Verbally remind tenant that any future delinquent payments will not be shown leniency.In california, we have a thing called a Notice of Nonresponsibility, where if a tenant orders upgrades and doesn't pay for them, filing a notice of nonresponsibility would protect the landlord against MECHANICS LIENS.

Money - forget it, but also math - they learn the mechanics for sure, but there is way too little about applying it in making the decisions in your life.I've taught my 10 year old the basics about how it works, and how the first property pays for our groceries, the second for our water and electricity, and so on, and how Dad doesn't have to work for those things anymore because we saved the money to buy the properties.

Get a thorough property inspection. mechanicals and roof repair or replacement early on will make your numbers fall apart.

"Disclosed Operating expenses:"RUN your own numbers.400 rent X 4 = 1,600 monthly X 12 = 19,20019,200 gross income divided by half.10% vacancy30% operating and expense10% managementYou have then 9,600 a year.At a 10 CAP you have 96,000 purchase price.1 beds have a lot more turnover than 2 beds do.The people get a boyfriend or girlfriend,get pregnant,family member or mom moves in and they now need a 2 bed.Pay attention to if 400 is at market or below market rent.If it's below market you can keep tenants staying for a long time.If it's high for the area or at market people will move as soon as their income starts falling to a cheaper alternative which creates more turnover.For each turnover you will have lost rent and re-condition costs.The 96,000 purchase price does not include immediate fixes.Example the roof needs redone,mechanicals only have 1 or 2 years left before having to replace etc.

I use north valley mechanical, ask for kirk

New tile on the floor doesn't mean squat".Mechanicals,roofs,plumbing,electrical etc. that is where the real cost is at.Is the property sub-metered for water??

As for adding value, just get the mechanicals in good working order & get it looking clean & fresh - paint & carpet or other flooring do most of the work.

Yes, I'd suggest you follow the mechanics outlined by Jason, but it will come down to which investment is best for you and determining what you must have as profit for your time.

If you fail to show a sufficient income similar to other businesses in the industry, the failure rate increases......why, because if you are a mechanic opening a repair shop and after three years you are not making more than any other mechanic working at other shops in the area, why are you doing it, why be in business, right or wrong, it is assumed you'll be doing what is most profitable for you, and you may just shut the doors and go get a job.

This can be anywhere from another $3-15K,depending on the house.So, a typical rehab will cost us $18-33K and that's for a house built in the past 20 years that just needs a complete cosmetic rehab and perhaps some of the mechanicals.