All Forum Posts by: Justin Escajeda

@Yuriy B. , late payments are an issue for me with about a 1/3 of my tenants.  It is mostly my fault, due to my lack of firmness on prompt payments.  Ive let people slide too much, as well as not giving notices, starting eviction process, consistently accepting late payments without late fee, etc.  I am really trying to change this over the next few months with the help of a secretary I am hiring. 

90% of my tenants are low income, and yes, my higher income tenants do not typically pay late.  However, I do not have enough experience with higher end tenants to confirm the stereotype, even though Im thinking that its true.  Tenants can go bad regardless of what walk of life they come from, but ive really only seen it in low-end tenants because that's mostly all I have.

@Yuriy B. , when I say daunting I do not intend to deter you from adding tons of properties, I mean I always want more.  Also, I DO NOT do things perfectly and always ask for advice (on here a lot too).  You'll find with multiple locations that when its going good, it awesome.  Then on the other hand sometimes it seems like the perfect storm, one thing after another.  In my opinion, the good outweighs the bad for sure.  If you try to learn as much as you can from people's mistakes and ask for advice, it may save you headaches.  Don't let people's opinions (uniformed utterances) cause inaction on your part... Bottom line is YOU still have to make a move.

Im in the process now of hiring a secretary for the first time ever, I wrote about it on another post.  I am letting tenants slip too much on late payments because I do not have the time to deal with all of them.

As far as return, its case specific because for me my properties vary in monthly returns.  I know my sfh's average 7-10 and duplexes average around 15-20.  Some of them drag me down too, but that's where I prefer or at least have fallen into that range.

@Val Csontos , yeah Im not 100% sure about the specifics of lease laws in PA, but I did learn in a landlord/property management class years ago that late fees (even if on lease) will not hold up in court.  However, if you have a discounted rent for paying within a certain time frame, that is perfectly legal.  All about the language in the lease I suppose.

Thanks @Bill S. you are right, I no doubt created this monster over the last year in particular!  I knew Id be getting a lot of criticism from this post, but admitting you have a problem is the first step, lol.  I do like the idea of a near by bank, thanks for the great idea!

Yeah man I completely agree, I spend so much time listening to tenants BS, sob stories, and gossip, I hate it because I, like you, have much better use of my time elsewhere.

Hello Community, Im looking for advice.  I currently am burning the candle at both ends, running around so much and in turn, loosing efficiency in my rental business.  I currently have 18 doors (rented), 30-35 storage unit doors (rented), and a masonry company.  I just picked up my most current tenant for a 3br yesterday.  It is the 13th and still have 4 tenants to collect from and idk how many storage tenants to collect (I think like 8 units). 

I am looking for advice, I know Im doing things I shouldn't be doing.  Im not staying on top of late tenants with notices and multiple phone calls, Im making deals with tenants about when they can pay, have become more friendly with a few, etc.  Bottom line is I am breaking my own rules due to having too many doors to self manage.  I know theyre taking advantage of me, but based on whats going on, I put things in order of importance, and the rentals fall by the wayside at times.

I took the next step in interviewing with a secretary/ accounts manager.  She has over 20yrs experience, and wants $13/hr.  I have 10 in a concentrated area, that I think I am going to turn over to her. 

Since Ive never hired someone like this before, what objectives should I strive to her?  What should I look out for, should I have her be constantly calling late tenants and not just letters?  Thanks, Im stressed..   

I don't have a lot of experience with renting to students, is that who your targeting I assume?  I try not to even rent to people with kids, but I don't say that obviously.  110k for a 3br in a college town?  I better be able to eat off the floors and not have to do anything to it.  Id make sure the parents are going to co-sign leases, there is a ton of people on this site who have college town rentals, im sure they can give you a ton of tips. 

I noticed that you said you want to get 10 rentals, from a glance it looks good, but speaking from someone who has over ten (self managing - which I need to change soon), it can get daunting. 

Are you handy at all?  Can you find a cheap one to fix up, maybe a seller finance deal?  Just a suggestion.  By taking a look at the numbers, annually (while paying a mortgage) you're going to making around 4-5k?? Sound right?  Long term wise, could be a decent rental, but the repair and maintenance may be a little higher than what you estimated.  Tenants trash stuff, and not to stereotype, but college kids wreck stuff a lot (coming from a college kid who wrecked stuff a lot).  It's a bit close for me on the numbers, but that just my opinion.  You can still make a little bit of money, and obviously appreciation.  However, for immediate cash flow, theres not enough here for me. 

I frequently move homes, and I typically pay roughly $2,000.00 to move and set only.  I go and disconnect utilities, remove skirting, etc.  Anything I can do to make it easier for the mover to just come in and grab it.  If you don't have axels, wheels, and a tongue, youll have to rent the mover's.  They try to get you for everything.  I have a good relationship with a mover and he's still tries to get over on me a little. 

It costs me roughly 1-2 grand to do full utility hook up pending existing problems that need to be fixed.  If your moving it to a park, are you renting it out to a tenant?  Is the park owner cool with that?  What's the lot rent?  What are you charging?  Honestly, for me to take a double wide off of someone, it better be a pretty damn good deal.  I typically find homes that are almost given to me (sometimes they are).  

If you are going to start getting into mh's, try it out on a singlewide, it took a bit, but I can rehab one well within PA Manufactured Homes Cert of Compliance guidelines for under five grand.  Nothing like rehabbing a house, it all depends what area you are in too.  If you loose money on one, at least it woulnt be a lot.. 

Ive never furnished any rental (other than refrigerator & stove), that's just another expense, but if that is the norm where you live, then you may want to consider it.. For your first deal, buy something that needs minimal work, just to get your feet wet.  If not, make sure you full understand what your getting into, in a construction sense.  I am a contractor, and sometimes when you start digging into something you will find unforeseen problems that must be fixed.. Maybe bring a trusted friend who is contractor savvy to check out the place.  Anytime I bought a place with furniture still in it, the stuff was junk and had to get rid of it.  In my opinion, keep the place clear of furniture, and buy as rent-ready as possible. 

Without a doubt insulate on your dime, a tenant is a person who has zero vested interest in weather or not your pipes freeze (unless their belongings get ruined from water).  I am a worrier, so every winter I am constantly scared of pipes freezing then bursting (in houses).  I heat tape the hell out of my mh pipes, then wrap and tape insulation around that.  Do whatever it takes to keep that water flowing INSIDE those pipes.  The potential repair cost for a pipe bursting will most definetly outweigh the cost of insulating pipes.  Plus if a pipe does burst, whos to say anyone will be home to notice, OR know where to shut the water off at??  Its a situation that I hate thinking about.  Last year I sent out a mass text to all tenants to drip faucets, open cabinets under sinks, and keep heat at 60+, I gave a rent credit incentive and last year everything went smoothly.   Hopefully this year will pan out the same.  Insulate the pipes.