I NEED A MENTOR! Reorganizing my current investment but don't want deals to pass me by.

[Account Closed]

I currently own a 3 unit multifamily home and undergoing a complete reorganization; new leases, new tennant application process and paperwork, and rehabbing. I found that all of this was necessary after crunching the numbers and realizing how much energy I was losing, for example, by not training my tenants or hiring the plumber that would have saved me days of anguish. I have finally learned my lesson...The hard way. I still need a lot more help to "get out of the woods" so to speak.

I am not profiting on these rentals. They are single and double bedroom apartments; not suited well for a working single permanent situation. The single bedrooms are smaller without washer/dryer hookups and other amenities that attract long term tenants.

I bought this home from a family member (bad idea in my book), and I was uneducated about home values. To make a long story short... I dont believe there is a whole lot of equity in the home to refinance (already spoke with a bank). Perhaps I should sell the property? And buy a better investment? Or keep it and keep pouring money into it, maybe someday I will have positive cash flow? I would like to flip homes at this point in my life, and accrue enough capital to purchase and hold investment properties to help my retirement. I just want to know if I'm taking the safest and smartest steps.

Can bird dogging be lucrative? I see properties around that would make someone rich, (If i had the cash to fix and flip it would be me getting rich). Do people make a living bird dogging?

I want real estate investing to be a full time job for me. So many questions....so little time.

[John Chapman]

@Account Closed , it sounds like you are basically paying your landlording/investing dues. You made a bad investment (which we've all done) and are having management issues (which we've all had). When I bought my first fourplex, I got my butt kicked by my tenants for about a year and had to put a bunch of money into it. (By way of example, I had a tenant who's kids were deliberately flushing unused tampons down to toilet to clog my sewer line.) I really wanted to quit, but I stuck with it and am glad I did. It left a bitter taste for a while, but it made me a better landlord. I'm better at screening and strict, which is how you have to be in this business. From a management perspective, it sounds like you are starting to getting things under control.

As to the quality of your investment, the basic issue is rental price. If your units have less amenities, then you have to charge less. There's just no way around it. (1 bedrooms, as an aside, are notorious for turnover, so I'd be surprised it's lack of amenities.) If you are losing money each month, then you have do something. Do you have much equity in the building?

Your questions seem to me like you're kind of flailing at the moment. You've kind of gotten beaten up, want to stay in real estate, but want to know if there's an easier/better way. I think you are actually on the right path with buy and hold as it's the best way to build long term wealth (maybe you ought to switch to SFRs if management headaches are overwhelming at the moment.) I think that if you get through it, take the lessons learned, and refocus, you will likely see some real success. (One way or the other, as you've learned, you are going to pay for your education in real estate.)

You talk about flipping or wholesaling or birddogging, which are all fine, but what you need to focus on (without really worrying about what you will do next) is stabilizing your current investment and/or getting out of it. Those techniques are all incredibly time-consuming and are basically jobs. I think learning to be a good landlord will serve you far better in the long run. (Hope this post does not come across as too preachy or anything.)