All Forum Posts by: Adam Craig

I would be fine doing 50/50 - I will clearly be doing less work so I just wanted to confirm that this was an acceptable split to ask for.

I invest mostly in single family rental properties but I was approached by someone with experience flipping homes for the company he works for. This is someone I have worked with for quite some time and I trust his knowledge. He is going to manage the rehab because of his extensive construction background and I am going to be the money.

So if this potential deal is for a 100K house- I put my own 20K as a down payment and another 30K for the rehab while he manages the rehab. 

What would be a common slip for the potential profit?

Nearly half of my homes have original or very old windows. They are functional but dont operate well and lose a lot of heat, not to mention they look old.

Does it make sense to upgrade windows on my single family rentals? they are in 1100/month B/C neighborhoods? I plan on holding them for a long time.

Considering pleasing tennats and resale would you spend the money?

I have rental properties in 4 different cities.

I filled out the rental registration/inspection on most of them but I never did with my first two properties because I didnt know it was required.

Obviously I would like to avoid the renewal fee and inspections if possible but is that a bad idea or is it common practice.

So far I have been less than efficient on my paint/supply purchases at Lowes/Home Depot.

After reviewing my taxes I see that I spent more than 10K last year at both stores so whatever percent I can save will be substantial.

What are some tips for saving and is either store better than the other for savings? I read up a little on buying coupons/gift cards on eBay/in store credit cards/contractor deals - but I figured BP would know best.

My insurance agent had very competitive rates for my first 7 rental properties but nationwide wont do any additional properties. Because I want to continue to grow this business he suggested that I get commercial coverage on all 8 properties and continue with commercial plans for future purchases.

I was paying around 5K for all 7 properties with residential insurance. With commercial I am closer to  $6500 but it has a lot more coverage built in.

Is this a good route to take? OR should I just keep the 7 residential policies in place with lower rates and just do commercial for future purchases?

I guess I just want to have a professional look to my business for networking purposes.

I am a buy and hold investor - all single family homes. I use a property manager so I don't need a website to market my properties. But I am closing on my 7th property and I plan to grow this business much further so a website seems like a must for any business.

But what would I put on the site if I am not marketing to prospective tenants?

Website creation/costs should not be considered here. I made several sites very quickly and cheaply with Weebly so I am not concerned with that.

Sounds like you have the right idea and it seems to work for you set up.

My scenario is a little different because I run a electronics eCommerce business and the more I work the more I make. On my first  2 properties I tried to paint/clean.manage like you... At the end of the year I reviewed my profits for my electronics business and they were down substantially in the months I was getting the property rent ready.

So now I spend my time running the business that drives the profits for my real estate purchases.

Good luck

So

What is your time worth to you?

For me I the 10% plus fees I pay my PM is well worth the amount of time it gives me to work on my other business/find new deals/spend time with family.

It can be a lot of work managing a property and your holding this for the long run the little bit of extra cash  flow you give up each month should not be an issue.