Posted on

Landlords in Homeowners Associations

police-man-306848_1280-PDLandlords in Homeowners Associations are a joy to some, and a pariah to others.  I own multiple properties in a Homeowners Association (HOA).  People love HOAs, or hate them.  Often, it is real estate investors that hate the HOAs.

If an investor buys property in a homeowner association, they have effectively signed a contract with the HOA.  They have agreed to abide buy the Declarations, bylaws, rules and regulations.  If they do not like the contract, they can attempt to change it.  Once thing they cannot do, is violate it.

As president of my HOA, I have had some challenges with investors.  For some reason, after they have purchased property in our HOA, they think they know more than the HOA Board does.  They very well might, but there are still rules to follow.

I am always intrigued by these investors who buy a property in a HOA. They buy a property because it was priced right, looked to be in a great area, and had the potential for profit. Unfortunately, some of the investors I have come across did not understand HOAs, did not read the rules, or did not think the HOA would enforce the rules. They were interested in their own profit, at the expense of the other investors.

I am sure that they have a few HOA horror stories of their own, after they violated our rules.

Read More Here

Posted on

Hidden Rental Expenses That Might Cause Problems

enter-the-catacombs-PDIf you are like most investors in real estate, you want to make money.  Unfortunately, Murphy has a way to continually take away your profits at the earliest moment.  Even though you have accounted for all of the known events, and even all of the unseen events, the ‘other’ events happen.  These hidden rental expenses are real, and they add up.

Some expenses are a part of running a business, and really have no bearing on the rental property you are purchasing.  But you would not have the expense if you did not have the rental.  So it impacts your cash flow and profitability.  Some expenses are very small, but they indeed add up.

Some expenses are obvious, but who would ever think to include that in the cash flow analysis of a rental property.

Were you aware that driving to and from the rental will cost you something?  Of course, did you account for it in your analysis?  It could add up to be several hundred dollars a year.

Were you aware that sending letter(s) to a tenant would cost you something?  Did you account for it?  It may only be a couple of dollars, but it adds up.

You may want to get a business business liability policy.  How does that affect the cash flow of the rental?

Tenant gifts?  Even $50 adds up fast.  Bad tenants?  Those are the worst.  Evictions?  Bed Bugs?  rental licenses?  Rental inspections?  Tax preparers?  Incorporating?  Time and effort?  YIKES!!

Read more here

What expenses in your own life have popped up, some that may have been expected but were unplanned?  Or even totally unexpected?

 

Posted on

Are You Too Lazy to be a Real Estate Investor?

lazy-lion-PDI get emails and calls all the time about people wanting advice on how to invest in real estate. People want to be a Real Estate Investor, and do not know where to begin.

It is sort of flattering, like I have some sort of insider knowledge of the markets or what property or type of asset is the best investment today. But I am always willing to share my knowledge. Even more interesting are the investors who say something like, “If you find a property that I can make a quick $50K on, call me. I have the money to invest.”

If I see a property with a $50K potential, it’s mine — and no one else’s if I can help it.

I get people who contact me with things like this. “I have a goal to have 100 rental properties within 10 years. I have $10K to invest now. How should I start?” I admire the goal setting, and I appreciate the fact that someone can think big. Unfortunately, if that is your way to riches in real estate, your bubble will soon be popped.

Do You Have What it Takes?

There are many different ways to invest in real estate. I personally do rentals and have done a flip. I have also sold real estate. All my rentals had to be 100% remodeled after I purchased them, so I know a lot about rehabbing. If you are thinking about any self-managed real estate, you also need to know a bit about rehabbing. Once you can rehab a property, the world of real estate can get very interesting and more financially rewarding.

Read More Here

 

Posted on

How to Be a Landlord’s Ideal Tenant — and Get into Any Rental You Choose

wonder-woman-533663_1280-PDIf you are a renter, you have many obstacles ahead of you. Landlords are full of horror stories, and you are just another potential horror story. Based on statistical evidence, you are not an ideal tenant.  You want and need to be the best renter the new landlord has ever seen.

No landlord really wants you, but they need you. They need you to help them pay their rental mortgage; they need you to help them pay their personal mortgage, they need you to help them retire early. But they do not need you to come around and damage the premise or cause them a lot of extra work. Here is how to be the best renter you can possibly be.

My rentals are multifamily, but much of this advice translates to all rentals. Much of it I have seen firsthand.

How to Be a Landlord’s Ideal Tenant — and Get into Any Rental You Choose

Prepare for the Apartment Viewing Process

When you set up a showing for a rental property, it is really an interview. You are interviewing the landlord or property management company, and they are interviewing you. Make a critical mistake in this process, and you will have to move on to the next property. You do not have to be dressed for church, but do not come looking like you are homeless.

Read more here

Have you ever been turned down for a rental?  If so, what was the landlord’s reason?  If you are a landlord, what do you find to be the most detrimental things a tenant does to get rejected.

 

Posted on

5 Reasons You NEED to Be Properly Capitalized for Real Estate Investing Success

savings-box-161876_1280-PDThere are many aspects to investing real estate. Some require no money down, but most require a significant amount of money to get into. And after you get into them, some require even more money. Failure to be properly capitalized or being under capitalized could cause you to not only lose your entire investment; it could cause you to lose your personal assets, too.

Never underestimate the amount of capital that it will take to be a successful real estate investor. I see many people embark on an RE investing career, and think they can spend their last dollar attempting to “strike it rich.” There are no quick paths to riches, and with a higher return comes more risk, every time.

5 Reasons You NEED to Be Properly Capitalized for Real Estate Investing Success

Read More Here

Have you ever had an investment that costs more than you thought?  Or thought about an investment but decided against it because you did not think you have enough money?

 

Posted on

How to Get the Best Tenants into Your Rental Property

When you have a vacant rental, you will inevitable have to advertise and fill it. Unless you are extremely lucky, you will not rent to the first person who inquires on your rental — or at least the first person will not likely be qualified to live in it.  You want to get the best tenants you can possibly attract to your rental.

Like it or not, you will be at some point showing your property to tenants that do not want to rent from you, or you do not want to rent to.

At some point, you will need to decline a rental applicant. This is one of the main problems landlords have: being unable to decline a tenant.

See the rest of the story here

 

Posted on

Why I asked My Section 8 Tenant to Leave

Section 8 renterI asked my Section 8 tenant to leave recently.  In reality, I did not ask her, I demanded she leave by 7/31/2014.  This was a tenant that has been with me since 2007, over seven years.  Well before I started getting into my 4-plexes and adding a significant amount of rental property to my portfolio.  The reasons were many…

Continue reading “Why I asked My Section 8 Tenant to Leave”

Posted on

How to Repair a Dishwasher Leak- Landlord Style

Dishwasher LeakI am a strong advocate of buying investment property close enough you can walk to.  The advantages are enormous.  You can keep closer tabs on your tenants, handle simple maintenance calls, and be able to keep an additional 10% to 20% of your rents in your own pocket.

Here is one repair that was relatively easy, and saved quite a bit of money over hiring a repair shop or buying a new dishwasher.  If you want to know how to repair a dishwasher leak, please read more.

Continue reading “How to Repair a Dishwasher Leak- Landlord Style”

Posted on

How to Handle After Hours Tenant Calls

Maxitrol Gas Pressure RegulatorOne of the most hated items of being a landlord are the after hours tenant calls, or calls in the middle of the night.  Keep in mind, it is also one of the tenant’s most dreaded items too, calling their landlord after hours.  They do not like to be up with building issues any more than you do.  Here is a recent example of a call that might be a disaster to some landlords, or routine for others.

Continue reading “How to Handle After Hours Tenant Calls”