All Forum Posts by: James Fowler

Originally posted by @Cole Hagen:

@James Fowler Its exciting to hear about other people's success in our area. I am familiar with all of the areas that you mentioned and you bring up some great points. I am obviously in the early stages of my career but do have definite goals in mind and I think that the metro area can satisfy them. Edwardsville is my back yard so I feel very comfortable investing here but like O'fallon, prices are high and deals are hard to come by although the rents are typically high and the influx of students keeps demand steady. Do you attend local REI in ofallon? I have briefly looked for one in the metro area but have not had too much success.

I've gone to the Metro-East REI in Collinsville. But to be honest I haven't gone enough, and desire to make it a routine. If there was something more tuned to the areas I have been looking into I would definitely give it a shot. I just happen to know a number of people who are smarter, doing this longer... or both! They have been great to bounce things off of to help me decide what I want to try out for myself. IF you find a good REI in the O' Fallon area let me know! Or heck... maybe need to consider creating one!

For the IL side of things:

I know people who have done really well with 20+ properties in Trenton and Mascutah; these are small town feeling areas, with stable air force tenants. With the prices starting to appreciate slowly because of the development near the base. 

I also know of a guy owning 200ish GC, madison properties. He buys them from county tax sales for cash and makes great percentages with enough volume to balance the troubled tenants/properties. 

At a local REI I have met a number of investors who have working class rentals in collinsville, and do well there. The prices can be low, with not a bad place to raise families in.

Another investor who is more spread out, but with his newer development apartments in Troy, IL area. He's making decent returns (slightly above 1+%) with appreciation coming pretty steadily in that area. A lot of families are moving to Troy / St. Jacob. He's also catching a segment of retirees with his townhouses in that area selling for a high price range. 

I personally have invested in O' Fallon, and had a great experience so far with 2 rentals there. It's hard to find deals, but when you do their seems to be demand for mid-high rents on basic properties (1000+). I've been looking at more located there, among other opportunities in: New Baden, Mascoutah, Lebanon areas. I occasionally look into STL downtown communities, since I work there it's hard not to get curious.  

I think the biggest thing is defining your goals. How much you want your returns to be? What price range do you want your tenants to be paying, or what type of tenants are you good at managing(if self managing)? Does the answer to the 2nd question change the possibilities to the 1st question. Evaluating from there is how I've begun. It seems like there really is opportunity all around us here in the STL metro, for me I've been trying to structure out what I want, and not just react to deals I find lately. 

Hope this helps!

Originally posted by @Bob B.:

@Karen S. I would talk to him and see why he did what he did.  I wouldn't worry about permitting issues if it's small and doesn't need a permit.  If it's well done and you approve of what he did, I'd thank him for doing a good job but let him know that in the future he needs to let you know when he wants to improve the house you would like a heads up and give him permission. No need to be a confrontitaional or lease termination situation.  Most tenants aren't in the home improving mode and are just the opposite.  Sounds like he's a good tenant and didn't understand the program.  

I had a long term tenant replace the appliances, install new kitchen cabinets (with my approval) and build a 18' X 24' work shed.  After the kitchen rehab, I told them I would need to raise the rent, LOL..

Good for you for checking on your property on a regular basis. 

 
Not to deviate from the purpose of the thread too much... Bob B., what was your tenant's response when you raised the rent after he remodeled it for you?

Originally posted by @Bob B.:

I guess we can't let their kids have bikes or skateboards.  Are you responsible if the tenant falls off their chair while reaching for a dish in the cabinet?  I've got a tenant that has a woodworking shop.  Am I responsible if he hurts himself with his saw?  As a landlord we take risks and should have adequate insurance to cover them.   A tenant that wants to put up a swing-set will probably not move out in the middle of the night.  I assume you require renters insurance.

I tend to agree with your thoughts about this.

Yes we do require renter's insurance, and to be added as a additional party on the policy. Although I haven't created a liability minimum for that insurance requirement yet. Feel free to open up your thoughts, if you have suggestions! 

Thank you everyone for your advice! I am planning to create a waiver, and letting them enjoy their new home I have helped to provide them. 

My new tenant moving in has three children, and would like to assemble a swing set in the private fenced yard behind the house. This was purchased by her, but is asking for my permission to allow it being used. 

From a liability stand point, is there anything to be worried about? Has anyone been through a bad experience over something similar?

Thanks in advance for any input!

New tenant has three kids, and would like to put up a swing set. The yard is private and fenced, and the set was purchased by her. Would there be any liability concerns from allowing this? I was thinking about running it by my insurance agent, charging her if it makes a difference to the premium. Any one out there handle something like this before?

Originally posted by @Joe Splitrock:

@Nathan Arceneaux my story is similar to yours, corporate job, small child, adding one property a year. We chose to focus on SFH in family neighborhoods and we sold our MFH. It is pretty easy to manage because our renters are long-term and really make it their home. Everyone tries to say get more doors, but I try to have less doors with higher dollars per door.

 I am starting to think I value your approach, as we decide on our goals. Can I ask what is your dollar per door performance? And I'm assuming this is factored without paying PM fees out to yourself with your numbers?

Welcome Dustin! I can't say my journey is much different; saturating myself with learning tools for about a year. We just leased our second property in the metro east last week. There is so much information to filter through in the podcast and forum's made available; I've found no excuses not to learn each week.   

Welcome aboard! I'm still working a year later to get through all these podcast from when I started. I waited 7 years from when I bought my house as a potential good rental, to move out and rent it. Since this last year of podcasting and education, we have rented that house, and another purchased we remodeled in the last 6 months; we're now considering renting the loft to our new house. My goals are much the same as you mention; although for now I've been focused on the metro east of St. Louis near the Air Force base.