All Forum Posts by: Darwin Crawford

It's going to cost a lot.  Local construction prices vary a good bit between states and metro areas.  I moved to scottsdale from atlanta a few years ago and its a waaaaaay different market.  

For the west coast, I think that $70-90/SF is fair if you are doing it all by the book.  permits, contractor that isn't a muppet, etc.  A lot will depend on mechanical systems.  New electrical code is a lot more expensive to wire with the advent of AFCI breakers and other whiz-bang safety gadgets. 

I got a full gut and remodel done on a house in phoenix for about $50/SF, but I self managed the project and wired it myself.  Plumbing alone was $8K, and that was cheap compared to other bids. 

If you're not seasoned at construction, take a pass on this one.  There is too much that can bite you if you don't know what you're doing.  

Fascinating thread, and concepts  - I am of the opinion that open discussions are good, almost no matter what the subject.  Not discussing problems just makes it worse.  

As had been established, you can't legally discriminate on the basis of a bunch of things, and yes, there is WIDE variation in landlord-tenant laws in different states and/or countries.  

From reading between the lines, it seems like @Thomas S. isn't advocating illegal behavior, but asking what external triggers give you pause, or might cause you to look within your legal rights to deny an applicant.  

I happen to live in a really, really landlord friendly state, and am glad that I do.  I can certainly agree that there are lots of external flags that I have which will cause me to give a polite "I'm sorry, your application was denied".  

Most have to do, I think, with the understanding that people's life choices affect their finances.  A 2-pack a day smoker spends more on cigarettes some places than the power bill.  And as the landlord, you are stuck with the consequences when they kick the bucket from a personal lifestyle choice.  Not super cool.  Ditto on the production of obnoxious odors, whether they be food-borne, or not. 

Good tenants are wonderful things, and I'd say that while I have a few triggers that are absolute no's, I'll also slide towards the side of my good tenants when the decision becomes a judgement call, or "gut feeling".  

I do not tolerate anything illegal, zero tobacco use indoors, non-verified income, guests over 3 days that aren't on the lease, or slobs.  My leases have a "keep it clean" clause in them that has worked wonders.  Those parameters alone get rid of most of the bad ones.  

I don't care about tats, unless they come with gang signs and felonies.  In that case, the felony takes care of the rejection.  

And for the record, we can discuss anything we want here, protected by the 1st amendment.  No laws have been broken unless those illegal suggestions are acted upon and can be proven....just sayin.  

@Mike Hanneman - i agree with you that cleaning up neighborhoods is satisfying work.  My place went from an eyesore to a decent spot for working people to live, and feel safe.  Definitely a good thing.  

Ditto with @Michael D. that you will need some cash reserves, my place didn't get reliably profitable for about 6 months, but now hums along nicely with minimal intervention.  

If you have month to month leases, boot the bad ones ASAP, the go to the good ones individually and explain what you want to do, and what its going to do to their rent and their homes.  in my experience, good tenants (even lower income ones) will be OK with small increases in rent for a tangible benefit.  

As an example - it's F-ing hot here in AZ, and in the neighborhood where my duplex is, there is no covered parking on any of the rentals within a few miles.  So I put up two steel and fabric shade awnings in front of the place, so their cars don't roast into pieces all summer.  I could do this cheap (like $600 for both) because I used to be a welder and still have my truck and equipment.  

The shaded parking has led to some very happy, paying-on-time, respectful tenants who work to keep the place nice.  I'm also able to charge more than anywhere around me.  Clean and well-run pays.  

But for the time being, low ball the current owner.  you're going to be glad you did. 

@Justin Kline - in my small-time landlord world, no they do not.  I only have 4 properties, and they all stay pretty full.  I don't manage for other people except 1 family friend.  

In theory, you could keep them, but I require everything to be 30 days or less out on credit and background.  A lot can happen to someone in 30 days.  

@Justin Kline - I don't  I do have some sales background, and a buddy who is a professional photographer.  So I put most of my efforts into accurately depicting the rental online.

I tend to try and engineer my ads to attract the type of tenants I want.  I'm also really up front about how I roll, which is don't break appointments with me.  partly I can get away with that because my local competition is pretty awful at advertising, and scottsdale is high demand.  

If someone is serious, which is a call I make over the phone or email, I'll suggest they apply, and couch it as "we don't have a deal without an app and deposit, so if someone shows up first you are SOL".  

@Ann Wu This is a $10 solution to your problem:

http://www.amazon.com/Pro-Lab-AS108-Asbestos-Yours...

Evict this guy.  As fast as possible.  

@Dustin Beam - camera inspect all sewer lines.  this can be a deal-breaker, and having done a full re-pipe, I can tell you its a poo-filled, expensive experience.  The camera job shouldn't be more than $200.  

Also - look at current leases, and current tenants to give yourself an idea of WHO you're buying, not just WHAT.  

Keep in mind that when things go wrong in a multi-plex, it can affect more than 1 unit.  Not uncommon for a burst pipe to take out 2-3 kitchens, depending on layout.  

Check for termite bond if wood frame is present.

get a good tech to come out and check HVAC systems, age of wiring, and electrical panels.  Those all add up pretty darn quick.  

Landlording in CA can be great.  It can also be a nightmare.  laws are very tenant-friendly, and tenants know this, which results in all kinds of BS. 

If this is a business decision, I'd lean towards AZ.  If you want CA property where you can live and self-mange, that's a different story.  turnovers in CA can cost you up to 18 MONTHS of rent (that's not a typo) which will kill your profits in a hurry.  

Screening, etc, etc all takes more time and money in CA.  It's my understanding that you now have to notify anyone you decided not to rent to by mail.  A good friend of mine got a "professional CA tenant" in his condo in Santa monica the first time it hit the market.  Cleaned his financial clock.  

Flip to AZ - evictions are easy, judges kinda hate tenants, and tenants know this.  Rent gets paid, or you're out.  

Again - REI is about making money, and personal goals, so do what you want, its your money. Just don't expect it all to go smoothly.

@Ann Wu - definitely check laws in your state, but I'd bet you can just serve him with 30 days and he will leave.  Sounds like he's just blowing gas like a lot of tenants do.  Don't let this guy intimidate you.  He is full of you-know-what. 

I'd look at my options, but consider the following:

1) What's the cheapest and quickest way to have this person out of your life?  If it's a $100 bill for the keys, then do it.  

2) Do you KNOW you're right in the scenario?  If you don't, figure that out second.  Figure out #1 first. 

3) You might have missed your window, but check on your lease, and just let him know in the proper way that his lease isn't being renewed and you expect him out on the 31st.  If he doesn't cooperate, evict him, deduct damages from deposit, and sue him for the balance.  

@Dana Dunford - let me clarify.  Cozy's credit reports come back from Equifax right away.  Anyone who tells you they can do a background check the same day is completely full of it.  Cozy subs background out to Checkr, Inc.  It takes days to search court and criminal records for most people in this mobile society we live in.  

Credit and background are NOT the same.