All Forum Posts by: Nazz Wang

Is this in a flipper's market? If so, go tour some other flipped properties on the market and see what they did. Seeing a lot of what other people did will give you an idea of your competitors and perhaps what the buyers are looking for in that area.

Termite damage is really common in termite's natural territory. Almost every single house in California has some degree of previous or current damage. I personally think it is not a big deal. Do you know if there is current infestation or just past damage? When kind of termite is active in your area? Something that requires tenting will be expensive. Most other kinds of treatments are not a big cost adder.  I just did a treatment for subterrenian termites for 1500 bucks, and there was active infestation on 1/3 of the foundation. Actually I used that do get the deal because most home owners will hear any problem they are not familiar with and be scared off, so I got a 325k property for 255k, plus 1.5k out of pocket for the treatment.

A lot of companies will do free inspections to give you an estimate on the cost. Find a good company who is not scammy (that is the hard part) and read their proposal carefully to only budget for the actual treatment. A lot of companies would was to replace parts of your door or something, which you can get done very cheaply with people who specializes in it. 

I had been called only once by another landlord. The tenants were paying but they had threaten to sue me multiple times throughout their one year tenancy because the unit didn't have air conditioning (never had AC, didn't advertise as having AC, and not required by law to have AC) and they claimed that it was inhumane. And then their parents emailed and called me from their ranch in Texas, threatening to sue me. So I had them out at the end of their lease term. When the new landlord called, I said nothing but answered his questions.

"Did they pay on time?"

"Yes they did."

"Did they cause damage to your property?"

"No they didn't."

They moved out the next week.

Just like @Elizabeth Colegrove mentioned, if I want these tenants out, why would I give a bad reference? So, now I always call the landlord before the last, ask the applicants for the address, and verify the tenancy with the other landlord to make sure I am not talking with the applicants girlfriend. 

I recently closed on a blanket for 3 properties, 80% LTV at 5.9%, 20 amort. due in 2 years. The LLC did become an issue and they cut my loan terms from 5 years to 2 years the last minute. Very annoying. This was a local small bank that only does local stuff.

Agree with Patrick, it depends on the type of rentals and neighborhoods you have,. I use 10%, though my Single Family Home rentals consistently have 0%, and my one pain in the neck condo has at least 3 weeks every year. Also good to overestimate your cost when you are starting out, in my opinion. Only when you have a big portfolio of rental properties can you mitigate your risks with dead-beat tenants.

Yes spousal support is absolutely essential in our investing career. You are going to be a "we" no matter what you do now, and she will have 50% stake in it. What is the root cause of her not into it? After 10 years of marriage, I think similar financing approaches make a marriage work. It is not the only ingredient but it is necessary.

Martha T. For some of my properties I mail the tenants a bill every month on the 17th and include an instruction on how to pay rent. I have a wells fargo checking account and I provide them with the account number on every statement. They would go into any wf branch and deposit their payment with a teller before the 3rd. I see the deposit instantaneously online. I do empty the account by the fifth. No work is required on my end. Method copied from all the bills I receive. I believe a landlording business needs to be ran like a official business. I also don't befriend my tenants. I am friendly but never become too personal and too flexible. And I expect the same from my tenants. Good luck!

Chris Winterhalter It got put on the back burner. I am dealing with a basement problem, a few closings and a cloud on title for my normal bread and butter properties. The selling agent is calling a lot though. I think there is a good chance we are going to make it work. More updates in a couple of weeks.

@chris winterhalter Perhaps Chris would have some advice for ya.

@Victor Eng 

I keep a minimum of $1000 a unit plus $1000 for common area maintenance every year. The $9000 I budgeted was the highest amount in the past four years. The rent is about 700 a unit. The vacancy and eviction costs I am accounting in the 10% vacancy rate from gross potential rent, which is the running average for the last 4 years. It is an easy rent in a solid B at those low rents, so I am not expecting a lot of vacancies. You are right perhaps I need to increase my repair budget.