All Forum Posts by: Donald Dickerson

I've seen some definitions that exclude your primary residence, but I don't understand why that would be. Maybe someone can explain?

Personally, I like the results I get by including my primary residence. :)

Exactly what is the definition of a Millionaire?

Net worth, but does that include the net worth you have in your primary residence, or is that excluded?

What are the thoughts of our experts?

That's a good idea too. I do have a clause stating that they must contact me regarding any repairs, but I may have created some ambiguity.

In my rental agreements, I have a paragraph explaining that they are responsible for the first $100 for simple repairs, (items that I'm not responsible for like AC) or for any repairs that cost less than $100.

It may be a little too open ended, but, my phones are quieter.

What Marcia said. Remember, most rental candidates are not going to have sparkling credit, otherwise, they probably would be homeowners and not renters.

Start with the big Five; 1 - Roof 2 - Foundation 3 - Plumbing 4 - Electrical 5 - HVAC 6 - Pests (Termites) not part of the big five, but one I always look for any evidence

Usually when I consider whether to sell or not to sell, I ask what can I do with the money if I sell? Can I reinvest it for a higher profit? Or, can I reinvest the money in a property that will take less of my time and energy while maintaining the same rentinc? 

Always do the math is my 11th Commandment.

My wife's 11th Commandment is never pay full price for anything. 

Together, we do pretty good. :)

You might try registering your rental property with www.rentals.com. To be honest, I've always just stuck a sign in the yard for my advertising and I always get at least 5 to 10 calls a day. If your rental is located on a back street that doesn't have a lot of traffic, you may be able to use a bandit sign on a close by busy street to alert passer byes that a rental is available round the corner, or something like that. It's always worked great for me. 

I know here in Houston there are neighborhoods that are being repurposed by developers which means the high value is now the value of the land only, and not the shack sitting on it. Developers will tear the house down and build high end buildings, homes, MFH, commercial or whatever. Drive the neighborhood and see what is going on. Unless you can swim in the high end trends, swim somewhere else. That's what I do. If you can't find areas you can work in right now, take a break and build up your cash.

It may have already been discussed, so forgive me if I'm redundant. 

Two things:

1 - renter paying off your mortgage shows positive on your spreadsheet, not in your bank account, until the mortgage is paid off, or if you refi or sell. However, a crash can reduce that gain before you receive it. 

2 - As we all know, mortgages are front loaded, so for the first five years, you really are paying mostly interest, and not reducing your principle. So, you have to hold your mortgaged rental property for a longer time to realize its benefit.

You have no control over the markets. Your mortgage can flip upside down while you're sleeping.