All Forum Posts by: James Barnhart

We are selling some properties, but will keep 3 nearby rental homes.  I am wondering how you manage the rental expense receipts and keep track of business mileage.

I record the expenses and income on a spread sheet I make for each for each property each year,and I list the various expense catagories.  But, do you use some app or software to store pictures of the receipts, or just keep the papers, or what?  And, do you some software or app to keep track of business mileage?

Since we only have 3 rentals now that we are retired, I don't want software designed for 100+ rentals.  

This somewhat reminds me a what happened with a contractor friend several years ago in Miami Beach.  The contractor was owned several thousand dollars on a house remodel job and couldn't get paid.  He was telling a guy who said he could "help" him get paid.  

So they went to that house, contractor rang the doorbell, and when the homeowner opened the door, the "helper", hit a sledgehammer down through the homeowner's car windshield.  He then told the homeowner to write a check NOW to pay the contractor, and said to write a second check for 10% of the first one, (his collection fee.)  That worked, but I don't recommend that tactic.

I always rekey the locks.  It not expensive and it is the responsible thing to do.  I cannot imagine why a landlord would not do that.  

I always seek middle class blue collar neighborhoods.  That is the sweet spot.  

You could buy properties in the "war zone", but the work to keep them in good condition and to collect rent is going to be higher.  I suggest you buy nice properties that can attract nice tenants after you do some improvements to them.  So many people let their homes run down, and it doesn't take a whole lot of money to get them back in good shape after you buy them right.

Life is good when you are not always having issues with tenants or property.  I may not have as many "doors", but the ones I do have are on "cruise control", for the most part.

 Thank you, Barbee.  I loved what you said.  

This made my day.

Wayne is correct. A HELOC ic a type of mortage, secured by the property. So, it is not owned free and clear. Could the HELOC just be paid off, out of the proceeds of the sale?

On he last property that we bought, the insurance company had an inspector do an on site inspection.  It was not a big deal at all.  I had the inspection  delayed for a couple of weeks so that I could have a new HVAC system installed first.  

It makes sense to me that they would want an inspection , and I am glad, so that my premium doesn't have to be more expensive, just  because they also insure some sub-standard properties,  that have a bigger chance of making a claim.

The insurance company just wants to see what they are insuring, so that they can know if they want it or not.  We do they same thing as prospective property buyers.

This is a great question.  

Nathan, I am not sure that you understood the question.  It is about paying for information about some property that might be coming up for sale, or about some person that is looking to buy something.  (buying information, NOT buying real estate)

I offered a bird dog fee for info at one time.  But apparently, this is illegal in Florida, so I quit doing it.  A Realtor explained to me that it was illegal, and I accepted his advice at that time.

But, I'm not sure I understand the logic.  Can someone explain it?

Window units are like the 1960's.  They are noisy and are called window shakers for a reason.  

if air conditioning and heating is done right, you don't notice it there.  You just feel comfortable.  If I were a tenant, I would not rent a place that doesn't have central hvac.  

Yes, it costs to have a central system put in, but then you will have a nice rental that will attract good tenants.  Otherwise you will have lesser quality tenants.  (in my humble opinion)

I agree with Brian, in that EASY flipping is about dead, and the profits are less now, but there are still deals to be found.  I have learned that I have to offer strageticaly lower prices than the offered price.  Often, the sellers think that they can take advantage of the market conditions, and make big money on a property that needs a ton of work.  It takes several offers to find the person ready to sell now.   A preforeclosure person is more willing to talk, and to sell, based on my experience.