674 posts · 182 votes
13y
Originally posted by Brandon Turner:
I am paying $10 per month for an "e-fax" service. Anyone know a good free version that still gives me a dedicated fax number? That would be a start!
Call in and tell them you are going to cancel, I did that with myfax the day after I signed up after reading forums about it. They dropped it to $5/month. 20 minutes of my time for a 50% reduction, I will take that 8 days a week.