All Forum Posts by: Brad L.

I think the real problem here is that your property manager doesn't seem to know for certain. This is a pretty common issue, you'd think they'd be well-versed on it. Here in Wisconsin, I do not rent to smokers period. I don't know how it works in other states, but smokers are not a protected class here.

REI just isn't for everyone, and if 3 properties are stressing you out then adding 8-12 units will only add to that stress exponentially. You should sit down and really think about whether or not you're willing to put in the hours to make it work, if you should sell and purchase properties that cash flow with a property manager or if you should sell and just reinvest in the stock market. There's nothing wrong with going in any of these directions.

From my experience the 4+ unit buildings are much more demanding than single-family homes and duplexes, I suppose unless the 8-12 unit buildings you're looking at are new. I manage our 27 units by myself, have a full-time job, am full-time in grad school and have plenty of time to spend with my wife and 9 month-old. It can be done, but you either need to fully commit yourself with the understanding that it's going to be difficult and create efficiencies to make things easier or recognize that you should go a different route. The big thing for you is you have time on your side, only being 23. If you can handle the stress in the short term and get the properties stabilized it will benefit you in the long run. But in this specific situation it does sound like the cash flow is too tight and maybe the properties just don't make sense as rentals.

If you do decide to continue self-managing, your lease is your most powerful tool in creating efficiencies. For example, you shouldn't be receiving calls about clogged drains, you shouldn't be cutting the grass or doing snow removal, you shouldn't be physically collecting rent. These items, and much more, should all be addressed in your lease as tenant responsibilities (varies by market), and I'd even include the name/number for your plumber in the event a clogged drain exceeds the tenant's ability to clear so they can schedule directly. Additionally, you need to be proactive with the property's condition or you will find yourself in a never-ending cycle of "minor" repairs which each take up 30 minutes to an hour at a time. I've found that the constant small repair items are a huge drain and the cause a lot of stress. If you can get ahead of it you will save a ton of time and headaches.

Haven't had any missed rent payments with 27 units. I was proactive though and referred 3 tenants to organizations providing rent assistance.

I have side-by-side duplexes both with basements and on slabs. Prospective tenants for the duplexes on slabs are often disappointed there isn't a basement for them to fill with junk, but I don't have problems filling those units. My duplexes with basements have cost me a decent amount of money for waterproofing and foundation repair, but I built those items into the purchase price on the front so it's not a big deal.

All that to say, if you buy right it doesn't matter which way you go.

@Marco G. Sorry, I thought you were the original poster. I stated that my bathroom was unfortunately significantly more than $3k

@Marco G. It’s all marble, the floor and walls.

Now that I see yours is a rental, I’d just swap out the mirror, paint the vent, new light fixture, maybe new faucets, paint existing vanity.

If tile is too dingy to clean it’ll likely be a long & messy road for you if you’re doing the work yourself, so definitely at least attempt to clean first.

Is it as clean in person as it looks in the photos? The main problem with old bathrooms, at least for me, is that all that tile typically looks super dingy. If it's clean, I'd leave everything. It can be a can of worms to start demoing that and if it fits with the rest of the house it does actually look good. I did a full demo on a 1931 bathroom and there was 2 inches of concrete underneath the floor tile and wall tile, and it was impossible to remove any tile without having to also remove the concrete. Huge headache and wish I'd have left the floor intact.

I would paint the vent to color match the wall tile, then I'd put in a top of the line pedestal sink that has counter space (see Kohler Tresham pedestal sink K-2845-1-0 for example). Definitely a new mirror, maybe something with some unique shape and not just rectangular. Gold hardware? Other than that just make everything as clean as possible.

TLDR: I like your bathroom, if it's clean just make changes to the finishing touches and vanity.

This is what I did (photo taken before finishing touches) but unfortunately it was way more than $3k. We did use champagne bronze for the shower head, handle and sink faucet as it matched the metallic hexagons in the floor. Going with something other than basic chrome would go a long way in your bathroom.

I know you manage a ton of properties and you obviously know what you're talking about, but that's not the case in my market. Every duplex owner I know has tenants doing lawncare & snow removal. I have tenants doing lawncare & snow removal in all of our duplexes. Let's just agree to disagree and like most things say it's market specific.

@Mark S. I’ve never done a flip so that’s good to know, but regardless taxes do need to be accounted for in the calculation

Don't forget about capital gains taxes in your calculations