All Forum Posts by: Mike Dorneman

@Trevor Suich When medical marijuana is dispensed, it comes in packaging similar to any medication you would get from your pharmacy. The patients name along with a notice to keep the marijuana in its original packaging is required by law. The packaging also has a bar code which can be traced back to the dispensary and the patient who purchased it.

If these rules are followed, no laws are being broken.

@Ryan Nolan Margins are very tight. Will you be holding this as a rental or trying to sell?

@Lawrence Green Chicken or the egg, everyone will have an opinion on this. As for mine, get it under contract first, but be very clear and honest with the seller...

if you’ve done a good job finding a property and can get it listed at the right price for an investor, selling it will be the easiest part of the entire process.

@Ammar Ali It’s your building, it’s your responsibility... Mold is not something to ignore, as it will only worsen in time. I’d have a mild inspector onsite ASAP and work to remediate the issue and identify the cause as well.

In my experience, tenants become very concerned (rightfully so) but often overrated and think worst case scenario. Usually it’s just surface mold which does not require professional remediation. The important thing is to fix the root cause. Leaky pipe, leaky roof, humidity issue, etc... What caused the mold...

@Charlie Moore A number of our units are C+ / B-. For this reason, we keep our applications / criteria strict to help in screening out tenants. It may take a bit longer to identify your tenant, but a money or 2 of vacancy will be far less expensive than 6 months of non payment, thousands spent on evection, and who knows how much to repair the damage caused by your tenants after being evicted.

Don’t lower your standards.

@Danny Rodriguez I’m in NE PA, and have oil burners in about 12 over my houses. Unfortunately natural gas isn’t available in many of the smaller towns out here.

They require annual preventative maintenance, (approx $300/year). As for oil cost and consumption, it’s can vary greatly. The efficiency / age of the furnace, the insulation value of the home, the windows, the temperature the tenants sets the thermostat at...

With all these factors, I would never include heating oil in the rent. This is an item just like electricity. Always set up in tenants name, never ours...

@Michael Downs You’re thinking about this the right way! Aside from the general cosmetic updates we make to increase the equity in the property, I always walk through and update/replace anything that can, “wake me up at night”.

In other words, anything that will likely fail with a tenant in place gets replaced. Cheap faucets, flimsy cabinets, old toilets, etc...

The better quality product you’re able to create, the better the tenant and in most cases, less headaches down the road.

Budget for the upgrades appropriately and if the numbers still work, get to work! 😁Good luck!

@Matthew Childs Paint them a nice neutral off white. Your logic is sound, unfortunately most buyers struggle with envisioning the final product.

@Kevin Sobilo Good point Kevin- An agent who not only reps investors but is one themself, is the unicorn of agents!

@Nicholas Daniels Your estimates fall within the appropriate range, however it’ll always be based on the property. For instance, some investors with grab a deal and get a tenant in ASAP to start generating revenue. In my opinion, this is very short sighted and usually doesn’t end well. On the other hand, you can renovate and replace / repair all systems and components of the house that can produce issues once tenants move in. In addition to cosmetic rehabs, I always view each property with the lens of, “what is going to generate a middle of the night emergency phone call”? Then I simply have said issue replaced or repaired, prior to renting the unit.

By following this method, we get save / reinvest about 85% of the funds we allocate for cap ex / repairs each year. Said in other words, fix it right first, then more often than not, you won’t need to do additional unexpected repairs. One thing to note, remember to save for those long term repairs that are inevitable. I.e. Roof, HVAC, etc...