All Forum Posts by: Gabe G.

They are suppose to make their profit off the fee they charge for doing nothing each month, their lease up fee.

Repairs, should be done at their cost.

I don't know the condition the house was left in.

However, those prices are out of wack, are they really charging you 50 dollars to install one lightbulb? 45 dollars to pop in another air filter, when air filters cost about 3-5 dollars?

That's a perfect example, of why you don't have a property manager until you can't avoid it.  They take 10 percent, plus a lease fee, and then overcharge you on the repairs. The cost of those repairs are nuts(unless the house is demolished) And it would be enough for me to end my contract with that company.

Currently. I have been figuring on 10 percent for repairs/maintenance  and 10 percent towards capex. Currently, I am using 5 percent for vacancy, since vacancy has been low the last few years.

Then when buying into a deal I shoot for 15-18 percent for taxes/insurance.

I self manage currently so, I expect my long term operating expenses to be around 40-42 percent.

Year in, year out, I have been doing better than that. But haven't had any "huge" capex expenditures really.

@Nick Ferguson  I would wait until the payment is good and cleared. Then return the amount to her.

It was definitely her mistake. But it happens. If she wanted me to reimburse her for overdraft fees, I would tell her to fly a kite.

@Jay Hinrichs  I may of made a generalization. It would be incorrect for me to say that, "all" realtors provide little or no value. However, from a prospective as an investor, who already knows the good and bad areas of a city, and already knows how to run comps and look at rents for the area. Most realtors provide little value in my experience. And the small amount of value they do offer is not themselves bringing me deals or providing insight, it comes from the data that they have that is not available in one easy spot for people who aren't licensed.   Even more a residential home owner. Most of the information realtors provide can easily be found on google(crime map, prices of houses for sale in the same area) etc.   Really the realtor, is letting them in the house to look around, and when they choose a house to buy, writing a basic contract up and submitting to the listing agent.  Yes I understand there are a few more things involved, and yes I understand that sometimes realtors have to show someone 20 houses, and the people don't even buy one from them. But from a value added standpoint, there really isn't much there.    But I would agree I am sure there are some great realtors out there, that are extremely intelligent, investor minded, and bring deals to their investors. These would be the people that I could see adding value. However, after going through many realtors, I don't find these to be very prevalent .  What would I call myself?  Ha.  I am a hard working middle class schmoe, that works a 9-5 and tries to accumulate properties that will add additional income and networth along the way.  

@Redgy Saint-Germain  In general realtors serve very little purpose. But they continue to hold onto their monopoly getting paid for doing very little.  Some are good and have great experience and knowledge. But this is a select few.   Sounds like he is just lazy and not appreciating the past business you have brought him. I would find another realtor to deal with.

Abestos is everywhere in homes built in the 70s and earlier.

Like you said it's fine, as long as you aren't demolishing something and putting it out in the air.

With that also said, most of the people that actually got sick from abestos, were people working with  itfree in the air, day in and day out for decades. The risk is properly overstated.

However, since you are in California, that probably has some bs law on the book.  I might offer her an exit out of her lease, with 30 days notice. She seems like she is going to be one of those tenants that are more of a problem, than they are worth.

California is going to be higher due to labor costs.

But in Indiana. My last one, was 430 with 40 gallon gas water heater from lowes, with parts/new connections.

150 for handyman to install.  580-600 installed, is currently what I am trying to pay.

Follow up question.

These appliance repair places really get you.

They are quoting 174. to replace the oven light switch.

That is coming out diagnosing it, and then coming back and installing it.

Since I see the part quoted online at 15-20 bucks.

Does this seem reasonable?

@Anthony Gayden

No I could not self manage 100 units. However, that is not my goal.

20 would the absolute max I would consider self managing, considering I still have a full time job.

If they tried to screw you 1000 on a repair. They will try and screw you on other ways. Which means you will have to get every moderate size repair quoted, to make sure they aren't screwing you.  I agree in your situation it might not be a reason to self manage, but to look for another property manager. However, I hear this is how most property managers run their business, so good luck with that.