All Forum Posts by: Robert Cheek

I know a lot of people wouldn't agree with the way I do things, but that's alright. I run everything under my social security number and use a "dba" for a business name. I figure my insurance will take care of any potential lawsuits. This allows me to have 1 tax return and in Michigan I can do all my own eviction hearings. If I had LLC's I'd have to use a lawyer for court. I self own/manage close to 90 units currently.

I have 1 checking account as a General Use account

1  checking account for security deposits

1 checking account for taxes and insurances

Every month I pull out a payment from the "general account" and transfer to the "tax-insurance" account. Basically use it for an in-house escrow account.  Then when property taxes or insurance premiums are due it comes out of the "tax-insurance account"  This was a way for me to keep a better idea of my main account finances and not spend "bill" money.

At different times I bought a SFH and a Duplex that had caught fire. I gutted them out and rehabbed them. Sold the home and made a profit. I kept the duplex and ended up with a mostly new rental for about half the market cost. I am a licensed contractor so that helped my situation. Granted there are many variables, but there could be a market for selling your property.

Been doing this for over 20 years.  No partners.

I am a licensed contractor. That has helped me, especially early on with taking on rehab projects and building sweat equity. 

Most properties were financed for 15 years, less cash-flow upfront but the reward is really starting to pay off. 

1- 20 unit

1-12 unit

1- 8 unit

3 - duplexes (6 units)

1- commercial warehouse ( I rent to my construction company)

35- single family ( 9 are new homes I built for rentals) 

82 units total 

Also have 3 properties I sold on land-contract that I collect payments on. 

One thing I love with real estate is there are so many ways to make it work for you. 

You are way over thinking this. I have about 75 units (houses and apartments) with electric baseboard heat. I love them, no gas furnace problems to contend with at midnight. I just turned replaced 3 heaters in a unit that were 20 years old , no maintenance during that whole time. The cost was only $200 total. I have built brand new rental homes and installed electric baseboard heaters because of how great they are. Sometimes the thermostat is on the heater itself and sometimes there is a wall thermostat, depending on the way the electric wiring was installed at time of the install. 

If this was your first property you could second guess yourself and the deal all day. You are an experienced landlord and even though there are some differences between a 20 unit and a single family, it's still a rental property and you are still an experienced landlord.  

Bought my first house in 1989. Lived there for 5 years and has been a rental since 1994. It's not valued for much so there is no temptation to sell. 

I'm new to posting here but a long time investor/landlord. I don't understand why so many people are turned off with getting a property with the current tenants.  The truth be told, unless you are a very experienced landlord your tenant picks probably won't be any better than the sellers. As an experienced landlord I'll make the best out of the existing tenant knowing that eventually we'll part ways, but till that time I'm making all the money I can from you. 

I own a construction company so I have always taken my "paycheck" from that company . I have reinvested pretty much every dollar back into more rentals.  If you are pulling money out to live on , you'll have to figure out what works for you. By building up my rental portfolio, my passive income is now 3 times my earned income. I mainly keep my construction company for all the benefits, including having maintenance guys on payroll for rental repairs. Also nice collecting a rent check from the construction company for the warehouse it occupies.