I Need Some Uplifting Words.
For the past two months, we have had the worse luck with our units. Right now we have 18 units, which are in 7 different houses) and it seems that almost in every house we have had to replace or fix some sort of plumbing problems. We basically in our first year of being landlords. Has anyone else ever experienced this where things just seem to go wrong all at once with your properites? Just looking for some uplifting words to not let these things get us down and to try to get our stress levels under control. Thanks.
How did I do? Did I uplift?
MC
Yes, you did. You did www.uplift.me. Thanks. Gotta be reminded sometimes. How soon I forget all the benefits of real estate even when a few things go wrong here and there. Thanks again for your message.
If this is your first year of Landlording should I assume that you purchased all of the units within same year? and at a low low price? if my assumption is correct then you should have anticipated that plumbing and electrical would be needing immediate attention. Having 7 locations to keep up is a lot more work and obviously higher costs. Providing these locations are in fairly good areas and give you good rents then you should update both, electrical and plumbing and figure it as part of your original investment, Do not wait for the tenants to call. Have a reliable plumber go over a house at at time and make up a l;ist of areas that look weak, joints,valves,pipes, faucets,drains then take a day at a time. Keep in mind that all is tax deductible. I try to spend as much as possible toward my rental properties each year,. I figure if I have to put it out to uncle sam any way I rather put it toward my investment not only to keep their value for higher rents but also the increased value when the day comes to sell. Is going to be hard for a time but you are building up good equity for your future.
I find that the first several months of ownership is a period of "shakedown". The expenses during this period are quite high, but usually things settle down. Multi-units seem to be more troublesome than SFRs--more units, more expenses.
Thanks everyone for your responses. They all are making me feel better.
suekostalas
Kudos to you on being a proactive landlord!
I will try to be uplifting ... but the hard facts of being a landlord can deflate you.
I have 17 units, all in good condition, most of them more than 25 years old. This summer has been hell (not uplifting). Had to threaten to evice three tenants who eventually moved out. Still have a vacany to fill. My A/C repair bill just came in at $700 for service calls on six different units. Still have one leaking A/C to go. Spent three hours last week watching football with a tenant while the plumber replaced a toilet. Had a hot water heater replaced. Have drywood and subterreanian termites in one of my houses - $900 to treat.
Started the summer with 15k in my rental account and wanted to see how it went. By doing the math I should make 3k a month on my rentals. The 3k is after paying PITI and then subtracting 45% of the remainder to account for vacancies and repairs. But still my account goes down. I am at 12k now.
So the uplifting part .... yes it is cyclical. All my leases are renewed either May 31 or July 31 so this was my inspection period. For me, It will get better in the fall and winter and spring. But will I make money on my rentals in the short term? The jury is still out on that. Will my rentals appreciate and build long term weath .... YES. Like most things in life, you must suffer in the short term to be happy in the long term.
I have been having the same experience. What happened?
You might check with the Housing Authority that handles section 8 in the Chicago area. HUD has been hit with funding cuts and different offices handle it in different ways. In San Joaquin County (CA) there has been a cut back in the maximum amount that HUD will allow for a given type of unit. They reduced the maximum for a 2/1 from $825 to $725 per mo. In another area there is a waiting list for vouchers. I have been told that there was a diversion of funding in order to support Homeland Security.