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Thursday, October 25, 2012

How I Avoided a Landlording Nightmare

I own two rental properties and for the most part I have good tenants. Of course every now and then something breaks or a rent check is late. Well, over the last two months a lot has broken and one tenant has been way late. Dealing with all at the same time has been challenging but I had a few things on my side. 

 Of the 5 years I have been a landlord it seems that this summer Murphy moved into the rentals and all of a sudden all the problems decided to show up in about an 8 week period.

First off both air conditioners in both houses broke. In one house the repair was just changing a capacitor in the furnace and cleaning the outside unit…$200. On the other house however, it was not so simple…

The fan in the condenser that sits outside the house broke off and since the unit was original to the house we could not find a replacement. So the option was to try and "invent" something or replace the entire unit.

Friday, October 12, 2012

House #10 Update and Rehab Budget Recap

The rehab on House #10 is complete and the house went on the market at the end of September. I am very happy to announce that we got an offer on it 72 hours after we put it on the market. Although it was not a full price offer like we got back on House #9 after a short round of counter offers we got to a price we could both live with and now the house is under contract!!

Probably the one thing that I liked about the offer more than anything was the fact that the buyer was using a conventional loan and they were already pre-qualified which is not the same as pre-approved.

So what? You might ask…


Thursday, October 4, 2012

House #10 Repair Budget

Our latest house flipping project, House #10 is now completed and is on the market for sale. Here is the list of repairs that I am making to the house and the estimated repair for each. 

Cost estimating and putting together a budget is a critical skill to learn for flipping houses. I have known investors to go upside down on a deal because of underestimating repairs needed.

You will see that I divide the list into exterior and interior and then sort the interior repairs by room. This helps me put together the list of parts I got to buy and also helps me track the work to make sure it gets done.