All Forum Posts by: Rhonda Wilson

During a recession, it's always good to be closer to the low-end than the high-end. Rather than cut out an activity, people more often downsize. Deep value businesses like Dollar General and McDonald's tend to do well when times are tough. Therefore, if you are going to own a short-term rental and are worried about a downturn, buy something cheaper that you can afford to rent out for $59 a night or something. You'll fill yours 5 times faster than the beautiful unit that rents for $159 a night. 

Have you considered southern Oregon cities such as Medford? Medford is a nice place to live and is growing a great deal with so many California folks coming in. Also, it's not so far away that you couldn't drive there a couple of times a year. 

@Rebecca Zemek  Good suggestion. Rich Dad, Poor Dad is probably the best book for helping people to see money, real estate and assets in general in a different light. 

I have a question. Mold in attics is really common where I live. We have it in some buildings due to poor ventilation. That is, we get condensation on the underside of the plywood of the roof and that molds. We have addressed the ventilation issue with a humidity activated fan. Now with the mold no longer growing, is it really necessary to get rid of the dead mold? Or, can I just wait until it's time to replace the roof (5-10 years) and deal with it then?

Forecasting future rent is hard. I would estimate 2 - 4 % rent growth.  If it looks good with 1-2% rent growth, I think that you are in good shape.

Oh, and your question wasn't about this, but in your original post, I got the impression that you may have gone overboard on the finishes for the unit. Sadly, few renters will care for a property the way that you will. When choosing finishes, try to think about durability, cost effectiveness and whether the finish will pay for itself in extra rent or longer life. Don't get into the mindset of making it as nice as you would your own home. The counter tops, cabinets and flooring are ASSETS. They provide value in terms of making the space habitable / rent able. 

I'm almost wondering if the house it "too nice" to be a rental. Have you considered selling it and buying something else? I would rather have a tri-plex with three little low-end units than one big beautiful SFH. I have never had any difficulty renting low-end apartments. Many working people just want something affordable and clean. There is always a big market for that.

I think that you're on the right track now, Shane. We've all been there and sometimes we want to lash out in anger. As others have said, these things go with the territory. One of the negatives of being a landlord is finding out what some people are really like. Try to think about some of the gems you've had as tenants. I tend to think that karma catches up with people, so don't worry, the man will eventually get all he deserves.

I sympathize with what you've gone through. It's awful to have someone trash a property that you have put so much effort into making into a nice place for someone to live.

My advice is to try to stay as objective and unemotional as possible. Renting properties is a business and any decision made for emotional reasons instead of business reasons is probably a bad one. Of course, if I've had a terrible tenant, I will be honest about it when asked for a reference. However, I wouldn't go out of my way to shame a person. 

There are multiple ways that attacking the person's reputation could backfire on you. Remember that one military benefit is free legal council. Do you have free legal council if he comes back at you?

One of the best ways to determine market rent is to look through craigslist ads.

@Benjamin Portnoy Ditto! LOL. 

@Eric SchwakeThere is probably a reason why the DOM is so high. Be ready to do a LOT of due diligence. Are all the square feet permitted? Is there some tax, lien or maintenance issue? Are illegal activities happening there? Be sure to google the property address, I have come across sex offender tenants and news of big-time police drug raids by doing that. I don't mean to scare you away from investing, on the contrary, only suggesting that you dig deep.