All Forum Posts by: Blake C.

I just bought a 3/1/1 in Amarillo, TX. All in for 60k. Rent is $895. Not must best deal but this is a pretty standard buy and hold for me. I'm on the app so I don't know how to post a pic, but it's a good clean house from the 1950s. Nothing fancy.

I am in Texas as well. I have rentals in the lower end of the mid-range... $895 a month for a 3/1/1. I put it in the kitchen and bath when a house has peer and beam. I have friends that have used if longer than me and they love it as well. Nothing is as strong as tile but this is the next best thing. If a tenant messes it up, you just place one piece and you fix the problem in a few minutes. That's worth lots. Very little prep work is needed for installs. Yesterday I put it right over 30 year old sheet vinyl and all I had to do was sweep it clean first. No plywood needed here. That's worth a ton to me. It goes down looking more high end than you might think. It's deceptive in a positive way.

Do you look for three times their net or gross income? I have someone I really like that is close but his child-support pushes him under the 3x rule.

Thanks for the replies. One of my units had been converted from gas to electric before I purchased it. I just stuck with it since the stove was in good condition. I didn't totally see the reason behind it, but before I rehabbed this current unit, I wanted to think it through.

Im saying turnover cost time and money... typically more than we like to admit. The advantage of doing an update is it could be an advantage to both the tenant and to me.

I wasn't talking about $100 a month. I was talking about a one time discount.

Im not 100% sure where I stand on the market. I guess its hard to know for sure, but my gut is that I am slightly on the high end when it comes to rents. i don't think i am high enough that they will leave because of that. I try to treat my tenants like customers. I don't just give things away for free or turn my eye to late rent, but I want to keep them loving living at my place. I provide a good product, may be a few surprises like upgrades and a discount for early renewal and everyone stays really happy.

Mostly I was wondering if I am the only one that thinks like this or not. Typically I hear investors thinking about limiting expenses. My thoughts here would be to spend a little on customer appreciation to keep the revenue stream flowing.

I have middle income tenants in one of my properties. Overall, they have been good tenants. Clearly tenant turnover is costly (repairs, vanacy, work I have to do to fix it and show it). Have you ever considered giving a discount to having a tenant sign on to a new lease early? Their lease expires April 1st and I thought about giving them some kind of discount or incentive for signing back on a few months early.

I realize that the biggest reason why someone stays is if they like it, feel like its a value, and can afford it. By giving a $100 discount or doing some minor updates to keep them loving my place, I could save myself $1500-2000 in potential turnover costs. Or I could do nothing and hope for the best!

I have lower middle class rentals in Texas (rents around $900 for 3 Bedrooms). I am wondering if anyone has found that it is smart to convert gas stoves in old homes to electric. It seems that electric is easier to use and potentially less dangerous (no open flames or leaks). I realize that electic has its potential hazards we well, but it seems less. Anyone have advice here?

I am about to rehab another unit that will need a new stove. If I am going to covert, now would be the time.

I think you want to be careful to check into some of the more hidden high item costs like electrical issues, incoming and outgoing plumbing... Especially the connections to the main. Often wholesales aren't lying, but they just don't know of the true condition of these items because of their short history with the property. This isn't really different than other situations, but to me it applies to wholesale situations more often.

While diversification is good and important, it is also import to "invest in what you know." Im not sure where you found this magic 7 number, but personally, I would rather be a little less diversified and count of a strong understanding of a few different industries to allow me to be in the best of the best investments in each field I am in. Currently, I have a 401k of stocks, rental property, and a book publishing business about a topic I am passionate about (kinda of a hobby) thats al fairly passive. As I grow as a investor, I might look to add one or two different vehicles for investment, I am going to focus more on finding excellent investments that I KNOW are excellent, than just diversification.

MF deals tend to be mostly about cash flow. Do you know how much cash it will through off each monthly after doing a conservative estimate for taxes, insurance, vacancy and repairs.

While you estimate that she is charging $100 over market for rent, have you figured out why? Is she actually keeping it rented? Do the duplexes offer a slightly better location, school, or amenity that "comps" don't? Is she experiencing a higher turnover because of this? All good things to think about.