All Forum Posts by: Josh Johnston

I've heard the BP book on property management is good but I've never read it. my personal favorite is "Every Landlord's Legal Guide" by NOLO. Full of practical advice from marketing to eviction, includes state-specific laws that are updated every year, and provides 20+ sample forms that you can edit and use to get started.

HGTV is a joke, I wouldn't copy anything on that.  Bring the designer in during the first week to get an idea of what direction you want to go and what style.  I have flipped over 100 houses and only needed an architect on about 5 of them.  I also bring over an inspector for $200 on day 1 to point out all issues before I get started.  I would then take the designer shopping and purchase all flooring, tile, hardware, cabinets, vanities, etc.  You can bang it all out in a day.  Also, so much can be bought online now that you can email back and forth too. Let the designer also pick out all the paint colors and light fixtures.  Find a great one for $100 an hour, you will need them for about 10 hours, and you will get paid back in dividends when you go to list it.  It will look like a designer home, not a typical flip or HGTV house.  It will attract a higher end buyer and help people dismiss any negatives with the house (small, busy street, etc).

@Josh Johnston the liability part is the huge benefit. One of the tenant’s guests trips and falls, they can sue the renter’s insurance company instead of yours, the owner.

@Josh Johnston thanks. Well, if I Ellis evict them, I can’t rent out the building for the next ten years either. Yeah... The laws are draconian here towards landlords. 

@Edward L lauckern that’s a relief. Do you think I need to get dehumidifiers in there? I was thinking about calling a water damage company tomorrow

@Josh Johnston if you are a new investor and a market is hot, it's not for you. A hot market means investors are already on it and therefore, prices for the dumps will have gone up. You want to find the market next to that or even next to that, one that carries the same potential trajectory as the hot market, just a bit further out. This should work in most areas, sometimes you have to go more miles than you had hoped, but at least you will be researching the next market while people with more money and experience are snapping all the deals in the hot market.

It's a mindset thing. You can't go to a meetup and tell someone you will invest anywhere if the cash flow is right. That's just asking for a "partner" who will sell you a bad deal. Too many new investors become almost desperate for their first deal when they still have limited funds to do the deal with. Everyone on here is in a rush to 100-units, but most people who try to go to fast are all broke now. Some have recovered from their mistakes and done it right on a second go.

Drive the neighborhoods. If there are lot of renovations going on, it's too late. Drive out one farther. And so on. Watch the prices decrease and the demand with it. Sure, if you have the money you can get into a hot market, but new investors overbid and under-estimate repairs and that does not go well.

Hello all,

I need your advice regarding an emergency. I have a triplex in San Francisco, where the third floor tenants are protected and paying below-market price rent. They have been there for two decades, and I inherited them when I purchased the property. Since day one, they have been a hassle to deal with. They've requested kitchen remodel, repaint, upgrades to windows and blinds, etc. I've probably spent over $10k on their apartment with them paying less than half of market rent. I know, it burns.

The wife's most recent request has been a bathroom remodel, which I refused two weeks ago. But this morning, my second floor tenant texts me to say there is water leakage all over the ceiling of her room. She called the third floor and they told her that their toilet was "leaking". I then receive an email from the third floor tenants saying that their toilet is leaking from the base. Then 20 minutes later, I receive another email from them saying that the toilet is not leaking, but just overflowing because the lever to flush isn't working properly.

Now, would this count as their fault? If it is, technically I can terminate their lease and get rid of a huge pain in the you know what. I would appreciate any advice on what to do.