All Forum Posts by: Michael Rossi

Not true. It is in the range of 45% to 50% - NOT generally closer to 45%. Furthermore, cities and states are broke all over the USA and are seeking to correct this problem with new taxes and fees. For example, there is a new 3.8% Medicare tax on unearned income - from the new Obamacare (healthcare) law. This is just ONE of a myriad of new taxes and fees that may/will affect rental property owners. In my opinion, the 50% Rule could certainly become the 55% Rule in the near future as the government attempts to cover our massive debt.

In my market, one of the few I've found you can get cash out each month, here's my basic formula:

Total rents
-30% for Maintenance and Vacancy
-10% for management (even if I'm doing it, it has value)
-$100/month profit PER UNIT

If your maintenance and vacancy expenses are 30% - YOU'VE GOT A PROBLEM!

More importantly, you've only accounted for THREE of the expenses (maintenance, vacancy, and management). What about taxes, insurance, legal fees, utilities (if only during vacancies), entity maintenance, evictions, lawsuits, capital expenses, etc, etc, etc???

OK, so many of the posters on this thread have written yearly, monthly, daily, hourly, and goals for every minute. The question remains - HAVE YOU ACCOMPLISHED ANYTHING? Have you gotten out of the rat race by meeting those goals? Have you made enough money to retire? Are you meeting those goals or just writing goals?

Well, now that you've got all hyped up on motivational mumbo-jumbo, the real question is whether you've made any money? It's a lot easier to buy into the hype than actually become successful!

It's not that they don't have air conditioning, we just don't provide it. It was in the high 90's here this week and most of my low income renters have window a/c. In fact, most don't have to pay for it, they get them free from.....you guessed it.....THE TAXPAYER!

I don't agree with that. For example, in my low income, Section 8 rentals, I PAINT the floors. The maintenance cost of maintaining painted floors vs. carpet is much different. Likewise, in my low income rentals, I take out the closet doors, remove all ceiling fans, remove all screen doors, take out all dishwashers, remove garbage disposals, and do not provide air conditioning. Is that different than a $2,000 per month rental? You bet it is!

Put a clause in your lease that says 'no satellite dishes without the landlord's WRITTEN permission' and be sure to tell each tenant about the policy at move-in. Don't write any lease longer than 1 month. If a tenant violates your lease, terminate their lease!

Financeexaminer is EXACTLY RIGHT! Most of the maintenance expenses that arise in rentals have absolutely nothing to do with the age of the building - they have to do with the idiot tenants. In fact, you'll have far fewer foundation problems on a building built in 1835 than one build in 1985 - because buildings built in the 1800's were built to last - not like this stuff being built today (I have both).

So the 50% Rule was right after all!!!
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Bryan,

I did understand your question and gave you the answer, which is that you MUST KNOW what is legal and what is not. If it is legal in your area, then I would give her ONE HOUR and be a hard ***. Unfortunately, the law, the courts, and the sheriff may not look kindly on you doing that and an hour is certainly not reasonable to move from a 2 bedroom house. So, you need to KNOW what is acceptable in your area - what's going to keep you out of trouble. I doubt if anyone on this forum knows the answer for your local area. Have you talked with any of the SUCCESSFUL landlords in your area? They should certainly know!

What does the law and your sheriff require? Do they have until the end of that 10 day period to get their stuff out?

When I setout a scumbag, I can do a typical 2 bedroom apartment in 2-3 hours BY MYSELF. That's not being careful, rather just literally THROWING their stuff to the curb. If you're talking about the deadbeat scumbags doing it, it could take a lifetime!!! Obviously, deadbeat scumbags are beyond lazy and they may NEVER get it done without a certain deadline. You need to KNOW what that deadline can legally be and enforce it!