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Tag Archives: rental property

Ways to Get Mailbox Money

ways to get passive income

We all know that making money is one of the keys to financial success. While there are tons of ways to earn income, I think my favorite way is through “mailbox money.” One of my favorite things about being an optometrist is learning oddball things from my patients, and this term came onto my radar a few weeks ago from one of my more colorful clients who had recently retired after selling his business. As he is only in his mid 50’s, I asked if he had another career on the horizon when he told me that he as pretty content to collect his mailbox money from various rental properties acquired over the years.  Sounds like a great plan if you ask me! Mailbox money is income that arrives either in your physical or virtual mailbox, in a somewhat fixed frequency with a minimum of management, basically the definition of passive income. Passive income is the holy grail for those of us seeking financial independence and/or early retirement. Since few have access to royalties or trust funds set up by someone else in our names, that means earning our own mailbox money. Luckily, there are several ways to cash in. ...

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6 Tips for Running your Rental Property

success with running a rental property

To make your job as a landlord easier and more lucrative, there are ways you can streamline your rental processes and protect your assets simultaneously. Running your rental property need not be stressful, and with a few key tips you can find great tenants and make the most of your investment. If you’re considering increasing your number of rentals, make sure you’re optimizing your current properties before expanding.  1. Using Property Management If you’d prefer to utilize the services of property managers, you have a wide variety of companies to choose from. Property managers can take away a lot of responsibility and stress from busy landlords. They can handle rent collection, eviction problems, and maintenance issues—meaning a whole lot of stress of your shoulders. Their services don’t come cheap—the usual fees range from around 7% to 10% of your rental income—but the cost can be a worthy investment for landlords that have other commitments which make face to face interaction with tenants hard. 2. Be Well-Informed Even if you use a property manager, you’re still liable for any broken legal regulations. Staying on top of local ordinances, state regulations, and federal laws will give you peace of mind and keep ...

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Rental Property Ups and Downs

four plex rental

  This is year three of rental property ownership for the Eyes on the Dollar family, and wow, what a year it’s been. We went from having one easy commercial building and one single family home to multi-property ownership after buying a very outdated fourplex at the end of last year. Here’s a recap of our rental property ups and downs for the year. FourPlex Mania The earlier part of the year was extremely frustrating and expensive from the landlord perspective. You can read about our renovation experience, but to summarize, we took a property with three apartments (two decent and one crappy) and made it into four nice apartments. We also turned over four tenants during the process. I would be lying if I said I didn’t worry about spending thousands of dollars at a time when no rental income was coming in. It also would be false to say that I love the city building inspector. He let us know two weeks before our final inspection that we’d have to replace the entire water line to the property at a cost of about $4,000 to get our certificate of occupancy. He is off the Christmas card list! Finally ...

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The FourPlex Is Rented!

four plex rental

For the first time since buying last December, the fourplex is rented! It was lots of work and stress, but what a nice feeling to have that final lease signed. The property has two buildings, each with two apartments. One of the buildings needed a some renovation with new flooring, electrical, paint, and light fixtures upstairs and a complete remodel with new construction downstairs. After two and a half months of work, we now have four, two bedroom apartments. Rental Income We had hoped to get $3050 in rent between all four units, and we’re pretty close at $2975 per month. We have one holdover tenant who was there before we bought the place, and we should be able to raise the rent $100 or so per month once he moves out. Our other rental house is currently leased for $780/month. The total of our rental expenses are around $2000 a month, so that means $1755 in profit. We also have our commercial rental that barely breaks even every month, but it will be paid off in four and a half years and should net another $3000 a month when that happens. Of course, we’re going to have bad months ...

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Rental Property Adventures

Multiplex for commercial and residential use.

For those of you interested in becoming landlords, I thought I’d share some progress and problems from our latest rental property adventures. It’s not all roses and monthly checks, but rental property can be very worthwhile if you have the stomach for it. Four Units For the Price of Three When we purchased our latest property, we tried to imagine it as buy three units get one free. The fourth unit was unfinished and about as livable as a bomb shelter.We got a deal on the property, but it needed lots of work to achieve full potential. The property came with two buildings, each divided into two apartments. There were three finished apartments that were rented when we took ownership.  Now, we are working to make that fourth unit a nice two bedroom apartment. If you can imagine a 760 sq ft open space with cement walls, a dirty half bath, and no duct work whatsoever, that’s our place! It needs everything; walls, flooring, a functional bathroom, closets, lighting, windows, doors, a whole kitchen with appliances. It’s a huge project. We are two weeks into an estimated six week time line. (I’m betting closer to 12 weeks, but we’ll see). It’s expensive and ...

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