All Forum Posts by: Karl B.

Retail mortgage rates have doubled the past 6 months and the rise in wages is less than the rate of inflation. 

I'm seeing more inventory yet the prices are still silly high. As inventory builds prices will drop; the only exception are cities who have low inventory, which is certainly to be the exception VS most cities. 

None of my refrigerators have ice makers or a water dispenser = less repairs.

I've been buying Frigidaire from Home Depot. I have some Kenmore I bought new as well (from Sears) and neither Frigidaire nor Kenmore have caused me any issues though all are under four years old so they shouldn't.

GE sucks - I bought one and the compressor went after only 17 months. 

Schedule an electrician and when the electrician gives a time and date send a 24 hour inspection notice to the tenant for the same time/date. While the electrician is working take a video of the rental and note any new damage the tenant made. 

If there's new damage send the photos/video to tradesmen and request a quote for repair. 

At the eviction ask the judge to add damages (providing you can prove the tenant made them, which is easy to do if you made a pre-move-in video of the rental) to the judgement. 

2018 seems so long ago. lol. 

I had an eviction in 2018 and one in 2019 and didn't have another until earlier this year. 

I would love to see what 2022 eviction numbers are. I know that's not possible for another year or so as there's likely a lull in data collection but I feel there are a lot of evictions going on due largely in part to inflation and the lifting of eviction moratoriums.

I bought three properties on the same block in late-2021 (and one of those had my 2022 eviction) and the other two properties on the same block (SF homes) have different owners and both evicted so 3/5 properties on that block had an eviction. 

Changing goals isn't necessarily bad. When I started I was only interested in MF properties but since the market has overpriced a lot of MF I've begun buying SF homes as buy-and-hold. 

I reckon that's more of a strategy change than a goal change but the point is sometimes goals change as well depending on what the market gives you. As long as you're moving forward and aren't making excuses it counts as something.

Spackle the imperfections on the walls, prime and paint. 

Is the carpet 'meh'? Then install luxury vinyl flooring. 

Simply making the flooring and walls look nice can make a huge difference. 

Aside from that, if the appliances are junk I upgrade. 

I bought a small portfolio and had to evict a guy for nonpayment a few months ago. He was paying under-market - $400 per month. 

I spackled, primed and painted, pulled the crappy carpet and put in luxury vinyl flooring. We replaced the tub surround and the fixtures and I bought a new fridge and stove (the prior tenant stole the fridge). 

Now it's rented out for $575 a month. 

In a market like So-Cal, if you do the above, you'll be reaping a lot more than +$175 a month if you do what I did. 

Simplisafe is your friend. It's easy to install as well as remove. 

I have it in an unoccupied property with two interior cameras I can view at any time. 

If a tenant is making excess noise I'll typically tell them there are complaints against them. It usually remedies the situation.

If two tenants don't get along (which is rare) it's typically because one is being loud and doesn't care. If I've witnessed it (typically loud music/TV) I don't renew their lease. 

I have one intertied tenant now who doesn't get along with anyone. I don't like him, either. He's a jabroni. And he'll be getting a 30-day notice in the coming months. 

But seriously, telling a tenant they're creating an issue stops the problem a lot of the time. 

"what are the best options in the real estate market even with high rate"

For those of us who have seen the writing on the wall, we've been stacking cash. In no time, interest rates will be up another 2-3 points and in most markets prices will fall, as will the level of competition. 

I had a tenant do a bit of work for me (mainly simple plumbing repairs). He didn't want to accept any money but I persisted. 

I would never discount rent but I would - as mentioned - have him do work on other units I own. It was worth it for me to pay him to do simple things that my usual handyman would charge $50 just to show up.