All Forum Posts by: Paul J.

I've used a great office in South Pasadena the last few years, check out www.mytaxstrategies.com, they have been very helpful to me in the past and took time to chat with me before my first RE Investment purchase this past July.

I am paying $225 per season, which includes the driveway, sidewalk, and the walkway from the drive to the porch.

This is my first season with this company and so far they seem to be doing a good job, they work in Oakland County though so not sure if they would hit Redford.

I sent you a message, I have a handyman there that would be glad to take photos and give it a quick once-over look. He's currently working on my rehab on the east side of Pontiac so probably not too far away from the property you are looking at...

I was thinking about doing the same thing (limited thermostat), until folks brought up the fact that they can be defeated with a bag of ice or cold wet washcloth. I have since decided to get an additional meter installed and seperate the gas services. My tenants are on month-to-month so 30 days should do it.

It has also been brought up that in certain states, a system called RUBS can be used - My understanding is that it is basically is a 3rd party company that analyzes the square footage and occupancy of the units, then breaks down the bill by projected usage and bills the residents individually.

Hey everyone,

I thought I would start a thread to try and collect everyone's experiences on the best/most effective ways you have cut your expenses on your landlording business.

I'm brainstorming on the expense side this evening, and I'd be interested in hearing turn-around stories from properties you have purchased, tips or tricks you apply to your individual properties, or any other broader concepts that have helped you control the expense side of your investments.

I just purchased my first duplex in July and am currently renovating one of the units. I started my journey by negotiating seller financing at 3.5%, so that was a good start!

So far in my very short journey I have:

* Installed low-flow shower heads.

* Caulked and weatherstripped around all exterior doors/windows, and even replaced one that was in that bad of shape. We also resealed old holes from cable TV & Telephone wire entry.

*Changed landlord insurance companies to save ~$15 per month.


On my to-do list for the rehab are:

* Separating the natural gas service and metering each unit individually, so that all future leases will not include the expense of heat. I will also be installing storm windows and having the furnaces serviced. I expect to reduce the rents by an amount that accounts for 75-80% of the current gas bill, with the other 20-25% to be found in both the tenants using the heat more efficiently and in better weather sealing and replacement storm windows.

* Replacing all bulbs with CFL and including a replacement costs for any missing/non-op bulbs in the lease. My two apartments currently use about $150 per month in electricity.

* Checking in with my utilities to see what other rebates or services may be available, especially in light of the fact that my property is in a lower-income area.


What other ways have you been able to reduce your expenses on on your rental properties?

Hey thanks again everyone for your advice. We got court 1 week after giving the tenant 7-day notice, they did not show, and today we would have gotten the writ of eviction but the tenant moved anyhow. Not sure what her angle was, however she is now gone a solid 3 weeks earlier than she had been if I had followed my original plan. Thanks everybody for the advice, I guess my 'first rodeo' is now in the books. Time to rehab and re-lease...

And this is really interesting - someone flew a R/C drone thru the property, this is very much like what the property looked like when I toured in in the spring. I wonder if the mystery Texas investor has any idea what the property really looks like,,,

http://www.youtube.com/watch?v=hvTwY6tPf4k&feature=youtu.be

http://www.detroitnews.com/article/20131029/METRO01/310290122/Statement-from-winning-bidder-Packard-Plant-raises-concern?odyssey=tab%7Ctopnews%7Ctext%7CFRONTPAGE

http://detroit.curbed.com/archives/2013/10/packard-plan-derelict-factory-to-manufacture-modular-home.php

They apparently want to use the space to manufacture modular homes...

Thanks for the ideas. Another obvious one is an alarm system - while any of the major alarm companies insist on a contract, there are others that will allow you to purchase the equipment and install it yourself, then pay for monitoring service via cellular phone a-la carte. Further, there are do-it-yourself kits available that let you insert your own SIM card into the alarm and set it to dial a certain number of numbers so really, you could just monitor it yourself. With this type of setup, you can purchase one alarm and move it from property to property as they become vacant.

I have also seen folks board windows up from the inside as well, sometimes using old pallets, as to keep things secure but a little more aesthetic from the outside. It won't prevent window damage, but it will keep folks out or otherwise impede entry and keeps the place from looking as vacant from the outside.