All Forum Posts by: Ned J.

These are exactly the ones you want....value add. 

I would be careful forming a specific list per se.... things will happen that are not normal "wear and tear" that the tenant should be responsible for and if its not on the "list" you are stuck... the list will need to continue to evolve.

Keeping it relatively vague keeps your option open. I would not have covered ANY of the stuff you listed

The general rule is at least 1 tub per unit if you want to retain resale value. No tub at all reduces the buyer market

Wait.... so they charged you 3 hrs total to do both jobs....or 3 hrs for each one of the jobs, so a total of 6 hrs labor?

Three hrs labor for both.... I can see that...time to inspected/diagnose issue, get parts, and labor to install.. 3 hrs total is reasonable....

If it was 3 hrs for each...... you got screwed. That's not 6 hr of labor/time there no matter how you want to itemize it out to include drive time etc

So your negative cash flow is based only on PITI?

So what do you numbers look like when you have to replaced that 2k hot water heater....or that 6k HVAC...or have a tenant turnover? They are MUCH worse .......

Buying solely based on appreciation is speculation.... not RE investing. It can be done....with bigger pockets in certain markets.... but with much bigger risks. Not a great idea for a newcomer with more limited resources. Appreciation is the icing on the cake.... not the cake itself.

Dont sink more DP into a property to buy "cash flow".... the only time you want to go with a higher DP is if it is needed to get better terms on the loan like lower interest rate, no PMI etc....otherwise keep your $$ and use the banks money

Let them go.... with the stipulation that you can start advertising and showing the unit ASAP- they make sure the unit is in good condition and kept clean during the process.

When people need/want to leave, they will..... the lease wont stop them. Rather than make it some battle you will likely not "win", make it amicable, smooth and easy with a minimum of stress and $$ lost on an eviction or trying to collect $$ you will never see. Let them leave smoothly and get it rented again and move on

The rental market has been great for me....I only have turnover every 3-5 years, and last one was 1.5 years ago and I got a ton of inquires, and the rent has continued to rise quickly. Each time I have had a turnover I get it rented again within a week with a big jump in rent, in my ownership, the demand has never been an issue

As long as you go in with the expectation of not seeing a dime and your motivation is that it will show up on the credit and may come back to haunt them later, then its worth it. For me there has to be some form of repercussion for defaulting or their behavior will just continue over and over and the next LL will have to deal with them with no idea of their previous behavior. Some accountability is better than nothing.... but chances are you wont see a dime

I have one unit in Manteca and one in Lathrop.... but I bought both 6-7 years ago. I havent been able to find anything in my area that pencils out as cash flowing in a LONG time.... but places are still selling fast and above ask, so maybe I'm missing something

Let the PM do their job and communicate with the PM only- these are the cases where you need to stay in touch with the PM ....but dont micromanage them.... but dont let them ignore the issue and let it snowball either.