All Forum Posts by: Doug Wang

It's not your responsibility because 1) you didn't install the HVAC system. 2) you didn't know about the missing insulation.

However, the buyer may want to have this matter decided by a mediator, who charges $1000-$400 per hour.  You would need to split the mediator fee with the buyer.  So if the repair cost is small, I would just pay for it and have the buyer sign a agreement to drop all present and future claims known or unknown.

Not sure about other state.  In California, the occupancy is always 100%.  Some times, 105%.  Tenent pays the full month rent and move out early and the place is rented in two days.  I have never had a unit sit for more than 1 week.

$525 mortgage, $165 of which goes to the principle.  That's not expense.

I forgot the HOA. Thanks for pointing it out!

10% PM is ridiculous.  I told them 3%, take or leave it.  These blood sucker will normally lower it to 4-6%.  (I have many properties, and may have more bargain power).

Posting on Craiglist costs nothing.  Tenant always pays all utilities.

She said the rent ranges from $1100 to $1500.

I would start advertising at $1100. If you get more than 5 calls a day, increase the asking.

@Joshua Maestas and @Jacob Sampson if you can't do the math, you shouldn't be investing.

$110k loan  and she put 3.5% down.  So her downpayment is 110,000/.965*.035=$4000.

At 4% interest rate, the interest part of her mortgage payment is $366 per month. The PMI is $105 per month. The property tax and insurance are $83 per month. The depreciation is $50 per month. The maintenance cost is $100 per month.

So the total expense is about $700 per month.  The income is $1100 to $1500 (assume 100% occupancy)

That is a very good investment!  You put down about $4000 and got a positive cash flow of $400 (worst case) $800 (best case).  That is return of 120% (worst case) 240%(best case).

Go buy more!  Where are you located? 

Here are mine

1) "I would like to rent your place to open a senior care center.  My manager and helper will live there and my clients (older folks) move in and out."

2) "Do you rent to 5 college students, all girls" 

3) "Do you allow pit bull" 

Finally started on the roof job!  The roofers are very busy due to the recent rain.

My first month of being the new landlord was very eventful.  One tenant ended up in Jail and I had to mail all my letters to the Jail, and asked the relatives to take the belongings.  Homeless Joe broke in while the unit is vacant.  Many cockroaches and mice invaded the apartment.  One floor furnace broke.  Two bathroom faucets leaked.

In stead of doing other things, I will secure of the place first, installing fences, lights and cameras.     

One good thing I discovered is that the current rent I am asking  is very low.  I received 10 application in two days and 3 or 4 of them are really good tenants.

I will definitely make the apartment nicer and raise the rent.

Rob, did you get rid of the previous PM when you bought the property?

Thanks!  Roof is the 1st priority.  

The existing water coolers on the roof are breaking down also.  I am thinking of replacing them with mini-split HVAC system.

I am from Los Angeles and found an apartment building in Fresno.  Escrow closes in two weeks.  The building was build in the 40th and maintained most of its original beauties: red tile roof which is leaking and the roof support shows signs of giving up, original electrical system without ground wires, rotted floor joist, original metal windows.

There are 8 units in the apartment and I paid about $37k per unit.  My renovation budget is about  $13k per unit, which will not cover all problems.  

My question is where I should spend my money?

New roof, rewire, HVAC and then floor and windows?