All Forum Posts by: Karl B.

 It means there's gonna be some furniture moving around in that property. :-) 

Often bulletproof, plate carrier are the vests some police and battle-ready military personnel wear. 

If you've got a lot of assets and net worth then an LLC is an option. If you own little it's not essential. Umbrella insurance is always good to get - you'll sleep better. Definitely shop around - the variation in cost premiums is wide.

You can also require your tenant(s) to have renter's insurance. 

In my market, people don't really care about a modern bathroom (rather low rents).

I typically only touch-up bathrooms (paint, new fixtures or toilet if needed - and by needed I mean if the fixture or toilet is wasting water). 

I've only ever had my handyman redo one bathroom and it was in dire need - it was just bad. The prior owner didn't keep it safe and the moment I had the money saved up we redid the flooring (turns out the floor was rotted and that was replaced), tub surround, fixtures, toilet, etc. And more recently we boarded the window to keep the pipes from freezing and added a vent to the outside (so it was up to code). Now the bathroom looks nice and the tenants are over the moon. 

I'm looking for deals that make sense as well. Although it's maddening to have the money to buy (and to not be able to find a delicious deal) it's even more maddening to buy a property where the numbers don't make sense. 

I'm looking in different markets - there are deals out there. I'm simply being patient and am adding to my savings (and by savings I mean money for buying properties).

For everyone, including myself, I yell, don't do a deal that doesn't give you the cash flow you want!

I agree with Andrew - don't have your new tenants sign a lease until you've had some time to experience them as tenants. I know it feels good to lock a tenant in for a year ASAP but you may not want them as a tenant and it's easier to justify having them leave when they haven't signed your year lease. 

When I was in graduate school this happened to me. I had to throw out the food in my freezer and the owner refused to cover the food. Like a brat, I remember tossing a package of hot dogs in the flower bed outside my front door. lol

The fridge/freezer was ancient but they did correctly repair it. 

One option is to purchase a new fridge for the tenant (I buy mine at the Sears scratch and dent store because they're often 50%-60% of the price of a new, undamaged fridge). 

Then have the warranty company fix the broken one and you can have that fridge as a backup for a different unit. 

I can understand the tenants'  anger. If it happened and was fixed properly the first time then I'd say tough luck. But due to the fact the repair guy was inept I have more sympathy for the tenant, though if there wasn't any food in the fridge initially, that's strange (unless it had been days and was already spoiled). 

Now, having said that, in my lease I specify that the tenant is responsible for the maintenance and repair for the refrigerator and range. :-)

Your credit score is good, especially for your age. Most 20-year-olds have either bad credit or no credit. As for selling cars, strive to become the best car salesman you can possibly be. 

Learn how to master sales. Read books on sales, watch Youtube videos on the subject, etc. You can even consider getting your real Estate license if you feel you'd enjoy selling properties. 

There are so many different ways to make money for a down payment on your house hack. There's a guy in L.A. who is on Youtube who flips used cars on Craig'sList. He buys them, fixes them internally and cosmetically and flips them. The last I watched of him (probably close to a year ago) he was planning on buying RE with his daughter. 

Think of ways to earn extra income. If you remain focused there's no doubt you'll be successful in RE. 

I deal with seller's agents by phone and text but when it comes to FSBO I 100% prefer phone.

Get him on the telephone. Now, I don't like talking with strangers on the phone but love talking with a FSBO on the phone. Things I will mention to the seller:

-Having no realtor(s) involved will save him 6%. I will then state the savings, numbers-wise. 

-Ask him why he's selling (this will likely bring up a pain point for the seller, which is good for a sale: bad property management, bad tenant experience, doesn't have time, no longer lives in the area so he/she can't properly run the property, etc.)

-Ask what needs repaired (related to pain points - the seller will likely minimize the issues but he/she will internalize all the issues)

I typically make an offer first. The FSBO seller then likely counters. I then talk about how close we are to an agreement - only X amount off. The seller typically lowers his counter or tells me "Let's split the difference."

At this point I know we're close. I pretty much never "split the difference." I go up slightly (my initial offer bakes this likelihood in) and if the seller counters again I explain why I can't go any higher (all good reasons - winter's coming and the gas bill will not be low, it'll take at least two months to rehab a unit/units and fill vacancies, etc.). 

Point is, get them on the phone. It's great. And aside from 'the deal' they'll recommend tradesmen, tell you about the property history, tenants, the area, neighbors, and much more. 

It depends on the market. When I posted an ad in L.A. I got many more ads than when I posted in my main market (Pennsylvania).

However, in my PA market posting in local Facebook groups/pages (related to rentals) absolutely crushes Craig'sList. I would venture to guess I get 15X more responses VIA Facebook (of course, most applicants don't meet the rental criteria but I digress - it's how I've filled most vacancies when I've purchased a new property). 

Don't do it! Your rentals are your babies. And you wouldn't hire an unsuitable babysitter simply because they're the only one who applied. 

The question that should be asked is: where is your rental ad posted? 

Answer that question and we'll likely have some other sources and ideas to up your marketing for the property.