I read a lot of real estate books, I studied a lot on bigger pockets, I have family members who have done ok in real estate and its something I always knew, I wanted to get into. Before I started my real estate adventure.. But you know what they say, you can read as many books on swimming as you can, but you will never know how to swim unless you jump into the water.. I'm almost 5 yrs in and have became a tired landlord.. And 2018 is a Murphy's law yr for me.. A little about my background before I tell you about 2018.. I'm a merchant marine, I work about 9 months a yr overseas doing military supply.. and earn a not great money but around 57,000 a yr on average last 8 yrs.. 2014 I bought my first rental property in Pittsburgh P.A.. fixer upper paid 20,000 cash and estimated 15,000 came right in on budget.. B- neighborhood lots of rentals, lots of owner occupied little Sec8 neighborhood.. Everything that I expected starting out, learning to screen, applications, blah, blah, blah..1st yr and a half had to do an eviction went smooth, got another tenant 2 months in left the state and just disappeared left all there stuff behind.. Currently I have an almost 3 yr tenant.. Rents for 725.. Always pays late but always pays.. I've learned to deal with it.. A yr later after saving and going back to work I decide Its time to buy another.. Bought a duplex in a C- neighborhood probably 40 to 50% Sec8 but not a war zone at all.. Bought it off of Homesearch won the auction site unseen for 23,000, go to see the house and estimated 25000 worth of work to get rent ready..spent about 25 to 27000 on the rehab, so right on budget.. paid cash borrowed 20,000 personal loan from bank. And 5000 from family member.. biggest negative on this property is utilities are not separated and utilities are included, I spend an average of 350$ a month on utilities.. 1st floor rents for 1015$ second floor rents for 800$.. Also detached garage I use personally for storage that would easily rent for 125$ a month.. This place is actually a homerun cash flow numbers wise.. after utilities, taxes, insurance, capex,etc.. I cash flow over a thousand a month... But it's my biggest headache, turned each apartment over .. both are currently occupied.. 2016 just worked collected rent, paid off some debt, while still trying to save... 2017 hey I'm never going to get rich in real estate if I dont make moves right.. Took awhile to find another duplex cash flow property that I knew would be in my budget.. A friend another investor I know said he has a run down duplex C- neighborhood similar to property above, I had the cash but no money for rehab he sent me about 50 pictures and told me it was rough.. But I was sure I could make it work.. Unfortunately Grandmother death in June was planning on working for 3 more months to save an extra 10 grand, but life happens and you deal with it.. I had to leave work immediately... So after a couple of weeks dealing with the death, I returned to Pittsburgh, and take a look at the property, purchase price 23,000 and it was a little rougher then what I expected.. lots of trash, holes everywhere, nothing salvageable, ( previous squatters)... Even the doors needed replaced you can tell it was broken into multiple times... But I'm confident I can turn this into cash flow property and I did.. Estimated 28 to 30 thousand.. And didnt estimate enough.. Probably put about 37 to 39 into it.. And about 35,000 of that was on a credit card.. But it is over rehabbed for the neighborhood.. New kitchens, baths, floors, it is 100% the nicest house on the block.. Not that says much..And I am getting max rent for the neighborhood.. typical 3 bedroom in neighborhood goes for about 700, I'm getting 775, the 2 bedroom is very small, about 600sq feet. Average in neighborhood about 550, I'm getting 650.. Does prove if you make a place really nice, people will pay.. My 2018 actually started around November 2017.. Things are tight, I'm working, Im collecting rent, I'm paying off debt, etc, Im making it and I know Im broke but I have assets.. I have the deeds to my 2 duplexes, and half duplex.. The second property I bought, I knew it needed a new roof, but I was trying to put it off as long as possible.. multiple layers of shingles and some missing.. blah, blah, blah.. November 2017 was as long as possible tenant calls during storm my apartment is raining, I send my maintenance guy over asap, and tells me the roof is done.. No panic we will take care of it.. Early November last yr Pittsburgh was getting a lot more rain then normal.. I have contractor who I worked with in the past, gave him a 2 grand deposit and went sideways on me, said he would start next week, a month later keeps telling me he will be there excuse after excuse told him I need my money and refused and stopped answering calls.. I post on a local real estate network Facebook site looking for recommendations for a roofer Asap.. Get a referral, guy seemed energetic, my maintenance man met with him at another job site he was on.. So everything seemed up and up, said he needed 3000$ deposit said he would start Jan 15th and this was Sometime late December.. Jan 15th came weather was not ideal mid January in Pittsburgh.. No show.. I call said hes finishing up a job and he will be there in a few days.. I get it.. A week goes by nothing, call with excuse after excuse. Meanwhile tenant calls Sec8. ( Only place I have rented Sec 8 )... And they stop payment.. Out 1015 a month rental income.. I explain my situation on a local forum and a roofer reached out willing to work with me on another 3000 down, 3000 after completion and 4000 on a post dated check a month later... Roof finally gets done around the end of March.. Ok let's get back on track here.. May same property tenant calls and says she has slow drains in her tub and bathroom sink, no big deal right??? Not exactly I send my plumber over and says it needs this, that and the other, and quotes a ridiculously high price in my opinion.. That doesn't sound right.. I need a second opinion another plumber same thing.. 4 different estimates saying between 2350 and 2600$$.. Really this cant be happening right now.. Alright let's get it done I pay for it on credit of course... I need to get back on track, etc, etc.. 3rd property has been rented for a yr 2 bedroom unit.. Tenant does not pay for June, its usually mailed gets there between 5th and 7th pretty much on time for the whole yr she has been there.. The 10th comes no rent??? My guy gives her a call and says what's going on??? I moved... What do you mean you moved??? My husband lost his job and I didnt want to get behind on the rent so I moved.. keep the security deposit.. That's not how it works, but what can I really do she moved already.. I have showings Monday.. So needless to say this yr has been a real struggle.. And I'm a tired landlord, I still have a passion and still want to do real estate.. I have taxes coming up that I cant afford to pay.. I'm about to go on leave from my job in a month.. I think I want to sell everything right now.. Market value on the 3 properties is around 50, 80, and 70 thousand.. So I do have some questions from more experienced then me.. What would you do,stick it out??? Sell??? Here are my numbers.. 200 thousand in property.. Owned outright... 20 thousand credit card debt, 16000 on one personal loan, 7500 on another, and 8000 on another a little over 50 thousand total debt about on about 8 grand in cash 30 thousand in TSP account (basically 401k)... Credit score around 690 I just want to start over...... (Fyi did take both contractors to court and won, but who knows if I'll ever see my money).. I just not prepared for another big capex expense.....
