All Forum Posts by: Mark Del Grosso

Welcome Steve. Sounds like you have already got your feet wet. Your goal was the same as mine and I'm two years from more than completing.

 Good luck.

 You are correct Steve and to clarify my point is that the cost of waste (which is the fear of most landlords in the scenario) is $100s vs the cost to separate , run new lines, add heating units, add hot water heaters,and add AC units which could push $10,000.

  I have purchased several properties from angry owners who drove by and saw a window open in winter and wanted out. I was there to gladly sweep up their problem (for a discounted price of course). In my opinion they are being penny wise pound foolish.

The best deals are when there is a problem you can solve.

The property in my example I purchased in 2000. I think there has been about three months total that went over budget.

I have found that the cost to separate meter is a big waste of money. I know I will be in the minority here but look at my numbers.

Example: I have a duplex. both two bedrooms. In my market a like kind two bedroom goes for $550 per month. I increase the rent to $750 and advertize "No more worrying about your fuel bills". The extra $400 per month ($200 x 2) more than covers the average monthly gas & electric which has been as low as $275 to as high as $375. Depending on quality and quantity of tenants which I have some control over.

 So I actually make a extra profit by having single meter, and without the cost to separate.

Tenants who have been burned by high fuel bills in a poorly insulated home flock to my ads.

Yes, there is that occasional person who can't understand why my rent is higher but I probably don't want that tenant anyhow.

I will by single metered all day and twice on Sunday.

Fire at will.

I thought this was an interesting end play. This property is across the street and a few doors down from me. I know that the same family has owned it for three or four decades. It was divided up into rentals all this time. I think there were about eight units. Now that they are ready to sell (after decades of collecting rent) they have done a beautiful job of restoring it. I don't know if they will get their asking price but it's a brilliant exit strategy.

Up front non refundable. I have had to many times that a tenant moves out and only after I start cleaning do I find pet problems. It's probably the most unfair way because some people are so good with their pets and then there is those other people. But they love their animals and are glad to pay.

My policy is that if a tenant calls with a problem I will be there that day or the next at the latest. I live in a small town and have a great reputation built over 25yrs. All though I must admit that my competition is pretty lousy.

 Tenants have seen me up on a roof x-mass eve day or up to my ankles with a backed up sewer. They know I care to provide a clean, safe, efficient environment for them to live. They often call me the best landlord in town.

 And any time I feel that tenants are a pain I get out my folder of passed tenants that are long gone and remember that "these to shall pass" but the wealth that they are building for me will last (and allow me to retire early).

 All excellent points.

DON'T DO WHAT I DID.

Many years ago I purchased my first three unit from my wife's uncle. He was moving out of the lower and had one vacancy in a upper. He told me what day he was turning off the power and that I should call and have it turned on in my name. Well that meant having 2/3rds empty scared me (not having two nickel) so I let the power go out in the lower while I worked on the upper.

Little did I know my uncle still had a chest freezer full of food in the basement. He was not happy with me to say the least.

That my friends is penny wise pound foolish. Have some reserves in one form or another.

I am not oppose to building up your credit limits just for emergencies if that's your only option. It has saved me many times But have a plan to pay it back.

Congrats. It is always good to hear a success story. It beats down some of the negativity out there.

In two years I will join you. It's close enough that I can see it, but to early to get excited.

Thanks

http://www.htzfm.com/modz/blog/2014/12/13/crazy-la...

I can't help but think this is going to be a issue in the future.

At any rate I got a chuckle out of it.