All Forum Posts by: Brian Washburn

After 6 months, 50+ properties analyzed, 10+ property tours, and 2 offers, I am finally under contract to buy my first rental property in Omaha, NE! A 3BR/1BA in Midtown near UNMC and the VA hospital.

While I feel like I have learned a ton about finding deals, I am starting from scratch on how to find tenants, how to screen them, what little things to include in a lease, how to run credit checks, etc! Other than reading one of Brandon Turner's books, I am looking for advice in the following areas:

- Good sources of rental apps and leases (NE is not available through BP yet)

- Non-standard items to include in a lease or app that can be a real lifesaver (pest control, charges for clogged drains, etc)

- Free/cheap/effective places to post my listings besides FB and Craigslist

- How do I run credit checks for applicants?

- Tips for collecting rent (Can I use PayPal / Venmo for convenience and avoid paper mail?)

- Other things a 1st-time landlord needs to know but does not think about.
 

 Thanks in advance for all of your input!

Hoping to spark some new activity on this thread instead of starting from scratch.

I am considering one of these ductless systems for heating and air in Omaha, NE for a duplex (one system for each unit). Any midwest investors used them with our hot summers and cold winters? How does the heat side perform? Would you recommend ductless over having central heat/air installed?

Have you itemized out the rehab costs somewhere else, or are you just estimating $40K total? I have found that when I make a ballpark estimate, then go through and actually enter things line by line I tend to get completely different estimates. Sometimes the total comes out way less than I originally thought, and sometimes more. Either way, its good to know.

Disclaimer: I do not even own a property yet (currently in negotiation on my first one) but I would go to Home Depot and get a jug of that DIY bug spray and go apply it around the property (about $20). I would leave the rest of the jug with them and tell them they need to re-apply every 3-6 months or as needed. If that is not sufficient, they can hire an exterminator and pay for it themselves. I would then make sure to put something about pest control in future leases.

Since I am so new to this, do you experienced guys have any issues with that approach?

@Jonathan Freeman, I just found the Nebraska Landlord/tenant laws. From what I can see, I would have a right to evict them for their unlawful possession of controlled substances, not that I am planning to do that at this point. I also have no obligation to renew their lease when it ends in August, as long as I give at least 30 days notice that I want them out when their lease ends.

Yes, attorneys will be very necessary either way.

I am currently working on purchasing my first rental property and it has tenants living in it with a lease through the end of August. The tenants have said that they want to renew their lease for another year, but when we went to look at this property they left bongs, pipes and torches laying in plain view. One bedroom smelled like it had weed hidden all throughout it. They are very messy and have clutter laying all over the place. 

I like that the house has tenants for the first few months I own it so I don't have to worry about finding someone right away, but I do not want to renew these guys come August. I know I need to educate myself on Nebraska tenant laws, but my question for now is:

Do I have the right as the owner to just give them 60-day notice and tell them I am not interested in renewing their lease and they have to go in August? Are there any laws that would force me to let them stay? I also want to raise the rent by about $300/mo (it is currently way under market). Is there anything that would legally block me from doing that?

Finally, what is the best resource you have found for educating yourself on landlord/tenant laws?

Wow. Reading through all 3 pages of this thread has been a real education as I prepare to buy my first rental property. To summarize, here are some of my key takeaways:

- Popcorn ceilings are not worth the hassle of removing yourself. Hire it out.

- Check Valves are a good thing

- Don't hire cheap, unlicensed contractors

- When you hire help, lock up your tools/supplies

- Security cameras and alarm systems are probably a good idea

- Micromanage your contractors. Watch them closely or you will pay

- Never pay for work up-front

I will try to remember all of these and not repeat them!

@David Neese HAHA "Bathroom Experiment" is the perfect way to describe this basement. The listing says it is a 2BA, but the basement bathroom is a toilet in an unfinished section of the basement, and then a basin sink that's not hooked up to any water source, with a plastic tube for a drain that goes into what appears to be a shower drain. My hope is that we can turn it into a real bath with the existing plumbing since that is the most expensive part.

Thanks all for your input.

I have toured the house. The home actually has a furnace that looks about 15-20 years old, and a water heater that was new in 2014. The breaker box looks to be updated fairly recently and has breakers, not screw in fuses. There only appears to be about 4 or 5 circuits for the whole house. There is also a bathroom on the main floor, though it needs to be gutted and redone from scratch.

We actually made an offer that was contingent on inspection and the seller rejected it. Now they have told us we can have an inspection first, then decide if we want to offer again. But they have said they will not factor any fixes into our offer and the inspection will not be an excuse for us to back out of the deal (which I guess is okay since we are having the inspection BEFORE we decide to make an offer). So my only risk is that I spend $400 and then decide I don't want the house.

I am a new investor in the Omaha, NE area with my eye on a 3BR 2BA in midtown. Numbers all look good, but being my first purchase I want to have an inspection done to make sure I'm not buying a money pit (home was built in the 1930's). We submitted an offer contingent on inspection and the seller rejected it, saying we can get an inspection, but the home is being sold "as-is" with no repairs covered. The house has been on the market for ~4 months and had 3 price reductions, which is a real red flag considering homes in this price range are selling in 24-48 hours.

This makes me feel like the seller knows there are major issues with the house, and wants me to buy without inspecting. I am at a crossroads. Do I pay the $3-400 for an inspection before making a counteroffer, or move on and keep looking for other properties?

Experienced investors, I need your advice!