All Forum Posts by: Martin Zawarski

@Evan Hooke. When I started my journey purchasing homes, I looked specifically certain types of homes that had to meet certain criteria.

1) Blue collar homes. I wanted to buy homes that the biggest percentage of customers would rent. They also tend to be affordable. I would buy 3-1, 3-2, 4-1 and 4-2. I have a couple two bedroom units as well.

2) I bought homes I would want to live in. Good clean neighborhoods. Close to schools, parks. Good streets, never on a highway or busy street.

Start looking at homes tomorrow. Try to see as many homes as you possibly can FSBO, MLS HOMES, ZILLOW. Know your market. Try to guess the home price just by driving past the property. Notice, I haven't even talked about an offer yet. You make your money when you buy,

But you have to know the market. Tell me what does a 2 bed 2 bath rental unit, brand new sell for in your market. Know that by the end of next week. Or a 3-2 brand new apartment. Where I live market price is $325,000 for a 2-2 and $360,000 for a 3-2. Most of my homes are priced in that range. But know your numbers.

Once you acquire knowledge- through this site and reading great investment book such as (Buy, hold, flip by Gary Keller and Jay Pap) And other then maybe you will be ready to be an investor.

I go through the MLS several times a day. I look at hundreds of homes on the internet every day. I like to see one property a week. I typically would buy one property every three months. Look at 100 online, see 20 of these homes, make several offers,close on that one special home.

I do have my brokers license, not just real estate license. It’s a step up. I never ever represented a customer buying or selling because I am the worst agent. I can’t sell an Eskimo a space heater in the middle of winter. But I know homes, I know deals. I eventually owed 40 doors worth $10 million. And said that’s enough. Well that lasted nine months. I am back working but a different angle, and loving it. Oh-why was I a bad agent. Cause I knew everything about the home. Everything. I just didn’t know how to deal with customers.

@Andrew C.

I would never buy a home more than 15 minutes from where I live. This is a hands on business. I own 40 homes. I keep my eyes open to everything I own. I manage my properties. At 67 I still actively work on my homes. It keeps me young (and tired) oh well!

@Brick Biermann

Let’s see. Mortgage rates are increasing from sub 4% to now 7.5% plus. That means mortgages are increasing by $600 on a $200,000 mortgage. Roofing costs have increased 50% since Biden became occupant of the White House . As well as hot water heaters and now appliances, and paint and LABOR! How can you not increase rents?

I send my tenants a month before I send out the new lease a packet explaining the large increase in costs I am facing currently and I send them print material showing the increases.

A great idea I learned here in BP , and I have been in this business for many many years, is to give them options for lease term.

Example rent currently $1,500

If you want to renew for a one year term rent will now be $1,600 an increase of $100.

If you would rather have a six month term, the rent is $1,675 an increase of $175.00.

If you want a month to month lease the rent is $1,750 an increase of $250.00.

I had a couple tenants take the six month option and they have stayed longer than 6 months and I have yet to get a letter stating they are moving . I like that.

Remember. Always raise rents with a new lease term.

@Jose Jones

Looks like monkeys used their tail to paint the walls. That is terrible. And that is being nice.

 I always raise  rents on the anniversary or the renewal of their Lease.   I also include a chart showing the tax millage charge for their home now and what it was a year ago and I do the math showing how much it has changed the taxes I pay.    If there are any increases such as water and sewer,utilities, common elements, insurance, I also mention that and let them know then what the rent will be increased to.  If I never raise rents I would be losing money each month. Remember your value is determined by the rents that you get.  And if you are not raising the rent and your expenses are going up,your value is going down and you'll go broke. By showing tenants how your cost have gone up I find that they never complain. 

I have been watching the house that has been foreclosed on recently both by driving by and watching the MLS. Today I drove by and saw that someone has bought it and is rehabbing it. I stopped and talked to the owner and ask how they had acquired it. They told me they bought it through a bank wholesaler. That it was foreclosed on and that it did not go through the typical channels of an REO agent. She said she works with this wholesaler all the time to dispose of properties for various banks. She is a realtor and works with many many investors to then dispose of the properties. Does anyone know much about these wholesalers and how to find out who the representatives are that the banks use For this process? Is this a new process or a means for banks to get rid of properties in a quicker manner?

what are you missing. The only thing that was not mentioned is it takes hard hard work. What Sharad said is exactly my plan as well. But it is hard work finding the right property that you will feel comfortable with. It's hard work fixing a home, especially when you find something you just never knew about or if costs escalate. It's hard getting the home either sold or rented. No one ever said this was easy. I work hard at all these aspects. I do have my challenges and I have been in real estate like forever. After all momma never promised you a rise garden.

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i have been paying $2.50 per foot stained. I will be doing my first sand , stain and poly job this week. I looking forward to it . 700 sf at 2.5 is $1750 for a couple days work. Minus $450 for supplies and equipment, I like that!