All Forum Posts by: Michael Lauther

@David B.

My experience is predominantly with lower end single family rentals so I cant speak to renting a higher end property but your point about hiring a retired handy man will have several issuers. I have made contacts in the area where I have 5 properties 4 on one street. I have had good experience with one or two handymen however there really isn't enough work for them to keep interested. They are helpful but I doub your will be successful in the long run hiring them on an hourly basis. Perhaps a monthly fixed fee to be on call could work.

@NA Jones

I have completed 5 rehab projects on properties under 1200 sq feet, two of them under 900 sq ft. and never once have I had one where the contractor did not call me with some unforeseen problem. It always requires more money to fix. First make sure you get at least 3 or 4 bids that include a detail scope of work. I strongly suggest only contractors that are licensed and insured and have a track record with references.

You will find many contractors that are operating on a shoestring. they will underbid projects, and give you a haphazard list of what they will do. Even if you are lucky enough that they do passable work you will be hit by a barrage on items that "were not included" or were not discussed in the original estimate. You will be asked for money up front for material over and above a small up front deposit. This will not end well.

If you must pay for material buy it yourself and have it delivered. Pay only for work after it has been inspected. There are often unforeseen expenses so expect 20% over a competitive but realistic bid.

@Steve Baldwin

The retail market is pitiful so there are lots of cash deals. The AHRN web site is fairly active to attract renters form the base. My properties are predominantly sec 8. even though they are only 3-4 miles from the base.

Still lots of cash deals with rehab needed, mostly new plumbing, electric, paint and refinish floors or carpet. typical cost $10,000. Property rehabbed to sec 8 standards will bring in $550 for a two bedroom 1 bath and up to $700 for a three bedroom one bath. Section 8 website attracts multiple tenant candidates.

While there is probably a 12% vacancy in Dayton there is still a shortage of quality rentals. Still far too many properties I need of repair so they are counted as vacant but are not on the rental market..

@Steve Baldwin

wish I could attend but will be in Florida, please keep me in the loop while I farm an area in Dayton, I drive through Columbus regularly.

See you next time.

I find myself thinking of many members as old friends. there something about seeing the same image year after year that cements relationships even @Bill Gulley has kept the same image but for some reason he refuses to post a picture of his face. Bill you cant be that ugly can you?

@Elizaveta Dolzhenko

I have done this and it has ended badly in most cases. If you are in a rental market that is low end with a high crime rate, the risk of having your plumbing and electric ripped out of a vacant property may exceed the cost of evicting a tenant. Your cushion of a security deposit gives you one month of leeway and of course you still have to consider cleanup of property before renting.

@Alison Michel

I see that you already have several replies, the one thing I would add is that while you will be credited interest to your 401 account, if you happen to leave your employer there are tax implications of having an outstanding loan so if you decide to borrow to invest make sure you research this aspect of taking loans from a 401k..

Best of luck to you.

The tenant can pay water and sewer however In most municipalities if it is unpaid it becomes a lien against the property. In Dayton even if water is turned off there is still a minimum bill due each month that will contine to accrue and must be paid for water to be turned on by a new owner.

@Account Closed I use many sources , on line county property records,

Zillow, Trulia, Realtor .com , maintain contacts with Real estate agents I have done business with or met and they provide constant updates on what comes on the market and what is selling..

@Darla Powell I would suggest that before you quit and take 401k money and roll it over consider venturing into the market while employed. this will present many more opportunities. While I use a Self Directed IRA to buy income producing real-estate I do it by necessity. there are many tax advantages I miss out on doing it this way.

Investments that look fantastic on paper have a way of not looking so good when you actually acquire them . Its not that the grass looks greener, it probably is, but the effort to keep it green is sometimes underestimated.

So much for waxing philosophical .

to be clear make an investment while you are still working, take a loan from your 401 k if necessary but don't quit your day job until you have some experience.