Help! Am I doing something wrong? Do I have what it takes?

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Help! Am I doing something wrong? Do I have what it takes?

Shalom Shore
Rental Property Investor · Buffalo, NY · Member since 2015 · 11 posts · 15 votes

I'm turning the community in the hopes that you can talk me off the ledge. Or at least provide some support or advice. 

I dreamed of investing in real estate for years. I networked my *** off and managed to buy four properties, all financed at around 75% LTV, so I have some margins.

I picked a good location - Baltimore, where I have supposedly enviable cash flow, $400-600 per property after PIMI, but before variable costs. 

That's the clincher. All the stuff that goes wrong. I tried bracing myself for this in advance - "always expect something to go wrong" I was told. I braced myself for the 50% rule - I was gonna have expenses every month on the houses. A repair here, a fix there, I thought. 

I wasn't prepared for massive expenses, on all the houses, for what feels like all the time. Bleeding thousands of dollars in one go on pest removal, tree removal, mold removal. Expenses that wipe out an entire year's rental profits in one afternoon. How do people do it? 

I can't catch a break. Not a week goes by without a tenant complaining about an issue. And these are good tenants, who pay on time and try to take care of things themselves with the professionals I send.

And the truth is, worse than the expense, is trying to get people to help me resolve things. For fear of sounding like a trite broken record, It's such a huge struggle to find reliable people. No one has anyone to recommend. I find people myself (after calling lots of numbers where no one answers), have good initial conversations, and then they don't show up. There goes another day. Time to make more phone calls tomorrow while the tenant tries to live in a basement that's flooded in sewage. 

Don't get me wrong. I'm not afraid of hard work. When I discovered heaping piles of bat guano in an attic of one my houses, I rolled up my sleeves and cleaned it all out myself. I try to be a valuable contributor to my local community, referring others to key market resources and helpful individuals. 

I supplement the costs of all these repairs with my day-job salary, otherwise this would all be over a long time ago. But I'm plagued with frustration, feeling like I can't get it right even though I've tried so hard. Am I unlucky? Am I actually lazy or undisciplined? I'm wondering if there's something I'm missing, or if other people have word of encouragement for me.

Thank you all for being such a great community. 

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Erik W.
Real Estate Investor · Springfield, MO · Member since 2017 · 1k+ posts · 2k+ votes
8y

How long have you been doing this? It's not uncommon for the first 2-3 years for a business (and for most newbies, REI is a business, not passive investing) to show little to noprofit.

I'll share my background and maybe that'll be encouraging.  

I started in 2005 and knew NOTHING. I tried reading books and doing research, but you don't know what it's like until you do it. So we bought a SFH in a Class C hood...then another, then a few duplexes, then a quad-plex...then came 2008-09! For the first 5 years, we made little to no money, and being in the hoods we were, very little to no increase in property values. I did almost all of the work I could and self-managed. Only hired out professional stuff. We weren't feeding the rentals from our W-2 income, but we never did better than break even. Gradually, I came to almost hate rentals.

Then our second mortgages paid off (we'd borrowed on our home and from family to get started), and we started actually cash flowing positive on a regular basis.  My outlook improved.  

I also learned that if you're going to play in Class C, you must STEAL property.  Not just get "good deals"....STEAL them.  The owner should almost be cussing you on the way out the door at closing, but simultaneously they love you because the property is such a disaster they can't figure out what to do with it.  So the 2% rule (monthly rent is 2%+ of the "all in" purchase + closing + rehab cost) is where I START looking.  If below 2%, I don't touch it.

That's how I began to make money. The cash flow covers all expenses, CapEx, PITI, Management, etc. I still self manage but I include a management fee of 10% I pay to myself along with my owner's monthly draw from profits.

I'm not a big time player, but we're now doing well enough that if I lost my day job, we could live okay.

Going forward, I'm looking at moving in more full rehabs in B hoods so we can get cash flow and appreciation.  It's a tight market now in my area.  I see posts here on BP how some folks pay $500K for properties worth $750K.... I don't know how they do it honestly, but I think they're not the norm.  Either that, or their markets are extremely inefficient and my market is ridiculously efficient.

If I were you, what would I do differently?  Lay out your target numbers (expenses and anticipated profits) before the deal.  What kind of a deal would make you smile if you bought it?  Then do a deal that fits your numbers.  Afterwards, ruthlessly scrutinize how well you did vs. your projections.  Where were you accurate?  Where did you miss?  Where did you totally fail and fall flat on your face?  My worst area has been estimating rehab costs.  I always went too low, even after adding in a 15% "WTF?" cushion.  So I have to add even more cushion.  Where I succeed is estimating rehab time lines, ARVs, and rents.  Get to know your strengths and weaknesses through strict planning pre-purchase and afterwards doing honest self-evaluation.  I learned this in the Army.  Make the plan, execute the plan, evaluate how it all went.

Also, try to find someone who is doing what you're doing and job shadow them in exchange for free labor.  The investors I know who are busy always need "go-fers" to run errands, pick up supplies, take documents to the courthouse, etc.  Trade labor for education.  Maybe have the investor agree to scrutinize your next project.

Good luck.

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  • Sam Shueh
    Real Estate Agent · Cupertino, CA · Member since 2016 · 4k+ posts · 1k+ votes
    8y

    One FT job is busy enough. 

    Unload the most problematic rental and have a handy person lives in one of them taking care of the rest.  The market is very much at peak so there is advantage to unload. If there are any proceeds then pay off your multiple mortgages.

    0Reply
  • Michael Plante
    Deland, FL · Member since 2017 · 2k+ posts · 1k+ votes
    8y

    Did you have a licensed house inspector go through each house before purchasing?

    2Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    8y

    most of this is normal but not really to the extent your talking about as stated above this could be a pre buy issue.. 

    But landlording in C class which I assume this is or D class is anything but easy.. its a J O B full time to be profitable.

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    4Reply
  • James Ma
    Burnaby, BC · Member since 2017 · 282 posts · 268 votes
    8y

    The hardest part to deal with problems is finding a good team of contractors t so that you can make a phone call and get work completed. If you know other investors in the area or property managers, you can always ask them for who they would use and if they have any referrals otherwise you'll have to just go through trial and error to find people you trust to do the work.

    Sounds like a bit of bad luck, did you do an inspection on the places before buying? Sometimes issues just do happen, I've had to get some work done on places I've bought as well due to unfortunate circumstances - diverter valve replacement, laundry machine replacement, toilet piping recall that sent parts but had to hire a plumber, etc. and you can either keep on going, hire someone else to manage the property, or sell the place.


    You say you're willing to put in the work and aren't afraid to put in the effort and that mindset will definitely help you. I've been reading a book called the 10X rule and that's definitely helped me have the right mindset to deal with stuff like this. You should be prepared to put in 10X the work that you anticipate having to do and you'll accomplish your goals. If you thought you had to make one phone call to get someone to fix something, you should be prepared to have to make 10. With that mindset, it doesn't bug you as much when the first few contractors don't show and you'll be able to weather the storms. Ask yourself if you're willing to put in that kind of effort to make things work or else consider the alternative options where you won't have to.

    0Reply
  • Jeffrey H.
    Baltimore, MD · Member since 2018 · 169 posts · 82 votes
    8y

    Your questions answered. 

    -how do people do it? - by knowing things wrong in advance. If youre talking things unknown that just happen....having good insurance and/or knowing contracting/contractors and how to get things done by paying nothing more than labor and materials. This requires either a good property manager or extensive abilities/knowledge of construction. Example: tenant calls me yesterday to tell me air conditioner stopped working. I have the ability to diagnose and repair an air conditioner with zero official training. Capacitor was burnt out so the compressor and fan wouldnt start. Part cost me 20 bucks. Repair is easy. Big Hvac contractors charge 350 for this repair. Youtube can teach you everything. 

    Are you unlucky? Maybe

    Are you undisciplined? Definitely 

    Will things get better? If you have the discipline to not repeat mistakes and learn from others. Probably. 

    Contractors never show up you say?? Thats because they are meth heads who often know less than nothing. 

    0Reply
  • Dean Letfus
    Specialist · Memphis, TN · Member since 2012 · 1k+ posts · 1k+ votes
    8y

    It sounds like you either bought badly or didn't rehab very well. Often it's better to take a turnkey approach. Buy it rough and fix EVERYTHING. Then you shouldn't have these issues.

    OR:

    You have terrible management and the tenants are at fault, in which case find a better PM ASAP.

    1Reply
  • Brian Ellis
    Rental Property Investor · South shore, MA · Member since 2017 · 1k+ posts · 1k+ votes
    8y

    @Shalom Shore 

    My opinion would be you are overworking yourself, making you hyper-sensitive to these other scenarios. If you are anything like me, my full time job is extremely stressful and requires a lot of time. I just closed on my first duplex, and I at times feel overwhelmed because I self manage. Between work, my house, fixing up the rental property, family, and other priorities, I tend to burn the candle at both ends. I honestly couldn't imagine having 4 rental properties like you. 

    I think we are all constantly racing against time, trying to acquire as much as possible. I know that's how I operate, but its not exactly whats best for me. In the end, I suffer the consequences and feel overwhelmed even by the littlest things. 

    Id suggest making some minor goals (not buying another house), but goals more geared towards getting the properties you have under control. Even if its one minor thing at a time. 

    2Reply
  • Erik W.
    Real Estate Investor · Springfield, MO · Member since 2017 · 1k+ posts · 2k+ votes
    8y

    How long have you been doing this? It's not uncommon for the first 2-3 years for a business (and for most newbies, REI is a business, not passive investing) to show little to noprofit.

    I'll share my background and maybe that'll be encouraging.  

    I started in 2005 and knew NOTHING. I tried reading books and doing research, but you don't know what it's like until you do it. So we bought a SFH in a Class C hood...then another, then a few duplexes, then a quad-plex...then came 2008-09! For the first 5 years, we made little to no money, and being in the hoods we were, very little to no increase in property values. I did almost all of the work I could and self-managed. Only hired out professional stuff. We weren't feeding the rentals from our W-2 income, but we never did better than break even. Gradually, I came to almost hate rentals.

    Then our second mortgages paid off (we'd borrowed on our home and from family to get started), and we started actually cash flowing positive on a regular basis.  My outlook improved.  

    I also learned that if you're going to play in Class C, you must STEAL property.  Not just get "good deals"....STEAL them.  The owner should almost be cussing you on the way out the door at closing, but simultaneously they love you because the property is such a disaster they can't figure out what to do with it.  So the 2% rule (monthly rent is 2%+ of the "all in" purchase + closing + rehab cost) is where I START looking.  If below 2%, I don't touch it.

    That's how I began to make money. The cash flow covers all expenses, CapEx, PITI, Management, etc. I still self manage but I include a management fee of 10% I pay to myself along with my owner's monthly draw from profits.

    I'm not a big time player, but we're now doing well enough that if I lost my day job, we could live okay.

    Going forward, I'm looking at moving in more full rehabs in B hoods so we can get cash flow and appreciation.  It's a tight market now in my area.  I see posts here on BP how some folks pay $500K for properties worth $750K.... I don't know how they do it honestly, but I think they're not the norm.  Either that, or their markets are extremely inefficient and my market is ridiculously efficient.

    If I were you, what would I do differently?  Lay out your target numbers (expenses and anticipated profits) before the deal.  What kind of a deal would make you smile if you bought it?  Then do a deal that fits your numbers.  Afterwards, ruthlessly scrutinize how well you did vs. your projections.  Where were you accurate?  Where did you miss?  Where did you totally fail and fall flat on your face?  My worst area has been estimating rehab costs.  I always went too low, even after adding in a 15% "WTF?" cushion.  So I have to add even more cushion.  Where I succeed is estimating rehab time lines, ARVs, and rents.  Get to know your strengths and weaknesses through strict planning pre-purchase and afterwards doing honest self-evaluation.  I learned this in the Army.  Make the plan, execute the plan, evaluate how it all went.

    Also, try to find someone who is doing what you're doing and job shadow them in exchange for free labor.  The investors I know who are busy always need "go-fers" to run errands, pick up supplies, take documents to the courthouse, etc.  Trade labor for education.  Maybe have the investor agree to scrutinize your next project.

    Good luck.

    5Reply
  • Caleb Heimsoth
    Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    8y
    @Shalom Shore What’s the asset class of these properties and what did you buy it for? Give us the credit, Income profile for your tenants. I’m guessing as others have said it’s either tenants or location (meaning the hood). I own some C class property but prefer B class as it’s just easier to manage. B class has really been very easy so far. Likely it’s due to your management and/or screening processes
    0Reply
  • Ian Barnes
    Rental Property Investor · Baltimore, MD · Member since 2014 · 247 posts · 321 votes
    8y

    Very few people understand Baltimore better than me, I own rentals, help run a construction company that focuses on investors, and do project management for out of state investors.  Most rowhomes were not built well in the City, the govt is not run well, and workers are a dime a dozen.  What it comes down to is you didn't spend enough rehabbing the property from the beggining, cause you didn't want to spend the money. Any reliable, quality tradesman is not cheap, and will get the job done right, but you have to be willing to pay.  Every rental I buy in the city is gut rehabbed, everything in the entire house is new, my typical rehab on a 1200 sq ft house is about 50K, guess what, I have minimal problems, cause things are done right the first time.

    3Reply
  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    8y

    @Shalom Shore it could be a combination of things. 

    IF you based your assumptions on the 50% rule then you should be OK. That is IF you applied it correctly. The 50% rule says your expenses and vacancy will be about 50% of your income. What is left covers your mortgage P&I and your profit.  So if you only have $400-600 left after your mortgage payment then you are break even at best. 

    You used the term PIMI What does that mean? Principal, Interest, and Mortgage insurance? Did you meant PITI which is Principal, Interest, Taxes and Insurance? Taxes and insurance are part of that 50% expenses,

    I am guessing you bought properties, that had problems when you bought them. I am sure the tree was there when you bought the house. If you spent $1,000 on pest control you paid too much. Some of this may be that you are excepting responsibility for complaints that are the tenants responsibility.

    1Reply
  • Jill F.
    Investor · Akron, OH · Member since 2016 · 2k+ posts · 4k+ votes
    8y

    We have found that it takes us about six months to get things stable when we buy a group of low income properties. It's the new purchase 'fire drill.' In the latest group we took over, existing tenants were traumatized by a recent bed-bug infestation (thank goodness the treatment appears to have been successful). There was also a bat infestation, if you have bat guano you better plug up the holes so the bats can't get back in, and plumbing, plumbing, and more more plumbing ... 4 out of seven toilets had bad seals. We knew about the toilets but former owner had the tenants clean out bat guano right before our inspection. We always expect to lose some tenants that don't like change and don't want to play by new rules and we view that as an opportunity to reno, raise the rent, and improve the tenant base. The money drain in the beginning is stressful but we plan for it and it does settle down. Owners do as little as possible while the property is on the market so there is always a ton of deferred maintenance. Keep pluggin', it gets better.

    3Reply
  • Shalom Shore
    OP
    Rental Property Investor · Buffalo, NY · Member since 2015 · 11 posts · 15 votes
    8y

    Thank you guys, I appreciate the supportive words. 

    Just to clarify a few things. I'm not sure exactly, but I'd say these are C level properties in B neighborhoods. Baltimore has a lot of old townhouses, but I buy only in solid working class or lower middle class neighborhoods where I'd feel comfortable living myself - mostly in Baltimore county, not city. 

    Here's a breakdown of the houses (first number is current debt, which is about 75% LTV):

    • 120K SFH, rents for $1600, MITI $1000 (sorry I wrote it wrong above), built in 1950s
    • 87k Townhouse, rents for $1200, MITI $800, built in 1930s
    • 100k Townhouse, rents for $1600, MITI $750, built in 1930s
    • 120k townhouse, rents for $1600, MITI around $100, built in 1980s

    A few clarifications.

    • My tenants have been great so far. Paying basically on time, all working steady jobs, take decent care of the places. The problems are all natural, like pipes bursting and roofs leaking. 
    • I definitely could have done proper inspections, and made the mistake of relying on a contractor's appraisal to both identify issues and get a quote, and he then missed things. That said, leaking pipes and breaking ovens have happened also in properties that were inspected. 
    • I don't have the margins to do gut rehabs on these places. Putting $50k into a house would put me back at market value, with the prices I'm currently managing to buy them at, plus all the major headaches of the renovation. This is part of what I don't understand about how other investors do it - an affordable renovation that still makes them money but stabilizes the property. 

    @James Ma , i've read 10X, but reminded of it is great. I always underestimate the amount of work required for these things. 

    @Jeffrey H., good points. As much as I like learning new technical skills, I can't rely on myself for this especially since I'm not in the area. From what I've seen, property managers are just an extra step that charges me anyway to bring in professionals. What advantage would they offer me here?

    @Dean Letfus, the turnkey approach is tempting. I've thought about it and definitely renovating the property is what causes me the most stress. So just buying it usable and fixing things as they occur is probably the better approach for my temperament. 

    @Brian Ellis you nailed it. I just work too hard in all areas. When things go wrong in too many places at once I just over-saturate and can't handle it. My biggest goal right now is to not buy more houses, even when the urge comes up. 

    @Erik W.I appreciate your perspective and story. Personally, I haven't seen anything on the market right now that sells cheap enough for the 2% rule. I've been able to get properties at 1-1.5% which I thought was good. Note that these aren't pure C class properties, I don't think, as I described above. 

    @Ned Carey how would you go about, say, finding a pest control company that was more affordable? i often end up going just with a recommended company, or the one who finally answers the phone. 

    @Jill F. that's a good perspective. I'm actually so new to actually landlording that I don't have the full perspective on the timelines involved. If I knew it was just 6 months, I'd power through it, but I don't see why toilets or leaks or breaking appliances won't happen at any time.

    0Reply
  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    8y

    @Shalom Shore  I usually go by recommendations of other investors I know. I'd give you a pest control reference if I had one.

    By the way I should have mentioned in my previous post the my first rental I felt like I was on the Appliance a month plan.  Something seemed to go wrong about every month for a while. That was with a house that was supposedly renovated.

    0Reply
  • Jeffrey H.
    Baltimore, MD · Member since 2018 · 169 posts · 82 votes
    8y

    @Shalom Shore if youre out of town, you must have a property mgr. the advantage os that they, at least should, know what they are doing

    0Reply
  • Thomas S.
    Member since 2016 · 13k+ posts · 12k+ votes
    8y

    On the surface your situation is not that abnormal. What few new investors understand is that cash flow is based on the life of the property not on yesterday or today. We have all experienced wiping out a year or more of positive cash flow in a single expense or numerous expenses in quick succession but realise over the long haul we will/should come out ahead if we buy right. Profits can never be measured before the day you sell.

    When a investor suggests they are earning XXX per month in positive cash flow they are blowing smoke. They  have no idea what they are talking about beyond yesterday. They are viewing investments in the rear view mirror. Those numbers mean nothing. They have no idea what will happen tomorrow and therefore have no idea what their cash flow could possibly be.

     We all have reserve funds to deal with the very issues you are experiencing and when used are then replenished over time through our positive cash flow. You should never be supplementing expenses out of pocket. If you are then you were not prepared.

    "I'm wondering if there's something I'm missing"  What you are missing is that what you are experiencing is relatively normal and to be expected at times in business. You stated that very fact yourself and you are now simply living the reality and yet still surprised.

    As for contractors...the vast percentage are unreliable. Get use to it.

    High stress, high pressure, hard work....Passive investment.....no way. 

    As a side note I experienced a unexpected expense last week that I still do not have a total on but estimate in the 10 - 12K range. Cash flow from that single property would be considered non existent for probably 3 1/2 years. In reality I simply pay it from my operating account and move forward. It will be replenished in less that 2 months from my total rental income.

    1Reply
  • David Clinton III
    Real Estate Coach · Coeur D Alene, ID · Member since 2013 · 458 posts · 295 votes
    8y

    On the subject of going with the place that picks up the phone...

    Just speaking with the experience in my part of the country, but I find that the best vendor relationships are typically the ones that don't need me.  I need them!  They don't advertise, because they don't have to.  If they don't answer the phone, it is often because they are super busy actually working on the same things I would need them to fix.  If there is an operation always available, they are either big enough to charge retail, or small and not busy (which may say something about their ability or reputation).

    As Ned stated, local experienced investor colleagues will often have experience with the best vendors of each type to work with. And they may be hard to get hold of, or not have time to help right away.  Again, that goes back to the fact that I need them more than they need me! Persistence will pay off in deciding that those really are the people you want to work with.

    0Reply
  • Dennis M.
    Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
    8y
    @Shalom Shore Not surprised at all by your results . For starters you are not buying a multifamily building . What do you think makes more money AND has less eXpenses ? 4 bad roofs 4 wet basements 4 fallen gutters 4 yards to mow 4 times the windows to break 4 Tax bIlls 4 Insurance bills ....or one fourplex ? Your next obvious issue is you can’t do anything yourself . If you gotta pay every contractor in town to fix your places your never going to make money because your giving it all away to everybody and their brother . Third issue you clearly didn’t look the properties over and did inspecting because you clearly took on deferred maintenance properties inherent with problems . The nice thing about real estate is it’s forgiving you coyod do a lousy job and stIll make out In tIme . You need to Start beIng more handy stop foolIng around wIth sIngle unIt houses and start inspecting better before you buy
    0Reply
  • Dean Letfus
    Specialist · Memphis, TN · Member since 2012 · 1k+ posts · 1k+ votes
    8y

    "the turnkey approach is tempting. I've thought about it and definitely renovating the property is what causes me the most stress. So just buying it usable and fixing things as they occur is probably the better approach for my temperament."

    Correct me if I am wrong but isn't this exactly what you have done and it has failed?  I think rehabbing them properly is exactly what would be better for your temperament. If you were easy going you would never have made the OP.  :-)
     

    0Reply
  • Jill F.
    Investor · Akron, OH · Member since 2016 · 2k+ posts · 4k+ votes
    8y

    @Shalom Shore

    Plumbing issues can happen anytime but what we have found, when taking over old properties is that there is most always a backlog of deferred maintenance-- and plumbing and appliances are a frequent offenders (probably due to expense). Normally, in buildings that we have maintained for a while, I wouldn't expect, in one property, to have more than half the toilets with broken seals at a given time because we repair them as soon as we get a report of a toilet rocking. In our latest purchase, these toilets rocked until the ceilings below were damaged and the flooring rotted. In these situations, when we pull a toilet, we shore up the floors install access panels, replace the usually either non-existent or non-working shut off valves and then install a high-efficiency toilet and make ceiling repairs. With a proper fix we won't be back out patching it up every couple of months. At each turnover, we replace applicances with new or very gently used nicer appliances. With our low budget property purchases we have been spending another 2000-3000 per unit renovating and repairing in the first 6 months or at the first turn over. To keep the price in that range while getting the most bang for our buck, we do as much as we can and we're fairly skilled. My hope is that when we get up to around 50 doors that we will be able to afford to have more of the reno work done. We already are able to outsource the vast majority of routine maintenance one we have a property stabilized.

    tldr; It takes us six months to get a property stabilized to the point where all we have is 'routine' maintenance.

    0Reply
  • Ozzy SirimsiBusiness Member
    Real Estate Agent · Baltimore, MD · Member since 2016 · 1k+ posts · 782 votes
    8y

    @Shalom Shore

    Hey Man, hang in there. You got some good advice, some discouraging...

    My worse investment was the first one. I don't make money, only thing that is good about it is there is no vacancy, I dint know what I was doing at the time. 

    I kept it, currently I have 7 years left, and  debt is going down fast these days.

    Houses are funny,  everything goes bad for a time period then you will never hear from your tenant for some time.

    This is the game. You just started unlucky, may be didnt pay attention some of the thing you should have, but it is what it is.

    Your numbers looks fine, and it is hard when you have full time job.  

    Getting an insurance like HomeServe USA in Baltimore City could help you.

    Good Luck!!!

    2Reply
  • Brian Ellis
    Rental Property Investor · South shore, MA · Member since 2017 · 1k+ posts · 1k+ votes
    8y

    @Shalom Shore I wouldn't say things are going "wrong". These things are to be expected. 

    I would strongly suggest getting a binder of some sort, or a spread sheet on your computer, and making a list of all the things you need to tackle. Prioritize the most important tasks, and check them off one by one. Our brains can only handle so much. If its going in a million different directions you are bound to be inefficient, and make mistakes.

    I have a tendency to do the same. Ill obsess over 10 things I need to get done, when its just not possible to do all at once. What I started doing last year was write "notes" in my phone, with deadline dates. I found by doing this ive been able to accomplish most of these tasks a lot quicker, and more effectively. 

    0Reply
  • Larry Frank
    Rental Property Investor · Racine IL · Member since 2017 · 41 posts · 15 votes
    8y

    You probably paid too much for the property. Honestly, I don't know how anyone makes money from SFH unless the area appreciates. One roof is 10k, there is 3 years of profit.

    1Reply
  • Matt P.
    Investor · Columbus, OH · Member since 2015 · 625 posts · 601 votes
    8y
    @Shalom Shore I agree with the guys saying fix it all before you rent it. It sounds like you own older places, I do too. Nothing wrong with that if you go in and get it tight before you try and rent it. I also share your pain on that bat poop clean up lol. I cleaned out an attic full of it a few years ago, it sucked.
    1Reply
  • Caleb Heimsoth
    Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    8y
    @Shalom Shore What you’re experiencing is one of the upsides to buying turnkey in my opinion. If it’s a good provider it’s brand new. My maintence is very little for the first 5 years (by which time I’ll own a lot more property). The turnkey companies I’ve used make around 10k on what they pay to buy it, rehab it and a couple grand in selling costs. So I’m okay with that since it keeps my stress levels way down. Plus that’s not a lot of margin for error if I tried to manage a rehab myself
    0Reply
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