All Forum Posts by: David Krulac

The first apartments I rented as the owner, were previously rented by the former owner at $150 month including utilities.  My big bold move was to rent them at $150 month with tenants paying for heat and electric.  I owned for 37 years, raised the rent many times, and later sold for 6X what I paid.  Zillow says the estimated current rent is $940, which I think is low.  I have some similar apartments that I rent for around $1,100. 

One year we appealed the assessmnet on 65 of our properties.  We did all the research and comps ourself and did not hire either an appraiser or an attorney.  I went to every one of the 65 hearings myself and got 61 properties lower and 4 remaining the same.  Of those four, two were lowered in a subsequent appeal.  You need to review the assessment record for your property as there may be errors.  One property the square footage was high because they assumed both florrs were same size and they were not.  Another property assessment included another home that had been demoed/removed before we bought the property.  Another one had a detached garage that was not on the property.  Another single family house had two front doors and they assumed it was 2 units, it was not.  There have been errors in the land size.  I recently worte here on BP about an "8 acre" lots that was really 1.8 acres, and another lot that was listed at 1.6 acrea and was really 0.6 acres.

@Jonathan Small  I have owned both for many years.  Tenants prefer detached housing over attached housing and stay longer.  I've had tenants stay longer than 30 years.  Additionally house tenants bring more of their own appliance, like refrigerator, washer and dryer; which means tenants are responsible for repair and replacement of their own appliances.  If there are existing aplliances left by former tenants or former owners, my lease says that I'm not responsible for repair or replacement of those appliances.  I've even had tenats bring their own range, but usually that's included in the lease as are dishwashers.  No window air conditioners or freezers are ever included in the lease.

 Additonally house tenants take care of lawn maintenance and snow removal, and pay all utilitites.  We have had duplexes with shared water, sewer, and trash billing, as well as shared driveways.

The long term tenants act more like owner occupants, planting flowers, etc. and in some cases neighbors think that they are the owners.  One tenant stayed 13 years until their youngest child graduated, then moved.  Almost all of our SF rentals are in owner occupants neighborhoods.  On some streets we're the only rentals, and you would be hard pressed to identify the rentals.  On one street of 20 house we had the only 4 rentals.  On another street of 22 houses we had the only 2 rentals.  So we are in ownder occupied neighborhoods.  We look for good school systems, low crime and desirable neighborhoods.

I'd check local zoning ordinances to see what is permitted.  Maybe a garage conversion is permitted maybe not.

@Bob Asad

I like the individual sub account method escrow account, but there are multiple different ways to hold security deposits and multiple laws in different states.

@Ryan K. By a professional estimate I mean having a contractor bid the work, not just me estimating the jobs.  I expect a free estimate from a contrator who possibly would be doing the actual work.  And I may get multiple bids for the same work, like multiple paint bids, multiple roof bids, multiple flooring bids, etc.

There seems to be a mis-understanding about what ESCROW accounts are.  There are NO minimium balances.  When the tenant moves out and the funds are distributed either to the tenant or the landlord for damages, then the subaccount for that specific tenant has a zero balance and that subaccount is closed.  Each subaccount is for a seperate tenant with THEIR unique SSN.  Its not my account, its not my SSN and its not my money up and until the end of that tenants occupancy and the funds revert to them or to the landlord for damages.  We also have a different ESCROW account that holds the deposits for buyers purchasing our listed properties.  Those funds are not mine until there is a sales settlment, or default or refund to the buyer.  Its not my money.  And all the tenants' security deposits and all the buyers'Earnest Money Deposits don't need my asset protection, as they are not my funds, and are certainly not covered by any of our Umbrella Insurance Policies. 

@Treza Edwards  your original question may answer itself when you say there is not much new construction going on.  That does not sound like a good market for new construction if nobody else is doing it there.  Also you seem to be motivated to build since you already have these lots.  already having the lots is not enought reson to build.  I've owned hundreds of lots and built on very few.  Why not test the market by putting the lots up for sale, and if nobody bites, that might provide your answer.  Are there other lots for sale?  How many days on Market?  What price and why have they not sold?  For me to build I would want to see recent comps of sales for the finished project you are planning.  No comps, no build, but that's just me!

Been to Victorville and Barstow.  That aside, If it were me I'd get a professional estimate of what repairs would cost, and make the decision to keep or sell based on that.  I recently bought an estate property that was vacant for 6 years.  I offered a price based on repair costs and a sale price they could get if they fixed it up (retail).  They decided they wanted the walkaway do nothing price.  The house had the utilities turned off for the 6 years, and was filled with the original 1 owner's furniture, clothes, appliances, car and ecn food in the frig (without elctric on for 6 years).  I took it all, relieving the estate of doing any work. There was a quarter stick of butter in the frig with the papaer still on it, and it looked normal.  A worker asked me if how it tasted.  Told him I have a rule never east anything out of a frig with the electric off for 6 years!

@Dina Schmid  We has a situation where the seller of the property was an estate and listed the property as being 8 acres.  Early in my career, and being a city boy, it still didn't seem right to me.  We wrote the contract on a "per acre" price assuming 8 acres contingent upon a survey.  To fulfill the contract the Seller needed to pay for the survey, which resulted in a size of 1.8 acres.  I don't think the estate was being decietful, but their dearly departed originally di have 8 acres but sold off parts along the way resulting in a net of 1.8 acres.  Also assessment never picked up those multiple sales and the parcel was being taxed at 8 acres.  After purchase the assessment office was given the survey and quickly reduced the acreage for taxation to 1.8 acres also.  In another purchase we bought a property at Sheriff Sale that was listed as 1.6 acres. By doing research we discovered that 1.0 acres was sold off in the 1960s and never caught by the assesment office, so the tax bills were too high for 40 years.  I asked for a retroactive refund plus interest for the 40 years of over taxation.  They laughed.