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Tag Archives: rental property

My Rental Property Strategy and Property Management

rental property strategy

There are many so called RE investors that pretend to cash flow, and they are not calculating any of the soft expenses.  Management, Vacancy and Maintenance are the big three.  Maintenance being a thing you can put off, and see profit, but it is in actuality deferred maintenance.   I allocate 10% of rents towards maintenance in my budgets, 5% for vacancy, and 7% for management.   And I expect ~15% ROI if I make the purchase. Most of my time in regards to the rentals is spent on turning apartments.  Bringing them back to as close to 100% as possible.  Sometimes it takes only a couple of hours, sometimes a bit more.  I turn many in a day, and often have zero vacancy between tenants.  But it is a bit hectic with a full time job.  If it is much more than a few hours, I have a damage deposit.  I can paint with the best of them, and can fix most anything any handyman can. When a renter is in, I would guess it averages well less than one hour per month, per tenant.  A property manager who charges $80 on a $1,000 a month rental would not put in ...

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Sunday Life Updates

We just got back from a mini trip this weekend. The optometrists in Western Colorado have recently formed a society to offer continuing education and networking, much like optometrists in Denver have been doing for years. Geography is a huge drawback to those of us in the less populated areas. We still had to drive 3.5 hours to make the meeting, but it’s better than 8 hours to Denver, and I attended one of the most inspiring lectures I’ve ever heard. It deserves a whole post, so I’ll keep you guessing for now. I used to love going to a bigger city so I could visit the mall, but that isn’t nearly as fun since I have more fun saving my money instead of spending it these days. I did find our daughter some sweet deals. We got five long sleeve shirts from Gymboree for $1.99-$3.99 each.  It is so much better financially to wait until after school starts to buy clothes! Selling My Business, Is it Ever Going to Happen? Many long time readers know that I have been trying to sell the last piece of my optometry practice for the past couple of years now. Originally, I had ...

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One Year of Blogging and $100 Giveaway

birthday

August 1st is the official first birthday of Eyes on the Dollar! I would like to take this opportunity to thank everyone who is reading this and all of you who have had read, commented, or shared my content throughout the past year. I won’t name names in case I forget someone, but you know who you are. In a niche where blogs seem to pop up and disappear overnight, it’s pretty sweet to make it to the one year of blogging mark. The fact that I am an optometrist who has no background in any sort of computer training or website management is proof that if I can keep a blog up and running, anyone can. I started this blog because I thought it would be a way to keep myself on track financially after veering way off course over the past few years. It was also a new challenge at a time when my day job was becoming pretty uninspiring. Without even counting the numbers of visits or amount of money I’ve made, I believe this blog has been a key reason for some of my successes in the past year. Sharing your goals and dreams out loud ...

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How We Paid Off $30,000 in Credit Card Debt

credit card debt payoff

November was a truly happy month in our household. After a year and a half  of hard work, we paid off the last of our credit card debt. We learned some new things about ourselves and our needs and wants along the way. It isn’t rocket science, but here’s how we did it. Background The reason we ended up with this debt was pure and simple lifestyle inflation. We were doing pretty well until we built our house in 2004. It took most of our savings, and by itself, was not a toxic debt. The mortgage is affordable. We have good equity. You have to live somewhere. What got us was the need for stuff to fill it up. We left a couple of rooms unfinished, but filled the others up with new furniture, curtains, rugs, a new washer. I could go on and on. We also bought tons of lawn equipment, new bikes, and skis, whatever we wanted. Before our daughter was born, we decided to finish the spaces we had left, so that was a big bill on the Home Depot card. All the while, we were trading in cars every three or four years, which insured a ...

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Rental Property Series: Let’s Drink to Having Tenants

It has been a little while since our last rental property update. In case you’re new to this site, we purchased our first rental property at the end of August this year. My husband and I became slaves for a month to get it renovated and ready for rental.  You can read about it here if you missed it. Our goal was to have it ready for rent by October 1. We decided to use a property management company because we are just too dang nice and might let in a criminal if they look sweet and have some money. We were hoping to get $750 per month in rent. With our mortgage, insurance, taxes and property management fees paid, we should net around $340 per month from this property. Sweet deal, right? Well, we did have the property ready by October 1. I assumed there would be a line of people waiting to rent the place. We worked so hard, and I got a pretty shower curtain and mirror for the bathroom.  Reality is that it takes a while to find the right renter. One thing I like about property management is that they have no emotional attachment whatsoever. Sob stories don’t ...

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