All Forum Posts by: Linda S.

Welcome @Chris Marcic,

Don't be afraid to jump in!  BP Community is amazing because you can always ask questions, and get extra opinions! Even though it may just be you and your wife renovating, it's easy to bounce ideas and get advice from an entire community!    

If you haven't already, I'd strongly suggest you find a mentor, preferably someone in your area so you don't have to reinvent the wheel, and they'd already have good contractors to use.   Good luck! 

@Joe Dowdell,

Welcome to RE! I agree with the prior comments, the only real duplexes now in Northside, and that's an area that is seeing improvement, but is not a very desirable area at the moment IMO. Could you look for a very large SFH, and turn it into a duplex? Richmond has a lot of huge houses that need full renovations-- maybe convert it while you do it? Also, try checking out Colonial Heights/Chesterfield/Hopewell, there are a lot of good buys there too! I mainly do Petersburg, but that's not for an out of state investment IMO because the area can be good/bad very quickly.

Feel free to reach out if you need any contractor recommendations when you buy! 

Absolutely do 2 systems!      It sucks, but bite the bullet... It's expensive, but it's a non-negotiable in my eyes... just because if you do a %, there will be drama about the meter not being correct, or if you do a set rate, they'll feel screwed when not using it a lot, and probably purposely use more!   If it's included in rent, people will leave windows open, they won't care, and in the end you'll lose $$$ and in stress. 

@Michael Paradine,

That's wonderful!    Keep up the good mindset and good work!   Definitely do the repairs ASAP  (very reasonable IMO),.. it will show them you listen, are involved, so it also sets the tone that you are active  landlord so they can't get stuff by you.     Remember, even though it's a business, and this is an investment.. your dealing with their homes, they have a strong connection to the place.. A good relationship with your tenants based on respect will make your job sooooooo easy, enjoy the ride! 

@Michael Paradine,

We focus on C areas, although when my wealthy non-investor friends come, they think it's D area, but anyhow.. just remember a few things..   

You pick the tenant,     Your screening abilities will determine how much stress you get with these people, not the people.     So many people stereotype low income as the worst of the worst, but again-- your tenant reflects *YOUR* ability to screen and find someone good.. that will tie directly with the quality of apartment you offer.   If it's a nicer low income place, you'll get better people... low income want nice, affordable places too!   If you get the person that jumps jobs every 2 months, it's your fault, not his...  *YOU* decide who rents.

You pick the tenant, so you are picking the stress.   I will say, if you do the minimum with low income,  and treat them like the stereotypical slumlord,  everything people warn you about is true.. they don't give a crap and will treat you like crap.. I have heard a lot of stories of people purposely withholding rent money from landlords because they aren't doing repairs....  but if you establish a positive relationship from the beginning, it's actually pretty easy!   People appreciate respect, and  as long as you establish it upfront, it will be fine!   Good luck!  

Unless you have an new way to get capital, banks will want proof of income.    You need funding, either through loans or credit, so again without building credit, it's a very steep slope.    I'd strongly suggest you stay in school, get a job as an engineer, and then leverage it that way to house hack and build from there.   After you get some equity in your first multi-family house, then you leverage yourself to more properties.   In the meantime, take additional classes on basic electrical/plumbing, etc, that stuff is HUGE when it comes to maintenance and low term rentals.      

Also, find a mentor in your area, and offer to work for free on the weekends so you can see what it's really like!   When you see the real numbers, both $$ and time wise, and not to mention if you help with the physical work,  you'll get a better grasp to see if it's what you want to pursue.   Good luck!

@Allende Hernandez,

I think overall, your house looks very clean and new.. reminds me new construction, agree, this house looks B-O-R-I-N-G.    Absolutely nothing evoked any emotion out of me.. looks dull and lifeless.    It desperately needs to be staged, it needs color!    It's  clean and basic, but no color makes it look very average...  honestly, this house doesn't excite me at all how it looks now...  STAGE ASAP!    

The color schemes don't match..  Color sets the tone... I'm not trying to be a nitpicker, but   I hate that you have fancy granite (or it looks like) in the bathroom.. with the cheapest light fixture possible... Put $$ where people notice and appreciate!  Back splashes do amazing things too!  Hope this helps! 

Find a community bank or credit union

@Jordan Grimstad,

The thing about higher-crime areas, that i think the majority of investors don't get, is it requires significantly more common sense than regular investments.  It's not easy, and  poverty scares the crap out of super wealthy investors!    It's not just a quick/easy buy/hold, and requires more work than others.. but the returns will be higher too!   

Everyone has their limit with crime/poverty,etc.... You have to know the area, and specifics of the crime--where is the drug dealer,  where are there always shootings, ... if you don't want to go there, chances are -- people won't want to live there, or if they do.. rent will need to be very cheap and not worth your time IMO.    Again, common sense needs to be higher for this type of investing.. people who just throw money get easily disappointed when they buy the place next to the crackhouse, and wonder why it's not renting?

  Talking with local  (especially elderly, as they often own their houses and have seen it all in the neighborhood, and have good stories!)  residents, and ask them where/why/who?  The other thing I look for is stability of the area-- are the jobs nearby, bus lines, etc?    We bought a duplex, and our realtor told us we'd get  around $400 per side... nope.. we fixed it up and now  get $675 per side... the quality of your rental will reflect the quality of your tenants.  

Don't be afraid, but just know what you're getting yourself into.  Good luck!

@Michael Paradine,

If it's a D-neighborhood, I think it all depends on the quality of tenant..  good people live in bad areas too!  D-neighborhoods rents have to be low due to the desirability of the area, so increasing the rate a lot IMO will just leave you with vacancy.

As long as the income reflects the level of stress, I think it's okay.   If they're already in place, and they don't have a history of being a problem, I don't see why not.