All Forum Posts by: Jim Shepard

We have water quality problems in our area. A dishwasher will typically last about 3 years to maybe 4. I now buy the cheapest and buy the 5 year guarantee for $100. Then for 5 years its someone elses's problem. After 5 years I just wait for it to break and start the process again.

Brandon, We just went thru this in a duplex. 2nd to last unit that we allowed smoking in. We had to use "Kilz" on the walls and ceiling. Then painted it again with our "rental beige" and flat white ceiling paint. Had the HVAC system cleaned including duct work. Actually painted Kilz on the master bedroom floor when we removed the carpet. We then replaced all of the carpet. Washed, washed and washed the hardwood laminate. We then used Spic and Span on all cabinets and doors. We also put a cup filled with vinegar in the cold air return and turned on the HVAC fan for a few days. About $4 - 5000 and a lot of free labor from my wife and myself! Next time I will try the ozone generator.

Kevin, One of my original rules was to never let a tenant paint the house. I broke the rule a year ago because the tenant owned the duplex before I bought it from him. He was a landlord so he knows how to paint? WRONG! He painted half of the cheap imitation wood trim when he was painting the walls. When he moved out this year I had to replace all of the trim. I will never allow a tenant to paint again!

Jan,

Getting the judgement against the couple is the easy part.  Actually getting money from them can be expensive and tricky.  You can put a "rock" on their paycheck but they will probably just move onto a different job.  In the State of Illinois, if they own a business, you can do what they call a "til tap".  Basically, you have the Sheriff go into their business and open their cash register drawer and hand you the money!  I know there is paperwork involved in this process but not sure how to fill it out.  The judgement will appear on their credit report.  In Illinois you have to renew the judgement every 7 years or it goes away.  I have one against someone and plan on renewing it - you never know when they might sell a house, inherit some money, etc.  Good luck!

Jim

Phillip,

I own the real estate for four of the locations.

2 in downtown "row building" locations

1 in building with 1 other tenant

1 in a small strip center.

All of the above are leased from my LLC's to Subway Corporate Real Estate Corp. who then subleases it back to my Subway Corp. This way Subway Corporate ties up the location so I can't kick them out and open up "Jim's Subs". The other 4 locations are in large strip centers. The owner of the strip center leases to Subway Real Estate Corp and in turn they sublease it back to my Subway Corp. Hope that answers your question.

Phillip,

Typical startup cost for a Subway is around $180 - 200 K however that would be for a new store.  With 28,000 stores in the US alone, there are very few places to put a new store.  You end up having to buy an existing store - average volume store will sell for around 4 - 500 K.  First franchise fee is $15,000 but then the second store is around $7500.

Jim

I actually own 8 Subway franchises and they have been very profitable. However when I started 23 years ago with just 1 store the hours were unbearable. 80 hrs a week was the norm. The wife (working 40 -50 hrs)and I together made a whopping $25,000 in our first year in biz! Felt like a financial freakin genius giving up a $75k job. What's $25,000 divided by 120 hours x 52 weeks? I can tell you from first hand experience unless you are going to be involved everyday for several years, you will lose your shirt. It took me years to assemble and afford a good management team. Best advice I can give is either do RE or the pizza biz - but not both! If you decide to go into the Pizza biz make sure you buy a good $4-5000 security camera system and point the cameras towards your employees! I've only had one armed robbery but 100's of employees arrested. I started my rental biz 12 years ago as a small biz oortunity after the first biz was solid. Now I have 23 properties which is fast becoming a medium size biz. DON'T do both at one time!

I'd suggest that you look at your local energy provider's website to see if they have any rebates on energy efficient HVAC equipment.  A buddy of mine owns a HVAC company as well as an 8 plex.  The 8 plex needed some updating on equipment.  He contacted the gas compamy and they told him he only needed one estimate - guess who he used and they were fine with that.  Bottom line he got the 8 systems paid for by the rebate and made money on the HVAC side.  What a country!  Nice to get a few tax dollars back for a change.

Busted! The wife and I have to find a new BnB to stay at on our vacation! Just when I thought I had seen it all. Tenants always seem to amaze me. I'd serve them a 5 day notice to quit. Good luck with collecting any of their "BnB income".

I advertise an open from 1 - 2 on Sundays and if necessary 6:30 - 7:30 on Wednesday. I got tired of the no shows. It also creates a frenzy with multiple prospects looking at the house at one time. I am always amazed at the number of people that don't care about your time - no wonder thay are renters.