All Forum Posts by: Wilson Churchill

I use Lowe's and HD for most things, because they are everywhere around here. Menard's has better prices on some things (basement windows) and carries things in-stock that the others don't, like solid wood six-panel doors. Menard's also has inexpensive hidden-fastener metal roofing.

For paint, I have switched to using Valspar from Lowe's exclusively. Their stain-blocker plus paint is worth the $40 per gallon. One coat sprayed or rolled on works in most cases.

I use Home Depot for rentals and  buy tools from HD or Lowe's depending on what I need and what's on special.

Dumpsters? I usually just call around and try to get a 20-30 yard for around $400. I'd like to just get a used diesel truck and dump trailer some day, but it's hard to justify the cost, even used.

Prices have been going up, so you have to pay more now in this area. Really any area that isn't rough should be fine. It's all about "buying right".

A large cash reserve is also necessary. There are times when really large expenses come up, such as when the tenant manages to do thousands in damage or if a sewer pipe breaks under the street.

 That is the most important question. You have to either buy cheaper houses that you can easily afford, or make sure that you have enough cash in the bank to cover any vacancies and large repairs.

A GC will price out a job with his subs, then add his profit to that (sometimes just double the price). You can certainly save money by using your own subs, but it will be more challenging:

1. You will need to pull permits at different points, so you will either need subs that are licensed, or become licensed yourself.

2. You have to plan and schedule everything yourself. Time is money, so make sure everything is done asap.

3. If the sub does something wrong because you didn't give the right instructions, you will eat the cost.

 If most of them don't qualify for a regular mortgage, how do they exercise the option to buy? Do most of them default?

I don't suppose it would be possible to make landlord regulations more friendly as well. The times I have had to take a tenant to court, they are automatically given an extra 10 days, even if they didn't bother to show up to court.

I'm not saying that you can't invest, I just want people to know what they are getting into. There is a reason that the homes are priced the way they are. As far as the tenants go, people that work for their money are the best bet.

All I'm getting at is that it's a tough market. It's definitely a lower income area. I mean broken windows and doors, trash everywhere, roaches, etc. If you pick the wrong tenant, you will lose money for they year. It takes a while to evict people. Even after you get a default judgment, the court says that it's a "policy" to give them ten more days. Why do they need ten more days if they can't even bother to show up to mediation?

 The thing about Pontiac is the tenant pool. It can be tough to find a tenant that makes three times the monthly rent. A lot of them live like animals and tear the homes up.