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.
West, MI · Member since 2012 · 674 posts · 182 votes
13y
I will second appealing tax values.
I pick a few a year and go in with comps summarzied on a spreadsheet with a packet for each member of the board.
For this year it totaled a savings of $405, not as good as other years but for the 1.5 hour I had in the planning and the actual meeting its time well spent.
Again, that is just 1 year but they are held at a lower number when they start to increase. This pays dividends every year.
Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
13y
Originally posted by Al Williamson:
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!)
I'm trying to give away some gift cards! Thanks
Al: Going with ACV policies will depend on the property and its financing. I never buy anything but ACV policies for my shorter term holds. For longer term (max I ever held is three years), the values were low enough and the financing (free and clear or low LTV private money) was such that I didn't need anything but ACV. I'm never going to rebuild/replace a $50-150K house with significant fire damage. Are you? I'll take the policy payout, demo or do what's required by the muni to clean it up, and then sell the lot. But that's me.
Rental Property Investor · Sacramento, CA · Member since 2011 · 2k+ posts · 1k+ votes
13y
In the office building where I work, we were able to shave about 10% on lighting expenses by allowing the janitorial staff to clean during the day (and make noise in the early evenings) so the building goes dark at night. I love the ROI on that decision.
Rental Property Investor · Oklahoma City, OK · Member since 2013 · 1k+ posts · 412 votes
13y
Hey Al Williamson, just because of you I did my first ever A/C repair yesterday. Instead of looking at it and panicking, I took the top frame off, looked around, saw rust on the fan shaft, cleaned and lubricated (after shutting off power, of course), BAM! It worked. Another $100 saved. It helped that when rehabbing the home my HVAC guys had already looked at it and told me it seemed sound.
Rental Property Investor · Sacramento, CA · Member since 2011 · 2k+ posts · 1k+ votes
13y
Deborah B. you are a smart lady and a cost-cutting machine. Excellent work! Now - if you reduce your reoccurring expenses by $100 - you'll get the gift card (and possibly flowers as well).
Property Manager · Livonia, MI · Member since 2011 · 4k+ posts · 1k+ votes
13y
Originally posted by Ryan M.:
I will second appealing tax values.
I pick a few a year and go in with comps summarzied on a spreadsheet with a packet for each member of the board.
For this year it totaled a savings of $405, not as good as other years but for the 1.5 hour I had in the planning and the actual meeting its time well spent.
Again, that is just 1 year but they are held at a lower number when they start to increase. This pays dividends every year.
last year i did the same thing for all homes. i had to pick out the rentals on those streets because i could not use the homestead houses and compare them to non homestead houses (right?)
so, i had a table with a graph that shows where i am. i was clearly, clearly much higher.
it did not help at all. they denied all my claims and i just wasted my time.
Rental Property Investor · Oklahoma City, OK · Member since 2013 · 1k+ posts · 412 votes
13y
Originally posted by Al Williamson:
Deborah B. you are a smart lady and a cost-cutting machine. Excellent work! Now - if you reduce your reoccurring expenses by $100 - you'll get the gift card (and possibly flowers as well).
Al, Al, Al... I've already reduced 'em... just waiting for next month's invoice, which will provide proof then... a gift card. And FLOWERS??? roflol.
Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
13y
Originally posted by Al Williamson:
K. Marie Poe I was trying to get some attention from you. Please see above.
Hi Al. Thanks for pushing for my participation in the challenge. I'm not a not a buy and hold investor and don't have much to offer to verify monthly savings. I'm pragmatic by nature, but not frugal. I'm all about getting the right deal and streamlining my process. The insurance info I shared about ACV policies is the only recurring expense that I have experience with that is relevant to active landlords.
Investor · El Dorado Hills, CA · Member since 2012 · 1k+ posts · 1k+ votes
13y
Regarding ACV: Demolition and debris removal is much more expensive than most anticipate. I looked at buying a partially burned strip mall and the quotes for demolition and removal were $15 a sq foot. For an older property that might have environmental issues, you are looking at north of $20 a foot.
Mechanicsburg, PA · Member since 2013 · 3k+ posts · 2k+ votes
13y
Al Williamson
1. Absolutely appeal any tax assessment that is too high. With the economy decline of the last 5 years many properties aren't worth what they were before. A couple of years ago i was able to get a $750,000 assessment reduction. At 20 mills tax rate that's $15,000 more cash in my bigger pocket.
2. Heat costs are a big factor. I've eliminated all oil heat, either by selling the properties or converting to natural gas or heat pump. Natural gas here is 60% cheaper than oil, very big savings in the cold Northeast.
3. In multi-family buildings I've eliminated common furnaces and boilers, and hot water heaters and have had the tenants pay for there own heat and hot water, mostly by installing new gas equipment and separate meters. One 2 unit the savings in heat costs was $6,500 a year.
4. In all the multi-unit building I've replaced older 3 & 5 gallon toilets with 1.5 gallon flush toilets, to reduce the amount of water consumed in each building. Savings so far thousands of gallons.
5. For roof replacements I've been using 50 year shingles, double the life at very little more costs. The labor is the same for installing 20 year shingles as 50 year shingles, and the material costs differences are minor.
6. Using professional truck mounted carpet cleaner. Their equipment is much more powerful that a home type carpet cleaner.
Just did a carpet cleaning on a foreclosure with heavy stained carpet and years of spills, grime and vacancy of over a year. Almost all the stains were removed. Dirt and food stains usually come out, some of the harder stains are red wine and Kool Aid. Saved from having to replace carpet, a couple thousand dollars for 3 bedroom house. Carpet cleaning bill $116 including tax.
7. I've been using professional window cleaners for all rehab flips and some rentals. They do an incredible job at a very reasonable price. Recently did a 3 bedroom house with double paned, double hung windows, a couple sliding glass doors, as well as the ceiling fans for $120. (Storm windows are extra.) The windows are amazingly clean and clear, plus they rooms are so much brighter with the clean glass. Some of the windows are so clean that the glass disappears.
8. Insurance premiums can be high, but there is lots of competing companies to shop rates. In addition, I've raised all the deductibles to $1,000 or $2,000. some LLs are going to $5,000. Really reduces your insurance premiums, if you can afford the deductible out of pocket.
West, MI · Member since 2012 · 674 posts · 182 votes
13y
Originally posted by George P.:
Originally posted by Ryan M.:
I will second appealing tax values.
I pick a few a year and go in with comps summarzied on a spreadsheet with a packet for each member of the board.
For this year it totaled a savings of $405, not as good as other years but for the 1.5 hour I had in the planning and the actual meeting its time well spent.
Again, that is just 1 year but they are held at a lower number when they start to increase. This pays dividends every year.
last year i did the same thing for all homes. i had to pick out the rentals on those streets because i could not use the homestead houses and compare them to non homestead houses (right?)
so, i had a table with a graph that shows where i am. i was clearly, clearly much higher.
it did not help at all. they denied all my claims and i just wasted my time.
I can't speak for single families, they aren't my thing.
Property Manager · Norcross, GA · Member since 2013 · 28 posts · 2 votes
13y
Originally posted by Ryan M.:
I will second appealing tax values.
I pick a few a year and go in with comps summarzied on a spreadsheet with a packet for each member of the board.
For this year it totaled a savings of $405, not as good as other years but for the 1.5 hour I had in the planning and the actual meeting its time well spent.
Again, that is just 1 year but they are held at a lower number when they start to increase. This pays dividends every year.
I am fairly new at this, can someone send me a PM explaining, in detail, exactly what appealing tax values means?
Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
13y
Originally posted by James Neff:
Originally posted by Ryan M.:
I will second appealing tax values.
I pick a few a year and go in with comps summarzied on a spreadsheet with a packet for each member of the board.
For this year it totaled a savings of $405, not as good as other years but for the 1.5 hour I had in the planning and the actual meeting its time well spent.
Again, that is just 1 year but they are held at a lower number when they start to increase. This pays dividends every year.
I am fairly new at this, can someone send me a PM explaining, in detail, exactly what appealing tax values means?
Bless the generous BP soul that's gonna explain tax appeals, in detail, in a private message.
You can go to the Gwinnett County tax assessor site and read about property tax appraisals. You'll find information there about how property is appraised by the assessor and how to appeal the value if you think it should be lower.
Property Manager · Norcross, GA · Member since 2013 · 28 posts · 2 votes
13y
Believe it or not Marie, you just enlightened me to what is was referring to without me having to do any research. Once you mentioned the appraiser, the lightbulb, that never comes on above my head, made a rare appearance. :)
Rental Property Investor · Oklahoma City, OK · Member since 2013 · 1k+ posts · 412 votes
13y
Ok, Al Williamson, got my April insurance invoice and month over month, on an ongoing basis, by fine tuning my coverage, setting values at what they should be instead of the insurance company's fantasy AND switching my remaining properties to ACV (Actual Cash Value) from RCV (Replacement Cost Value)... drum roll please... savings of $261.78 a month or $3141.36 annually. Challenge met. I'll PM you supporting docs.