All Forum Posts by: Karl B.

First off, congratulations for working hard from the age of 13 (I worked 40 hours a week during the summer starting at the age of 12 and so I give you lots of respect) and now beginning your real estate journey while still being a teenager. I wish I had started that early. 

Due to high interest rates there are still ways to buy with zero to little cash including seller financing. 

You could also use the money you make to grow your landscaping/construction company (hire workers or buy equipment that can make you more money) or simply branch out (such as getting construction/landscaping jobs and subcontracting the work out to good subcontractors so you can make a profit). 

Real estate investing is like a snowball and time works in your favor. As you make more money from rentals and your business you'll continue to stack cash and network for deals. Also, landscaping is a great way to 'drive for dollars' and locate value-add properties that can be had for a deal. 

You're ahead of most people your age; keep working hard and stacking cash. There are always hurdles and growing pains when you start out but as mentioned, real estate growth is like a snowball going down a hill. I'm confident you'll own a whole lot of properties. 

I don't sell my MF investments. Why would I sell something that generates money every single month? 

Value-add - to a buy-and hold investor like me - implies VALUE - which in my case refers to an increase in monthly rents (buy a mismanaged, dumpy property and fix it up... then charge a higher rent). 

I couldn't care less about appreciation on a property I have zero intent on selling and would be fine with zero appreciation if it means not receiving a higher property tax bill. 

I think your message should more be aimed at: when buying make certain your numbers work. 

I invest for cash flow (value-add) and do well for myself. Real estate investing isn't brain surgery: it's about numbers, knowledge and having a plan (especially in value-add). 

Someone on here had a good strategy. Instead of asking "Do you smoke?" they instead ask, "So, how many cigarettes do you smoke a day?" 

Makes sense, as you're likely to get a more honest answer when you ask the question in this manner, as it ensues you're aware of the fact they smoke. 

And this is why my lease states All drain and toilet clogs are the responsibility of the tenant.

 The Section 8 office should be contacting you yearly regarding the submission of a rental increase. Mine does so in mid-May.

You could always try contacting The U.S. Department of Housing and Urban Development (HUD) and telling them you're being ignored by your local Housing Authority.

I should add I only have one Section 8 tenant (inherited who has been there for 30 years) as my local Housing Authority is annoying to deal with and they are strict sticklers and I get higher rents from non-voucher tenants. 

Gas stoves cook better and are cheaper to operate.

That being said, it's really annoying to have to go and light a tenants' pilot lights for one reason or another, or to have a tenant claiming the stove is leaking gas when it isn't (and I'm typically out $75 because the appliance guy had to go there to test the line and tell the tenant they're wrong).

So for a rental, if you have the choice, go with electric.

And this is why in late-2020 in Los Angeles when I was preparing to sell my house a few people told me I should instead rent it out and I would typically laugh at them as there was zero chance I would ever consider landlording in L.A. 

Nicely painted walls and trim + luxury vinyl flooring is what tends to move the needle most in my class-C rentals. 

I agree 100%. I consider PA a blue state yet I am comfortable landlording here. 

Most of my rentals are in Erie County which is very fair. I've won all four of my eviction cases (same judge) and a tenant will be out within 45 days. It sounds like this is similar to OH which is considered more red than PA. 

There are some red states where eviction time is shorter as there's less time wasted after the hearing and verdict. 

To the OP, like others have stated, there are other factors as well - cash flow, taxes, and so much more.