All Forum Posts by: Amy E.

Cheap enough to get the 2% rule should do it....but I would suggest running the rental numbers and see what the break even point for a landlord would be and then just make sure its lower than that.

Well, you have systems....and then you have structure.  Systems (A/C, water heater, etc.) tend to just "go".  Occasionally they break and you can patch them, but at the end of the day there is an average life expectancy of a system.

Structures on the other hand.....they could potentially last forever if well maintained or if you use the right products.  For instance, I should never need to replace the studs in my wall if they are protected from damage.   Structure that is not protected from damage (like a roof), will also have an average life expectancy.

Survey what you have and replace all the systems due to fail in the next 5 years.  Hopefully that would minimize your calls.  I would leave structure, personally, and let it wear out until its time to replace.

In practice, though, I tend to leave most stuff intact and just take the call when it breaks.  But I do lower income rentals, so YMMV.

And do it crazy fast.....I tried to bid one and after the owner occupant bidding period expired, the website stated that bidding would be open for another 24 hours.  I dragged my feet and tried to do it that afternoon and they had already removed the listing!  Be prepared to bid the second its open to you.

Neither....the county tax assessor site.  My county has a free website and it has a link to "recent sales in the area".  I export to excel, calculate price/squarefoot to get some ballparks and then pull up similar houses for a more in depth comparison.  

@Mike Creswell, but I don't pay for heating and cooling and it doesn't impact the quality of my tenants, so why would I care?  I have never had a tenant turn down a place because of the windows.  At my level (lower income rentals), not one person has ever asked if the windows were new or not.  For reference, I have no trouble renting houses, I typically find somebody within a week of putting a sign in the yard.

Now, if you're going for high end rentals, I could see replacing them just as you would put in fancy counters and cabinets.  It's all about your clientelle

That seems like an awful lot of work for $300/month.  That's not even $100/door profit.

I have wanted to do multi-family for forever, but the numbers are similar to what you posted and I just can't justify it in my area when there are just so many better SFR deals out there.

I guess the real question is are you happy with net $300/month?  If so, then do it.

Local bank or credit union.  For me (in GA), they had better business offerings when I was getting started.  Plus, I do not qualify for a lot of the big chain commercial products because my yearly revenue is too low and/or I haven't been in business long enough.

What I've found with rentals, at least at my level, is that it doesn't make sense to do "investment" projects that cost me nothing to wait.  

In other words, yes I should "invest" in a new roof if the current one cannot be patched and is actively leaking.  Otherwise, I will just continue to damage other parts of the house until the roof is replaced.

But working windows with no issues I always leave alone.  Yes, they're inefficient.  Yes, they're ugly.  Yes, if it were my house I'd put in new.  But its not my house.  If they don't leak I leave them in.  Make sure the caulking is properly installed and maintained and you should be fine.

Why would you go to your real estate agent for insurance?  Is that normal in your area?  If you have USAA, they will do it.  If not, google insurance brokers in your area, explain the situation, and you will likely find one that will underwrite.

Thanks @Marcia Maynard, that clause will help a bunch.  I will add it to my lease.

As you suggest, I could lock it, but as I mentioned, the sucker is empty so its no real burden for them.  I think I will take your suggestion and maybe re-sign the lease without the storage unit included.  That way, they still owe, I can get them on a finite payment plan, but it frees up my storage unit and I can profit elsewhere.

Thanks!