All Forum Posts by: Doug Karkow

I'd be very interested as well!

@Thomas Fosnaugh You're timing is perfect! I'm looking for a few appliances for my rentals! I'll shoot you a PM to see how to contact you. Thanks!

Does anyone have a feel for the vacancy rates in Monticello, Iowa? Particularly one bedroom apartments? Thanks in advance for your help!

@Edward B. I agree - technology is making sub-metering cheaper and easier, and more and more owners may view is as a cost effective way to increase their NOI.

@Andy Petzold This is great to hear, Andy! Especially from a local property manager! A part of me was suspicious that the average tenant wouldn't balk at the additional utility expense since I imagine most will simply focus on the base rent. Perhaps it's due to laziness in truly comparing comparable rentals, or perhaps it's because the expense information isn't readily available for some rentals. Either way, It sounds like it's worth investigating the costs of implementing sub-meters a little further. 

@Lane Kawaoka I will have to check with the local utility provider on this. The tenants currently pay for their own electricity, so I wouldn't have imagined that water would be an issue, but maybe different utilities come with different credit requirements. But, I'm a firm believer that there's always a solution. Perhaps unqualified tenants could pre-pay utilities with rent while I handle their water bill. It would require some additional thought, but it seems to be worth digging further into! And I'll be sure to connect!

I own a few 4-plexes near Cedar Rapids, IA. Rents are in the ~$550 range and the tenants pay for their own electricity. I understand and appreciate the concept of sub-metering or RUBS, but I wonder how effective these tactics would be on lower income rentals. My concern is that tenants looking for a $550 apartment won't love the idea of paying for additional utilities, so they may look elsewhere. Does anyone have any experience (good or bad) or advice with implementing one of these systems on lower rent range apartments?

Hi BP community! I'm a buy & hold investor in the Marion, IA area. Does anyone have a good electrician and/or plumber they'd be willing to refer? I'm looking for reliable contractors (aren't we all?) and long-term relationships to help service my growing portfolio! Thanks in advance for any referrals!

@Jose Leon III Becoming a landlord for the first time will always put you on a learning curve, there's no way around it. But that's how you learn, right? Better now, early in your investing career than to never know how to do it! I do have plenty of experience placing tenants myself, and I simply market on Craigslist and Zillow. I do my tenant applications (free), background/credit checks ($40, the applicant pays), and eventual rent collection (free if tenant links their bank account) through Cozy. You don't need anything besides those three websites to get started placing tenants. Just set your criteria (credit score, gross income, pets/no pets, smoking/no smoking, etc.) and compare applicants side-by-side to find the best one.

For your first deal, I would rely on the professionals! Again, realtors and lenders are free for you as the buyer, and they'll handle all the closing arrangements (title work, etc.). They can also be an excellent source for second opinions if you don't trust your own assessment yet. 

I also agree with @Jay Kadlec - the home inspection is well worth the cost. Whether you hire an inspector before or after getting under contract is up to you, but you're never going to get a better assessment of a property than from a home inspector. They'll always find things to fix (big or small), and it'll be up to you to decide if they're large enough issues to renegotiate price/terms with the seller. Either way, the inspector will have built your rehab list for you and if you get the property then you won't have any surprises. That rehab list and the peace of mind is well worth $325.

Keep digging!!

Hey @Jose Leon III , and congrats on getting started!

I'm also from Iowa and invest in the Cedar Rapids/Iowa City areas, and I think you should continue looking into this deal! $325 for an inspection does seem reasonable, and after you've done a little bit of legwork to find a lender that will lend to you, I think $325 is well worth the education you'll get from the inspector. And it might result in a good deal! 

Alternatively, if you want to be a little bit more aggressive and perhaps get some free information, you could use the Beacon website that @Christopher Derr linked to, find the deed holder's name (or even the previous seller!), and Google her. I've already done this and her phone number is readily available. Give her a call, ask her why she's selling and what repairs she thinks the house might need. You could even do this before paying the inspector $325 in case she mentions something major that you'd rather not deal with.

To give yourself a bit more margin on the deal, is it possible that you could manage the property yourself? If so, you could save the 8-10% every month and learn even more about the business. One single-family home shouldn't be terribly hard to manage, provided you live close enough to the property to go there occasionally and can place decent tenants.

And I agree with Christopher to be hesitant about properties with only 1 picture, but I would personally take a slightly different perspective on this. The house down the street with 20 pictures was built in 1917, only 7 years older than the one you were looking at. If the inspector finds out a foundation issue, or a roof that needs 10k worth of work, THEN you can punch in those numbers and decide if it's still a good deal. 

Just my two cents, but I love seeing other people's deals and thought processes! Good luck and keep sharing the process with us!

Regards,

Doug

@Brent Coombs That's what I was hoping for - recycling the same pile of cash over and over. I'll have to do more research on the exception, but I hope to try it out soon!

@Account Closed  Good question. My poor answer at this point is that I haven't really considered it until recently. After a little research and familiarity with the process, I think I will try this strategy!

@John Mocker Wow John, very thorough! Thanks for the tips! The duplex was built in 2007, so it won't have some of the issues you mentioned, but the list of coverage items to look for is extremely helpful. Thanks again!

@Lane Kawaoka At this point I haven't received any referrals, so I'll take yours if you don't mind! Better to start there than from nothing! Perhaps you can send me a message with their contact info. Thanks!