All Forum Posts by: Gail W.

It's interesting that the majority of people responding who are investors are saying "responsiveness" while the agents seem to be downplaying "responsiveness" and emphasizing other qualities, mainly experience.

My vote is also responsiveness, because if there is no response or slow response we may not even get started.

     I am not a PM but I have run a business. When I started out as a HVAC contractor my thought was that I would set my rates lower than the competitors, and in this way I would score more work. So I set my rates lower than XYZ Heating and Air, and what I quickly discovered was that I was getting all of the customers that XYZ didn't want, because of no pay or slow pay or they were just jerks. To make matters worse the good customers read my reduction in rates as my company is not as good as XYZ so we charge less. So I end up working more for less, for less desirable customers, and thought less of by potential customers. 

     The answer to this problem was to raise my rates to stay right with my competition, while adding value by small gestures that customers appreciate, and always be the most timely and dependable in my market.

     I would never reduce my rates it is an affront to my reputation, but always add whatever I can in value. If a customer does not see the value I probably don't want their business anyway.

I have bought used appliances in all of my rentals and had no issues yet. I bought them from a local store that picks up the trade ins from the big box stores and refurbishes them. I would not install a dishwasher in my places too much trouble that I can see coming in a rental. 

Also If I were buying new I would go to local appliance stores because of the personal attention and service after the sale. I think many people believe that Lowes, HD, etc. offer appliances at greatly reduced pricing compared to local stores, which I have simply not found to be the case. However all things in this business are region specific.  

@Justin Sheppard

Here in our area average quality land is going for $4200-$4800 per acre. That would be ground producing corn at150 bushel per acre average. Just a few miles North I have seen ground going for $9000-$11000 per acre.

I get cash rent, my contract calls for me to add lime as needed. That is the only maintenance cost I have. The tenant mows ditches and maintains the fence row.

@John Erlanger

There are quite a few people who own land in my area from several hundred miles away. There was a man who came down from Chicago in a white limousine a couple of times a year to look at his property in the area. As far as low demand I have to disagree. I have only needed to find a new tenant once on a piece I owned for 20 years, and the other two properties when I bought them, and all three times I had multiple offers. The one I took was with the tenant who farmed the first piece so he had all 3 farms at one time.  

My investments are in 3 small towns about 15 minutes apart. All three towns are completely different markets. I agree with @Travis Tannahill as far as appreciation being very slow or non existent depending on the market. The last place I bought I gave less than $14000 for and I am just finishing the rehab, I will be all in at around $24000. It will rent for $525. Thats what it takes to make money here in the boonies, and they are not that easy to find.

I have owned Farmland for 34 years.You really can't compare this type investment to residential, especially by the 1% rule. I have never used the 1% rule when looking to buy farmland but the farm I am holding now is at .46%. The great thing about farms is that tenants, at least here in my area are very easy to find, and they tend to take the farm for life as long as you are happy with the arrangement. I have never needed to look for a tenant/farmer they will contact me. The bad thing is you should not expect a positive cash flow for as long as you have a mortgage on the property. I could talk all day about land as an investment, if you have specific questions message me.

@John Teachout

There is a small town not far from where I live name of "Gays" 

Mini splits would be the way I would go. The heat pump function will work until the temperature gets down to about 20 then electric resistance heaters take over. You have the advantage of having AC in the summer time too.

@Shiloh Lundahl

First off congratulations on your success! I have a couple of questions if you don't mind.

How do you market your houses?

It seems that the screening metrics would be slightly different. Could you share those?

I don't know where that furnace number came from. I thought the rest of the numbers were pretty close though. About $2500-$4000 here.

By the way I can still buy brand new 80% furnaces through my supplier here in southern Illinois.