All Forum Posts by: Amy A.

Let the numbers make the decision.  If you are in an area where you can somehow make the same % return on a duplex as on a 5 unit, why not do it?  However, if it makes more sense to wait for much higher returns and you can save up enough in a reasonable amount of time, do that.  

I have found that the numbers work best for larger multi-family buildings. When people actually take the time to run real numbers for SFHs, including CapEx, vacancy, maintenance, management, etc. they often find they will lose money.

Duplexes and triplexes are even worse in my area because the landlord is often responsible for plowing, trash removal, heat, landscaping.  However, I like the fact that you can get low fixed rate financing for these, unlike commercial mortgages for 5+ units.  

For commercial loans, it's good that they require you to have more equity because it hedges against interest rate risk.

In answer to your question, yes, it is.

The inspections they do are not on your schedule, so you have to give up a day waiting around for them, just like for the cable or gas company.

You can fail the inspection for something like a hole in a screen (if the window has no screens, you pass).  Then they stop paying you until a re-inspection, which you have to wait around for again.

You can fail the inspection if the tenant is too messy.  Again, your payments stop until the tenant cleans up.

You have to get their permission for a rent increase.

In some areas, including mine, they pay less than market rate.

You can approve a new section 8 tenant and hold the unit for them, only for it to fail inspection and they can't move in.  I know somebody who failed because a window was too small.  There's no fixing that!

If the tenant violates the lease and you report it, they stop paying you rent!

Many of them don't work, so they sit around all day thinking of things to complain to you about.

For some reason most of them smoke.  A lot.

There is often a boyfriend who moves in (often with his dog), would never be allowed in the program due to a felony, yet knows the system well enough to get mail delivered at somebody else's address so he has "proof" that he has his own place.

I have one section 8 tenant right now who came with the building and keeps the place clean.  The boyfriend and dog are there but haven't caused any problems yet.  She let the oil tank run dry, so we had to heat the basement to keep the pipes from freezing.  We might encourage her to move on in the spring.

I have had this happen to me.  I immediately give a 24 hour notice of intent to enter for an inspection.  I test the smoke alarms, look for leaks, etc.  What I really want to see is if the dog or owner is causing damage.  It is winter, so really difficult to find new tenants now.  If they aren't causing damage, then proceed to put the new person on the lease after appropriate credit and eviction report, etc. same as any other applicant.  If they are causing damage or the person is a drug dealer or causing problems, start the eviction for lease violations and get them all out asap.  

At least the neighbors have seen him walking the dog, which means it's probably not peeing on the floor.  I have seen some pretty bad negligence of pets in the past.

The BRRRR strategy includes elements of both flipping and long-term investing. You are starting with something very difficult. I made it my full time job before I did one. The advice others have given to focus on finding a simple rental is a good one. You will get some rehab experience with a rental anyway, since there are always problems that come up!

Merry Christmas everybody!  I've spent the day in a blizzard, getting text messages all evening from upset tenants who are wondering when the plow guy will come.  Plowing is one job that we try to hire out 100%, and it's still always a pain.  This happens every winter, along with the fear of the heating system breaking down and freezing our tenants or pipes.  Therefore, my goal next year is to invest in the south.  Someplace with a beach to visit would be nice.  I'm considering North Carolina and would like to visit there in February to get started.  I believe the first place to start is with a rock star property management company.  Can anybody recommend companies that you have actually used long-term and are big fans of?  I know I'm asking a lot, but it's Christmas so since you're in the spirit of giving...

I allow a maximum of 2 of the same gender.  They only live 3 or 4 years.  Did you know there are "rat rescues"?  I had an applicant who wanted 7 or 8 rats so she could rescue them.  Many applicants with exotic pets have other issues so won't pass screening anyway.

Wow, I'm the exact opposite.  I hate getting phone calls.  I used to put it on ads and would get calls in the middle of the night from drunk people. Now I don't give out my number until they actually apply and after I have pre-screened a bit.  I send some pre-screening questions via email and most of them don't bother answering.  

I see that many people are advertising on FB.  I wonder if I could set up a separate account that doesn't give my personal info. and advertise from there?

Showing occupied multiunits is a huge hassle for tenants, managers, and agents.  No way is anybody going to show them to you if you aren't a ready, willing, and able buyer.  I hate to be the mean one.

If you are a landlord, you'll be surprised when they "joke" that you must be a slumlord.  Also, when my husband mentioned to his manager that he flips property, he seemed jealous and poured on extra work.  It helped solidify our goal to be financially independent so he could quit his job, which he did shortly thereafter.