All Forum Posts by: Linda S.

@Shane Power,

What's it like managing a lot of houses?  Just a giant game of wack-a-mole.   You can fix everything, but something new will come up--  you just don't know when?!   Or if a lot will come up at one time!--sometimes it's small/easy stuff, sometimes it's big stuff, it's always a surprise, and it's always expensive. lol  One month i had a sewer line and HVAC had to be replaced within 2 weeks. 

Outside of normal stuff, how many calls you get is inversely related to how well your properties are taken care.  I manage 50+, and work a full time job.   If you fix things correctly,  and your house is in good shape-- tenants don't call just to call.   Now, it's normal for stuff to have a lifetime, so if your fridge is 15 years old, you should be expecting it.  I don't spend a lot of time on the phone, it's pretty simple-- they said X is broken, I call the person to fix X, and then wait for them to fix  in a day or so.   I'd say the majority of the tenants I only hear from once or twice a year.  Nearly all my tenants are reasonable and easy to work with, so it's not that stressful.  Just treat people how you want to be treated, and handle things quickly!

You want tenants to let you know of the problems!  I always tell my tenants-- I like small problems, tell me when stuff is a small problem!    I have our business phone on me 24/7, so essentially yes-- you are always on call. I tell tenants to call with normal stuff 9AM-5PM M-F, and emergencies 24/7.    

You should have 2-3 plumbers/HVAC companies/roofers/etc to call if stuff breaks.  Hope this helps! 

@Eric Dekker,

I love the baseball analogy!  I tell everyone "you don't win the game with only home runs, you need to have base hits too!"      I don't think there is a set  industry calculation,  but with us-- we have to get paid back in full in 48 hours, the base hits met the rule, but nothing to be really excited about.   If it works, great-- a grand slam for us is if we get paid back in say 2-3 years instead.

A base hit to us, was a  say $20K house with a long-term tenant paying $525/month.    It was never a wonderful deal I'd brag about, but it kept us moving in the right direction.   Those base hits made up about 30% of our portfolio, and allowed us to grow faster!  I can't stand people who are like "Oh, I only want multi-family, that's the big money makers"--- true.. however, you miss so much money by only focusing on them!    Some of our most solid and easiest houses have been base hits!

@Jerrad Shepherd,

It's very sad, and let me just say-- I love that show "Pit Bulls and Parolees!"    

Let me also warn you,  when you say you don't allow certain breeds, everyone, and their mom will tell you about how their dog is the absolute sweetest in the world.   They are sweet dogs! They are high energy dogs, and they are very smart too-- so they need mental stimulation.  All dogs can be wonderful!    They do have a bad reputation, and it's likely because of crappy people,.  That being said--  it's not a question of if it's a nice dog-- the question is-- how bad will the bite be?   What's the CAPACITY of the dog's bite?  That's why pitbulls and rotweillers are so bad, if they bite-- their ability and strength is what insurance companies say no to.     

My good friend got a chunk of her face bit off, by a pit bull--  it was her friend's dog (both college educated paralegals who love animals), her friend adored and cherished that dog... my friend had to have plastic surgery and couldn't even go in the sun for 6 months!   Her friends defense-- the dog was just playing!

In low-income areas, pit bulls/rotweillers/german shepherds are prevalent because they are seen as weapons/protection, that's why they are chained right outside the front or back door.  What do they want?  A dog to be aggressive!  I never in my life would have thought someone who just chain a dog outside, until my second rental, when I was oh so naive-- and it was the saddest thing possible, to see a dog outside when it's like 90 degrees, or 40 degrees.. I don't put up with anything in that anymore, actually changed updated our lease to "no outdoor only dogs.".     A lot of them do NOT see the dogs as family members, they see them as another layer of protection.  It's a survival mindset.

Most don't spay/neuter their animals either, and heck-- some even breed them.   I tried to pay off someone to get rid of their dog (which was insanely aggressive, bit the neighbor twice), and they said "no, he's our investment, he will make us money".... they also locked him inside a closet.       Low income areas tend to see them as like body guards too, no one will mess with you with a big scary dog.   

Since it's not a crazy emotional attachment, people are quick to get rid of them too--  when they move (obviously most landlords won't accept them), they have no problem surrendering them to the local shelters.  People are crappy.

It's really sad, and shows how messed up humans can be.. but hopefully this helps you understand the logic and why there are so many pit bulls in low income areas.

@James Brewer,

As someone who has properties B to D-/warzone,  let me just warn you-- stereotypes exist because of some(most) of the time they are true.      Only locals know what's really going on.   

 Buying/fixing a property in a "D" area is literately opening pandoras box.   It's going to start with the renovation, slumlords don't do anything correctly,  they do shady patches.  I've seen A FREAKING UMBRELLA ON A ROOF BEFORE!   This will likely be your first shock when your renovation budget gets thrown out the window completely.     Forget the tenants-- the renovation is the part most people don't talk about.    The houses you will buy are the ones everyone has likely trashed, contractors have broken in and stolen stuff, maybe copper pipes missing, maybe electrical stuff, definitely HVAC will be stolen,  local gangs will break in and grafiti the wall   There is a one vacant house, we swear is the John motel, where people just normally break in, use it for an hour and leave.. you might be buying that house?      Neighbors watch, and if they see all brand new stuff being put in-- guess what, they see your contractors leave and if they can quickly steal it, they will..  it's just people being "opportunistic"  in their eyes.....     Different culture, you can't be naive.   Your $2K in appliances may quickly jump to $4K if someone steals them and need to be replaced.    If stuff works at first,   when it breaks or there are issues--  you should expect the contractor to recommend a huge pair to be done, not because they are just trying to maximize $$, but because it was likely done wrong in the first place.

If you fix up a place, make it a nice, decent place-- section 8 or some type of a program will be your best bet.     There are a lot of people retiring that are on a fixed income that may be okay with a rougher area.  Can you be successful?  Absolutely, and neighborhoods can turn around for the better.    You can find good, hardworking people who are willing to live in D areas if the place is decent and rent is cheap, you won't get a premium though unless it's section 8.   Everyone needs a home!  

I say 90-95% of my tenants are great, .. I  have wonderful, hardworking tenants, early paying, take great care of my homes, easy to work with, I am so appreciative of them..  (yes, they live in the inner city!). most of them,  the problem and stress come from the cheapest/D- areas, it just does..  it makes no logical sense, but it is what it is---just did an eviction for a house (d--/roughest street IMO, just a shooting there 2 weeks ago) I got for $10K that we were renting for $525..  guess what we got-- busted window, stolen oven, nasty, $500  trash removal,  he was on SSI.. thought he would be there forever and appreciate a cheap house.. nope.         I'm salty, but that's what investing in bad areas makes you!  

It's not going to be a smooth ride, and you will be unpleasantly surprised by how expensive that "cheap" house can turn into.  You don't just need thick skin, you need leather-like skin to handle it. Only you know what you can and can't handle, but I hope you pursue it!    The people that can handle it, make a LOT of money!  Definitely not for everyone!!

@Immanuel Pierre,

Finding the right mentor/mentee is challenging because it's all about personality.   Find someone who is doing what you want to do, whether it's long term rentals, air BNB, or wholesaling--- they are all different ball games.  Figure out what you want to be as far as an investor goes, and then focus on finding the right person, and please ASK them what they need.   Do not tell them what you bring--- ask them what they need,  and figure out how you can help.    That's step 1.   

Whenever people ask me for help, I tell them to come work with me for a day-- see if you like the work because that's what it's going to be, it's free labor on my end,  but it also provides hours of talking and learning about people.   I get help painting, trash removal, whatever is on the agenda that weekend...- if someone is willing to mow a lawn with me when it's 90 degrees outside, they have the hustle!   I think 100% of the people who have come and helped me-- became successful investors and go on to buy rentals---and I follow up with them and always offer to help!  

@Greg M.,

Part of our growth strategy was picking up houses  under $25K  based on them having a long-term tenant, knowing we wouldn't have to be doing the renovation immediately, so we could focus on renovating duplexes/quadplexes which are the money makers.  We also impose slow and steady wins the race for these houses, and renovate a little each year to try and keep rent reasonable so they can afford it.  It's only 5-10% of our portfolio, so I'm not saying it's the golden ticket, but just showing a different perspective as to why some people might choose it.  Not for everyone, but it worked out very well for us! 

@Nathan Gesner,  That's wonderful about the charities,   and that's the beauty of owning your business-- you decide how to best use the money you earned.   Personally, I'm a huge local SPCA/animal lover.

 The only thing I find really controversial is she suggesting state limits-- again-- if one person wants to do cheap rents, that's awesome, good for thrm-- but don't impose or require anyone else to follow your views by trying to pass rent control is wrong IMO.   Anytime the government gets involved-- the people suffer.    Your house/money, your choice! I'm all about the free market and freedom of choice.

@Nathan Gesner,

I think it's wonderful!.   She isn't trying to be a superstar investor and teach others how to be rich, I'm guessing she's beyond loaded and does this as a purpose.  Can or should everyone do it-- no, but good for her!  Money will magnify who you are, and for her, it sounds like she's fulfilling something, and that's awesome!

I LOVE LOVE LOVE the 70+ tenants, and yes-- I do have some (maybe 5-10%  of my portfolio)  $500-650/month, with long term elderly tenants.   Now-- I got these houses for $10-$25K, so I have no problem offering the affordable rent.  I see them as the stabilizers,  they aren't going anywhere, they don't complain, they take care of the house.  Some might think I'm dumb, as I could probably get $700-1000/unit, but I see it as a conservative strategy and also doing good.  I'm an old soul myself.  When they move out, that's when we'll do the renovations and raise the rent to market.  Also, if you delay big renovations, you delay costs!  I see it also as a kind of buying time.   We have enough houses that are really nice money makers, that isn't a big deal to have some paying under-- it's a cost/benefit.

 Could I do that now if I had to pay like $100K for that house that I got for $13K-- 6 yrs ago, no-- but I'm happy to be able to help the elderly population. Not for everyone, but cheers to the good landlords who can do it!

@Joe S.,

People have been asking us for the past 6 years, when are you going to stop and slow down?  I have always said "when it stops being fun."   Well, it's finally got to that point-- we have decided to no longer buy any more low-income rentals, and actually just sold 1-- it's an amazing feeling!

I feel like being a landlord and surviving the pandemic, whew-- it takes something out of you!   I helped a guy get 5 months of rent relief, ya know what he did-- moved in with his girlfriend and subleased our apartment to people who completely trashed it.  We are just finishing up an eviction on Friday, gosh that one is going to be trashed, it just makes you jaded.   Right now instead of going for the high money makers (2-3% rule is what I like!), we're hoping to purchase a river house-- and use it a couple of weeks a year and focus on enjoying life more, and have it be a short term rental.    

@Ryan Cleary,

There are a lot of slumlords out there.   Someone doing an under-the-table deal with section 8 is very low on the list IMO of violations.   What good will pursuing any legal action do?  Does it change the rent-- nope.   The seller has probably done this a ton and is used to litigation, so they probably won't blink an eye.    How do these actions help YOU in the future?  IMO you're wasting your time.  You're legally required to continue the lease until the end, but you can cancel and then quickly move on if that's your main goal.

At the end of the day, you're in the situation because you were naive, and trusted a seller-- instead of verifying yourself.  It's shady, and I'm sorry it happened, but it happened.   It's very common for wholesalers to be shady and lie about how much rent is-- their only motivation is closing the deal.   Everyone is just out for themselves.

@Ryan Cleary,

The seller lied to you, I'm so surprised!  You mean to tell me there are dishonest people out there? lol welcome to real estate!  

Remember-- it takes 2 to tango, obviously the tenant couldn't afford the place, but wanted  it so offered $$ under the table.   It's illegal in section 8.    You can't enforce an illegal contract, so realize that upfront.  First-- talk to the tenant, maybe their voucher amount has increased to the $1071,  or maybe you can remove appliances responsibility or something to lower your costs.   I guess for me-- it all depends on the person, it's A LOT easier to keep someone who's living there, staying there, and especially section 8!     

If you decide to keep the tenant, great. If you'd decide you want to get rid of them-- I'd just be upfront, what you were doing was illegal, against section 8 laws-- I want you out ASAP. In VA section 8 requires 2 full months to break a lease, give them the option to leave ASAP or you can report the violation. This is someone's livelihood, a voucher helps low income, I say don't punish the person because they had a shady previous landlord! Again-- make your decision on the tenant, and how they are as a tenant-- do they take care of the house, are the responsible?