All Forum Posts by: Adam Bartomeo

More then likely it is the breaker based on the info that you have provided. Normally I start with the gfi, then the breaker, and then the wiring. I normally have a gfi in the garage so it's a 5 minute test.  trying to track down a wire concern is very time consuming and frustrating  so I opt for the breaker.

I love the rekeyable locks. They save a bunch of time and money. No more of storing old locks in the garage and swapping them with different properties 

You need to know:

Rent for each unit. CURRENTLY. They like to exclude this and tell you what it can rent for.

GRM

Cap rate for the building and the market place.

Taxes

Insurance

When the leases expire

How long has each tenant been in place.

Cost of the building

Are the utilities individually metered and what is the cost of

Any extras included - pool, laundry, vending machines, Etc.

Once you have these feel free to contact me or write another post. This will help BP memebers help you evaluate the property.

Typically, I find the deal and I take care of the rehabilitation of the home. In that case we usually do a 5050 split. If it was the case that you're asking about, I would ask for 60% for doing the  legwork on finding the home and for funding the deal 100% 

I don't have a whole lot of issues with items breaking or getting calls from tenants. But, what does bother me is when a tenant doesn't treat a property correctly. IE park in the front yard or having trash outside of the trash can.

I know there was a lot of talk about yard maintenance. It baffles me why a landlord would allow a tenant to do any kind of work to a property. I chastise my tenants when they do maintainance or repairs. My rule of thumb is tenants will ruin anything they touch even when they have good intent. So, I take away their need to feel obligated to do my job

You can definitely save money by paying sub contractors to work hourly on the property. I think some of the comments above are valid. I would ask you who is going to manager the employees, materials, time lines, etc. If your thinking that cheap labor can figure out what materials you need you may be making a lot of trips to the local hardware store. Also, if you don't have experience managing employees I wouldn't make my first lesson in a rough neck industry. Tradesmen are tough guys to motivate and keep in line. The good tradesmen will have jobs or will be looking for stable positions. If you don't have the capacity to give them consistent work they will want to bid out the job and not work hourly.

@Ryan K.

These guys are right. Beginning painters (1099'ers) are getting paid $13/hr in FL and they have never painted. A carpenter that can install a kitchen properly will be closer to $30. My guys that lay the sod and digging irrigation ditches are getting $10/hr.

I hope this help.

Most of what you heard above is accurate from my point of view. I would still be uneasy about the short sale. Land lords have become immune to it because of the high amount of them of the last few years but I would still be weary depending on the length of time since the short sale.

Also, you may want to check into long term leases. In NM there aren't any laws for the length of time but in FL a lease can only be 1 year or less.

Yes. My father in law is a believer in this philosophy and it has worked for him. He owns about 10 properties and uses a rent decrease as a way to encourage tenant loyalty. He had a older couple rent one of his properties for two years. They treated the property great, always paid on time and were model tenants. He lowered the rent by $20. They have been in the property for 8 years now. His longest running tenant was 25 years.

I know investors that give away TV's for the same type of behavior. I have gave $300 to one of our current tenants when they got married.

Staying on budget. The three most important things you can do do when rehabing is 1. Know your ARV 2. Stay on budget 3. Buy the property right.

Staying on budget is all about having a plan of where funds will be dedicated to get the biggest bang for you buck. Start will an overall number (total rehab expense), break that down to sub categories (kitchen, bath, paint), and then make sub-sub categories (cabinets, counter, appliances). You can go further if necessary.

As you go along you should be assigning $ amounts to them. You will find that you will have to make sacrifices in certain areas to achieve goals in others. Tip always create other categories for unforeseen issues or price increases that you could not foresee.

I think your quotes are high but labor quotes are local in price. I would avoid the engineered hard woods. Your friend is right. Tile, depending on locality, is a great option. People in FL love wall to wall tile but in Albuquerque you could do most but not all of the house. The reason it is so good is because of its durability and ability to be water resistant. 

I avoid the vinyl planks. I hate the fake look of them in the home (people feel that it is cheap, meaning lower rents and abusive tenants). 

An alternative is laminate. It is durable, looks nice,easy to replace, and inexpensive to buy and install. I have laminate in one of my properties in abq and people love it. It's been in there for 8 years and we allow pets. There has only been minor damage. 

Good luck