All Forum Posts by: Mark S.

@Jaron Walling I have done 6 major renovations the past couple years and in every one I opened things up. It paid off every time. If the kitchen is tiny I would really look at doing it. A tight kitchen is a major turn off these days to buyers and renters.

@Brian Bradley Your post implies that people should not expect insurance companies to pay any claim without challenging it. That is patently false.

@Mark S. Yes, I have a few typos in my post - doing this on my phone!

@Brian Bradley Your comments on insurance are considerably off mark. Yes, they are running a business, as are you, as an I, as is everyone on this forum. And yes, they don’t want to pay claims that are not covered per the terms of the policy and will fight that if necessary. But if they do not pay claims that they are legally required to pay, they would not stay in business. Insurance is a key corner stone in asset protection and summarily dismissing it’s value Is disingenuous and self-promoting, in my opinion. And yes, I have many years of experience in this area.

@Brad Braun Not sure how things are in your market but here in Minnesota a full price cash offer often does not get you the deal. I have made many of those over the past two years that were not accepted because of multiple offers.

For those who claim that a true ‘business’ does not give holiday gifts, you are in error. I have worked for numerous financial companies over the years, regional and national, and all have given various gifts. These generally were for their best clients. Tenants who pay on time and take care of the property would qualify as a ‘best client’ to me.

@Emily Bolander If you are looking to learn a lot on your first rental, this would be the one. But it will come with a lot of headaches, little doubt. Structural issues may or may not be a big deal. Sagging floors are common - is it because the floor joists are weak or cracked (usually easily fixed with beams and sistering) or is the foundation itself eroding, which can be a big deal. Personally, I would start with something in a neighborhood with better price support and potential appreciation. This one might be a lot of work for a little return, unless you plan to rapidly build your portfolio and get professional management. Oh, and I doubt if any contractor worth his salt will bother with a walk through for $50, unless s/he is anticipating getting a lot of work for it. And make sure that person understands structural issues and how to address them.

I prefer to get the basics solid with this sort of property - electrical, plumbing, HVAC, roof, appliances. Then fresh paint and decent flooring . After that, you shouldn’t have much in the way of expenses for a long time. When it comes tile to sell, do your upgrades in countertops, lighting, maybe windows, etc.

There are plenty of insurance companies out there who will handle larger portfolios than that. I suggest you talk with a good independent agency who has specialists in commercial real estate, rather than dealing with a captive agent.

I started in late 50’s as a side line. A few flips and a few rentals. Then got my GC licence and started slowly building. As others stated, I with I had started sooner but was too busy raising kids and climbing the corporate ladder. But those were good things too- especially the kids!