FROM PROBLEM TO BLESSING: $300/month rent increase 5 days vacant

[Roger Vi]

My 100th post! Not the biggest success story, but my latest problem solved. (Big Announcement at the end!)

Here is the story of how I turned a broken lease into a $300/month rent increase. It really isn't that hard, I am just really proud of the amount of time I was able to do it in. Please enjoy!

3/11: I have a tenant contact me while I'm on vacation saying he needs to move out with 3 months left on his lease. He is already paid for the month of March, so I ask him what is the earliest he can move out. He said 3/21. Next rent is due on the 1st. This unit is pretty ugly, ALL flooring needs to go and nothing has been updated in 25 years. There was also a design flaw in the bathroom I wanted to fix since I bought it, but did not want to take the only shower in the unit away from my tenant for 3 days. So I would go to sleep every night praying this design flaw wouldn't cause more damage than I could handle (windows in shower getting water splashed on it constantly).

3/12: Not wanting to take legal action to chase after 2 months rent, I contact my contractor and see if he has the time to turnover a unit for me ASAP. He was just starting another job, so I had to $weeten the deal to get him to start ASAP. He says he will work extra hard to be able to start my job on the 21st.

3/20: Contractor says he needs 3 more days before he can even begin preparing for the unit. I ask him for one hour of his time to meet me there and go over the entire job. He agrees and we meet, take notes, and create a shopping list.

3/21: Tenant moves out and I start shopping for all supplies for my contractor. All big ticket items (flooring, appliances, toilets, shower) are purchased and ready to pick up at store.

3/23-25: Contractor starts to work. The reason he is my go to guy is because he has the skill to do almost any 2 person job by himself. He is incredible, I've had him do 6 foot+ windows and sliding doors by himself and he does a better job than your typical Lowe's 2 man teams. The best part is he can do EVERYTHING so I just pay him a daily rate for general labor and I don't have to worry about stuff like the window guy nickle and diming me about how the blinds are in the way and he doesn't touch blinds unless you pay him more (true story).

3/26-27: I have my contractor take Easter weekend off. I love hard workers and seeing people hustle, but I also know this guy just came off an 11 day job and went straight to mine for 3 more days. Hes a 10+ hours a day guy and takes the shortest 15 min lunch break (including drive to McDonalds). No cigarettes, no girlfriend phone calls, no other errands to run; this guy is straight work and water. I've done physical labor and 40+ hour a week jobs. I know the nicest and hardest working people can change overnight if you over work them. These two days off were a no-brain-er for me.

3/28: Rental ads are up on the internet and applicants start calling in. We are about 50% done and I used pictures from another rental I renovated a few months back. People call, drive by, and notice the large trailer filled with waste needed to take to the dump. I think this turned them off because I was 0/10 on callers that actually applied.

3/29: I stop giving out addresses and start telling people the unit will be ready to view and move in on the 1st. At this point we are done painting and putting in the new shower. Need to tear out and replace flooring. Then move in new appliances and install the little upgrades like faucets, toilets, shower curtain and what not.

3/31: We pick up the appliances this morning. I still don't have an applicant I like and even if I did, no one has seen the unit. Contractor puts in carpet and we are 95% done. Just a few small items in the morning and we are good to go. I take pictures that night with the new flooring and post a new ad.

4/1: Responses start pouring in for applicants! I am not sure whether it was the pictures or it was Friday or it was the first of the month or a combination of all three! Contractor is done working by the afternoon and removes all the waste from the property that day. All that is left is some cleaning.

4/2: I schedule an open house on Sat/Sun (4/2-3). My wife and I show up 2 hours early to clean the unit. We finish and make it picture perfect for viewings.

4/4: About 7 people applied and I am waiting for a few more to apply in the morning. Some can move in ASAP, some at the end of the month. Luckily one of the better applicants is move in ready.

4/5: I am about to call and tell the applicants they have been approved. I wake up early because I hear that's what successful people do. While waiting for other people to wake up, I reflect on the past 2 weeks and think, "Wow, this would be a perfect 100th post." Tenant had to break lease early, and I end up renovating my least favorite unit and increasing rent $300/month!

Here are some pictures:

BEFORE

AFTER

BiggerPockets has changed my life. I was into real estate before I heard about BP. I was also a terrible landlord/investor before BP; I probably would have experienced 2-3 months vacancy if this scenario happened a year ago. The knowledge on BP has allowed me to organize projects such as this one while working a full time and part time job (5.5 days 45 hours a week not counting commute). The connections I have met on BP have also allowed me to start 2 e-commerce businesses in the past 6 months that have nothing to do with real estate. I project these to perform better than any of my rentals the next 2 years and they are extremely passive, I spend less than an hour a day on them currently.

I just read my 1st BP post from less than 2 years ago. I was asking for advice on a duplex I was looking at that I never purchased. Back then I remember thinking, "How am I going to replace my job with something I would be happy doing."

Fast forward now and I have a checklist for goals I have to reach so that my kid's kid's kid's never have to worry about money. I would never think this was possible 2 years ago. Now it seems to be just a matter of time :)

To celebrate my 100th post, I want BiggerPockets to be the first people to hear my exciting news: I AM GOING TO LEAVE MY DAY JOB AND START LIVING EVERY MINUTE OF MY LIFE EXACTLY HOW I WANT TO!

These last few weeks have really helped me realize that I am financially and mentally ready to pursue my goals full time. I am typing up my 2 weeks tonight and submitting it in the morning. I dropped out of college 7 years ago to work 5-7 days a week at a dead end tip-based job (Casino Dealer, not Exotic Dancer). I just did not see the value of a degree but I saw the value of my paycheck. I am very fortunate to just follow my gut and have things work out the way they did. Quitting my day job feels exactly like when I dropped out of school. Only differences is this time I have an exact plan that I am excited to get started on!

Just want to thank BP one more time. I'm going to listen to a podcast now :)