All Forum Posts by: Randy E.

 At one brief point in my young adulthood, I pizzed away a much smaller amount a couple of times.  Not nearly enough to begin investing, but more than I had ever had in my possession at one time prior to those events.  The Now me shakes his head and chastises the Then me for being so stupidly wasteful.  It was right after those times that I fully understood the song "Nobody Loves You When You're Down And Out."

I gotta say though, there are worse ways to spend one's time than being a young man and pizzing away a few thousand dollars.

I would hate to see my children waste whatever small inheritance I leave them, but I wouldn't be too upset to see them spend some of it foolishly if it puts even a temporary Cheshire Cat smile on their faces.

 I think what Max was saying is that it may be time to get quotes from other plumbers.  $600 for a toilet+install in the Carolinas is too much, plain and simple.  Unless this is an A+ rental, the toilet itself should have been $75-$150, and add in a few dollars for a new wax seal.  If your plumber is charging $450 to install it, you should be able to find a less expensive plumber and still maintain a quality installation.

This time you can try to push the cost onto your tenant, but next time that plumbing repair might not be transferable.  You owe it to yourself to find a less expensive plumber ... and you owe it to your tenants too if they're going to be responsible for paying the charge.

BTW, have you had a verbal conversation with the tenant about why the plumbing bill has gone unpaid?  Sometimes, good landlord-tenant communication requires more than sending a letter or email.  During the application process, was it revealed that the tenant earned 3X the rent?  If not, it may be the tenant can't come up with $600 in less than a month.  Eviction and vacancy and releasing are time consuming and costs money.  You owe it to yourself to make sure you two can't resolve this in a less wasteful manner.

 LOL.

I understand where those landlords are coming from.  Most every landlord with a subpar bathroom (or kitchen) would like to have a better bath or kitchen if it would bring higher rent.  Most landlords would rather not pay the expense.  Only those who have never witnessed a tenant's (any tenant) handiwork would seriously consider the offer.  There was a time I considered it, and once or twice I made that deal with the devil.  Luckily, I don't need to play with fire more than once to learn my lesson.

When I read a landlord asking "should I?" I sit in my chair and nod my head "Hell yes, you should."  It's like putting your kids in group sports.  Part of the reason is to get some physical activity.  Part of the reason is to have them learn to work/play with different/difficult people and to learn to lose.  I want a newbie landlord to take that chance, and I want them to get burned with some result that will burn itself into their memory.  Some things, we have to experience to learn.  That was something I had to experience to learn how bad of an idea it was.

When I read those questions, my only regret is I will never get to hear the landlord's story about how it turned out.

 I've told this story before, but it bears repeating.  Years ago, I had a working class family renting a house.  They drove two decent but very inexpensive, older cars.  Always paid rent on time, never complained, took great care of the house and yard -- They were landlord gold for me.   Six or eight months in, they got a brand new Camaro.  They were more proud of that car than they were of their children.  When they spoke of it, they smiled as if a miracle had enveloped them.  Two months later, they started falling behind on rent.  A couple of months later, they had to move, he back with his mother, her and the kids back with her family.  All for the want of a cool car.

 Maybe, but I don't almost never drink to the point of intoxication any more.  And for some reason, I always felt BP was like the J.O.B. of internet forums.  I wouldn't drink and post here, just like I wouldn't have gotten drunk and gone to work in the past.  I don't know why I look at it like that, but I can't shake that thought.

I am guilty of drinking and reading on BP.  Some of the stuff that normally makes me shake my head, makes me laugh if I've had a couple of drinks.

@Brandon Ellis, what city?  There can be a difference between what it would cost in Raleigh/Durham and what it would cost in Boone.

Also, the earlier mention of replacing the panel is right about that price.  If you don't have to replace the panel, that's a good chunk of savings right there.

Sometimes, when a newbie approaches a contractor with "I want to replace ALL the ______" the contractor takes that literally.  They then give you a quote that includes ALL, even if the house doesn't require ALL, because you said that.  Go back and ask them, more specifically, "What do you think NEEDS to be done to the electrical and what is your estimate for that."  For instance, you may not need to replace the wiring for the lights.

Also, it goes without saying that you should always get more than one quote.  Especially if you've never done this before.  That $20K quote might really be a $10K job with another contractor.

FWIW, I've never paid anything near $20K to have a house rewired in NC.

Jay, if I was where you are on the REI food chain, I'd be a lot looser with the checkbook. I'd probably travel as much as you and have the extra houses and the plane and, and and. Actually, an extra house (for personal use, not as a rental) is one of my shorter-term goals. I'll probably bypass the plane though, but I'm sure I could find some other way to spend that $$.

I'm never getting to your level, but I'll be a happy little me if I can reach where I want to be in five more years.

 This should be printed 100 point bold with flashing letters.  

A few years ago, I had a discussion with another father of young children who said he could not imagine depriving his children of the necessary things in childhood that create wonderful childhood memories.  His example was a yearly trip to DisneyWorld (or DisneyLand, I can't remember which) where they stayed a few days at a lodge inside the park.  I mentioned that I could create great memories for my kids by going to a big lake in a small town, or to the beach near the end of the season, for a fraction of the cost.  The other father insisted that it took a $3500 Disney vacation to create such memories.  To each, his own.  

If someone can spend like that and still save enough money to invest, that's great.  If someone who spends like that complains that they simply "can't" save enough to invest, well that's a different story.  Someone who doesn't earn enough to spend big and save big has to make a decision on what's really important to themselves.  If you want to invest, really want to invest, then you will save.  If you want to live a lifestyle that prevents you (on your current income) from saving enough to invest, that's a choice you can also make.  Neither is right or wrong, but one will help you become an investor more quickly than the other.

 I understand your situation.  While it may seem that you are taking advantage of your cousins' situation, it's not taking too much advantage because while you're helping yourself, you are also helping them in a sense.  But not as much as possible.  Let's look at your two main options...

You could help them sell the house at a quick sell price of $120K.  They'll each pocket $35K after expenses.  They'll each pay a little personal debt, each buy a car, spend like they've never had a chance to before, and be broke and nearly homeless by the end of the year.  

Or you could buy the house for $13K and allow them rent from you.  The reality of Section 8 in most areas is that the waiting list is so long that unless one of them is already on a waiting list, it will be 2-7 years before they advance to the head of the line and get a voucher.  If they can't each pay $110/month toward the property taxes, they won't each be able to pay you $200-$400/month for rent until the voucher comes through.  Also, Section 8 probably won't give them a group voucher for 3 adults and multiple children -- and even if they would, the house would need 6+ bedrooms to qualify.  Sure, you could try to game the system and not tell Section 8 everything, but if they ever found out, and if your cousins told that you were in on the scheme, the repercussions for you could be severe.  Section 8 might demand all the back rent for a year from the landlord, that's you, not your cousins.

There is no middle easy ground here.  If you're close to your cousins and like them, I would help them sell for as much as they can get, and let them keep all of it.  You said you already have multiple rental properties that cash flow.  You're light years ahead of them financially.  No need to take what belongs to family.  If they blow the money and are broke in 12 months, well at least they had what is likely a once in a lifetime (for them) experience.  You have to accept that sometimes, family and friends are going to not make the same smart decisions as you.  But you can help make sure they get as much as they are supposed to get and it won't even cost you anything but a little time to talk them through the process.  That's what family does.

Wow.  That is about the best I've seen it said.