All Forum Posts by: Anthony Wick

I'd like to hear about the "great" PM's in Des Moines area. I must have too strict of criteria, for I have not found any. Heck, I've had several who failed to call back, show up for meeting, have rented to tenants that I have evicted, etc. For what? 10% of rents, plus extra to find a tenant? 

@Petya Toncheva. I would say it's up to you to get any and all inspections done during the due diligence period. And I would absolutely get a roof inspector and a termine inspection done, at your cost. Then, if there is a problem, you can ask the seller to pay for all or some of the needed repairs. And they, in turn, can say yes, no, or negotiate. It is what the due diligence period is all about. If you choose to not get the proper inspections done during this time, that is not the sellers problem. 

@Luke Carl. When I am looking at reviews on AirBnB, I like to see the owner answer the bad reviews. It tells me a lot. If someone complains about there being too many stairs and no elevator, and the owner points out that the ad states "the apartment is on the third floor and there is no elevator", it explains the bad review is irrelevant. 

@Dalyn Hazell. Only in one circumstance have I ever connected internet for the tenant. He needed a 90 day rental, as they had just relocated for work. His work was paying his rent for 90 days, but would not pay for anything else. 1 bill, 1 payment. We negotiated a higher rental rate for me to pay for their utilities and high speed internet. It worked out quite well for me, and he didn't mind because his work paid for it all. 

@Cian Hamill

I would consider their rent as not paid, and I would charge all late fees. Depending on your area, you could also then file for eviction for unpaid rent. Damage deposits are never to be used until the tenant has moved out. Don’t even use them to repair damage while they live there. That should be charged to tenant and paid separately.

If there’s enough damage when they move out, then you’d use their security deposit for late fees first, then rent not paid second, and charge in small claims court for remaining rent due and damages. If you feel it is worthwhile.

@Ellie Perlman. Great job! We did the same thing on three units that had vacancies in May and June. Some cosmetic upgrades, and higher rents. I even raised rent on an existing tenant. I know, I'm terrible and it can't be done! Ha ha. The existing tenant did ask why rents were going up, which is a reasonable question. I explained the market, the higher costs I have absorbed, and how my identical units were being rented at an even higher rate to new tenants. They appreciated the explanation, and signed the lease addendum. 

@Jonathan R.. It sure sounds like your dad already has a diversified portfolio. Pension, 401k, Roth IRA, Real Estate. And let's not forget Soc Sec, unless his school district does not pay into that. Can he even make any real choices on his pension? Most pensions are set, with a monthly payout, for life. You simply cannot do anything other than take that monthly benefit.

Now, his 401k. Is it a 401k, or is it a 403b? It might not matter. I would highly suggest, upon retirement, he rolls the entire amount over into a self managed account, like in Vanguard. He can probably achieve better returns, less fees, and more choices. He might also want to do the math each year on tax brackets, and do Roth IRA rollovers each year up to the next tax bracket. He will achieve less taxes, and be much better off when he gets to the RMD's at age 72.

Now, what he actually invests in, I will not suggest or say. I do Vanguard VTSAX, along with a bond fund. ETF's can be self managed at very little cost, and not much research or guessing. With a pension, Soc sec, 401k, and Roth IRA, he could absolutely find himself in a position to acquire more real estate as well. It's just a matter of if a person wants to do that work or not at age 63 and beyond.

@Anne H.

Highly unlikely all 3 adults would have zero rental history. Definitely sounds like they’re lying. However, with proper credit, employment, and nationwide eviction checks, you could mitigate the risk. Bank statements for 3 months, etc.

And after I just said all that, if you have another option, go with option B. I’m generally not a big “do extra work to see if they qualify” guy.

@Edgar Ehrsam

100% go to college. It’s a long life. You can do both college and real estate investing. If not for my college degree and salary it’s doubtful I would have the money to have the real estate I have. Pick a degree that will compliment real estate investing.

@Patricia Taveras

Do you install the LVP yourself? What kind? Cost? Cost of install? I have installed some myself, but not anymore. Hiring a person is cheaper and less painful than back surgery and knee replacements. Lol.