All Forum Posts by: Dwight Simpson

I'm looking for some solid areas in Florida that will offer some cash flow in the 150k-250k range. I would rather them be multi families but could settle for a single if the deal made sense. Also if someone could refer any good realtors that have experience and knowledge in the rental investment space that would be great. 

Alright so, I have a 3/3 double that I’ve been literally having issue after issue. This is my first rental property btw, so I’ve been learning a lot through the process. Although this situation here I need to get some advice from you more experienced landlords. 

So first I’ll start off with my tenants. The lower unit has been in the house since May of last year and pays on time every month with the exception of his 3 month jail stint where he went MIA with no means of communication in the heart of an eviction momentorium. Luckily I got a call from him basically updating me on his situation and him honoring his past due rent letting me know he will catch on it. So he did catch up on it and everything has been nice and smooth. Until recently he gives me a call and tells me that he has a roommate and she will be paying me her portion of the rent. So I immediately call him and let him know that he is the one responsible for the rent. On top of that he is subletting my house without my permission. I got to the bottom of it and apparently she has been there for a couple months and now she doesn’t want to pay “her” portion. Not my problem and that’s what I’ve told the tenant. Since then I’ve told the tenant that he is responsible for the entire rent and I’ve gotten no response from him.

Alright so the tenant upstairs is a want to be home owner. Thinks she can make repairs on her own and then throw them in my face when something isn’t working in her favor. There has been numerous repairs that I’ve had to make on the house since owning it. In December I had to get a sun pump and drain lines drilled that cost me a little over 8k. She held rents from me for an entire month until the install date. Also threatened me that she would call lawyers etc. That set me back huge and I still got to hear the banter about how they feel I don’t take care of my house. In which I always handle things as soon as they call me and I figure out what’s going on. So that eased things for a while until I get pictures of the ducts hanging down from the basement. In which it almost looks like somebody pulled them apart but I can’t 100% call it. So she complains about the heat not coming out etc . Downstair guy says that his heat blows fine. Cool, so I get a company to come out to see what’s going on. They tell me I need new duct work in the basement and also return vents. They also tell my customer that there is asbestos wrapped around the ducts. So that just set her into a frenzy. 

Fast forward to after all the quotes, with the removal of the asbestos and new duct work I’m looking at just under 15k for everything. I’m fine with taking care of repairs but I feel like this is an great opportunity to start fresh and get some new tenants. Thru this whole process I’ve gotten threatened by lawyers etc and I do nothing but try and remedy the situation. For example regarding the heat I offered the lady upstairs $150 off the rent and to send her several space heaters since she said the heater wasn’t blowing hard due to the install company not being able to come out within a month.

My only fear is that I do all these repairs and they still create more problems for me. On top of that I haven’t received any rent for this month. I need some serious advice, please help me out BG fam, Thank you!

Hello all!I am moving to Tampa to be a real estate agent and I’m in the process of going thru the online courses. I just got my prints in the system. So i’m on my way to being licensed! I posted here to ask for advice for anyone in the area. Also what should I expect my first few months being in real estate? Financially, mentally etc.

Any advice would be appreciated!

Thank you all for the kind words of encouragement! 

@Joe Livsey I am self managing it as its not a hassle at all and has been keeping me on top of things. I don't believe I can refi yet due to it being an FHA. That someone I will have to look into next

@Timothy Smith I didn't have to put anything into upper. When I purchased the unit the upper was already remodelled and its in the south buffalo area.

So this was my first experience in owning a home, renovations, leasing, evicting etc. Lol I literally got hit with everything on my first project but I can say I learned a lot. I would like to thank @Matthew Irish-Jones for being the spark to the fire of getting this journey started for me.

So May 2018 I was able to secure a FHA loan at 3.5% down for a home up to 150k. Once I got the news I took full advantage of it and made sure I got the right realtor to work with that has experience in analyzing properties. Thats when I met Matt on BP and we viewed numerous properties in a span of 4-5 months. Finally found a property that worked out for what I want to do.(Buy and Hold) The upper was renovated already and the lower had a tenant in it. They were only getting 650 a month and it needed some big updates to get it cash flowing where I wanted. So I close on the house and first month comes the lower tenant doesn't pay rent. So I start researching eviction process on BP lol. Started doing notices following local law and luckily it was a quick eviction. They were out by the end of the month. Started renovations immediately with a friend and it was just too much with my work schedule. Hired a contractor to come in and do the work. I ended up getting a great deal on labor. 5 Months later we are all done !

THE NUMBERS

Purchase Price- 135,999

Down Payment- 11,208

Lower Renovation Cost (Supplies,Appl,Labor) - 8,955

Upper Rent - 1150

Lower Rent - 1250

Mortgage Payment (Prop Tax & Homeowners Insurance) - 890.30

UPPER PICS

https://imgur.com/a/bpkXmWL

LOWER AFTER EVICTION

https://imgur.com/a/yos4Si3

LOWER AFTER RENOVATIONS

https://imgur.com/a/69OFrAa

I've learned so much after this going into my next deal. But needless to say I completed my first buy and rehab at the age of 20. It was overwhelming at times but we got it done! Also please give me some feedback on my numbers.

I am actually expected to be done Tuesday. Been a 6 month process including evictions and renovations. So I'm stoked to finally have this one done haha.

Congrats man! I know your happy to be done lol. I'm currently wrapping up renovations from my 1st currently, can't wait to be done!

Hey I am an investor here in the area I am relatively new to the scene as well. Buffalo is a great market to be in as you can find a lot of cash flowing properties depending on your strategy. @Matthew Irish-Jones was very helpful in educating me with knowledge of the market and also in analysing a deal that fit my goals. 

 That was some solid knowledge! I myself am 20 and beat myself up with not being were i want. Or trying to be ahead of the 8 ball. Overtime I have learned that you can beat yourself up to much and thats the ambition in me. (Always wanting to do better). 

Back on topic:

You have to live in the moment, not in the future. First you have to figure out if that's what you really want. Being young I can admit I have made a lot of spontaneous decisions that came back to haunt me. (ex: buying 35k and a 40k vehicle at 19. Although I had it financially it was not a smart decision for me due to one of them being a sports car that almost took my life.) You have to step out of your body and figure out what is really bothering you. Why do you feel not feel happy with your life? Sounds like you still have your parents supporting you. I would use that to your advantage. There are many jobs other than real estate that can bring in a lot of cash. I currently work at a car dealership and make 72k+ a year. Real estate agents work ALOT! Time is a valuable asset to me. So if the money isn't adding up to the amount of time I'm putting in. (Unless there is a long term goal, I'm not sacrificing my time for it). I would try check out other job opportunities because it seems like your more int it for the income. You can get the knowledge from books. Books teach soo much information! I have real estate friends that I learn from all the time. I would never want to be in there shoes lol. They work there butts off but that's what they like. At the end of the day this is my opinion and you have to come to a decision of whats best for YOU. I wish you the best man!

So still no contact from tenant. I delivered the non payment of rent 14 day notice letter to them yesterday. So we'll see how this goes. Hopefully they'll just up and leave. Thanks for all the feedback and support BP fam!