Home > Tag Archives: rental property

Tag Archives: rental property

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 ...

Read More »

Buying a FourPlex

buying a fourplex as an investment property

It’s no secret that I like real estate. I think owning investment property is a great way to build wealth and create semi-passive income. You get to enjoy growing equity and increasing property value over time, all while someone else pays the mortgage. What’s not to like? Well, plenty. We made a bad decision in trying to flip a house a couple of years ago, and had a huge repair bill on one of our rentals this year, which negated any profits.  Still, we are in this for the long haul, and like something out of a HGTV episode, we recently found a deal and bought a fourplex! Here is the story. Not A Good Realtor To Be Found As you might remember, Jim and I have looked at a few potential rentals over the past year, or rather, I look and he says, “OK” as he does not share my love of the hunt. Anyway, after the bad flip deal, I was a bit sour on our realtor and decided to find someone new. The problem was that they all sucked. I thought I had a good one who actually showed me a  few properties at the end of ...

Read More »

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 ...

Read More »

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 ...

Read More »

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 ...

Read More »