Rental Property Investor · Minneapolis, MN · Member since 2016 · 161 posts · 221 votes
My wife and I had been interested in purchasing a rental property for about a year with the intent of making this a business. She's a teacher, I'm an engineer and we have little faith in the future of Social Security / 401k stability. So bring on the house viewings! After many viewings we decided to look at a 'slightly' downtrodden 1954 ranch with the right square footage.
Notice the fancy red-white-blue spray painted garage windows! Seems like we may have an artist on the premises (more on that). After viewing the place twice, researching the rent comps and recently sold comp values for the area we decided to purchase it. Here is my wife after closing...inspecting her snazzy new $60,000 purchase (so much better than an escalade).
Investor and CPA · Arvada, CO · Member since 2015 · 2k+ posts · 3k+ votes
9y
Your wife and I are kindred spirits. If things don't work out between the two of you, please give her my number. She and I would be a match made in heaven because clearly she knows what hell looks like.
I literally haven't slept some nights. Been stuck on my first 2 rehabs for 5+ months. Multiple contractors have either walked off my jobs with my money in their hand, or have been incompetent to where I had to let them go and cut my losses.
Rental Property Investor · Minneapolis, MN · Member since 2016 · 161 posts · 221 votes
9y
HA! @Linda Weygant. It's like we are in high school or something, having a sleep over. I see you are in Arvada, CO. I work in Thorton next week, any restaurant recommendations in Boulder or the area?
HA! @Linda Weygant. It's like we are in high school or something, having a sleep over. I see you are in Arvada, CO. I work in Thorton next week, any restaurant recommendations in Boulder or the area?
Of course! I grew up in Boulder. Let me know what you like and I'll send you a PM!
Rental Property Investor · Minneapolis, MN · Member since 2016 · 161 posts · 221 votes
9y
@Linda Weygant; Thai, Indian, sushi, steak, home grown organic stuff, whatever is delicious. I went to Mountain Sun Brewery in Boulder last time out and it was just excellent.
Rental Property Investor · Minneapolis, MN · Member since 2016 · 161 posts · 221 votes
9y
@Mindy Jensen I apologize, I noticed I missed your question about where I found this darling of a deal. I constantly watch several realty websites. I had noticed this on there......and on there.......and on and on. It was there for 283 days before we purchased it (started at 106, then 99, then 89, I offered 50, then took 60).
My wife originally saw it, said we should look and I said no. Then about two months later I saw it and told her we should go look and she said "YOU ALWAYS DO THIS". She's right, I do.
construction · Nacogdoches, TX · Member since 2011 · 2k+ posts · 1k+ votes
9y
I used to do government contracting and they had me go to one building to remodel it. By day it was a legit business (I hope anyway) but the locals said by night it was anything but that. I just shot them a high bid and hoped I wouldn't get it.
Your wife is a saint.. I know those looks you got.. My wife gave me the same.. I have a similar pic as your vinyl and coffee. Mine is beer and cast stone :) Although I would never put my wife on bucket stilts.....I would borrow her my old pair!
Rental Property Investor · Minneapolis, MN · Member since 2016 · 161 posts · 221 votes
9y
Demoing the basement now, half the ceiling tiles down so far. Only 8 petrified mice so far and no drug money, I wish I could say I wasn't disappointed.
Portland, ME · Member since 2012 · 616 posts · 550 votes
9y
What is it about guys taking photos of their wives working? I can't put on a tyvek suit without a camera in my face!
My husband and I have been in this business for the last 10 years. Now we are putting our oldest son through college with no debt, thanks to our investments. You guys are starting out right, learning as you go. It will get easier, just stick with it. Oh, and be really picky about your tenants. The one tenant that actually made me cry and want to quit was one whose dogs (she NEVER let them out to pee!) ruined a floor that my husband and I had spent half a precious child-free night installing. Now we pay others to do this and it's not as emotional as when they destroy something that has my sweat on it.
Rental Property Investor · Minneapolis, MN · Member since 2016 · 161 posts · 221 votes
9y
Amy A. ; that's actually our plan for our little guy. We would like to be able to have enough from investments to pay his way while we make him manage our properties in return. Haha. I'm impressed with your tens years of work, congratulations!
So the kindly neighbor comes over, announces shes the head of the local Neighborhood Watch and starts telling me about the RAID and also how the home was a Bordello of sorts.
I start looking closer and realize all the frames in the upstairs doors have been shattered from the police "knock knock" tool. I mean every single one. Things are starting to add up here, I see mystery brownish stain on one wall in Room 1... I quickly point it out to my Roommate for Life and tell her "See kim....that's where they shot that guy!" (Eyes the size of saucers)....
Too bad you couldn't take the bordello's net operating income and apply the market CAP to calculate exit value commercial property style ... you might've made out even better :)
BTW, that picture of your wife pretty much sums up my wife's natural reaction to all the deals we've purchased as well... it is so consistent that it is almost a "tell" ... if she walks in and that it her 1st reaction, then my 2nd reaction is excitement 'cause we're gonna make some money, honey! That is almost as good a "tell" as there being a turd in an unflushed toilet ... the houses I do really well on seem to have a bunch of those floating around too, and I see yours did as well; never fails! LOL.
Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
9y
This is much better than any flip this or flop that show out there! You are funny @Lee Fahy! I hope you write a blog or something in the future when you have a little time.
I've been through a few of these also. 1st and most important step- marry well. Can you imagine trying to do one of these with a prince/princess? ugh! With an awesome SO, you can literally get through anything.
You've got yourself a mastermind education worth $50k here. Our first one was a mobile and we didn't even know to prime cigarette stains or how to patch a wall. We painted the ceiling 14 times and kept heaping mud into the wall cavity and wondering where it went the next morning. With a great wife and patience we got through it and haven't looked back.
It only gets easier from here. Congrats and thank you for sharing your awesome and funny story!
Rental Property Investor · Exeter, CA · Member since 2016 · 60 posts · 35 votes
9y
@Lee Fahy Is this your first rehab project? Nicely done! How much time have you invested in this so far, and how much longer do you think you need to before the house is rent ready? I took on a rehab project similar in magnitude on my first home, and I had to decide between getting the job done myself or hiring people to do it. In the end, I decided to hire contractors as I was able to get the whole home rehabbed in about a month, as opposed to 6 months if I were to do it without any help. The 5 months I saved justified the additional expenses, and allowed me to get it rented quickly, cutting down any time wasted which translates to lost dollars in revenue.
Of course, nothing beats the satisfaction and the kick you get out of the final results after all is said and done. Props to you!
Rental Property Investor · Minneapolis, MN · Member since 2016 · 161 posts · 221 votes
9y
@Bryce Wong; Yes this is the first rehab project, nothing like easing into the game..... We purchased the house in July last year and I work on it primarily evenings, weekends and every vacation I take. I have a naturally cheap bone in my body that hurts every time I pay someone to do something I THINK I can do. Haha
I ran the numbers and it's about break even on money saved by DIYing versus missed rent, it was a fast and loose calculation and I'll actually do a solid job of it when I have a moment. Next one won't be all me, I promise you that.
Rental Property Investor · Exeter, CA · Member since 2016 · 60 posts · 35 votes
9y
By the time you are finished with the project, I'm sure your cheap bones would be even "cheaper" from all the backbreaking labor you're engaging in, haha.
Also, have you considered making certain repairs after getting in tenants? That way you can write it off immediately as opposed to adding it to your basis and depreciating, potentially leading to even more cost savings.