All Forum Posts by: Valerie Reed

You might find that the more expensive duplexes are in better areas, in better condition and command higher rents. Generally, those are the reasons that I would choose a more expensive duplex over a less expensive one.

If quality low income housing is something you would like to provide, it may help to check with the city or county development office. Some cities get federal and/or state money to provide toward low income housing. That money is usually allotted in either the form of a grant or forgivable loan. I just read about a city a few hours from where I work that didn't grant all of the money they were allocated because there weren't enough applicants. There was more than $200k left in the pool of grant money. Now that I know about it, I'm applying for the next round. Things like this can allow you to make your investment, help people, earn a profit and provide jobs.

I just heard a news story about a young homeless man in San Diego who is living on the streets now because he lost his fourplex due to civil forfeiture. The reporter was interviewing someone who was telling this young man's story. Before this he was a student with dreams of becoming a lawyer and he worked and bought a fourplex, living in one and renting the other three. One of his tenants was dealing meth. Police raided and arrested the meth dealer and took possession of the fourplex under civil forfeiture. The young man was unable to get his fourplex back and is living on the streets. 

@Carey Edmund - Thanks for posting this! I'm going to have to contact my friends in Brazil to see if they have any real estate investment opportunities. 

YES, this is so important! Just a few hours ago I wrote a brief message explaining that I was interested in buying multi-family real estate (duplex, triplex, fourplex, small apartment complex or mobile home park) and that if they could put me in contact with anyone they knew who wanted to sell such a property. I sent the message to 25 friends. Within 1 hour, yes, just 1 hour, I had 10 replies with assurances to spread the word for me. Two gave me contact information for two multi-family property investors they know. One is contacting her inlaws who have multi-family properties and may want to sell. Another, told me that she's been "eyeing" a small apartment complex in her town but never thought of actually buying it. I told her to get me the address and I would get the owner info. from the assessor's office, contact the owner and ask if they wanna sell. Then I told her that if I was able to find a good deal we could arrange a joint venture. She said, that would be great, she never thought of that and is now walking over to get the address for me. And, one of my contacts replied with, "Do you want to buy my triplex?" I didn't know he had one that he wanted to sell and now we are chatting about rent, maintenance costs, seller financing, vacancies and such.

I was really surprised at these responses but I'm so inspired! 

Thanks for sharing your experience and the details in the other thread. It's inspiring! 

@Luke Williams

Thanks! That flooring is vinyl plank commercial grade and its floating so we saved a lot on installation.

Thanks everyone, @Bruce @Will Pritchett & @Raymond B. I couldn't get the @function to work consistently. Yes, I've learned so much from Bigger Pockets but I had to take the leap and I'm glad I did. I really do believe I learned from past challenges, mine and those of others and I'm sure there will be more mistakes to learn from but I'm happy that I kept at it.

@Andrey Y. - Yes, I've got plenty of pics and they are posted below - including the bling.

Some of the things we already had and removed, touched up and reused, like the wooden stained base boards, appliances, vertical blinds (fixed with a $5 repair kit). The black light fixture and the track lighting was from the ReStore.  The flooring I got at 5% above cost plus shipping from a friend who owns a flooring store. My husband and I did most of the work but we hired flooring installers from Craigslist. We also got a lot of materials from Amazon, like the kitchen sink, shower door repair kit, shower drain repair cover, and cabinet hinges. My husband tore out the old counter top and built the plywood/backerboard underlay and I did the tile work. The mulch in the back patio area was free from the city. My husband says it was a fun refurbish and he wants me to buy another one so we can do it again.

Several years ago I bought a condo in San Diego county California. I lived in the condo for years, took money out for other investments and such. Then I decided that I didn't want to live in the condo and that I should rent it out. Because I work full time, have a part-time makeup business and travel a lot it It took two years to get the condo empty and prepared for refurbishing. I budgeted $6k for the refurbish. The entire time I was preparing people around me said things like:
"You can't get enough rent to cover all of your expenses and you won't be in the black."
"You can't get that much for your condo because there are others that are cheaper in the same complex." And finally, "You can't rent anything during the holiday season."

I learned so much from Bigger Pockets contributors and these are some of the things I did to avoid the pitfalls and warnings that came in the form of "You can't." First, I looked at other condos for rent in my area and apartments nearby. I took notes on their "key features" and designed a refurbish that would make mine look distinctively different, classy and modern but within budget. That meant rather than new granite counter tops I used custom tile and a mosaic back-splash, rather than new stainless steal appliances I kept the old appliances, had them repaired and cleaned them until they looked like new, rather than new kitchen cabinets, we painted the old ones to match the rest of the condo and added fancy new knobs and hinges. Everything from the flooring to the lighting was different than all the other cheaper condos for rent in my complex. I even bought new welcome mats for the front and back door and left 'home sweet home' signs out. I figured that if it was different enough it would stand out and someone would want to pay more for it.

To find good renters I found a good property manager. I looked at four different companies and settled on one. The reason I chose this one was because what she thought my condo could rent for was in line with what I wanted, while she aknowledged that it was high for the area she also thought it was worth a shot (others wanted to rent lower because they thought it would rent faster), she assured me that she could rent it in 30 days or less, she returned calls and email messages promptly and her fee was mid-range when compared to the others. She listed the rental on December 18th and found a qualified renter who signed a one year lease and took possession on December 31st.

As it turned out the family that rented my condo looked at the other cheaper units in my complex and they said they liked mine better and it was worth more money to them. I'm so excited that everything has worked out and I'm optimistic that these tenants will be great long term tenants. And, not only are all of my expenses covered with this rental, I've got a cash flow rental.

In California I had a tenant who rented from me for eight years and she left because she got married to her 2nd husband and he wanted to live in a newer home. She said, had she not gotten married she would have stayed in there until she passed away. She was a great tenant and I've rented her my home in Hawaii for vacations as well. She is gainfully employed in law enforcement, was quite reliable and had owned a home in the past, with her first husband. But, that turned out to be a traumatic experience. Her first husband took out a 2nd mortgage without her knowledge, even though he was not on title, she lost the house to foreclosure and ended up living in a camper in a friend's horse pasture with her 7 year old son. It took her a few years to get back on her feet and she never wanted to own a home after that. She is the perfect long term tenant.

I have another friend who rents a two bedroom apartment in Long Beach, Ca for $4,000.00 a month. She could easily buy house or condo but she prefers the freedom of being able to leave easily if she wants, even if she never does. She also used to work for a mortgage company back in the 80s and saw what could happen when mortgages are upside down across the nation and she doesn't want to be part of that system. Now, she has lived in the same Long Beach apartment for 10 years and loves it. If I could I'd rent to her so fast your head would spin.

I've given Sees Candy gift certificates, which I can usually buy at half price if I get more than 5 at a time. And, even people who are anti-candy like them because they are easy to re-gift. And, you can choose what you want as long as it's 1lb. They even have sugar free candy (for diabetics) and chocolate free candy (for people with kidney problems). I've given Starbucks gift cards that have scenes printed on them that are specific to an area, like Hawaii. I get a lot of good feedback on those and people tell me that's the one Starbucks card they keep and refill. I've also given Home Depot gift cards to real estate agents (not tenants). And, it's not just a holiday season thing. I usually do it in the summer because that's when I have time.