All Forum Posts by: Billy Daniel

Is anyone else seeing a weakening in the rental market?  I have vacancies on the rise and new tenants seem to be few and far between.  I know several markets have been experiencing this for some time, but our market is usually fairly resilient.  What are you seeing?

First off, get a second or third opinion.  Call your own company, not just the recommended company from your PM.  

Second, look at converting to all electric.  It will still be expensive (especially if your heater is gas), but may be cheaper than updating all the gas lines buried in the slab.

Like others have said, start with some self education.  "Rich Dad, Poor Dad" is probably the best place to start like @Tracy Ross mentioned.  After that, visit the BP bookstore where there are many books geared towards beginners.

Don't forget to add some podcasts to your commute!  BP also has several different ones for your edu-joyment.  Start with the Rookie Podcast (IMO).

Of course, you've already started posting here for help.  Don't forget about that!  When you run into issues, make a post and ask for advice.  Always take it with a grain of salt, though.  Just because something worked for one person doesn't mean it will work for the next.

Hey @Casey Jones! Welcome to BP! I'm in Russellville, AR and own a couple properties in Ft Smith, so maybe we can meet up sometime! I recommend you check out the River Valley Navigators there in Ft Smith. It's a monthly REIA meetup. I go to them every now and then we I can make it. There is also a good one in Fayetteville led by @Ryan Blackstone and I lead one here in Russellville.  Hope to see you around!

Join us on 10/10 as we have a local CPA discuss taxes and how they relate to real estate investments.  It's sure to be an informative and educational event!  Did I mention the food and drinks?  Hope to see you there!

The flapper is a normal wear and tear thing that you would be responsible for.  I probably would have handled the disposal thing the same way you did.  Inform them in writing (via email/text) that bones and other harmful things should not be placed in the disposal.  That way, when it happens again, you have proof that you warned them and would likely be able to make them pay for the repairs.

Hey Nora!  As a landlord, you are generally responsible for mechanical repairs.  This would include plumbing, HVAC, electrical, and appliances.  Depending on your lease, your tenants may be responsible for landscaping and pest control.  According to the Arkansas Real Estate Commission, you are required to provide:

Hot and cold water, electricity, potable drinking water, adequate sewer and plumbing, functioning roof and walls, and functioning heating and air (if installed prior to signing a lease).  

Therefore, anything that prevents any of those items would be your responsibility.  As always, consult with an attorney for specifics about your situation.  Hope this helps!

I don't provide laundry machines simply due to the maintenance and repair costs that are associated with them.  That being said, I spend next to nothing on my personal laundry machines so I'm not sure how much risk is involved in providing them.  Granted I probably take better care of them than a tenant would.

Definitely charge a higher rent if you are providing more amenities.  Just a $25/month increase can pay off over the course of a long lease.

I think it's important to consider your personal goals and current positioning before you read too much into this post.  Buying with positive cash flow is always the best solution.  While the current market makes this tough, the positive cash flow is out there.  Sure, more seasoned and experienced investors could handle a negative cash flow, but the majority of novice investors can't.  There are too many factors to consider that the investor has no control over.  What if prices go down?  What if the HVAC goes bust?  What if your tenants flood the kitchen?

Be smart and get really good at due diligence!

Have you ever taken on a large project like a fix and flip before? Maybe a major rehab on your rental? HML can get very expensive if things don't go exactly to plan. Unless you have a very good network of contractors and a solid understanding of the construction/marketing process, there may be other options.

Have you looked into commercial loans? They require a larger down payment (access your equity), but they allow you to finance your rehab costs. Rates will be better than HML as well, most likely. For the record, I think HML can be a great option. It just concerns me when I see someone looking for them without a strong understanding of the flipping process.