All Forum Posts by: Ken Parker

Well, things have worked out pretty well, I guess.

I ended buying 2 units in the same complex, one right after the other.

Both properties are the same size and floor plan.

1st property 3 bdrm 2 bath - 1300 sq ft.
2st property 3 bdrm 2 bath - 1300 sq ft.

Paid about the same for both -

1st property purchase $65k +rehab $8k
2st property purchase $60k +rehab $10k

I had same rehab guy do the work on both and that worked out well.

I rented both properties out quickly and have received the rents from both tenants on time.

The first rental was found from an ad in the local community paper.

The second rental was from word of mouth.

The out of pocket expenses have been as follows:

1st property - New AC/Heater air exchanger $2,500.

2 property - $600 for cracks in walls from either settling or bad workmanship and squeaky floor fix.

On the income side from both, I receive about $1,550 clear of HOA fees.

So, on the year, I'm on pace to make about $15,000 after expenses.

On a ~$150,000 investment, it's okay.

One tenant likes to pay cash, the other sends a check in the mail.

The cash guy pays pronto on the 1st of the month.

The check guy pays on the 7th or 8th of the month.

The drive from my house to the property location is 30 minutes. It's about the same distance from my job to the property locations.

So, I probably spend a couple hours a month collecting rent and dealing with some small issues.

Not sure I'd do this again, but maybe.

I'm looking around now at properties that have very low HOA fees.

What would be the problem with installing the bracket yourself and then upping the rent $40 a month?

I just finished buying/rehabing/renting out my first property in the Md suburbs of DC. and now I'm going to start the whole thing again.

I'd like to do a little better this time around. Are there BP investors here that have worked this area before and would be willing to provide guidance on how to find my next property?

Thank you.

KP.

Here's a wrapup of how things went.

Set the rent price in CL at $1600

Found a family on fixed income that will pay $1,600 a month.

Took pictures of everything before move-in. (as advised here)

I'm handling the rental myself. (as advised here)

The condo fee is $780, but that covers the utils, pool, parking, and exterior maintenance.

Will net around $10,000 (gross rent - HOA fee) a year before taxes and interior maintenance on a $75,000 investment.

I guess I'll found out how much of the $10,000 I actually keep.

Oh, and one last thing that I forgot to mention, and this is probably more important than the new carpet and price cut. For the first time, I brought my girlfriend with me to show it and she was nice and talkative with the prospective applicants.

I've just found my first renters on my first property, so this is new to me. I had few people politely walk through and decline to pursue. I kind of inferred that the carpet needed to be replaced so I installed the new carpet and lowered the price $50 and the very next people that I showed it to, loved it and are moving in on the first.

Excellent. Thanks to everyone for the guidance.

I've found a couple to rent my condo and they want to sign a lease on Sunday for a move date of April 1st.

I'm thinking that I'd like to collect the deposit on the day that the lease is signed, which is on next Sunday, then collect the first months rent before the renters can start moving in. Does this sound correct?

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If you can come out even or maybe a few grand down, I would do it
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I thought about this long a hard last night....

My intent now is to manage this property myself.

Any suggestions on how to find and screen a good renter?

Here's my plan for finding a renter -

- Go to a hardware store and buy a bunch of "For Rent" signs, put my cell phone # on them and place them around the neighborhood.

- Place an advert on Craigs List.

- Charge a $25 application fee to run a credit report.

- Call their employer and confirm employment.

- Call previous land lords.

Getting a good renter is probably the best thing that I can do going forward, so any suggestions from the group on how to find then then screen them would be great appreciated.