Kinda Crazy Thought?

Kinda Crazy Thought?

Investor · Cedar Rapids, IA · Member since 2013 · 46 posts · 12 votes

Hey BP. I've been spending some time analyzing my costs, and as I begin to make the switch to living off of my real estate income, I'm looking at ways to make more or save more. Currently I own two apartment buildings, a strip mall, and a number of houses. I am actively buying more properties, and believe I'll be buying 2 - 3 more apartment buildings this year. They are all in a similar neighborhood, so I'm debating beginning to do the lawn work myself. I don't mind this kind of work, and I have a lot more free time to be doing this. Over the past year, I've been purchasing every tool I could ever need and then some, in order to save money, and now I'm debating buying a nice commercial mower which would pay itself off by the end of this summer. The problem is, then I would need a trailer for my truck, and then I have to decide where to park that trailer.

So that brings me to the big question of, how many of you investors have own a workshop of some kind? I really like commercial properties, and there are a few good deals in town that could get me a nice workshop with room for all of my tools, extra things for the rental properties, and now possibly keep some landscaping options. Like a lot of you, I troll craigslist for extra fridges, stoves, etc and when a good deal comes up on tile, doors, or normal things I go through a lot, I stock up on them. Just in what I save in landscaping would be enough to pay for my workshop, and would also build long term equity with mortgage paydown, and give me a nice tax writeoff in the meantime. I'm already at 10 properties, and see no reason I won't be at 20 - 25 in the next two years or so, which will then make it almost necessary to have a storage place. Last but not least, I see some value in keeping business and personal separate, and currently my rental stuff is overpowering my house and absolutely my garage.

Would love some thoughts!

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  • Rental Property Investor · Sacramento, CA · Member since 2011 · 2k+ posts · 1k+ votes
    13y

    Justin S. have you ever read Michael Gerber's E-Myth? He encourages you to work ON your business not IN your business. Sounds like you're setting yourself up so you'll never be able to take a vacation and things will fall apart if you unfortunately got ill.

    I love the idea of cost savings and I'm always collecting ideas. One of the best ideas I've collected when it comes to lawn care is for you to recruit your neighbors, hire a landscaping company, and work a group discount + management fee so that you're properties are maintained at no cost to you.

  • Investor · Cedar Rapids, IA · Member since 2013 · 46 posts · 12 votes
    13y

    Al Williamson I have read the e-myth series, and that is how I currently have my business set up. Right now, I'm doing almost no day to day work, and I'm kind of bored. Honestly, I enjoy doing a lot of the physical work, and lawn work can be scheduled around vacations very easily. I don't feel like it would affect quality of life for me, and ultimately would give me extra income that would help me pay down properties faster or help expand faster.

    I have property management already in place, I just do most of the repairs and rehabs.

  • Rental Property Investor · Sacramento, CA · Member since 2011 · 2k+ posts · 1k+ votes
    13y

    Justin S. in that case, I ratify your idea of increasing your enjoyment while drawing financial freedom closer. In fact, I'm a little envious!

  • Investor · Southeast, MI · Member since 2012 · 2k+ posts · 1k+ votes
    13y

    I used to have a storage problem. My garage at home was full of stuff for my business. Once I had kids and they have bikes and toys, I really needed the space back.

    One of my rental houses is on a corner and has a driveway in front. There is a second driveway that comes off the side street that leads to a two car garage. When one of my former tenants moved out, I decided that the next tenant would not get the garage. It has worked out great. The current tenant has access to the front driveway, but not the side driveway. It's not the best neighborhood, so I refer to it as my "ghetto garage".

    One of my friends helped me build shelves in there and it is full of appliances, lumber, doors, etc. I keep my utility trailer there also. Anytime I see a good deal on something, I load up and store it in my ghetto garage. For example, HD had light fixtures in a four pack for $24. I bought all of them and stuck them in there. I was at Sam's Club one day and they had two packs of fire extinguishers for $20. I bought all of them.

    I'm not a fan of mowing lawns. I hire that out, but you can never have too much storage. I know a landlord that has 45 houses and does all of the work himself. He has five garages for storage. One is full of appliances. One has a sewer machine and plumbing supplies. One has hardwood floor sanders.

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