All Forum Posts by: Walt Payne

I agree that you should look for possible valid reasons, explain your concerns, and evict if that doesn't work. If there is a valid reason, maybe you could get a compromise from him to activate the electric once every 6 months to avoid the issue brought up by @Jerry W. 

@Will F. I don't know about CA specifics. But the operating agreement is part of having a legally established LLC. It can be simple, but you need one. The other consideration is that a well thought out and discussed agreement could save a relationship that might be damaged by a misunderstanding. Not having it in writing means you might each be making different assumptions. It is not so much the legal requirements as the understanding of the who, what, where and how of it as things progress. Especially if something goes wrong.

There are those who say you don't need an LLC. And you don't. But insurance alone is not as good of a protection as a well thought out and implemented asset protection plan. Having an LLC, insurance, and risk reduction plan all help. Treat your tenants right, reduce hazards, check your contractors for proper licenses and insurance, get permits, etc. The little things that you hear people say don't matter, matter. Being able to show that you took steps to reduce and eliminate risks will help in the long run.

 Did you read my post? What I said was that the cash flow could also be reinvested. Therefore it would take much less than 50 years. Also, those properties would be owned outright. Not saying your way is not better, but you are cheating to skew the numbers in favor of your thinking.

Interesting assumptions. You can reuse the same money when doing a refi, but you are starting fresh with each house when buying with cash. Not that you have cash flow to reinvest as you grow your portfolio, and the income snowballs? Really? Not saying that your method is bad, but your assumptions sure are off. Way off.

@Christopher R.  You could also wholesale the ones you don't want, to raise funds to buy the ones you do.

@Darrell Shepherd  You might consider a simple and cheap alarm system with a circuit connected to the A/C unit that uses the ground wire from the unit, and/or the copper tubing that carries the coolant, as part of it's circuit. If they cut that to take the unit, it screams. Even without a monitored system, it will wake the neighbors and cause the thieves to reconsider. Might not work forever if they encounter it a few times, but it's a cheap way to protect your units and is more effective than a cage.

@Justin J.  It may be too deep to help, but there are several urine removing enzymes sold at pet stores by the gallon for about $25. Worth a try, they do work very well when used immediately and might fix your problem. But they won't fix your landlord issue, which seems a bit more serious.

The wireless systems are pretty cheap now, I would do it. Any time you have a vacant property that is listed there is a chance that it will be vandalized, no matter how nice the neighborhood. In fact the better neighborhoods provide more incentive because they have nicer stuff in them. I think a security system is one of those little things that doesn't improve value, but adds desirability. 

 Check flood zones, flood insurance is going up and is expected to continue rising. 

Welcome  @Allison Leung, hopefully @Brandon Turner hasn't tried selling you any properties named Waldo, either!