Keep your automobiles safe..

Unfortunately, it's now going to get more complicated:(There are two types of approaches PMCs use to bill for maintenance:1) In-house ServiceTechs on the payroll, so owners are billed for their time by the hour.While the labor charges above are useful, they don't cover the true costs a PMC incurs, like:- Payroll costs for FICA, Social Security, Medicare, etc. that typically add 25-40% to the hourly rate- Medical insurance costs for the worker- Payroll processing costs to handle all of the above- Liability insurance costs in case worker damages something or injures someone- Workman's Compensation insurance- Costs of vehicles and tools- and more...Typically the management contract will disclose the total hourly rate an owner will be charged.

The building next to yours looks much nicer and has THREE security vehicles parked in front.

I may be misremembering this next part, but I recall one of the RTR podcast episodes where he mentions that RTR keeps all the “10’s” and gives the “9’s, 8’s, and 7’s” to the customers.

Here are the numbers:IncomeTotalPartner ContributionsManaging Partners Debt$0.00Partners Deposits$987,459.99Total Contributions$987,459.99Operating IncomeAirbnb Income$50,186.50Square Income (Vehicles or add-ons)$6,741.04Total Operating Income$56,927.54Total Income$1,044,387.53ExpensesPurchase of propertyCost of House-680,000.00Closing Costs-$26,744.44Total Cost of Purchase-706,744.44Set Up ExpensesHouse Improvements & Care taker home addition-116017.03Adding Tiny House-52130.83Furnishings-68403.65Vehicles-43150Set Up Costs and Advertising-2339.53Total Cost of Set Up-282,041.04Operating expensesCare Takers-14535.9Additional Cleaners-1505Cleaning Supplies-2670House Supplies-1340Landscaping-4230.66Utilities (Power & Water)-8204Internet-315Pest control/fumigacion -120Pool cleaning/maintenance-2220Vehicle Gas-552.3Vehicle Maintenance and Repairs-6625.01Welcome Food for Guests-115Property Repairs-4999.64Bank Fees-1208.06Accounting Fees-1085Insurance-955.74Other Expenses-1071.2Total Operating Costs -$51,752.51Total Expenses-$1,040,537.99Net Income$3,849.54Net Operating Income$5,175.03Now 5k for an investment of 970k is not a good investment.  

The closest analogy I can make here is when someone "takes over payments" on a vehicle.  

A property hoarder keeps properties just to keep them.

Hey everyone!
One of the trickiest parts of flipping houses, at least for me, has been figuring out how to accurately estimate rehab costs. It feels like there’s always a surprise—whether it’s skyrocketing material p...

Please keep us posted on how it works out when all is wrapped up with the tenant.We recently were looking at a duplex that we wanted to buy, but the current tenants (in both units) had pit bulls.

The notes amortize and you can never really use any of your cash flow because you have to keep borrowing to buy more notes and keep paying down the LOC.