All Forum Posts by: Arnie Guida

How would you feel if another property owner called you to ask what your rents were?

The are two other four families on my block with "for rent" signs on their front yards, and I'm dying to call and ask what they're charging. I've had friends offer to call on my behalf, pretending to be prospective tenants, but I hate being dishonest about it.

If I called you, would you say "It's none of your business" and hang up, or would you tell me?

I'm not sure what I'd do if the roles were reversed.

One more thing, just because I'm not a hardball landlord on rents, "Don't mistake kindness for weakness." (A. Capone).

They do not walk all over me, they don't wait for repairs, and I don't wait for rent. My record for an eviction is 16 days.

Geez Jon, you get right down to it, doncha?!

The price was very good, not great, but very good. I've been looking for a while and I got it for about 5K less than I was ready to pay, based on all the others I've seen.

How much under market on the rents is a little bit of a grey area, but I'm satisfied with my rents. Again, I'm not a hardball landlord. My tenants have my personal cell number, I'm on good relations with all of them, I always address them by their first name...You know...Say something nice when I see them, "How are you today?"...

Could I get an extra 20, 30...40 per unit? Maybe. Let's put it this way...You know the thing about $9.99? How much more appealing that sounds than $10? If the going rate in my neighborhood is $600, I'd go $580 and be happy. Recently that very thing happened. The 4plex next to mine and I were vacant at the same time. He was asking 6, I was at 580. He rented a month after me. So he lost $600. How many months does it take to make up $600 at $20 a month?

Real Estate is not the focus of my life, I have many other interests.

Well. almost, I have a 4 family and a single, so that's 5, and I'm going to 9.

I've just bought another 4 family. A small step for many here, but a big step for me, I am a little anxious...I've got a small "team", ie, a good handyman, good painter, good furnace man and landscape guy. I do the simple things but hire out the big stuff.

Nice place, short sale. All brick, big units, all 3 br's, all individual central air, 4 1/2 concrete block garage. Wouldn't mind living there myself.

I am 56, retired, and while I'm far from rich, I'm comfortable, so the prospect of dealing with more tenants wasn't an easy decision, but what the hey, let's see how it goes. To the disdain of many here, I'm a "gentleman" landlord...forgoing maximum rents for long term tenants and the benefits that entails...I'm on a first name basis with all of my tenants.

My friend with many more properties calls me crazy for not maxing out the rents, but I see how much more work it is for him, with people coming and going.

My Father always told me, "People tell me how much rent I should be charging, but I see "For Rent" signs in front of their buildings, and my building is always full."

A timely topic for me.

The last time I checked, the average seemed to be

8-10% of rents collected

Show apartment

Screen applicants

Schedule maintenance and repairs

The part that got me was the maintenance and repairs. Schedule, that's it, you pay for them. I asked, "don't you have a team of electricians, plumbers, painters, etc...? No, we can recommend them, but that's up to you.

Wowie wow wow...

It seemed expensive to me, made me think I was in the wrong area of the business...

I fell last week and damaged my artificial hip. I will have surgery to repair/replace it. I'll be out of action for a while, but should be back up to speed in a couple weeks.

It did get me thinking, is it possible to make decent money as a disabled landlord, having to hire most everything out? I've been in this business a while, and without the ability to do the minor things yourself, boy, it would almost be cost prohibitive to be a smaller, mom and pop, residential income property business. One of the things is climbing stairs, something I wont be able to do for a while.

I understand that with will and determination, anything is possible, but boy, it seems like it would be a tough row to hoe. I tip my hat to any disabled landlord.

Looked at a multi today, nice place, great location, lots of potential...

...but stuff everywhere. Old tv's, appliances, furniture...just shtuff...in the hallways...and the basement?

Oh

My

God...

In my multi, it's taken a while, but the hallways are clear, the basement is clear and clean.

I hope I get this one, but changing tenant attitudes toward keeping the common areas uncluttered and clean will be an uphill battle. They're all long term, and obviously set in their ways.

But if I get it, I'll get there. I'm going to try and keep them. I think leading by example is the way.

Since I've posted this I've spoken with a friend who said my dollar values are so small that it might not make financial sense, that reverse 1031's are for big fish, not minnows like me...The hoops required are more than a regular 1031.

Oh well, I've just learned some new things about this property that have raised some red flags...I'm looking at it today, let's see how upfront the realtor is about some of these issues, or if I need to raise them.

The old property has to be sold first, then the new one bought, right?

I've found a 4plex I want to buy, and could buy it normally, but I have a SFH(rental) I wouldn't mind selling. I doubt I could sell the SFH in time before closing on the 4plex.

Is there any way to sell a property "after the fact" to qualify for the 1031 Exchange?

Thank you,

Arnie

My goal is reduce the abuse of the privilege that I feel is going on.

It seems every time I go to the building, laundry is being done. Weekdays, weekends, there's at least one machine running, it's nonstop...

No one has that much laundry to do.

It seems that laundry for people other than those living there is being done. Of course I can't prove it, but something doesn't seem right.

As is common with most 4plex's in the area, I pay the cold water for the whole building and the 110v electric for the common areas, including the laundry machines. I do not pay for the 220v electric for those tenants with electric dryers. Each tenant pays for their own 220v if they have an electric dryer, and for their own natural gas for the dryer, heating of their hot water for their apartment and their washing machines, and their furnace.

It seems a coin op wouldn't make sense for me...maybe just a friendly chat with the tenants would be better.

But they are tenants...ahem...