All Forum Posts by: Account Closed

For three units, I would not buy a software program because you don't need an abundance of senseless features and integrated garbage that bogs you down. Maybe, tonight, if I have time, I will post a video and post the link to a software that is super simple, effective and free. We use this software for about 150 rental units.

You are correct that propane has an odor. Strange, because I am a plumbing contractor. I work with propane, occasionally, and I even have a vacation home near Las Vegas that has a propane stove, furnace and water heater. I have a motor home with a propane tank and never remember ever smelling propane, but you are correct. The reason I was thinking propane did not have an odor is because the salesman who sold me my motor home told me the motor home has a propane leak detector near the floor because propane was heavier than air and odorless. I was always afraid of my motor home blowing up when I opened the door. Little did he know!

You only need to change the gas orifice on the pipe just before the gas goes to the flame.

You will have to remove the gas valve. The difficult part may be finding the proper orifice. Most cities have stores that sell parts for only appliances.

Your title says you want to convert from propane to gas. Your post states you can buy a used propane dryer???

Personally, I would not use propane in any residence that sleeps 8 to 16 people. I never liked propane because when there is a propane leak the gas is odorless, heavier than air and you find out you have a leak when it is too late. At least, natural gas has a super powerful odor.

The numbers and

ROI looks great.

When I see a house for $20k I can only assume there is something seriously wrong with the location i.e. it is is a war zone, flood zone, or in a rural area with a very small population and you cannot find a tenant.

How many square feet is the house?
What is the income lever in regards to the type of tenants who will be interested in the house?
Are you sure you can get $900 per month?
Why is the price so low?
What is the neighborhood like?
Will you need a gun to collect your rent?
Is the house in the middle of nowhere where nobody is around and nobody wants to live there.

Mastermind Group? "The blind leading the blind". The veteran experienced investors don't need to spend their time going to mastermind groups. As the saying goes, "If you are the smartest person in the room you are in the wrong room".

Go to real estate clubs where you meet experienced investors. Go to clubs with the mindset that you will never purchase one thing that is sold without doing at least 30 days of research going over reviews and discussing what they have to offer with other people on the internet. The scumbags selling their snake oil will always make the same offers over and over. So, don't worry about missing the boat.

I once read that there are 15,000 to 18,000 new laws made every year and that has always amazed me. For every business owner, it has to be mind-boggling and difficult to keep up with and abide by all the new laws because I can't. I've been renting homes and apartments for more than 50 years and every few weeks I learn about new real estate rental laws that I should have know about and was not abiding by.

I don't know what went wrong with my last post, but when raising my rent by 8% for 5 years the profit on my $5 million building in 5 years is $2,633,280. This include the regular cash flow from when I purchased the building, the increased cash flow from increasing the rents 8% every year and the appreciation calculated by multiplying the Gross Multiplier 13 times the 8% increased annual cash flow. This is why I stick with multi-unit properties.

I don't see where rent control is going to make any difference for prices for multi-unit properties even if the current rents are far under the average market. You are 100% correct about fools who are currently paying too much for properties, but a fool is a fool and that has nothing to do with rent control. Those fools are paying the exact same prices, around $300k per door, regardless of the properties being Class A or Class D and regardless of what the maximum that can be charged for rents.

So, don't blame rent control.

When looking for properties to purchase, I don't analyze what the ROI is today. I want to know what the property will look like 1, 5, 10 and 20 years from the time I purchase it. So, rent control is not a problem because an 8% annual rent increase is far more than I ever raised my rents.

Suppose, I purchase a 20-unit apartment building in California and I pay $250k per door, or $5 million.

Suppose, the units are renting for $1600/month. This rent is about $300 to $500 under the current market for 2-bedroom units in the Los Angeles area

Annual gross income at $1600 per month is $384,000

So, when I purchased the building my Gross Multiplies was $5 million divided by $384,000 = 13.02

This Gross Multiplies is super great and shows I paid a low price for the building because in the Torrance area the Gross Multiplier for apartment buildings is 15 to 18.

Now, lets see if rent control is a problem.

I raise the rents by 8%  $384,000 X 8% = $30,720

Now, my annual positive cash flow increased by $30,720. Not bad. In 10 years that is $302,000, but if I raise the rents by 8% every year the increase in my cash flow profit and appreciation will be about $2,633

,280 

Here is the better part.

When I raised my rent by only 8% I multiply the $30,720 X 13 Gross Multiplier and the day I raised I made $399,360 in appreciation for my bulding.

What bank is going to do a 6-month $30,000 loan for 4%? Most banks will not do mortgages for less than $50k or $60k.

A $5,000 per year cash flow is great for a $50,000 investment providing your numbers are accurate. I would do a hundred like this one.

Is there a HOA fee?

Who will pay for the water?

Who will pay the sewer use fee?

Who will pay for trash removal?

We give the tenant a 24-hour notice stating that we will enter the apartment whether or not the tenant is home as stated in several other posts.

When a tenant tells us they do not want us in their apartment we send the tenant a 7-Day Notice To Comply with the terms of their rental agreement. When the terms are not clear in the rental agreement we put in the letter that the tenant must comply with real estate laws.

Depending on the tenant, we sometimes write that for failure to abide by the terms in the rental agreement and real estate laws we will immediately file a legal eviction. Life is too short to take crap from tenants when you are trying to be a nice landlord.

I am guessing that the tenant is getting shocked by 110 volt electricity. It is very possible there is a bare wire inside an electric junction box, or there is a short somewhere in the garbage disposer area. Get a good NCV (Non Contact Voltage) tester at Home Depot, wave it around all the appliances and see if the tester buzzes or lights up.

Document everything you do and every communication in a journal and put the exact date and minute. After the first time we have a problem with a tenant we tell the tenant the only way we will communicate is in writing. This avoids all that he said she said crap and it helps to keep from making mistakes like saying things you should not say and getting yourself into deeper hot water.