Even though you have the money in the bank to cover reserves now, get in the habit to set some portion aside each month - if you keep buying more units, you'll be glad that you don't have to relearn the game later on down the road.

It wasn't a broken down building that needed work, it was getting about 12% cap rate when I bought it.Negotiated the property down to $400k, spent $40k changing a gutted storage area into another apartment and fixing up another area so it could be habitable (this $40k could have been considerably less if I did the work myself).

I know myself and my habit of procrastination, so the time limit along with being held accountable by others makes for a lot of work on my part.In the next five years, I plan on being a prominent investor with an extensive portfolio ranging from single family, multi, apartments, and commercial buildings.

Asking to speak with them and even see the inside of the building would speak to their habits and lifestyle that much more!

Have the tenants pay at least part of your mortgage and expenses.Some investors make a habit of buying a property, moving into it and fixing it up, converting to a rental, and then moving on to the next one.

I just want to make sure I go in the habitable areas.

Generally I look to these areas when screening a tenant. 1) Money-Income (3x monthly rent)2) People-Person how do they carry themselves during interview3) Credit, not so much score but buying and paying off habits.

Specific consent is usually better, if there is no harm, then tell them the friend from Utah can stay for the week, 7 days and that you expect them to be leaving or perhaps you'll add them to the lease at an additional fee. :)

I agree with what everyone says above and I just want to give my 2 cents.I suggest you break this habit of his immediately.

There has to be some consideration for the materials and my time to make this habitable and even marketable in the future to a typical home buyer.Sorry to get long-winded on this.