All Forum Posts by: Karl B.

I'm assuming they were good tenants. If both earn similar income I would aim toward which is willing to sign a longer lease.

I've never hired a PM as I self-manage, but I've bought properties that had a PM in place and all were bad. 

I dealt with all three kinds you listed. For PM type #2 the guy didn't do much aside from gather rent, but I was under the impression the owner was against putting any additional funds toward anything other than necessary repairs. 

I dealt with another PM company who was 1 and 3 combined and they sucked. The prior owner was 50% vacant as both upstairs units were not made appealing to rent (the larger unit had a hole in the wall and a busted window and the other unit had mouse crap on the floor). I'm not sure why the PM company didn't spend a few hundred dollars to fix these issues so the apartments could be rented but it worked out as I bought the place from a seller who wanted out.

The same PM company failed to show up and let my contractor in prior to closing; no good at all. 

For the competent PM companies out there, who are few and far between, if they've been in business for any amount of time they tend to pick and choose the properties they want to represent as they're spoiled for choice due to the fact they operate better than the majority of PM companies. 

For one unit I wouldn't worry so much about PM software. I own a decent amount of doors, self-manage, and don't use it; I merely have systems in place.

Your main goal is to get a solid tenant who is looking to live there in the long-term. I moved back to my main market but do have an out-of-state duplex and to not have tenant turnover is a luxury. It helps you have a larger rental as the more bedrooms there are the longer a tenant is likely to stay. 

Also, you can charge a pet fee to help lessen the $50-$100 you're paying out of pocket (for cats I require them to be spayed/neutered and charge $25 a month for up to two cats - you could charge more as your place is nicer and larger than many rentals. 

What's interesting is building costs have stabilized from the insane Covid highs. 

Prior to Covid lumber was around $450 per 1000 board feet. During Covid it spiked up to $1700, crashed back down to the mid-$400s and spiked back up to over $1400 before stabilizing in mid-2022 where it has been in the range of $450-$500 since. 

I get that there are costs other than lumber but a lot of other materials are near their low as well, including steel, which is near a 5-year low. 

I think insurance companies are shying away from natural disaster areas; hopefully those in safe cities don't experience a large rise in premium. 

It's all very much market dependent, so I'll tell you about my main market in Erie, PA. 

Inventory is VERY LOW and properties are selling at a surplus. I've seen pieces of crap go for big money. I viewed one property recently I wouldn't pay more than 70K for (they were asking 89K - I didn't even make an offer as the layout was awful and it was only a two-bedroom without the ability to add a third) and it sold for 105K. 

The duplex next door to one of my rentals is currently asking 3X what I had paid for mine six years ago; granted, I got a deal, and six years is not a small time frame, but come on!

In my market, a lot of people will be underwater; and some local 'real estate moguls' are playing with a whole lot of debt as they keep accumulating overpriced properties, thinking they'll be able to refinance. If things go sideways, they're absolutely (beeped!)

And heck, there could be another Black Swan. For example, another rent moratorium will be a problem for the overleveraged. 

I would refer to the lease. I'm assuming it states you can enter with 24 hour notice; I would also let her know any unreported damage is going to be on her. Finally, if you haven't already done so, I would require all your tenants to have renter's insurance.  

That is wild. For custom vinyl windows of standard size I pay around $400 each installed and capped. 

I buy from a small design company who sells and installs tile, countertops, windows, flooring, etc.

O'Doyle Rules! LLC

For me, personally, I don't use a property manager because:

1. I do a better job self-managing than any property manager in my town ever could

2. I would much rather keep the 10+% the property manager would be paid

3. With me in charge there aren't overpriced repairs or frivolous upgrades 

Today I dragged a box with glass shower doors up the stairs alone as I sweat like Charles Barkley. That was cool.

All time unpleasant things: 

-Psychotic inherited tenants who scream, swear, call and text. 

-Water pouring in because the Amish roofer who just put the new metal roof on is a terrible roofer

-Having to knock holes in the wall so the plumber can repair the broken stack that's oozing you-know-what

-Seeing my property on the morning news due stating one of my tenants was shot and killed

-Having a massive tree smash a duplex

-After evicting a tenant, cleaning food out of a maggot-infested freezer

-Massive water bills due to running toilets

-After move-out fixing all the things tenants damaged - time-consuming and not fun

-Dealing with trespassers (happens a lot in C-class)

That's what first comes to mind. The good news is most landlords fall between inept and mediocre, so when you're decent at the job it stands out. 

I have three properties I bought on the same block in late-2021 (8 doors) and I've put every penny of rent (and three loans made to my LLC from me) into the property. The silver lining is once the 4-unit and 3-unit are finished being upgraded that small portfolio will spit out a lot of cash.

I knew the place would be a crap show to get right and it's been worse than I thought, but oh, well. It was a great deal, and since getting into rentals back in 2016 I handle stress a lot better; things don't tend to phase me much anymore as I'm so used to issues appearing. 

If you're determined and you're willing to work hard it's not so bad. Like I tell people it beats a 9-5. :-)