All Forum Posts by: Alan B.

Received my first "landlord emergency" call the other night.

Quick back story about my experience since I don't post often: I'm a new investor managing and rehabbing a duplex right now. The lower level is rented out with a Section 8 tenant in place as of Sept this year. Rehab on upper unit started last month and is 90% complete. 

Wednesday night I get a phone call from my tenant. She is at work and her babysitter calls her to tell her that the place is being flooded by the unit upstairs. I call the babysitter and talk her through turning the water off at the meter and jump out of bed & speed over there.

It's a disaster. Some plumbing was being done on the upper unit and a cap blew off the end of some pvc pipe upstairs and flooded my lower tenants kitchen. It's about 10 at night & me and my contractor are on the phone cussing each other out because I need him to come fix this now and he doesn't want to get up.

Being that the girl has kids I don't want her water off all night and I don't want her angry and calling her case worker about this. Me being a 1st time landlord I don't exactly know how the housing commision would react although this was an unforseen accident, I'm by no means a slumlord. 

I told my contractor to forget about the top unit and let's get my tenant squared away ASAP. Will need to replace the drywall and some floor tiles in the kitchen this weekend. Fortunately still have a lot of leftovers from the lower rehab.

Things I've learned: 

If I buy another multiunit I need to make sure or have installed a separate water shut off for each unit. There wasn't for this one which is why I had to get my contractor up out of bed.

If I buy another duplex I may only get side by side & not upper/lower. That way I won't have to deal with a problem on top possibly creating a problem on the bottom.

As I acquire more properties I need to have a system in place for emergencies so that as the property owner I'm not the one receiving calls & jumping out of bed at night.  

Live off credit cards, use the money from your job to finance the rehab.

................

I'm new in real estate my self so my questions are not to be condescending but just to get some understanding. 

You're willing to put 40 to 50k into a rental? Between purchase price, rehab, holding cost, and unforseen circumstances isn't that a bit much for a rental?

What's the expected rent in that area, because I'm thinking with that high of a cost it is going to take years to make a profit.

I'm only asking because right now I have a duplex with 1 half currently rented and the other half being rehabbed. Cost a little more than expected but for my business model I don't want my rehab cost to be more than 2 years worth of expected rent. Maybe I'm being unrealistic,  I don't know.

The Section 8 Bible is a good general guideline but not state specific.

I passed my 1st Section 8 inspection on the first try. Although I don't have kids I just thought about how what I want this home to look and how safe would I want it if I or my kids lived here. 

With that in mind I was solid for the inspection.

Correction, Monday Sept 15 @ 6:30.

Next meeting Sept 19 at the bigby coffee on bay rd. Feel free to shot me a text 313 753 1070.

Finish!!! Not sure if I'm allowed to post the craigslist link in here. I'm not trying to market in here, I would just like some advice on my ad. 

http://saginaw.craigslist.org/apa/4606801536.html

I don't know if I'm really looking for an answer, advice, or just getting something off my chest.

To make this quick, I will be complete with my very first property this weekend. Its actually done now, just needs to be cleaned. Its a duplex but I only had the funds to finish the lower not the upper.

The property is in the hood, not too be bad of an area (I've lived in worse) but nonetheless still the hood. I currently rent a apartment in the suburbs. I have seriously been considering moving into it temporarily and using the money I've been paying for rent to just rehab the upper.  

Financially I know its smart but I spent the last few years of my life trying to get out the hood and now that I'm out I really do not want to go back. 

Has anyone here ever decided to move in one of their investments in order to save money or to complete a job easier? Would you do it? Why or why not?

The newly formed REI Club in Saginaw, MI will be having our first meeting this Monday July 14, 6:30 pm @ Biggby Coffee 3085 Bay Rd.

There will experienced and novice investors present. If you reside in the mid-Michigan area then come on out.

From personal experience if you are new to this like me I would suggest not trying to guestimate yourself. Take an experienced repair/handyman with you to give you a more accurate estimate of repair cost...then add 2k to that amount for contingencies. Also, don't forget to look at property taxes and other special assessments. If your going into land lording this can drastically cut into your profits.

Thanks for the welcome everyone, I've already began listening to the podcast while driving, at work, and even during my workouts. Will definitely check out the books, articles, and blogs you have all put links to. Look forward to contributing to this community.