I owned three investment properties at this time, and was preparing to buy another. I saw values going up considerably, and thought it might be worthwhile to buy another rental property. Continue reading “My Seventh Investment Property, my first 4-plex”
My Sixth Investment Property and First Sheriffs Sale Purchase
Continue reading “My Sixth Investment Property and First Sheriffs Sale Purchase”
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A Day in the Life … Busy Weekend
The weekend started pretty well. I finished up a few things in the apartment that I was turning over. The tenants were scheduled to arrive at 12 noon, so I had some time to do a virtual tour and a final once over. Continue reading “A Day in the Life … Busy Weekend”
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My Rental Strategy And Property Management
I recently did a guest post for Kim at Eyes On The Dollar. Kim is a private practice Optometrist and a personal financial blogger. She has some great tips for financial independence and getting out of debt. She is not someone who just says “Spend less, pay bill”, she actually experienced the thrill of paying off over $30K worth of credit card debt!
Here is the link to the post regarding my Rental Strategy. I hope you like it.
There are many so called RE investors that pretend to cash flow, and they are not calculating any of the soft expenses. Management, Vacancy and Maintenance are the big three. Maintenance being a thing you can put off, and see profit, but it is in actuality deferred maintenance. I allocate 10% of rents towards maintenance in my budgets, 5% for vacancy, and 7% for management. And I expect ~15% ROI if I make the purchase.
All investors MUST have a rental strategy if they are going to be profitable. My net worth went up considerably after I started investing in rental property, and it continues to climb. My income, already decent, went up by over double.
Read More at: Rental Strategy And Property Management
Please let me know what you think of it.
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A Day in the Life … Apartment Turn
I have been working on an apartment turn over the past couple of weeks. The previous tenants moved out on 3/3, new tenants are moving in on 3/15. Only a twelve-day vacancy period. So, with 24 units I own, we are 100% full again. This is what a typical apartment turn might be like, for an average renter. Continue reading “A Day in the Life … Apartment Turn”
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Avoiding Lockouts and Keeping Track of Keys
One way to reduce tenant lockouts is to have a deadbolt with a key, not a locking door knob. Change the actual door knob to a hall /closet knob. One without a lock. The security is provided by the deadbolt, you do not need two key-able locks. That way, you can only get locked out if you had the keys when you left.
Continue reading “Avoiding Lockouts and Keeping Track of Keys”
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Finding the Right Price for your Rental?
When you look around on Craig’s or other places, you often see higher rents than what you are charging. Your temptation is to raise the rent on your existing good tenants. Or you want to advertise at a higher price. What is the right price for your Rental Continue reading “Finding the Right Price for your Rental?”
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Allocation Budget for Maintenance
Every property needs maintenance, you must understand how to budget for maintenance. The renter’s damage deposit is for just that, damages. It is not for routine maintenance, It is not for wear and tear. Things like carpet replacement when it has reached its depreciated lifespan, appliances, painting, cleaning, new windows, kitchen cabinets, new roof, etc. Continue reading “Allocation Budget for Maintenance”
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Lowering the Rent vs. Lowering the Deposit to Attract Quality Tenants
Sometimes, we think we have to attract quality tenants in unconventional ways. Many people have no money. After showing your unit many times, you do not think anyone has any money. Some people have lower income levels. Some people lack the ability to save, and a landlord wants to “get them in”, so they lower the tenant’s entry hurdle or security deposit. This is a mistake that will almost always come back to haunt you. You have a hard time renting your unit, and you finally have a tenant willing to move in. The only issue is, they do not have enough money to move in. They probably do not have a high credit score either. Continue reading “Lowering the Rent vs. Lowering the Deposit to Attract Quality Tenants”
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Low Rents Attract Trash
Low rents. The fact of the matter is, the lower your rent is, the more affordable it is to sub-par renters, or trash. You will attract them in droves at a low price. But the flip side to that is you also attract more good renters. Good renters are always looking for a bargain; good renters that know their financial limits, good renters do not want to live paycheck to paycheck just paying rent. Good renters know what they want, and will not pay a penny more. Good renters may even want to negotiate a bit, just to make sure they are getting the best price. Continue reading “Low Rents Attract Trash”
