All Forum Posts by: Stephen Chaney

 They are coin operated. Thank you for the advice! There's a letter above the washer stating abandoned clothes may be thrown on the floor. No problems since then!

@Chase Cline
I understand where your frustration is coming from. It can be discouraging to view the numbers and break even. Not even paying yourself for management but maybe try looking at it from a different perspective. When you put money, or spend money on property, that money isn't gone. The money still exists within that property. Much like a bank. Rental properties aren't a get rich quick scheme. I can't recall exactly where I heard this most likely a BiggerPockets Podcast but someone said "Realistically expect to make $100 profit per door". That seems like a small chunk of money, on a small scale. On a larger scale $100 dollars from each door at 100 units is a big chunk.

Also make sure you're taking advantage of every deduction that the much smarter people above me have mentioned. I shopped around for 6 months before choosing my new CPA. I was looking for a CPA who is very knowledgeable on rental property and owned property for themselves. I asked questions like "What other companies do you work for in my same profession?."

I've used leverage for both of my current deals, and a build project that starts next week. For as long as I can will not use my own money to purchase property. These guys above me have said pretty much all that needs to be said.

As far as I know, it's still illegal under federal law to house a growing operation without proper licensing and the funding of one. I'd be a tad wary of allowing one in a building of mine or personally helping fund it. That door could get kicked in by federal agents at any time and your assets (cash) could be seized for a very extended period of time. Until banks will extend loans for such a thing, I wouldn't touch it.  That's just me though, and I could be way wrong. I don't smoke so I don't keep track of current marijuana laws.

I'm absolutely positive there's no room. I wish there was a way to create the room though. It's Under a stairwell. This isn't a bad idea though. There may be room there that I could hang a laundry bag so tenants could toss abandoned clothing into that. Thank you for the advice.

 I'd love to do this, because it would make me feel happy knowing their things are being thrown out.  At the same time I don't want to put my other tenants in a position that could start a confrontation. I've been VERY lucky and I'm very thankful to all my current tenants because they have made my first year very easy on me. Wouldn't want to ruin that over laundry. Thank you for your advice!

 That's an AMAZING idea! Thank you very much for your input.

I have a 6 unit property with a total of 8 individuals living in the property. ONE 2 person family is consistently hogging the laundry facility. There is only one washer and dryer for the entire complex because the layout doesn't allow for any more. I have received several complaints. I sent a general letter out addressing all of the tenants explaining to them the importance of not leaving laundry sit in the laundry facility. Still they keep doing it. I have posted letters above the washer and dryer and they still keep doing it. What should my next step be? Without me actually witnessing the issue I'm not sure I can come to them directly and start pointing fingers.

I could have a washer and dryer installed in their unit and up their rent. Since they are month to month. I'd prefer that to be my very last step though. Any advice would be appreciated.

Stephen

Welcome to BP! 

I had the same reservations. In fact I wish I didn't wait so long. My wife and I prepared, and talked, and I obsessed for almost 5 years before we made our first move. An unfortunate life event lit a fire in me that I didn't know existed. I dedicated a lot of my time and energy into this kind of business ( I needed the distraction ). Within that same month we made our first deal, and within 4 months our second. 15 units later and we are working on our first construction project. I'm addicted to trying to find deals now. Our second purchase was a breeze compared to the first. So many people are right when they say it does get easier. I now use that same caution to analyze every deal, and use it to my advantage.

I hope you find that you're as passionate about this business as a lot of us here are. Good luck in your future, and happy deal hunting!

Congratulations! That's an exciting time!

Here are some basics

Utilities (Gas,water,sewer,electric)
Insurance
Property Tax

Lawncare and snow and ice removal (If there's a lawn)

Maintenance and repairs

Capital Expenditures (Things like replacing appliances or maintaining your building )