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All Forum Posts by: Jim K.

Jim K. has started 77 posts and replied 5317 times.

Post: Service Call Reimbursement from Tenant on HVAC Filter Clog

Jim K.#3 Investor Mindset ContributorPosted
  • Handyman
  • Pittsburgh, PA
  • Posts 5,466
  • Votes 13,781

@Michelle Felux

I don't think collecting on this $75 is worth the headaches down the line it could possibly cost. The issue of furnace filters in SFR is always a thorny one. This is a difficult lesson that if you're self-managing and doing much of your own maintenance, you can expect that the burden of replacing filters is always going to ultimately fall on you. It is also, as had been indicated, a good excuse for routine inspection of your property

But there's a lot of other stuff around this problem, there's mess that needs to be addressed. You're at three properties right now and self-managing. Self-managing has its pluses and its minuses for both you and for your tenants. The main plus it has for your tenant is that the lines of communication with the landlord are open and accessible.

But here's trouble, and three months into the lease now, your new tenant  gets a lesson about how you handle trouble -- you send an impersonal, officious letter highlighting section 19B and 21A of the lease to demand payment. It's as much a caricature as a fat, floridly mustachioed police officer pounding down a doughnut in a Crown Victoria.

Does the tenant have your telephone number? Do you have hers? If so, then clearly the reason for the letter is to avoid a frank and open discussion. So where does the landlord-tenant relationship go after this letter? As a self-managing landlord myself, I've avoided sending such letters except when I have to, and I always make the phone call first and the letter is a legal formality that comes later.

Now, will I do business differently if I get to fifty doors and in-house property management? Of course. But the nature of my business will also have significantly changed. My tenant will know that she's one of fifty, not one of three. By ten doors I plan on routinely pretending to any new tenants that I'm a paid employee, a property manager just making ends meet myself, and not the actual landlord. I'm certain I'll still make the call, of course, if I'm not paying an actual property manager already by 10 doors because I'll be sick and tired of this garbage.

This business with home warranties, as indicated previously, is a total waste of money. These guys operate just like new car service people -- any maintenance cost that can be avoided for the promised years of zero-cost maintenance is avoided and then the car's a lemon that needs big bucks in neglected maintenance as one after another system fails, exactly as it was designed to. Granted, the hustle can't be as perfect with houses as it is cars, because the design of the house is not dictated by the home warranty people, as the design of the car is dictated by the same people who sell you manufacturer's service, but that's how it works. You cannot trust home warranty representatives and their dubious credentials any further than you can throw them. You need a local HVAC guy you can lean on, one who is preferably a fellow property investor and understands your business.

You need to learn the basics of every cooling system of every home you self-manage, and that entails a basic familiarity with furnace  fundamentals. How big is the home? Is the system sized properly for the home? What kind of filters should you use and exactly how often and why should you change them out? If you haven't had these sorts of confabs with your HVAC guy, you're shooting yourself in the foot. For instance, if you had made the call about fixing the house to your HVAC guy, and he had gone over there, you would know exactly what's what instead of what you have now, a big bundle of question marks from a source of dubious veracity.

What your tenant will very likely do once she gets the letter is post it on FB and complain about what a pain in the neck her new landlady  is. There will be five friends on her friends list who desperately want to be liked who will confirm for her that yes, you are a terrible person. There will probably be a couple that bring up the point that that changing filters every month or the A/C coils freeze doesn't sound quite right, just as is being done here.

Having a regular HVAC guy inspect the setup from the start would have kept this a nonissue. You would have an understanding with him.

The other thing with the light cover and the cleaning company is another dead giveaway that you're trying to run with the hands-off approach before you can walk. Back door locking bar is also something you should have looked at more closely.

Do you have a go-to handyman yet? These random maintenance costs are going to keep eating you alive as a landlord. I am the go-to handyman of our little outfit. It's 5:30 in the am as I write this on the East Coast. I'm off with my wife to a duplex that I'm renovating in a few minutes. After 6 pm, I have to go to a tenant's house to do an installation of a gas dryer that the HD delivery people who were supposed to have installed refused to take down to the basement because there wasn't enough space to maneuver it down the stairs (and they were in a hurry).  If we had to rely on third parties for this sort  of thing we'd already be bankrupt doing this business -- the costs would just pile up and up. Now granted, I'm sure my situation and my properties are significantly different from yours, but the same maintenance principle that holds up in medicine holds up in landlording, just like you, your house needs a poorly paid primary care physician first to direct the flow of expensive specialists afterwards, and the better the primary care physician the more money you'll save in care costs.

I apologize for the rambling but I'm in a hurry. Good luck, Michelle. I sympathize more than I could possibly express.

Post: Lawn services on SFR(s)

Jim K.#3 Investor Mindset ContributorPosted
  • Handyman
  • Pittsburgh, PA
  • Posts 5,466
  • Votes 13,781

You live and operate in Georgia, right? That number of lawnmowings per month seems mighty small. Up here in southwestern PA during late spring/early summer I'm cutting my grass once a week and during late summer/early fall I taper down to once every second week until the middle of November. Then there's the regular tree and vine pruning. And the weedkilling. I'd try it, but make sure the property management company wasn't skimping on the job more and more as the months went by.

Post: What do you invest in when everything is over valued?

Jim K.#3 Investor Mindset ContributorPosted
  • Handyman
  • Pittsburgh, PA
  • Posts 5,466
  • Votes 13,781

@Gordon Forbes

I am wounded to the quick. Drugs, sir? Say no to drugs, my body is a temple, my strength is as the strength of ten because my heart is pure, et hoc genus omne.

Glad I obviously got a chuckle. To your health, Gordon!

Post: Cat Odor in the house

Jim K.#3 Investor Mindset ContributorPosted
  • Handyman
  • Pittsburgh, PA
  • Posts 5,466
  • Votes 13,781

If you are doing this yourself or paying a handyman, this is the cheapest fix:

Remove as little of the hardwood as possible. No stink will stand up to the hardwood being sanded down, filled, sealed with oil-based polyurethane, and then refinished with another two coats. So that's what you do, refinish the hardwood, and it will look very nice.

On the other hand, if the hardwood was so damaged that the cat urine got into the subfloor, remove areas of irretrievably damaged hardwood and patch the flooring, and then break out the Kilz Complete. I have to respectfully disagree with @Pete Budagher and generally recommend the oil-based Complete over the water-based Max in unoccupied properties. The Max really comes into its own when you have to do this sort of thing in a small area of a hall or a closed-off room of an occupied property. The Complete reigns supreme as the stinkmaster world champion but the fumes are so bad that even if you wear a respirator with organic vapor cartridges it will attack your eyes.

If you're paying contractor prices to get this done sight unseen in KY or NC, rip out all the hardwoods, roll the Kilz Max all over the subfloor (they'll refuse to use the Complete, and probably gripe about the Max), and do the luxury vinyl plank thing. It'll look like the glorified vinyl linoleum flooring it is, but hey, that's the price you pay for hands-off real estate investing, and lots of people like plastic everything in their lives.

Ripping out a whole subfloor because of cat pee, as @Micah Mcarthur suggests, seems a bit much. Maybe if they ran an illegal no-kill cat shelter in the house. There are people that do that.

Post: Outlet in HVAC Closet

Jim K.#3 Investor Mindset ContributorPosted
  • Handyman
  • Pittsburgh, PA
  • Posts 5,466
  • Votes 13,781

@Neel Patel

OK, Neel, I get it.

An exterior switch+outlet isn't going to do it. Unless I miss my guess, your electrician is going to tell you to put in a second switch inside the house and run it to a GFCI outlet (also in a weather-resistant box) outside. You'll be ripping out quite a bit of drywall in the interior of your home but if it's been painted in the last five years, patching, taping, and colormatching the old paint to the new upgrade work will be relatively easy and cheap.

Post: What do you invest in when everything is over valued?

Jim K.#3 Investor Mindset ContributorPosted
  • Handyman
  • Pittsburgh, PA
  • Posts 5,466
  • Votes 13,781

Gold bullion coin in own storage will be good enough during any major inflationary scare until they start mining the asteroids for it.

But for your societal collapse escape hatch, you should keep a hermetically sealed stock of maybe 50 Kalashnikovs and 100,000 rounds of 7.62 x 39mm ammunition for them right in next to the gold. If it gets really bad the warlording will tide you over until you get the human trafficking up and running. Your basic reserve cost at today's prices for this start-up is $40,000.


"No arts; no letters; no society; and which is worst of all, continual fear, and danger of violent death: and the life of man, solitary, poor, nasty, brutish and short."

Post: Drug and/or illegal activity clause?

Jim K.#3 Investor Mindset ContributorPosted
  • Handyman
  • Pittsburgh, PA
  • Posts 5,466
  • Votes 13,781

"Tenant is entitled to quiet enjoyment of the premises. Tenant and guests or invitees will not use the premises or adjacent areas in such a way as to: (1) violate any law or ordinance, including laws prohibiting the use, possession, growth, manufacture, packaging, or distribution of illegal drugs; (2) commit waste (severe property damage); or (3) create a nuisance by annoying, disturbing, inconveniencing, or interfering with the quiet enjoyment and peace and quiet of any other tenant or nearby resident."

We got what amounts to the superfluous verbiage for the drugs specifically written in to emphasize when we go over the lease with the tenant. With any sort of clause like this, you will also always need the commonsense below clause in your rental agreement as well:

"If any portion of this Agreement is held to be invalid, its invalidity will not affect the validity or enforceability of any other provision of this Agreement."

Post: Outlet in HVAC Closet

Jim K.#3 Investor Mindset ContributorPosted
  • Handyman
  • Pittsburgh, PA
  • Posts 5,466
  • Votes 13,781

Those are dedicated 30-amp circuits and splicing anything into them is guaranteed to be against code, potentially a fire hazard, and will void your homeowner's insurance if there's a fire. When you sell the property, if the buyer's inspector is even halfway on the ball, your illegal wiring will be detected and constitute a serious block to completing the sale. When you present this idea to an electrician he will be upset with you. You've got to be dedicated to leaving dedicated circuits like these alone. Ask him instead for ways to relocate or minimize the visual impact of the existing outdoor outlet you describe.

Disclaimer: I am not registered or licensed as an electrician anywhere.

Second disclaimer: Don't do it, Neel.

Post: Getting into REI with the odds in your favor?!

Jim K.#3 Investor Mindset ContributorPosted
  • Handyman
  • Pittsburgh, PA
  • Posts 5,466
  • Votes 13,781

@Alexander Felice

I think successful people do keep secrets to their success stories. Secrets that make them look bad. Secrets about quite a few reprehensible or unethical things they do to make money. All kinds of shameful, churlish personal secrets about what their outsized ambitions and immense personal ego has cost their families. I know we have plenty of that even in my own family.

I think it's a short leap from that to, "The only reason I don't succeed financially is that I'm not willing to compromise my ethics and personal morality to the point that other people do. I'm not willing to tell myself enough cheesy little lies to justify the nasty things I've done and the people I've knifed in the back to get to where I am today." I also think this is in many cases quite true.

You'll notice I have yet to mention a single concrete detail about how this belief affects or does not affect my own business. And you won't get one without a court order.

If I do make $40-$50 million doing what I do, rest assured I will have a training course and a shelf of books for sale and a traveling guru seminar and I will most certainly mightily and righteously insist in all of them that my success was all thanks to pulling myself up by my own bootstraps through taking the right risks, a good attitude, leveraging competitive advantages, AND OF COURSE HARD WORK.

Because hard work will set you free, or as it was once put in German, "Arbeit macht frei."

Post: Contractors looking at it like there making me rich

Jim K.#3 Investor Mindset ContributorPosted
  • Handyman
  • Pittsburgh, PA
  • Posts 5,466
  • Votes 13,781

@Joshua D.

Would your time be best spent teaching others how to swing a hammer? What I mean is that we're structured much like a small construction company, not an investment outfit. A construction company leans very heavily on its team leads. Training excellent team leads is perhaps the most difficult part of running a good outfit.