All Forum Posts by: David Cruice

@Jacob K. is spot on: "[Ramsey's] methodology is helpful to people who have a lot of consumer debt (credit cards, personal loans, etc), but not all that applicable to real estate investors". (Q) What's going to be your return-on-equity once you've paid off your house? (A) 0%! You have all that money sitting there doing nothing. Better to set yourself up with a HELOC use it for down payments on investment properties. You can then use the new cash flow to pay down your HELOC (should you so choose).

Agree.  No one manages your money better than you.  There's also no better way to learn the business from the inside out. Plus it can be a great source of deal flow!

You can just right it off to experience.  Or, like me, you can file an action in Small Claims Court.  You'll most probably get a default judgment against him.  Once you have that, inform him via text you have the judgment and tell him you're going to be recording it with the county so the judgment will hit his credit  report.  This may get his attention and he MIGHT make some offer to come to an agreement with you and paying you some money.  However, it's highly unlikely this will happen.  Karma is a b-atch! 

Good info. for new and seasoned investors alike, with the latter may be looking for new markets to move into (especially if you're in CA, CO, TX, or NY).  Some interesting secondary and tertiary markets such as Lakeland, FL and McAllen, TX.  https://www.forbes.com/sites/ingowinzer/2018/09/14/25-best-markets-for-rental-property-investment/#7110f7fb7cb7

Ben, an excellent post by @Doug Shapiro .  Rent Manager and Yardi Breeze are good PM systems.  If you haven't done so already, teach your contractors/handymen how to use their smartphones to their advantage to better communicate with you.  Whatsapp is a fantastic app for sharing vidoes, pictures, and voice messages.  You can also use it to communicate with your VAs, no matter where they are in the world.  Also, consider paying them via a payment app such as Google Pay or Venmo.  They'll love you for it.  Contractors love working for clients who pay them the quickest.

Very limited ROI. In this day and age, central AC is considered a commodity item. And will most probably add to your tenant's utility cost since most of them aren't very smart when it comes to efficiently run an AC. However, check with your local electric company, water company, and city and county. Some of them have excellent incentive/rebate programs on insulation, water conservation, ACs, etc.

Simply go to your local Building Department and ask to speak to their Chief Engineer or someone else in their Engineering Department.  It will also help if you can take some video and pictures of the problem.  If the Building Department doesn't seem too keen on addressing the issue speak to your local City Councillor and, if necessary, the Mayor's office.  You might just find that both of the stormwater drains just need a good clean (sort of like when your bathroom drain gets clocked with all that sticky, guey hair that needs to be pulled out from time to time).  Best of luck.

@Jim K. I'm guessing from your post that you're a VERY experienced landlord!  That made me laugh!  All the best.

Ask your PM for his opinion on the situation.  If he's any good he'll have seen this before or will know someone who has.  You should be able to terminate the lease based on the fact that the unit is uninhabitable for an extended period of time.  Offer the tenant "cash for keys" (say $500 to start), plus his security deposit, to take a hike.  He'll most probably go for it or something a little bit higher. 

Hi @Karina Torres are you asking about your credit vs. your income, about mentors, or both?  Your first step should be to watch this podcast How to Become “Set for Life” with Scott Trench | BP Podcast 223:  https://www.biggerpockets.com/show223  Personally, I think you're a bit new to the game to be looking for a mentor.  Take some time to learn about the business via BP (the forums and podcasts) then when you're ready to do a deal then consider getting together with a mentor.  Don't waste your money on mentors who want to be paid for their services.  Good to your local REIC meetings and connect with local investors for coffee and lunch.  Good luck.