POLL: For Experience Landlords
I'm finishing year one in my REI adventures (I have 10 units so far) and still have a few minor issue with a few properties. I couldn't be happier with the road I have taken, but wanted to ask a few seasoned landlords - How long does it take you "turn around" a property? and what are some of the strangest stories you have had turning these properties around? Hope this turns into an interseting read for all.
"Turn around" really varies with the property, what side of town it is on, how much repairs need to be done, etc.
Your "strange story" inquiry remined me of a recent article posting. I can't recall the author at the moment, but he told a unique sotry about renting to a member of "the Royal Family of Ghana". Look it up in articles for a fun read.
That would be commercialking or Mark Markov who wrote that article.
The answer to your question is it depends. Tenants will tend to push to see how much they can push, if you take care of them and stay strict with rent payment requirements, they will start to respect you
hoober,
I am more interested in your story. You have only been in the game one year and you have ten units in your portfolio.
Does this mean you have one multi-unit property, or ten separate properties? If you have separate properties, how did you acquire them?
Sounds like a good success story here.
Last year in October, I closed on 2 3-unit properties on the same lot. I got a great deal because it was a commercial loan, the owner was retiring in the Carribean and accepted my offer (first one). There were old tenants, paying good rent. That spoiled me.
I bought a 6-unit and a 3-unit in December in a neighboring town. The tenants are lower-income than the other town. If you follow some of my posts (cry for help actually) you will see what I went through with these 2 properties; all sorts of nightmare scenarios happened to me. I bought a property in Florida as well. That is going well.
Finally, I have decided to sell the 2 I don't want to handle. Because of the crazy real estate market, I will make money of it.
I may have moved to soon without much education in RE and I have paid in terms of a few thousand dollars.
I have $179k in my IRA, sitting in cash. I want to transfer it to RE IRA, but I don't think I want to buy a property that I have to manage. But this may be too little to buy anything with that I can give to property managers.
I don't know much about notes and other forms of RE investments.
I am asking for helpful ideas in my previous post.
Thanks.
Ray,
I can understand you getting me and Mark Markov confused. I'm the good looking one.
Mark Reynolds
Whoops, sorry for the mix-up guys, I should've just said "Ask Mark...any one will do"
Thanks for all the replies. To answer one question - I have 5 properties, 1 4plex, sfh, 3 duplexs. I have decided to dump the 4-plex and 1031the profite into a more managable middle class neighborhood. The problems have been too much - primarly tenants not paying.
I'm also dumping one of my PM. While I have been working in lower income properties, the guy has placed 9 tenants in the past year and we have had to evict 5 of them. I have no time for this kind of piss poor tenant selection. I probability should have canned him sooner, but with contracts and this being my first expertience I let it go too long hoping it would get better.
I still am going to push forward.
You will make out fine at the end.
Dan,
I agree - not for the faint harted. What I meant by "turn around" is ...after you aquire a property that has had problems (you see a sliver lining) does it take to get it back in good working order. I know, realistically, the answer simply "depends", but I figured that 6 months i could straight a place out. A few I did - the 4-plex I haven't...so I made the business desision to shed it and move up.
I agree, I got suckered into buying a two unit from another investor...I was new and he tempted me w/a no money down deal...the house was a dump and looking back I paid way too much for this guys flip. He bought it as a distressed sale for really cheap and claimed to have fixed all neccessary repairs and all that was left were cosmetics (everything has broken down since). Anyway, not to stray from the point...I also inherited his crappy non paying tenants. As a female (and cute I might add ) these guys tested me right away. I have no patience for this and it really didn't take them long to figure out I leave them alone when they pay. I file as soon as can and hit them with a late fee, I am at there door to collect rent as many times as it takes... and I'm pleasant when its received. Eventually, most will come around and mine all respect me at this time but you have to be tough. I've actually come to enjoy the power struggle...maybe that's cause I win.
dsharon,
Where are you investing now? Frederick has exploded and most properties (all of the good ones) are priced too high to support a rental. Hagerstown and Walkersville do not look promising either. Montgomery County is way out of my reach, too.
I use Property Managers for everything. I have only two -- one in Frederick and one in Rockville.