All Forum Posts by: Cody Barrett

I will take those prayers lol never know when you might need that extra magic ; ) 

Thank you so much though! It really is exciting once you see all the hard work finally unraveling into that wonderful plan one creates in the beginning.  Keep grinding and good luck to you sir! It is only the beginning for us! 

Cody B

Hello Community!

Just a general newbie story/suggestion here for other newbies... 

I am really just getting started on the business journey of buying and holding rentals for passive income at the ripe age of 24.. To give you an idea of where I am at: I've been aggressively learning for the past 6-7 months about REI. (which is nothing) but I joined BP almost a year ago with ZERO knowledge about REI..... Boy did BP change that for me real quick lol (very thankful)... Fast forward to now and I am a week and a half away from closing on my 1st deal ever! EVER! lol... I figured I'd want to own a home when I got married and had a kid, maybe 6 years from now lol... But I got wind of what REI could do for a single person in their lower 20's with no bills because of awesome parents, so I got to learning...

Anyway, all I REALLY want to say here to anyone in my situation is that please REALLY listen to other investors on BP when they advise us newbies on running this goal/investment/journey/new business as a BUSINESS not a hobby, even if it is a hobby...  I did not really appreciate that fact/recommendation until the other party accepted my offer 2 weeks ago...  The moment I finished my celebratory beer on an accepted offer, the world slapped me in the face and said now you have a 90,000 dollar commitment and a tenant you'll be inheriting... How will you protect yourself, your tenants, your assets, and handle all the wild situations landlording IS going to through at you?? Things that I thought about here and there but not as seriously as I should have... I felt incredibly unprepared when I got the accepted offer... Scared too.. That doesn't mean don't do anything though! lol

SO

I decided to not feel that way.. I immediately called a lawyer, CPA, organized and read all the forms Brandon incorporated into his "How to Manage Rental Properties" book, and began answering the things that concerned me.  I ask tons of questions on here too and the advice is incredible..  

Wrapping this up: 

To us Newbies, take this as a business right now if you are serious and will be making an offer in the coming months because I promise that you'll be loving that you did when the worries start to creep in on what to do next or how to respond when such and such happens...  I feel prepared, confident, and ready to inherit that tenant and fill the other vacancy once this deal closes. Now that I am running this as a business and not a hobby of course.... Bring it on!!

Thanks for reading,

Cody Barrett 

That makes a lot of sense @Ralph R..  Thank you for your thoughts and advice.  With me being in Wisconsin, after I fix the faucet and give him a new toilet, I will want to sign a year long lease because I do not want to fill vacancies in the winter... Spring and summer months are approaching and I will probably close just before March.  So maybe May or June is when i'll look to learn if he would like to sign for a year but at that point with a higher rent rate? Maybe the new toilet would reflect on his water bill and appreciate it, idk. But for sure Ralph, I need current rent and the inspector who has a few duplexes near by said the units absolutely could attract higher rates.  

thanks again!!

Wow this post really helped me. Great idea and you hit it on the head with the 5 gallon flusher hahah.. I could help him out with a new toilet even though the water is metered and tenants pay their own.. Lucky find.. Hopefully the property will close in a week or so.  I have some time to plan.  I think the faucet, vanity, and toilet would be an awesome start.  Lower unit needs the same love.  Kitchens are from the 1900's so there is character with he spice cabinet but the counters and cabinets are old... Exciting 1st property.  

Thanks!

Hello everyone!

So it is a 2 unit duplex, upper/lower 2bed 1 bath.  lower unit is not rented where the upper is.  Great tenant, very clean, and long standing. His bathroom faucet has a leak unless the handle is turned a certain way. After the inspector walked it with me he said it is not major, just take care of it right away.  Pipes are fine.  Just an old vanity/faucet.  So the bathroom is just kind of old.  Needs updating but the area doesn't call for high end updates.  Market is 600-900/month... But the area is nice, just landlords seems to have older amenities. So I don't feel like the upgrades would be super expensive being middle of the road but modern. 

So my question:  Would you simply fix it with a new faucet/vanity and knock out half of the updating with the tenant living there by just doing those 2 things? I don't know how long that stuff takes.  (My first property I have ever owned).. The flooring is fine but the toilet, bathtub, and there is a window I want to replace with all glass that I would like done. Or just replace the faucet and wait to do the bigger stuff when/if he moves out?  He is happy but pays below market rent since he's been there for 6 years and the landlord likes him.   

Thanks everyone,

Cody

Nice! Welcome to the community! I wouldn't be where I am today without it.  Endless information from endless experts lol.  Enjoy and good luck! 

Gotta love all the feedback, thanks again everyone! Priceless stuff.  I agree with you @Account Closed experience is the real deal lol. I am looking forward to this learning curve!

Thanks BP Community! 

@Adam P

You nailed it.  I just want some basic knowledge so I know I am not getting taken for.  So I will really rely on past work, referrals, licenses, insurance bonds, etc until I can get a solid team.  Great job catching that mistake though Adam!!! 

Cody 

These answers are really fantastic! Thank you so much everyone.  I will be searching for some well respected contractors through referrals and the like.. After I screen them a bit and ask for a small project to be done I will see if they are OK with me just checking in here and there and watching.  I won't bother too much with questions as I don't want them to feel micromanaged.  You are all right about the trust factor, it is my livelihood that they're swinging a hammer to lol.. Youtube and online videos are a great suggestion so I will start there.  I just want to learn about the things to watch out for, signs for repair, possible hidden leaks, etc... 

Thanks again everyone! Hopefully I will find a winner when the time comes! 

Cody B

Hello everyone!

Newbie here who will be closing on my first property in the coming weeks. (banks take forever!) but it has let me create/setup my business and get an LLC filed by my lawyer even though I'll only have 1 property he still recommended the LLC. Plus an LLC reminds me that this is a business, not a hobby ; )

Anyway...

I have never repaired homes before and I've watched my father remodel homes here and there as a kid but nothing really stuck. The home I am buying was built in 1920 so stuff will pop up on me sooner or later... For starting out, is it OK to shadow my contractors who come to fix things initially or handymen that I might hire to fix things that I don't know how to fix?  Eventually I want to be more independent and fix stuff by myself so I can also save more money on repairs.. Any recommendations on how to become more handy is welcome as well! 

Thanks for reading!

Cody B