All Forum Posts by: Dustin Beam

Around here, real estate agents selling multi family list using the 1% rule almost always. To me, that doesn't even make sense but apparently people buy them.

So yea you're in a worse cash flow area, but the problem is the same. They will sell for as much as people will pay. Can't blame the sellers or their agents. Blame other investors. At least until it's time to sell your property haha. 👍

If a family member or friend doesn't respect my wishes in a situation like that, all bets are off.

I mean, you're offering her two months free rent so she'll move. That's gracious as it is. I'd evict if necessary.

I would think it has a lot to do with the area you're in. If it's somewhat upscale, "wood look" might not satisfy renters. The real thing might be the only way to go.

If you don't think renters will care or notice, vinyl all the way.

Does your rental income cover the cost of the repairs and then some? I would assume it does. I would also assume the rent fees you pay for a water heater does as well. 

Say you buy one of those middle of the road jobs from home depot for $450 and pay your maintenance guy $150 to install. All in for $600. Those are warranteed for 6 years, but probably last a little longer. But if only 6 years, that averages out to about $8.33/month. 

I'd bet the water heater rent is higher than that. If so, is the discrepencey worth the peace of mind? If it's less, it makes financial and psychological sense.

Those number look good. Maybe too good, but I won't say that's necessarily the case. I didn't consider ARV btw, but your CoC return is clearly best on your 4th scenario. That's over 50%. In 2 years you'd have all your cash back. And that's incredible if realized.

In my analyzing experience, I don't see those type of returns except in very beaten down neighborhoods. And according to many, you don't actually get those returns do to many factors including people simply not paying rent, legal,e tc. But sometimes people find great deals in decent neighborhoods. If that applies to you, then you're doing a great job! 

I think breastfeeding is great as people more qualified that I say it's good for the baby. However, I would have been a little surprised as well if it just happended mid conversation lol. 

I recently ran into this problem with a couple tenants that I had allowed go month to month.

At the end of last month, I gave them a letter stating that they would either need to re-up their lease or rent would go up. One person decided to move and skip the last month's rent (she's now going to get evicted). The other I haven't heard from.

So, that may not seem like success, but I forced the waffling tenant to decide and the other will either be on a lease or pay me extra money, the choice is hers. So although the waffling tenant is trying to get over on me, that probably would have happened whenever she moved regardless, so at least I know. 

I have only made one purchase and it was all multi-family. However, I'll buy anything that makes good financial sense and makes money. I'm not big enough to scoff at a single family home that puts cash in my pocket and equity in my net worth. 

If I was Grant Cardone, piddling around w/ single family homes wouldn't make sense to me either.

As far as what gains wealth the fastest? Check your CoC return percentage to decide what does. Or, if you ever plan to sell, check your predicted IRR.

I'm slowly converting my apartments to vinyl plank as needed. For material costs, I haven't found better than lumber liquidators (someone let me know of somethign better if you have it :) ). 

There was a color that was cheap that went well with the wood in my apartment, but they've since discontinued. It was real cheap. The stuff I'm gettign now is about $2/sqft. If you do go to them, let them know that you have apartments and you want a commercial account, you'll get it even cheaper. 

As far as labor, I have a guy that tears out the carpet and hauls it off, and installs this flooring for right around $1/sqft. So all in all, it costs me about $3/sqft depending on what flooring I go with.

Every day I get up and go make money for my company, I'm motivated to expand MY business. 

I have a decent job and all, they do more than most for employee happiness, but I'll never be passionate about work when it's for someone else.