All Forum Posts by: Steve S.

I love the calculators.. I think they're great! I don't have a pro membership so I only have used the calcs on here a couple times. (I think there's a limit) I have made my own excel spreadsheet that's very similar but certainly not as through. If I bought or flipped more properties I would consider getting the pro membership just for the value of the calculators!

Truth is in this business, you're really only successful if the numbers work.. so you have to be using something to make sure the numbers work.

I guess it all depends on what the tenant is so picky on. I try to establish this relationship right off the start. But personally I WANT a tenant that want the place kept in very high standards! The higher the standards the unit is in when they live there the easier it is if there's any turn over in my opinion.

For a new tenant I purchase REALLY cheap furnace filters.. I tell them they will need to be changed every 1-2 months and I'm the one that does it. It allows me to keep an eye on the place. I also book 4 times a year where I check the smoke detectors. All of my units will have a minimum of one hard wired one and one battery operated one. I also install a carbon monoxide detector as well.

This month as it's the start of spring, I rent a paddle rake, power rake (dethatcher) and every 3 years I rent aerator. I do this for my own property but then take the machines to each of my units as well and do their lawns. This way I KNOW the lawn gets a good start and once again allows me the opportunity to make sure the yard and property are being kept at a certain standard.

I like the idea of having an e-mail for requests. If I had more units I would definitely do that! I would make sure that EVERYTHING is already in the lease. So those holes in the wall for wall-mount tv's, or the extra electrical outlet would all be covered in the "house rules".. and not without your approval. Then it's simple... if they want something and you don't want it... you can say no... after all it's your place!

In short.. don't ignore the request, and don't lie about it.. just be upfront and have things already down in writing before hand. If the item isn't somewhere in your lease make note of it for the next time and re-write your lease accordingly. But just be upfront... wish you the best

Pick up a SFH or a multi-unit.. live in one unit and either rent the other out or rent out the other unit or the basement.. (house hack)

network and find people who are like-minded. Look at what they have done and replicate their success while you learn from their mistakes.

Build up a team of contractors, appraisors, lawyers.. etc etc.

Just make sure you know the heck what you're doing. Most of all enjoy and I wish you all the best!

@Roger S.

"That's a lot of words when just scrolling on past would have done."

Same argument could be applied to you Roger. Why make this a topic in the first place unless all you were trying to do is create or generate negative discussion for those that are literally living hand to mouth. Sure you picked a great forum, the audience here is generally affluent and will have money. Some may even see your side. I just decided to stand up and say what you're doing isn't cool. 

Many people on here make their living off of people that have a hard time making all ends meet by providing rental units. And while some people may get frustrated that they cannot make rent that is the nature of the business and it is the business we're in.

At one point I had very little money, in fact I was working 2 full time jobs and living out of my car. So on behalf of anyone that has come upon hard times, I'd like to say "we don't want your pity" and I've got a suggestion of where you could stick that wad of cash right now which you boast about in your post.

Ohh and if this reply was "too lengthy" for you... I'll summarize... just don't act like a jerk! As it stands that's how you're coming across right now!

@Roger S.

I actually don't even understand the purpose of this topic?
You say you "feel sorry" for "people like this" and it's "so sad"...  and call them pitiful. (all your words not mine!)

I'm happy you've reached a level of financial independence where you have rolls of cash and change plate that most would consider a good sized amount of money.

With such wealth I hope to hear more from you regarding your philanthropic deportment. At the moment I can only say that this post comes across more pretentious.

Go to your local library, city/council or rental board and LEARN all the rules and laws you have to abide by. There's nothing that frustrates me more than reading about other people on here who jump into REI and "play" landlord until it hits the fan and they have no clue about their local bylaws and codes. If this is going to be your business treat it as such. Learn exactly what you're responsible for and what you should do PRIOR to being in the situation. Granted in this business things will pop up but an ounce of prevention is worth a pound of cure!

Now you can go the route of spending money on marketing or networking, and they are effective at making money. But in my opinion with ONLY 10K I would want to put my money in... get it out.. and either double or triple it. I would not be looking to spend money or have money locked up. In my opinion taking 10K and having it locked up (not liquid) to produce 100-200 a month isn't great. I can already get that kind of return in the stock market and not have any risk or headaches with the work of being a landlord.

Perhaps before you ask "what should I do with 10K and the drive to start out in REI?" you should ask yourself "What is my skill set?" What are you good at doing? What do you enjoy? An example I would consider myself pretty handy. I like to fix things and I do a pretty good job. I would probably take that 10K and buy a house that I could flip. This would mean in your case that you use the 10K as a down payment.. and the materials will probably be put on a credit card. THIS IS A HUGE RISK IF YOU DON'T KNOW WHAT YOU'RE DOING!!! But if you do.. after all things are paid off you could walk away with 10-30K profit after all costs. If you're not handy I have seen this type of strategy absolutely ruin people. So many watch those "flipping shows" and think they too can do it then call me when there elbow deep in it and hate when I tell them to cut their losses.

If you're not handy perhaps you're good with financing? Work that 10K into some sort of micro loan or go in with a group of people as an equity stake in something.

My main point.. asking 10,000 people what you should do with 10K may yield 10,000 different responses. You first have to ask yourself what you're good at, what's  your strength and how you can use your strengths to generate income.

I do the jobs myself... I enjoy fixing and repairing items, it saves money resources and it also allows me to look in on my units. I also then know the job has been done right and to code. 

You want to invest the money but have it liquid and build gains/interest. For me if I didn't want it locked up in anything I would probably put it in the stock market. I'm not exactly risk adverse in the stock market so I would probably look at a solid large cap company with a 2-4% dividend that can be reinvested.

I do:

deduct the mortgage payment for the property

After variable expenses 5% , capital expenses 10%, vacancy and insurance 6%.

Percentage is of the total rent collected.

The remainder from the rent should be my cash flow. My numbers or calculations may be a bit rudimentary though. 

I'm good with a hammer, but bad with financial statements and numbers.

For hand tools.... such as screw drivers, pliers and wrenches... go to the store and see if you can hold and use the tools just a little bit. I personally have a preference to certain "grips" and prefer something that's comfortable in the hand but can handle a lot of abuse.

Don't go cheap. I have a couple pairs of insulated pliers that just have a coating on the handle. I recently purchased a pair of dewalt spring loaded needle nose pliers and sure it's a couple bucks more but the difference is night and day.

Take care of your tools - the worst thing is rust or corrosion on tools. I used to store my tools in the garage. But with the climate where I live the winter's are tough on tools that are stored in the garage. I learned that the hard way. Also keep all sharp tools maintained. Drill bits, saw blades, chisels etc they should all be sharp not only is it easier to do the job but it's safer.

Demo:

Pry bar - most used tool I think I own!

Hammer - perhaps even a sledge

Saws - a sawsal is a must!

Electrical:

Basic screwdriver set

needle nose pliers

voltometer - circuit tester

flashlight

electrical tape

murrets

Plumbing:

large and small pipe wrench

hack saw

copper pipe cutter (I have one big one that I can change the blades to, and then I buy a cheap very small one for tight spaces that usually lasts 5-10 jobs)

pex crimper - if you working with a lot of pex.. if you only have one job you can rent this tool

cresent wrench

imperial and metric wrench set

socket set

torch

Construction:

carpenter square

regular square

tape measure

skill saw

drill

utility knife

snap chalk line

In my opinion those are the basics that should be in your tool box at your disposal for all your needs. As you start to do more you may need some more specialized tools but the above list you can pretty much take down and build a whole new house.

The dump trailer is a great idea if you're able to dump at your local land fill. If you don't have a truck that can haul a dumpster, getting a dumpster bin works well.. there are also a product here for smaller jobs called "bagster" you buy a mini dump bag that you would probably load in one day (i think the limit is 3000 lbs) and a local waste company will pick it up when you call them. (look up bagster)