All Forum Posts by: Grand Wally

I'm in Louisville, Kentucky....but I have REI opportunities in and around Oconomowoc, WI...outside of Milwaukee....

Can anybody give me the honest & objective lowdown on the market & demographics? Can money be made in rentals?

Yes, it's a duplex without 2 meters. Bought the prop last month, the tenant's lease is up in March and I knew I would be responsible for the utilities. However, the bills I reviewed were less than 1/2 of the most recent one. His rent level was good enough to put up with the utility bills for a couple of months, but not at this high level......

Not asking for legal advice, but I am asking for a little guidance...I'm paying the utilities in a house. The tenants use the heat like CRAZY in this place....

Can I legally put a lockbox around the thermostat and set it at a fixed temp? Has anybody else done this and experienced any goods/bads with it?

MikeOH:

That is factually incorrect to say this data is throughout the United States. I've always been a little leary of the 50% rule, now I'm even more so.

How can a study be correct if it only includes 1/2 of a sample data set as it's measurement? (i.e., 26 of 50 states)

Of the 26 being considered, how many of them are on the east or west coast where the cost of living, housing prices, etc associated with REI is way different the midwest or south?

The 50% rule has it's merit as a conservative way to approach REI, but, again, I'm convinced that using it as the primary benchmark can create a situation where investors walk away from deals that end up being very lucrative.......

thanks, but don't you think that's inviting theft!?!?!?!

I live about 30 mins from my properties, my partner lives about 15 mins from them. We both do work on them. Any thoughts on how to have a central spot (besides renting a storage unit) where we can keep tools so that he is not on the site while I have a tool he needs & vice versa?

I see no way in which the residential rental market could ever be in a "slump"...for goodness sake especially in this market.

At the end of the day, two facts will always remain:

a) Everybody has to have a place to live

and

b) Not everybody can buy their own home

Does the landlord have to adjust his/her standards by which tenants are selected, maybe. Does the landlord have to adjust his/her rent levels in some cases to get a tenant, maybe. But that's business baby! Adapt or die.

I used to live in Memphis...and if I owned rentals there I would have a manager go take care of them too. The idea of being shot doesn't appeal to me. That is most dangerous city I've ever lived in.

Outside of that, however, I don't agree with using property management unless you are at such a level where the hefty cost is justified. Think about it. A tenant has an issue, they call the prop mgt company, the company calls a repair guy. Why can't I just save myself the 8% of GROSS rents and take that phone call and call the repair guy myself?

MikeOH:

Thanks for the feedback. I certainly admire your tenacity...I'm sure it's one of the reasons why you are successful.

However, I'm a follower of the Hans Scharff way of doing things....and it has worked out pretty well thus far.

Quickly...in case you don't know who that is...he was a German interrogator in WW2...he was the most successful interrogator in all of the campaign, regardless of country. What made him special was that he never raised his voice and he never laid a hand on any POW's. Yet he was still able to get any information he wanted from them by simply talking with them.

Now....bring it back to REI. If Hans Scharff can deal with people who have been trained to DIE before giving up information, why can't I use the same approach with tenants to deal with them? I'm not suggesting I be their friend, but I am suggesting that you get more bees with honey than with vinegar.....

MikeOH:

1 week was a hypothetical guess...

Also, let's look at this factually. If I can give them $250 to leave, and this is an insurance policy, and in the process it ensures I won't face $5,000 worth of drywall damage, a stolen oven, AC compressor, etc etc....then how is it NOT worth it to give them cash for keys?