All Forum Posts by: Account Closed

Hi @Susan V.  I have two rentals in Vanderburgh County.  There are a ton of very inexpensive options there, but many of those inexpensive options are trashed.  Evansville has a big blight problem...many of the homes simply aren't worth repairing - the repair costs would be above and beyond after repair value (no different than certain areas in Indianapolis, Cleveland, etc.).

Be sure you know what you're getting into before committing (even if it is seller financed).  Good luck on your search!

Aside from what has already been mentioned (based on my experience)....

• The amount of rentals vs. owner occupied homes in the same area (higher rates)
• More than one layer of shingles on the roof (refusal to insure)
• Swimming Pool (higher rates)

Risk will also determine the level of coverage available.  I have three rentals under the same insurance company - one of the three they refuse to insure for water damage (from broken/frozen pipes, etc.).  The other two, it's not a problem.  

I've not bought turnkey before.  My experience with out of state is you want to find a property manager that either has their own crew on staff or that is willing to take on the responsibility of also maintaining the rentals.

A good property manager makes all the difference.

I'd buy 10 houses for cash and retire.  Seriously.

Cash spends the same no matter where you live.  If you can't buy in New York (which I'm not sure your looking in the right places), then buy out of state and hire a property manager.

It's been a while since I've been to New York (never been in the city) but I know there are a few opportunities in areas like Buffalo, Syracuse, Endicott, etc. 

It is interesting...and to @Linda Weygant - I used to sublette photo studio space from the very first person to move into the Taxi Building in Rhino before everything took off.  I couldn't afford to pay for the space and the other photographer (who photographed many of the radio and television celebrities in town) packed up and bought a store front in Louisville.  This was about 6 or 7 years ago.  Amazes me how quickly things have changed around here.

This building is old, but that area of Colfax has some historic significance (even Jack Kerouac has history there).  It will be interesting to see what they do with the building...I would be disappointed to see it torn down.  I moved to Colorado in 1992 from Los Angeles and that side of town had a lot of character back then.  I can remember being in Quixote's bar (it's been moved a few times since) and the owner would climb on the roof and dump confetti in the ventilation system to rain down on all the patrons.  It was a fun place....similar to El Chipoltepec downtown...run down places with a lot of history.

Here's a history of Colfax as published by the Denver Post in 2006

Thanks @Ryan Murdock for the explanation.  I guess that makes sense and I'm sure there are fire and safety issues as it is.  As a Motel owner, I'm not sure how I would manage the situation.

My first thought when I read your original post is you mention you "just refinanced".  That raised a red flag for me...a lot of mortgages require you to live in the house for one year before you can rent it out.  Be sure you're covered from that perspective.  If that provision does exist on the loan documents, the lender can call the note on you (I've seen it happen).

With relation to buying another - I say why not?  If you can pull it off, then go for it!  It may be the start to something good.

So this news story has been on the headlines over the past week or so.  It has me scratching my head a little bit.

What's the difference between a "Motel" and an "Apartment Building"?

I think as investors, we all understand what the new investor is trying to do with the building.  I mean, as an investor, I can certainly see the room for improvement for running it as a "Motel" and I also see the opportunity to monetize it as an "Apartment Building.  I also understand the concern about raising "rent" on 200 tenants which the low income folks and homeless advocates are concerned with, but I want to understand this more from a business perspective.

As an investor, if I were to buy a "Motel", I would have to insure the building on the basis that these are short-term rentals.  I would also have to charge motel visitors the applicable lodging tax for their stay.  My overhead would consist of providing daily maid service, furniture, laundry, etc., etc.  Additionally, I would need a business license from the city to operate as a "motel".

As an investor, if I were to buy an "Apartment Building", I would have to insure it on the basis that these are long-term rentals.  There would be no applicable lodging tax and my overhead would only consist of maintenance on the property.  I could choose to provide coin-op laundry service to the residence.

From a business perspective, how does a "Motel" get away with renting rooms for 5 years?  I'm presuming that for $29/night ($200/week per the article) they are not providing the amenities that a "motel" would normally provide like maid service, furniture, laundry, etc.

Not your business.  In fact, if I recall, the State of Indiana removed laws a few years ago allowing local jurisdictions (i.e. the City of Ft. Wayne) to create their own laws (and there is a court case about this going on currently).

I have two rentals in Indiana - they want to protect themselves with a firearm, that's their business.  They want to have firearms in the home to hunt with, that's their business as well.

That's great!  But for future reference, there are clips on drawer sliders - usually black, usually toward the front of the drawer.  Push the clip down while pulling the drawer out and the whole drawer slides out.  You could remove one or two drawers and accomplish the same (no kids required). To reinstall the drawer, simply align the sliders back on track and close the drawer  :)

I'm a little confused.  Are these "unauthorized guests" of the tenant on the lease or are these squatters?

If they are unauthorized guests, then turn your property manager loose on them, repair the damage, and if necessary, bill the tenant that is on the lease for damages (sue if necessary).

If these are squatters, then treat them as burglars.

If you look up the definition of burglary, you'll find that generally, it's defined as the breaking and entering into a premise with the intent to commit a crime.

My concern would be that your property manager is handling this like they would handle a tenant - in a "civil matter" as opposed to how they would handle a burglar - in a "criminal matter".

It sounds to me like you don't have enough information to assess the situation.