All Forum Posts by: Clifford Paul

When I bought my first ranch I got a donkey. I told my agent she should use the slogan "free *** with purchase of new home " LOL 

Years ago we had a larger duplex with commercial type AC's on the roof. First unit finally gave up and could no longer be repaired because parts were no longer available.  

We paid $200 deductible and warranty company paid $12,500 to replace. Second unit died a year later, same outcome we paid $200 deductible and warranty company paid $12,000 to replace unit.  Unfortunately that warranty company sold out to a larger national company. But I would call it a success story in our case anyway.  

I have had other success with water heaters but the real test will be when the next AC dies. 

Congratulations! Looks like a great investment.  

Where's your expense?

Insurance 

Rehab 

Capex

Maintenance 

Property management 

Vaccines 

?

We get $450 per dog.  It's a fee not a deposit, deposits must be returned.  

No one will ever ask for your driver's license when you use a property manager.  Heck they won't even ask for your CO. 

"Buy land, they're not making it anymore".

Mark Twain

My last hoarder house took 17, 30 yard dumpsters and 2 large box trucks from goodwill. Plus I filled up 3 city 5 yard dumpsters about 150 times. Hired an auction company for what could be sold. Hauled 2 loads of junk to the junkyard. 

Purchase: $20,000

$4,000 to seller 

$16,000 back taxes

Closing costs: $600

Remodel: $78,000 includes cost of dumpsters, new everything.  Taken to the studs. 

Cash invested: $98,600 subtract $2,300 I recieved from auction and $1,200 from 2 trips to the junk yard. 

All in: $95,100

Current market value: $287,500

This house is solid B neighborhood only rents for $1295 a month because house is pretty unique because it's 1430 sq ft but only 1 bedroom 1.5 bathroom. Has a second 700 sq ft house that we let my brother in law live in. He does maintenance and yardwork for rent. 

Rent: $1,295

PM: - $129

Insurance: $80

Property taxes: $125

Water bill: $65

Capex, maintenance, vaccines: 15%: $195

Cash flow: $701

This lady was the craziest person I ever met. Find out what your neighbor needs and make an offer. Worst case scenario he never talks to you again. 

You only have 2 properties, the bigger question is why do you feel you need an LLC? Is it because every 3rd post on BP is I'm getting into real estate how do I set up a LLC? Just get a umbrella policy and rent your house. Not that you can't get sued but I have been doing this for 36 years and have never been sued. Will I get sued before I die, well maybe but not likely because my properties are keep in immaculate shape and my property manager is better at screening tenants than most. The best thing about experience is if I lost it all tomorrow by next year I'll be a millionaire again.

Money and deals are easy to find right now, what's not to love about the current market.