All Forum Posts by: Karl B.

Quote from @James Wise:

Rent in Cleveland is crazy high right now. I've got a bunch of apartment buildings that I bought in like 2014 with avg rents in the $475/unit range renting for $750/unit right now. Hell, I even have a single family in the Kamms area that I've owned for 6 or 7 years renting for $1,800/mo right now. That's such a crazy high amount of rent. You can buy a $300k house for that monthly payment, it's nuts.

It's a beautiful thing. I bought some major value-add properties in November (in Erie) and so far rents have gone from $400 to $575 (upgraded everything), $500 to $650 (painted and made a few small upgrades) and $430 to $550 (painted and some small upgrades including a new shower surround). 

I gave a 30 day notice to one tenant paying $515 for 4 bedrooms and that will be $700-$800 depending on how much work I do for upgrades. I drove by today and saw the UHAUL there and they were packing it, which was beautiful to see - she chose not to pay August after receiving the 30 day notice and so I saw her in court Friday the 26th and got a judgement against her so I'm hoping the place is clean and empty on the first of the month. 

Rents are definitely up, especially in C-Class stuff. My B-Class duplex in MO (super nice, large 2000 build but the neighborhood is meh since it's a neighborhood of all duplexes) has appreciated nicely the past few years but nothing like the C-Class Erie stuff, which is no doubt comparable to the Cleveland market. 

Of my older MF rentals (2016) one place went from $515 a month to $625 a month now, which is cool but the value-add with this latest buy is what has really given me a push as the place was a wreck (it's nicer now but I'm not yet done). 

Losers:

-Tenants

-Those who failed to refinance when the rates were low

-Loan originators who will be doing less loans

Winners:

-Cash buyers

I can't believe you let your renters see your bare feet! 

I always wear shoes as I don't want my renters knowing I have dog paws for feet. 

I almost never get legit after-hour emergency calls. I don't think I've ever had a legitimate one. I remember one tenant telling me the fridge was leaking water (the fridge came with the property - I don't buy fridges that have water/ice cube makers as those tend to leak/cause issues). 

Make certain you take a video of the property prior to letting the tenant know you're not renewing the lease (tell them you want to do an interior inspection). 

That way (in the event they break things when they find out they have to move) you can prove they made the damage in the event you must sue them for property damage.

I've done a few and have another on Friday. I enjoy them as the preparation is fun and I like to see the law in motion. 

Paperwork I typically bring:

-Lease

-Text messages (screenshot them and insert them into a Word doc)

-Photos/video for proof, if applicable (damage, violations, etc.)

-Have a summary page with facts/numbers to refer to so you can easily present your case to the judge

I've got gutter screens on my duplex in MO (newer build) and they work really well. There are a good amount of trees in the vicinity and it's nice to not have to deal with clogged gutters. 

My other rentals in PA don't have gutter screens and I wish they did (I literally have plants growing in the gutters of one property), so I recommend them. 

This is all very true. Some investors (especially newbies) don't do their due-diligence and/or they're so hopeful they ignore red flags or are completely ignorant to them in the first place. 

Never trust anyone else's supposed rehab cost; hire a good inspector who is willing to give you cost numbers on repairs. Also, I know BP has a book on repair costs and what to look out for when buying. 

The era of absurdly low interest rates has ended. Sure - it's still much lower than other times in the past but IMO the rising interest rates have not yet sunk in and realtors are still pricing homes much too high in my market (I'm seeing lots of price reductions).

The interest rate will no doubt rise, as the government is still pissing away tax money (Inflation Reduction Act lol - and there's talk of forgiving underwater basket leaving college loans) which will continue to raise rates and lower prices in many markets. 

I'm still looking to buy rental properties (there are more and more deals appearing in my market - I mainly buy C-Class) but I'm also waiting on buying a SFH for myself as I moved back to PA from MO - and home prices are mostly delusional in my market (as more home sellers have listed not as a necessity; a good amount - according to a realtor I speak with - have listed to see if they can get top-dollar).

There's a good amount of stupid buying. I was at an auction where a house went for 50K and needs 20K in work (new flooring, new windows, and definitely a new furnace and water heater as somebody stole them) yet one can buy a turnkey home west of there (which is a nicer area) - same size - for 55K-60K.

Rising interest rates tell me that prices will go down in my market. I'll buy if I deem something a deal however I'm confident prices will continue to drop in my market so I'm going to be patient. 

Also, all this inflation and stretching of the average family budgets is going to cause fear - especially once people are paying outrageous natural gas bills in order to heat their home over the winter - and that will lean toward the momentum of price lowering in my market, no doubt. 

And this is why I read the meters in my MF properties (to make certain the rate is at 0.000/the red arrow isn't turning).

Did y'all check the meter to see if it's moving?

If I was dealing with this issue and the meter wasn't moving I would do the following:

A) Contact the local water authority and have them test the meter

B) Replace the toilet(s) or at the very lease install new guts

C) Put locks on the exterior spigots so only the tenants and you can use the water. 

I've caught/found out about people (tenants and non-tenants) using my outdoor spigots and some are too stupid to fully turn the wheel to OFF, resulting in a steady drip

Also, my water authority will refund the difference on a high bill if I provide them with repair bills and have proven water usage has dropped (which typically can be proven after two lower bills where usage has returned to normal).

I'm sure I will need to utilize this advice someday as I have a few inherited weed smokers so thank you. 

Did you use white vinegar or the cleaning vinegar?