All Forum Posts by: Pam R.

Sorry for your bad luck. I think there are a whole lot of people who sympathize.

Just the other day I was just looking over my records from the last 4 years of being a landlord. For years 2 and 3 we spent about $100 on very minor repairs. This year - a bed bug extermination wiped out 2 months net receipts at one property. But in the long run, even in only 4 years and now with 2 properties, we're getting ahead, and have a nice nest egg built up for both big and small repairs. In fact, starting this month, I started rolling all the rent collection into the mortgage payment for one of the properties, to get it paid off in about 7 years, rather than 30.

So I'm agreeing with @Justin B. - take the loss for now, you'll make up for it sooner than you think.

I also agree with @Edward Burns on the heat pump. I am no HVAC expert, but I would definitely wait for this arctic freeze to pass before I go replacing anything. But them a couple of space heaters to buy yourself a few days to evaluate the situation.

Best of luck!

I charge a per day late fee of $5. I don't know about increasing the rent for habitually late people - I say just keep collecting the late fees, and make them high enough that they work as a deterrent.

What I always thought was a brilliant idea (well two of them):

1. No grace period. Rent is due on the 1st, period.

2. A bonus for paying early. A long time ago I worked for a guy who owned 3 houses on his street. If the rent was in his mailbox by midnight on the last day of the month, you got $20 off. I think rent was like $420 or something. Rent early - $400. Rent on the first - $420. Every day after the first - tack on $5. He seldom received late rent.

We have all electric stoves in our apartments - they came that way - but I wouldn't even have thought about whether one was more dangerous than the other. It just wouldn't even cross my mind. We do have gas furnaces and water heaters, and I've never worried about those either.

If it was me, I wouldn't switch it out.

Although you just reminded me that I need to buy CO detectors for those two units.

#1 caught my eye. But I agree, use one side of the card to list out your services.

Donald, I agree with @Robert Leonard - first get your finances in order. That's much easier to do when you have a goal, which you clearly do.

While you're doing that, learn, learn, learn. BP is obviously a great start, but keep an eye on the real estate in your town. Familiarize yourself with the various neighborhoods, watch the prices of properties for sale, and then check and see what they actually sell for. A duplex is a great first step. But don't ignore SFHs as you are watching prices, as maybe a SFH will turn out to be the first right deal for you.

So if it takes you 6 months or a year to get your financial ducks in a row - you'll already have a keen idea of where you want to invest, and what price you should pay.

Best of luck!

I do cost-benefit analyses all the time - but not on anything that is truly health or safety related. All my units need to be clean, warm, and secure, with smoke detectors, working appliances, windows that open and close, and hot water. No mold, no peeling paint, no broken fixtures or outlets.

Lead paint I have not tested for. My oldest property is 1975, and I have no reason to believe there is lead-based paint. I provide the disclosures to the tenants. If it becomes law that I need to test (and mitigate) - I will do that.

Insulation - not a health or safety issue. There are good reasons to have it, but I'll admit that if I'm not paying the heating/cooling bills, it's not the highest priority for me.

Ironically, my tenants have some amenities I have never had in my life: a garage or carport, dishwasher, air conditioning, disposal. Maybe after I get a couple more investments under my belt - and provide these amenities again to my tenants - I'll decide to splurge on myself and maybe buy a dishwasher.

But, truth be told - I provide those last items because it makes the property more rentable, not because I think people need/deserve a disposal in their sink. I'll confess that my level of sympathy is pretty slim when an air conditioner has broken in the heat of summer, and it will be 2 days before the repairman can get there. I want the AC fixed b/c my contract says I provide AC, not because I think my 26YO tenants are going to melt. A broken furnace on a 20 degree day, I'll pay whatever it takes to get it fixed ASAP. But a broken AC does not warrant a night or weekend repairman call. Of course, I am in Ohio, not Florida.

Bottom line: clean, warm, and secure.

Just my opinion - you are young, interest rates are low, you want to buy more properties, so don't pay down early - use the cash to purchase your additional properties.

Bear in mind that you should regularly re-evaluate your strategy (whichever one you choose) as your life and business circumstances change. But at your age, if it was me, I would be in acquisition mode. Just don't over leverage yourself.

Best of luck! Sounds like you are doing great so far.

Hi Kelsey - Someone in Washington can probably refer you to zoning sources.

Good luck at the viewing tomorrow!

When I think of a den, I think of what Andrew says - something like a living room. And a living room to me is generally something with 2 or 3 walls, that is open to other rooms.

But in real estate terms, I'm not sure that's what they always mean. I know I've read some posts on this site indicating the term is used for a room more like a bedroom - with 4 walls and a door that closes - but lacks the closet that people expect for you to call it an actual bedroom.

Maybe a California realtor can specify what it means in CA.

I agree with Andy - get in there and assess the property, to see just how much work is left.

Also, does zoning allow you to put a basement apartment in? (I assume a 2nd, separate apartment is what your are suggesting when you use the term MIL suite)

Can you provide a more detailed breakdown of the monthly expenses you are using to calculate for your $635?