If you wish you had one skill....

[Account Closed]

Okay here's the deal. I'm looking to invest in my first buy and hold property very soon and expand from there. I work as a nurse and I like what I do, it pays the bills, I have excellent job security and I can literally pick up and go ANYWHERE I want! Eventually I want to build up enough of a portfolio that I can transition out of nursing or maybe only need to work part time as a nurse and work more hands on with my investments. I'm fairly handy- I've done everything from laying flooring and carpeting, tiling, grouting, hanging kitchen cabinets, hanging and finishing drywall, roofs, fences, landscaping, minor electrical and plumbing repairs, etc. I'd like to maybe pick one skill and really perfect it, maybe get certified/licensed, something like electrical, HVAC, etc.

So I ask- what skill set do you really wish you had? or what skill do you have that helps you the most?

[Joe Trometer]

What a great question @Beth Blank.

Okay fellow investors, this is only my opinion from my experience:-)

I chose HVAC and got the accompanying licenses for:

 - Furnace

 - Air Conditioning

 - Gas Piping

 - Duct work

I also have the refrigeration license but never use that one.

Why? It was the only trade (in my state) I couldn't do as a homeowner without a license.

I install a new high efficiency furnace and a/c in all my properties, make sure I point out the value, worry free, energy savings, and benefits when selling or renting.  Average cost is about $1,700 versus $7,000 to $9,000 or more to hire that out.  Adding ductwork to that project for a couple hundred dollars could cost an additional $2k to $3k from a contractor.

Another big savings, I got an estimate for a backup generator needing an added 20-foot gas line run.  Contractor cost = $800.  My cost was less than $100. 

When getting that license I had to learn Industrial, Commercial, and Residential applications.  While Industrial and Commercial require several tradesmen and huge equipment, residential is smaller, weighs much less than a refrigerator, so it can easily be a 1-person project.

As for repairs, my neighbor just paid $700 for a fan motor replacement.  That motor costs about $110. He was stuck without heat in the winter - he had to pay!

Another great benefit available with the HVAC license is the ability to run a small local business to friends and neighbors - bigger if you want, but, in my opinion, heating and cooling are emergency needs when they fail.

Note: Pluming: a sewer back up is an emergency need, but many times a rented snake can clear that.  Leaks, well, many a handy-person can fix those.  To be cautious, inspect main drains with a camera-snake before you buy and save or negotiate usually about $10k for a replacement or less for sleeving.

Electrical would be my second choice.  I do more electrical to update old houses, replacement for circuits without grounding wires, and added circuits for convenience.

I just paid $1,000 for an electrical service upgrade from screw in fuses to a breaker panel.  Since it was a rental, I wasn't allowed to pull my own permit like I could if it was my primary residence...  From there, if I needed to add a circuit or 2, well, I don't need a license to buy everything I needed from the home improvement stores (unlike buying a furnace or a/c unit).

A long time ago before I new how-to, I hired an electrician to add one circuit; it cost $175 for about $15 in parts, and he left me with drywall repairs where he opened up the walls for access.  What if I needed several new circuits?

Similar to the HVAC license, a Plumbing or Electrical contractors licensing course will be teaching the Industrial and Commercial applications, plus the theory, including the entire electrical grid and the origination in history for power creation for electrical, and similar history and infrastructure for plumbing.

Requirements:  8000 hours of on the job training, or 6000 hours with a 2 year degree, and if I recall correctly, a Bachelors degree in the chosen field allows you to write for the license without the 4-years of on the job training... that was 25 years ago in Michigan for HAVC, not sure what the requirements are today.

Now then, this is because I enjoy do-it-myself home rehabbing and investing.

I can usually get the job done faster than I can get 3 estimates and wait to be scheduled by a contractor to show up and do the work.

Do-it-myself investing has allowed me to reduce risk of cost over-runs, weather the real estate crashes, reduce debt, but mostly because I enjoy the work.  

My feeling is, when I take all the effort to find a great home investment deal close to my home, why give away the work I enjoy doing.  This way I don't have to run a business, do free estimates, try to collect and please customers, have a full scale marketing system, or employees.  All my work is in one place!  - that's just me though:-)

Okay, hope this helps you out some Beth.

An Aside:

Not to be compared with investors who hire everything out that don't enjoy the do-it-yourself style of investing.

There's no right or wrong way investing in real estate as long as you're profitable, right?

For me, (I tried it), as an off sight real estate investor; it was more about managing and scheduling contractors, a marketing program for a continued supply of investment properties, raising additional working capitol, and lots of office work.  As I get older, to stay in the game, I'll probably have to go back to that method.

- Cheers to All here on BP!