All Forum Posts by: Ray Lin

If you can't find people to live in the house, that's the risk you have to take. Finding tenants to pay your bills is the hard part. I was reading and learning about real estate around my twenties. Keep reading, keep learning and real estate will be very rewarding in the future. In the beginning, I worried about vacancies all time time. Now, it's just part of business. I need to work on marketing and how to acquire better tenants.

Don't be greedy and try to leverage your portfolio. Slowly and surely, you will make a lot money. Remember to save some money for capital repairs. The roof, AC, plumbing, electrical and flooring will eventually need replacements. Since your homes are free and clear, keep them that way. When you save up enough capital, slowly increase your portfolio.

Quote from @Julia Lyrberg:

Hi Radhika! It sounds like you’re taking all the right steps to set yourself up for success. Narrowing down a market can definitely feel overwhelming, but focusing on key factors like job growth, population trends, and rental demand can help. Since you’re looking for landlord-friendly states, consider areas in the Southeast or Midwest, where affordability and cash flow potential are often stronger.

I agree. The Southeast and Midwest States are very landlord friendly states. If the tenants don't pay, they can be evicted within 30-60 days. In my experience, the homes appreciate very slowly, but the cash flow is great.

The best way is to get actual estimates from contractors. I had to repave a driveway for an apartment complex. Three different contractors gave me 3 quotes, one for $30K, $60K and $110K. I went with the lowest bid. The labor and materials cost varies widely in different markets. When I'm submitting a bid for a home purchase, I'm always estimating on a higher cost for rehabs.

I don't know the specifics of your state, but in Mississippi, my property manager has filled for garnishment for the amount of rent that is owed. The garnishment has to be filled in county clerks office and the paperwork is served to the ex-tenant place of employment. I have received a few garnishment checks from the employer. Once the ex-tenant/ employee quit working, the company stopped sending the garnishment checks. I didn't receive the full rent which was owed, but it was better than nothing. I hope you have better luck getting your rent money.

I was the winning bidder at a courthouse foreclosure sale.  The referee and I signed the paperwork, I gave the auctioneer my bank check at the conclusion of the auction on a Friday around 11:30 am. On Monday morning, I get a call from the attorney's office telling me the sale was canceled and asked me for a mailing address to return the bank check. This has happened to me twice over. 

I think you should finish your electrician apprentice. Once you're an electrician, you will make a lot more money. Also, you electrical experience will become very useful for remodeling an investment property. You will come across handyman specials and a lot of rehab projects. 

I'm an investor, but I am trying to learn the construction business so I can estimate remodeling cost better. If you know construction, you'll be able to notice more deals.

Don't give up your electric apprenticeship.

A lot of people says that you make money on your buys. You make money when you buy a deal. Try to buy properties with built in equity. I have been studying the market in a few particularly zip codes. Once a property shows up below market value, I immediately put in an offer. Sometimes I win and many many times, I lose. Real estate is a long game and you need to have patience. I see real estate like shopping. The American consumer likes fancy objects, cars, designer clothes and bags. Study your market so you know when a deal shows up.

When did the tree fall? Who is responsible for the tree? The city or homeowner? 

About 3 or 4 years ago, there was a huge storm in NYC and a very large tree fell into my friends neighbor's house. My friend had to evacuate his home and stayed in a hotel until the tree was removed. The house which had the fallen tree was condemned and demolished. But the city had to pay the homeowners, as the tree was on city property. The house was valued at $1mil. Now the owner built a brand new house on the same lot. The new value is probably more than $2mil.

Section 8 is a hit or miss. One investor in Mastic and Shirley NY has over a dozen rentals. The section 8 was out performing her regular rentals. She is extremely happy with section 8.

However, in a different market, I spoke to a few property managers and their section rental is <1% of their management. One PM has only 3 section 8 tenants out of 180 rentals. She claims that the section 8 tenant was inherited and will eventually phase them out.

Do your due diligence and find a good property manager.