All Forum Posts by: Ben Smalley

• How many properties and how long have you had them? \
  • 10 units for 3 years (added to over the years)
• How are you maintaining your property (ies)?
  • I manage them myself from California (or Europe) with the help of a few local people I found and hired. 
• Are you cashflow positive? (rent income covers expenses, mortgage, and more)I a
  • Yes

I agree that there are not many great PMs in Cleveland so I started my own. Still very small but being in SF and working in tech I am able to manage everything remotely with very few headaches and be cash flow positive. DM if you want to chat more. 

Best, 

Ben

Hey Nic, 

Did you already check out Cleveland? By far the best rental / cash flow market of the three you mentioned. Cincinnati and Columbus have more appreciation but you're going to pay for it. Cleveland has a very low price point of entry and high rents. Let me know if you want more information on areas or need a PM or Realtor. 

Agree with Thomas. I am completely indifferent to the actual property. If the numbers work and the tenants are great then I am happy. You should love this property. If you hate it, I will take it, sounds like a dream :)

If you are interested in REI and want to learn a lot then manage it yourself. I started when I was 29, old compared to you, and had the same consideration. I am so glad I decided to try it myself because I have learned a ton and if you decide the tenants don't respect you and you don't like it you can always hire a property management company.

- How do you handle your security deposit? Do you use it for fixing the damages during the tenants stay?

You should have a move-in and move-out checklist so that you can compare the move-in condition to how it is on move out and there is a record of it. Do not use it to fix damages during their stay. If you have to fix something that was their fault, fix it and bill them. If it is routine maintenance then it would fall to you but depends on the lease

- When the tenant leaves and demands security deposit back, how do you handle this?

Inform them (nicely) that you have 30 days to return the deposit. As part of the move-out form you should collect their forwarding address so you know where to send the check.

- In PA, I can hold for up to 30 days, should I use the security deposit to assess damages and wear&tear, then give them the remaining?

Yes. Take the whole time but ensure the mail (I send certified) is stamped before the 30 days is up. After you do your move out walkthrough there could be something else you didn't catch that will cost money so make sure you use the time allotted to you. 

Example: Woman with 5 kids just moved out after 2 years, carpets are destroyed, it’s not normal wear and tear, I got a 1.2k security deposit. My damages to cover with the new carpet with be 800.00

should I give her partial deposit back? Should I hold it up to my 30 days before I even think of giving anything back?

Partial. Carpets are not very tenant friendly. Are there hardwoods underneath? If so leave the hardwoods so you don't always have to replace carpets. 

Why are you replacing it? I have 8 rental units in Cleveland and all have knob and tube. It's old but not necessarily a problem. I would guess 80-90% of houses still have it. The only issue I have had was an attic light going out due to a bad conduit. 

In California where I live now knob and tube is still allowed by code so it isn't all bad.