All Forum Posts by: Account Closed

Originally posted by nationwidepi:

If the rent is only "$95 cheaper" than it is actually more expensive when you take into consideration the tax benefits of home ownership rather than none with renting.

Maybe, maybe not. Often times the tax "savings" are offset with other costs, especially in this market, especially if held for the short term.

Alton, in 1984 when I started I did EXACTLY what you are describing. It wasn't really by plan I was already renting and started buying rentals and well, never bothered to move into one. I stayed in my apartment. Then I left the area, kept the rentals and bought a house where I wanted to live at that time.

There is one thing for sure, it would be much easier to "test" the theory by renting where you live and buying rentals for cash flow first. If that did not work out it would be much easier to buy where you are investing and move in than it would be to do the reverse.

Diane,

Every property we have has a "book". I put it in quotes because it is stored in our computers but we make sure a printed copy is given to the tenant when they move in and it is updated whenever any repair or maintenance item is addressed.

In it we cover things like, "The thermostat on the first floor controls the whole house." This becomes their bible as it relates to the home. It has the locations, with pictures, of all shutoff valves, HVAC registers, filters - AND how to change them, etc. If they have a question about the house, 99% of the time the answer is in the book.

When something "new" happens like you've described, we add to the book. "The thermostat on the first floor controls the whole house. Do not cover the HVAC intake registers with plastic or obstruct them. They must function correctly for the HVAC system to function correctly."

Also, make sure your lease includes wording allowing you to bill them for repairs and maintenance issues they cause. Whether you enforce it in a case like this is a judgment call. Sometimes the sheer entertainment value of something like this is worth far more than the HVAC service call. :cool:

David,

Start by having them read The Law by Frederick Bastiat

It should be required reading in high school.

Yeah, I too have a dream.

That is not a universal policy. Most section 8 programs would just "note it in the deadbeat tenant's file" and leave it to you to collect.

Originally posted by Mark Douglas:

Here are my questions:

Is a property management company required to charge the property owner only what a hired vendor charged for the work completed, or can the PM create their own invoice for what was hired out?

It depends on what is in the contract you signed with the PM. I would never sign a contract allowing a PM to markup contracted work, but that type of clause is used by some lower quality PMs.

That is fraud but your remedy is most likely civil, not criminal charges. It is possible you might get a prosecutor interested in some form of theft charges but unless it is widespread I suspect you are going to referred to the clerk to file a civil lawsuit.

Yes, talk to the state licensing board and file a complaint with the supporting evidence.

You really need to sit down with a lawyer. Many times fraud allows you to seek multipliers of the actual damages you suffer, it is usually treble, meaning 3x. So, if they fraudulently billed you for say, $10k you might be able to seek $30k in compensatory damages. Depending on the statutes you might also be able to get punitive damages. Bottom line, get a good lawyer.

Treating the symptoms as the disease rages on is completely pointless.

In the 1980's about 63% of the US economy was consumer driven, in 2007 it was over 70%. The "problem" everyone now sees is the consumer is tapped out and not spending. Which for the longer term is a very good thing. However, if the contraction in consumer spending happens too fast, the economy goes into a deeper recession or worse.

Yes, we need jobs but not the ones government "creates". We need jobs that actually contribute to the GDP and not just redistribute the wealth. Those come from small businesses and entrepreneurs. You get job growth there when government gets out of their way.

The problem with housing is self correcting once we realize it isn't the disease. The disease is an under educated and under skilled work force who is used to wages that are not in line with their actual value to their employer.

Improving consumer confidence is a start but the consumer can't carry the economy by themselves. Consumer spending should be between 50% and 60% of the economy. Consumers are doing their part by pulling back, the real question is whether government or the private sector will be the ones to fill the void. Since the government is the one controlling that and since we now have a VERY socialist leaning government, I think we have our answer.

This is so shaping up to be like the Carter years times 10. :roll:

You will not be reimbursed for your labor. You will be able to submit receipts for materials and supplies for reimbursement. If the check from the insurance company includes labor the lender will return the unused portion to the insurance company after all work is complete and the inspections are done.

In other words, you will work for free if you choose to do this.

The Psychology of the Deal.

Fitting out two trucks will be your most cost effective option. Otherwise, since your partner is 15 minutes closer to your properties, you could store everything there.

For those wishing to dig a little deeper into the data...

Operating Expense as a Percentage of Potential Rents Study Using Data from the 2007 Calendar Year