All Forum Posts by: Troy Welch

This is a quote from a description on a $150,000 duplex

"INVESTORS....Income producing property. Each unit is rented at $700.00 per month"

It is 1008 sq ft, not on a large lot or in a growing area.

I see this often and truly am curious if this could ever be a good/income producing deal. I am fairly new to REI. I have 3 properties. I found all thru my realtor and they were listed on MLS. I follow the 1% rule and the 4 square method.

Is there something I am missing or are some realtors just trying to dupe newbie investors?

I have a lease ending (first one) and have already had a discussion with the tenant about options. He is going to go month to month and the rent will increase approx 3%.

The original lease has language about the lease going to month to month after the term.

I am assuming that I need to create addendum - with a term length after which terms can be adjusted and Both of us need to sign it?

With month to month, can terms be adjusted any time? If so, what would be the purpose of the addendum?

The tenant has been good I just want to make sure I handle this right.

Paying a contractor for a bid...$500 lesson learned. If someone wants to do the work they won’t charge you to inspect it.

Yeah, on my first buy and hold I called a few electricians.  I believe this particular one came up on HomeAdvisor.  He quoted over the phone a price to wire somewhat in line with what the other contractors had quoted over the phone but was obviously cheaper.  His pitch was $500 to inspect the electrical and that money would roll into the price to do the work.

Apparently, I wasn’t thinking clearly at the time because that actually sounded reasonable.

He came out and looked at the wiring on a 1000 sq foot house.  Jotted some notes on a yellow pad - which my friend who opened the house took a picture of.  He then sent me a 1 sentence quote to rewire the house and the price - no details whatsoever.  When I pressed for details the price went up via another 1 sentence quote. On the day he was supposed to show, he cancelled due to a ‘scheduling conflict’ and he rescheduled.  I sent a message to him and tried to call him several days before the next appointment asking him to confirm that the items on my list matched what he was planning to do.  The night before he was scheduled to show, he cancelled the work completed and said he thought it was best that we just go our separate ways.

How do you go about finding the right person(s) to support your long distance investments?

I like to invest in properties near where I grew up But it is about 90 miles away and I have a full time job that requires me to be here. I know the area but I don’t have a team built to support the investment. 

In the area where I live, there is a company that is turnkey.  They come out, give you a price to do all of the work and a timeline.  They manage the whole thing and give the keys back to you when they finish.  Their prices may be a little higher than managing it myself - but my time is worth something too.  So in the end price may be a wash.  I don’t know of any companies like that in the investment area or don’t really know what to search for to find a reliable one there - Port Neches / Nederland / Beaumont area.

Here is what I have:

1. A good realtor

2. I have used a handyman in the past but don’t know if he will be available on the next fixer upper.  He did drywall, paint, trim, hung cabinets, installed laminate flooring. He wasn’t the fastest, but did good work and was trustworthy - 2 things I would take over speed any day.  One thing I really liked with him was that he was usually there when another contractor came to do work or could be there if needed.

3. Interior designer - my realtor’s wife - which is my wife’s best friend from high school - owns and interior design company.  We don’t necessarily need interior design but she has helped us with backsplash and flooring install.  So she has connections to contractors.

4.  Window installer - the price seems right - I buy the windows from his daughter (she doesn’t own the company, just works in the window dept for the local hardware store) he installs them for $100 each.

What I don’t have:

1. A reliable plumber.  Mine replaced copper pipe with pex, installed a new water heater, installed a clean out.  What he didn’t do was scope/clear lines like I asked which meant I had to call Roto Rooter out when his work van was broke down.  But he has come out a couple of times to assist with minor issues without charging.  I like him but just don’t get a solid reliability vibe from him.

2. Electrician - I have been ripped off by one company and treated fairly by another. The fair one seems to be on the high end though. But what would I know.

3. A/C tech - I have used the same A/C company for both houses but I don’t feel that we have a ‘you scratch my back and I’ll scratch yours’ relationship.  My son in law’s family owns an A/C company but are 120 miles away.  I asked them what they would charge their customers for the work done and it sounds like my A/C people are charging me the max rate.  I am not a fan of that

4. Roofer - I have rec’d wide ranges on replacing the shingles on my first house.

5. Lawn guy - I always need someone to mow the yard while I am getting the house ready to rent.  Last time it was the kid across the street - good job and cheap. Sometimes you need more landscaping work done and “the kid across the street” isn’t going to cut it.

Rechargeable Laser Tape Measure

Any brand 12 volt drill / driver / whatever tools or if he already has a line from a particular brand add on to that. I liked someone’s comment on slickdeals about Ryobi’s multitude of tools shows that they are willing to throw crap at the walls and see what sticks

Kobalt auto adjustable pliers set

A really good screwdriver - Klein multi bit, Kobalt ratcheting with multiple bits, etc

A nice tool belt or bags - I have had my eye on the various Toughbuilt items on Amazon if you wanna get me something....ToughBuilt - TB-CT-170-24R8, 24" Rolling Bag & Belt Combo https://www.amazon.com/dp/B01C...

Hey Joshua.  I am from Port Arthur currently living in Houston.  I have a rental in Port Neches and a rental in Nederland.  I like investing there because I know the area (or at least I did - I’ve been here for 23 years).  I still look for properties there as well.  It has been almost a year since I bought my last house and am anxious to get the next one.  

I too am looking to network.  It would be good to know who to turn to for all the work that goes into a rehab.  My 2nd house was turnkey, but my 1st was a challenge.  I did a lot of work myself but that is difficult to do 90 miles away with a W2 job.  I had a handyman that I trusted - he and his wife did a lot of the work.  I am hoping they will be available on the next one.

Let me know if you need anything.

25’ measuring tape - as others have said, don’t skimp, get a good one with a wide tape

Depending on your budget, I use my 12 volt Bosch drill/driver almost daily (they will also need a good bit set)

This is a decent screwdriver from Lowe’s - Kobalt double drive screwdriver 13 piece rubber handle ratcheting multi bit screwdriver Set - not my everyday go to but great for someone who has no tools

 This is one of my favorite new tools though not an everyday tool Kobalt 2pc Self Adjusting Auto Locking Pliers 10-in Home Repair Tongue and Groove Pliers

I like the suggestion of a good stud finder. Those pics are insane!

I grew up in Port Arthur.  I have a rental in Port Neches and one in Nederland.

I agree with Eric to some degree - it  depends on what you are looking for.  Every neighborhood has rentals.  NW of IH-10 goes from slightly affluent to very affluent.  The college area has some decent neighborhoods, but if you are looking for a stable neighborhood, you need to be picky.

I have a property 90 miles from me.  It is near TPC chemical plant in Port Neches which had an explosion this morning at 1 am.

My tenant reported that they are fine but 3 windows are gone and the garage door is bent.  

He is going to cover the windows with a tarp.  I plan to go out and cover windows with wood.

The plant has not established a claims line yet.  I did most of the work on the house so I don't really have a contractor that I can send out there.

Where would you go from here?

I have contacted my insurance and while they would be happy to service the claim, they recommend taking it up with TPC claims so there is no claim against my policy and no out of pocket for me.

Here is the statement from the plant:


https://www.globenewswire.com/news-release/2019/11/27/1953177/0/en/Incident-Update-2-TPC-Group-Port-Neches-Operations.html

This is for a new rental that I closed on a couple of weeks ago.  I bought a scratch n dent refrigerator locally - brand new still has all the blue tape securing everything and the plastic wrap, just a couple of dents. Rented a truck. Drove it (yes I strapped it upright) 90 miles to the rent house. Hooked up the water line and turned on the water - no water to the dispenser or the ice tray. I tried clearing air out of the line. I unhooked the water to make sure water was flowing thru the 1/4" house and it was. It is plugged in and cold refrigerator/freezer. 

The manual says NOT to use a needle valve that is tapped into the water supply line - previous homeowner did that and it apparently worked for them. 

I am planning to go back on Friday and replace the needle valve with a reducing tee as well as the tube. Does anyone think that will resolve my issue? 

If that doesn't do it, 

• Should I call manufacturer warranty?
• Should I call a plumber?
• Should I disconnect it and say water and ice don't Work? LOL not my preferred route since I bought it for the dispenser.

Any help appreciated.