All Forum Posts by: Rob McGahen

Nope. This applies to all businesses, not just being a landlord.

It's just like a grocery store adding a $300 bill to your total at checkout for the cost of the shopping cart you use each time you come into the store. 

That cart will be used several times per day.

You will use that sander on many more projects in the future. You won't bill each tenant $50 every time you need to use that sander, on top of the work being done with that sander. 

Rentometer and Zillow will at least give you a ballpark figure. But they are general, and may not be precise enough.

I'd do what @Thomas S. said and run a test add. You may even want to run several and go from there. Good luck!

At a minimum, I'd hire qualified electricians and plumbers to do that work. Get several quotes from several different ones.

I'd probably do the same with everything else, given your lack of experience. 

Yes, you can learn just about anything on YouTube. I'd study up with it, but don't take on something you are not comfortable with. However, at a minimum, be your own general contractor. Lay out your expectations and make sure your quotes for various projects are in writing.

Don't go with the lowest bid just because of cost. The lowest cost isn't always the best deal. Ask for references, and don't be afraid to check up on them if you are unfamiliar with someone and their work.

Use this experience to improve your knowledge, see what you can do to work alongside the contractors to learn, and good luck!

At that price range, I can't see how/why you wouldn't want to go that route. It's not that much money, and you can easily tie it in with your marketing. Go for it!

I'm wary of someone who won't negotiate, especially that many properties. It makes me think that he doesn't really want to sell (he is not motivated at all), unless someone is willing and able to pay what he wants.

As a curiosity, how do the asking prices compare to what the market supports?

My two excuses are not yet having the knowledge (but I'm working on that every day), and convincing my wife.

Anyone have experience on convincing a spouse?

I'm curious to know who is wanting this deal more - you or your partner?

Your partner seems to be getting a sweet deal out of this. Living in a four bedroom house while looking over some cabins, while obtaining a salary of some sort. What is in it for you?

I'd rent everything out and at least look at property management, much as @John D. has said. If you go the route you mention, it's going to take at least 12-15 years to break even, depending on interest rates, what you pay your partner to live there and assuming year-round 100 percent occupancy. Proceed with caution. Good luck!

I wouldn't quit.

You don't give any information about your current portfolio, but to me, it seems as though you are throwing a hail mary and hoping it works. I did that five years ago, and crashed and burned (in something other than real estate). It's taken me that long just to get back to where I was.

I didn't know what I was doing, and my hubris brought me down. I'm doing things much differently this time, and my advice to you is to keep your day job, for as long as possible. Feel free to ask me if you have questions. Good luck!

I definitely wouldn't mind being asked that question. Someday, if it's a high number, I hope to find someone to pass along my knowledge to, and perhaps that is the question that gets the conversation going.

For now, it's zero, as I begin my journey...

Given that you are in Los Angeles, have you considered some kind of artificial turf? It may be cheaper to just lay that out over the pad, and given that it doesn't require watering, it may be an attractive option for a potential buyer - plus they can always remove it at a later date...

You can get most types of turf for around $3 a square foot, which will be cheaper than removing concrete and installing turf (and likely some type of irrigation system).