All Forum Posts by: Rodney Sums

Rodney Sums has started 25 posts and replied 558 times.

Hey guys, I'm based in a very recreation-heavy area in Central Oregon. We already have a saltwater high-end hot tub and are also considering getting a sauna. Any strong opinions on the idea of getting a sauna? Smart or dumb? Liability issues?

I could just see somebody's dumb behind having a heart attack, heat stroke, or burn in that thing, then they or their family will hire an attorney to prove your sauna is 0.3 degrees hotter than the industry standard, doesn't have the correct signage, you didn't post the number to 911 inside the sauna....some sort of nonsense to make it your fault and expensive. Now, how much more in fees can you charge vs the cost of the sauna, increases insurance premium, utilities and maintenance?

1 Vote

Bend, Oregon

Quote from @Michele Velazquez:

Quote from @Rodney Sums:

Quote from @Michele Velazquez:

I am relatively new to investing. I have 2 quadplexes in Atlanta being managed by a PM since I am in California. I bought these units because the PM said the rent in the area was $1250 and they believe I could get between $1250-$1275 a month per unit. So I bought these units assuming these numbers as that would make me cashflow. However, the unit has been on the market for one month and now they are saying to lower the rent $25 every week. My question is, how low do I go? Do I go down past $1200 where I won't cash flow every month but it's better than no tenant? I would love to hear feedback from the seasoned investors. Thank you.

If your PM put just a generic lockbox on there, they're not tracking when the property is accessed. Make sure they do AGENT ONLY showings. This way you don't end up with squatters you have to evict

Can you share your cash flow calculations? You said you bought a 4 unit building for 150k....that's 150k/door right?

As for your listing there's a blury picture, and they have a more birds eye view. They don't look very good. You want a professional photographer

Also consider fees your PM charges. I see right off top there's 50/mo for a protection plan. So from the tenant perspective rent is 1275. If they charge other fees like administrative fees etc, require renters insurance, and competitors don't charge these fees or have mandatory plans, you may be less competitive.

I can't have any say in what they do. They only do lockbox :(

I used the calculator here to determine cash flow months ago. My mortgage is $917 and the PM told me I could get $1295 when I bought it.

They didn't give me an option to do the professional photographer. And they won't let me opt out of the $50 fee they are charging the tenant. I feel so irritated!

You can certainly have a say if you work with them or not though 😀

Have you looked at comparable units nearby to see how long they're listed? What the asking rent is?

Your agent should also be able to show you comparables that have come off market recently so you can see what they closed at and how long they were listed for.

cash flow vs appreciation argument:

You'll see a variety of different perspectives and arguments here on whether it's wise to have low to negative cash flow in anticipation of appreciation. All the people who banked on appreciation in recent years can say how correct they were and how it's not always about cash flow. People who bought prior to crashes and were bleeding money for years or lost the property may have a different perspective.

0 Votes

Quote from @Henry T.:

I'm not sure if biggerpockets allows links but I'll try here. This is a 2 yr old article, but things have gotten worse since. Some of the newer anti-landlord laws as follows,,,, Any rent increase requires 6 month notice, lease renewals are mandatory, and you cannot evict anyone with a child in school, you also cannot evict anyone that works for the school disctict. For all there's a winter eviction ban.

https://pacificlegal.org/real-estate-issues-seattle-housing-...

Wow that was bad. A huge target indeed. They address their housing issues by making landlords solve it for them. Rather than fund government housing they put it on owners.

0 Votes

Quote from @Bill F.:

“Generally speaking, envy, resentment, revenge, and self-pity are disastrous modes of thought; self-pity gets pretty close to paranoia, and paranoia is one of the very hardest things to reverse; you do not want to drift into self-pity.”

Charlie Munger

Ask Charlie if he and Warren feel like they have targets on their backs as billionaires and if they're paranoid about it 😂

0 Votes

Quote from @Michele Velazquez:

If your PM put just a generic lockbox on there, they're not tracking when the property is accessed. Make sure they do AGENT ONLY showings. This way you don't end up with squatters you have to evict

Can you share your cash flow calculations? You said you bought a 4 unit building for 150k....that's 150k/door right?

As for your listing there's a blury picture, and they have a more birds eye view. They don't look very good. You want a professional photographer

0 Votes

Quote from @Henry T.:

In Seattle, where there is a serious housing shortage, landlords are fed up with the over regulation and being labled evil by elected representatives. Sweet deals for corporations have netted 10,000 new units, however 11,000 units (mostly mom and pop) landlords have quit and sold. Tip of the iceberg and I think it will get worse. The "target" has increased here and tenants are emboldened. Especially in the last 5 years.

What challenges are landlords facing there? In what ways is the government working against them?

0 Votes

Quote from @Nadiyah Malbon:

I am investor/landlord and Real Estate agent so I've been on both sides. As you probably know, that average rents in NJ are $2000-2500. Most tenants are reluctant to pay equal to one months rent, however, I've rented a few where they pay with no problem. I listed 2 newly renovated apartments on behalf of another landlord. They are sitting because of this. What is your experience?

With the PMs I have that charge one, I pay it. Standard has been anywhere from half, to a full month's rent placing a new tenant. The trade off is usually the ones that charge a broker's fee/leasing fee, charge a lower monthly fee.

The ones I have who don't charge a leasing fee, charge a higher percentage per month. Typically around 10%

I also see them get extra by charging things like "administrative fees" to one or both, and lease renewal fees.

Now it sounds like you're talking about is just a fee for placing the tenant, and then the landlord or someone else handlea management. In my experience the landlord pays that and frankly should. They stand to benefit financially from you finding them a lease and screening the tenant. The tenant is already coming out first month, deposits, and more depending on location.

I could see in an area that's very high demand, low supply that the tenants may be moved to pay a broker fee if legal. I've heard of places like Tokyo where tenants pay a financial "gift" to the landlord just to sign a lease

0 Votes

Newark, New Jersey

Quote from @Svetlana Kazantseva:

Hi all! We have a really hard time finding a general contractor for our repair project in a buy & hold SFH in Kansas City, MO. We hired a property manager after purchasing the house and both contractors they sent in are "skeptical about providing a quote if they cannot use their own materials". In their experience "it has lead to a lot of headaches and delays with the project". We are out of state investors and were going to stick to David Green's advise of getting quotes without the materials for fair comparison + being able to select the material we want, put it on our credit cards. Do you think it's reasonable for contractors to refuse a quote without materials? Should we keep looking?

This one lit a fire!

I can say I've done both. The deciding factor has been the size of the project.

For example when i had rooms and a recording studio built, I did NOT buy materials. The contractors did. You don't even want to get involved in trying to shop for everything they need.

When its something smaller, like installing tile floor, doors, blinds, light fixtures, etc. I've provided the materials. These are usually a handy man, or small time contractor job, like a contractor that regularly does turnovers for vacant dwellings and some rehab is needed.

Once you get structural, involve utilities, or it's a very big job, you can appreciate why you need to let the GC get the materials themselves. You don't know enough to buy what they need, it's inefficient for them to wait on you and your schedule, if you get the wrong thing or wrong size it costs everyone money and slows things down.

6 Votes

Quote from @Account Closed:

Quote from @Rodney Sums:

Quote from @Account Closed:

Quote from @Russell Brazil:

Hilarious. It ain't for the weak of heart or the "persecution complex" crowd, that's for sure.

Recognizing when one is being targeted doesn't necessarily imply they're weak of heart or have a persecution complex

Actually, no one was indicating it was you that was being discussed.

I didn't say anyone was referring to me. I said recognizing when "ONE", not recognizing when "I"

I don't disagree with you either. Real estate isn't for those without tough skin

0 Votes

Quote from @Account Closed:

Quote from @Rodney Sums:

There's numerous stories we read describing instances of tenants and guests refusing to vacate properties, and the government supporting them in that endeavor. How do you feel knowing there's a variety of situations where someone else's challenges, failure to plan ahead, acts of God (that aren't covered by insurance) or nefarious intentions become your burden to bear with the law's support? Do you accept it as a risk of doing business, feel there's some injustice, or something else?

Do you feel there are times a tenant's or the government's hardships should become part of your responsibility as a landlord?

Yes, you are the rich guy with unlimited funds, the land lord. Bahhhhh Haaaa LOL.

Seriously, I'd suggest you try a different approach:

I don't worry about bank loans. I have no tenants, I don't have property managers, I don't do repairs, I get principal pay down, I get depreciation, I get a fat option payment, I come and go as I please. When a water heater goes out on Sunday night or a toilet plugs, it isn't my problem. I don't have vacancies. People love me because I'm giving them a chance to own their own home.

I favor finding properties "Off Market" doing “Subject To” and selling on “Lease Option” for great cash flow. Such as:

Buy using Subject To and sell on Lease Option which I explain at https://www.biggerpockets.com/forums/311/topics/1141313-subject-to-why-you-need-money-to-buy-using-subject-to-subto-safely-legally

I've put together a spreadsheet that shows how all of this works. If you'd like a copy just PM me.

I'll gladly read it, shoot it over. But I don't have a problem with my current approach. I accept the challenges as a risk to be prepared for and ready to counter. Curious how others feel

0 Votes

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All Forum Posts by: Rodney Sums

Rodney Sums has started 25 posts and replied 558 times.

Post: Thinking about getting a sauna for our rental

Post: Reducing rent to place a tenant?

Post: Do you ever feel like there's a target on your back as a landlord?

Post: Do you ever feel like there's a target on your back as a landlord?

Post: Reducing rent to place a tenant?

Post: Do you ever feel like there's a target on your back as a landlord?

Post: Are you or tenant paying Broker Fee? Why or Why Not?

Post: General Contractors refusing to quote without them buying materials

Post: Do you ever feel like there's a target on your back as a landlord?

Post: Do you ever feel like there's a target on your back as a landlord?