FlipperToolbox

Hey everyone, I’m looking for some advice on starting my investment portfolio. I own a condo outright, paid it off in cash 5 years ago, and it’s now valued at 160k. I’m wondering what my next move should be. Should I leverage the equity in my condo to buy another property and turn both into rentals? I want to make the most of this opportunity to secure a better future for myself, but I’m a bit unsure about the best approach. I know I’m in a good position not having a mortgage on this property, and I’m eager to expand, just not sure where to start. Any tips or suggestions you could share would be greatly appreciated. Thanks a bunch!

I have seven rental properties in my portfolio, a mix of single-family homes and a duplex. The question that keeps popping up for me is: how much of my time am I exchanging for cash flow? On the surface, everything seems to be going well – the mortgages are covered, and each property brings in a bit of positive cash flow. But once I start considering turnovers, maintenance, and all the little administrative tasks, it feels like my nights and weekends are getting swallowed up.

Up to this point, I’ve been managing everything myself. I handle payments and lease agreements through TurboTenant, and tenants use the platform to report maintenance issues, which has definitely made things more efficient. However, every time I acquire a new unit, I find myself questioning whether it’s more beneficial in the long run to hire a property manager instead of trying to do everything on my own.

I wonder if there is a specific threshold for the number of properties where it makes sense to switch to professional management, or if it’s more about personal lifestyle preferences and how much time I am willing to dedicate to property management.

So, my family and I decided to build our dream home with Highland Homes in Texas. We had rented old houses for years and were tired of the constant repairs, so building a new home seemed like the perfect solution. We trusted the process, even hiring our own inspector at each step. However, our dream quickly turned into a nightmare.

The issues started when the slab was poured despite problems being flagged, with no written proof, just assurances that everything was fine. The framing lumber was left sitting in mud, and the bricks delivered were covered in black stains. Highland Homes offered us $2k to sign a confidentiality agreement, but we refused. After some back and forth, they finally agreed to replace the stained bricks.

Just four months after moving in, we discovered termites infesting our walls and attic, including the aggressive Formosan kind. Experts traced this back to missing or poor soil and frame treatments. Mold soon followed, confirmed by lab tests, leading to breathing issues for our kids and my wife. The AC system also struggled to keep up due to insulation gaps, unsealed penetrations, fans blowing humid air back, and an overloaded unit exacerbating the humidity problem.

The most significant problem we faced was with the concrete slab itself. Independent engineers informed us that the foundation was porous and weak, riddled with cracks and voids that allowed water to continuously seep through. It was like finding out the very base of our new home was failing just four months after moving in.

We have now been out of that Highland Homes property for over 2.5 years, renting a place while still paying the mortgage. Our dream home, meant to be a forever residence and a place for my widowed mom to stay, has turned into a source of emotional, financial, and medical stress. In hindsight, we should have walked away, even if it meant losing the $15k deposit. It would have been a small price to pay compared to the ordeal we’ve endured.

If you’re considering building a home, my advice is simple: trust your instincts. If something doesn’t feel right, don’t ignore it. Walking away early could save you from a world of trouble and heartache down the line.

Hey guys, just wanted to share that I recently bought a duplex. I’m living in one unit and renting out the other to a family member in exchange for childcare. Looking ahead, I’m open to ideas for the future. The setup is a one-bed/bath on the first floor and a 4-bed/1-bath on the upper floors, in an “okay-ish” neighborhood (had my car broken into by local kids, but it’s generally safe).

I’m a registered nurse, mainly in psych, corrections, and LTC. One idea I’m exploring is offering double occupancy “assisted living” rooms, where I’d get paid through Medicare waivers, needing to hire nurses and clients. Not sure about the process or licensing needed. Considering a 100-hour course for personal care home administrator license to help with this.

Another option is leasing both units to a sober living company, simplifying things for me. My area has sober living options without public issues. Alternatively, renting out each unit or rooms individually is an option, but seems less profitable and more work.

My mortgage is $2,200, so ideally want to gross $4,000 monthly from the 5 bedrooms. Most rooms can accommodate double occupancy, except for one, which is small for singles. Any insights on these options or other suggestions are welcome!

I know some might say landlords are not cool, but as a single mom with a special needs child, I’m focused on securing his financial future after I’m gone.

So, my house has been on the market for over 70 days now. It’s been a rollercoaster ride, to say the least. We had an offer just five days in, but things took a turn when the buyers backed out after the inspection over some minor issues. It would only cost about $5000 to fix, but that was enough to make them walk away. Since then, we’ve been struggling to attract new buyers. The usual reasons come up – some don’t like the layout, others think it’s too small. But the most common feedback we get is about the neighborhood.

Now, let me tell you about our neighborhood. It’s not dangerous by any means, but it’s seen better days. There’s trash and recycling piling up on the street, lawns left unmowed, and some houses looking pretty run-down. Our next-door neighbors have a trailer in their front yard, and the one after that runs a makeshift bike shop. They’re all nice people, but it’s not exactly the picture-perfect setting buyers dream of.

The thing is, we don’t live nearby anymore. We moved a couple of hours away a while back, so we can’t exactly spruce up the neighborhood ourselves. When we bought the house 20 years ago, it wasn’t the fanciest area, but it was a lot better than it is now. The neighborhood has deteriorated over the years, with more people moving in and the city authorities not paying much attention to upkeep.

We’ve already dropped the price significantly, by around $30,000, but even that hasn’t been enough to sway potential buyers. They like the house itself, but they’re put off by the neighborhood. They’d rather spend more on a similar property in a nicer area. So, it seems like it all boils down to the price tag. It’s a tough pill to swallow, but it looks like we might have to lower the price even further if we want to make a sale.

These past few days have been tough. The Labor Day weekend was quiet, and now it feels like we’re just playing the waiting game. We’re trying to stay positive and patient, hoping that we won’t have to drop the price yet again. If anyone out there has any fresh perspective or advice, we’re all ears. It’s a challenging situation, but we’re keeping our hopes up that the right buyer will come along soon.

Hey, I’m a 30-year-old looking to make my first real estate investment. I’m eyeing a 6-unit apartment building and need some advice. The numbers show annual expenses at around $62,000, but the current rents are way below market rates. With full occupancy, the income is about $63,000, but after accounting for a 5% vacancy rate, it drops to $60,000, leaving me with a $2,000 yearly loss. In a perfect world, I’d be raking in closer to $90,000 annually at market rates – $1,200 for each one-bedroom and $1,500 for the two-bedroom, all located in a college town in Vermont.

So, here’s the pickle – how do I bridge this gap without scaring off my tenants? I could hike the rents significantly, but that might lead to a mass exodus and extra costs to prepare units for new renters. The leases are all on a month-to-month basis, so technically, I could bump up the rents whenever. But the big question is: what’s the best game plan here? Should I give everyone a heads-up and raise rents across the board with a 60-day notice? Or maybe I should focus on the most underpriced units first, fill those with new tenants at higher rates, and then gradually up the rent for the rest? Or is there a totally different, genius strategy I’m missing out on? I’m all ears for any suggestions you guys might have!

In a nutshell, I’m a newbie looking to dive into real estate by snagging this 6-unit gem. The financials are giving me a bit of a headache, with expenses totaling $62,000 a year and rental income falling short at $60,000 due to below-market rates. To break even and eventually turn a profit, I need to bump up the rents to a more competitive level. However, I’m wary of the potential fallout from such a move. With all leases on a month-to-month basis, I have the flexibility to adjust rents, but the key is finding the right approach to maximize income without driving away my current tenants. So, hit me up with any tips or strategies you have in mind – I’m all ears!

Hey everyone, I need some advice. I hired a kitchen contractor to do a bunch of stuff in my kitchen – new countertop, backsplash, paint, sink, tile flooring, and refinish the cabinet doors and drawer faces. He did some of the work but when I checked the backsplash, I noticed some issues and asked him about it. He got really defensive and rude. I tried to stay calm and give him another chance, but he kept getting worse. After a long, frustrating conversation, I left him to work. The next day, he didn’t show up and sent me an updated invoice saying I owed him for the cabinet doors he still had. He had painted them, removed the handles without asking, and wanted me to pay for them and install them myself. He also said he wouldn’t fix the tile work issues. Basically, he quit halfway through and left me hanging without my cabinet doors. Now he wants $3200 to give them back. I asked him to come back and finish the job as per our original agreement, but he refused. I think he let his emotions get the best of him and walked off. I’m left with an unfinished backsplash and no cabinet doors. What should I do now? Thanks for any advice!

Hey there, I’ve had my home on the market for over 100 days now. It’s got a lot of saves and views on Zillow, but only two actual in-person tours. I’m wondering if maybe the pictures and description aren’t doing it justice. Could that be why people aren’t coming to see it in person?

My realtor seems to think the price is right where it should be. He doesn’t think dropping it by 100k or even 150k would make a difference in selling it. He’s pointed out that other homes around the same price range have lowered their prices and still haven’t found buyers. He’s even suggesting we take it off the market until February, saying we’re up against new builds that are drawing more attention.

When we signed with our realtor, we were told this home is unique and might take some time to find the right buyer. We’ve already paid off the mortgage, so the only costs we have now are for maintenance. It was supposed to be our new home near my husband’s new job, but it’s been a financial strain since we would have been able to buy a new home without getting stuck with a 5.75% mortgage if we had sold this one.

We’ve looked into renting it out and were told we could get a maximum of $2500 in rent. Is it worth considering that option and hiring a property manager? I’d love some advice on the pictures and description, as well as whether it’s a good idea to take it off the market until spring.

Any input would be greatly appreciated. Thanks!

So, here’s the tea on my current family drama. Remember when I told you about how my brother and I inherited our parents’ estate and that we were supposed to split everything 50/50? Well, it turns out things have taken a turn for the worse. To give you a quick recap, the deal was that my brother would buy me out of the two houses we inherited, so we could each have our fair share. Simple, right? Wrong.

I finally managed to get a hold of my brother today, and boy, was I in for a shock. Turns out he had already gone ahead and rented out one of the houses without even consulting me. The same house he had agreed to buy me out of. To add fuel to the fire, he never bothered to pay me or follow through with our attorney-approved plan. Instead, he did all this shady business through his wife, who conveniently happens to be a real estate agent. The nerve of this guy!

During our heated phone call, my brother had the audacity to claim that I had never shown any interest in the property. Like, hello? I made it crystal clear from the get-go that I wanted no part in co-owning a rental property with him. And now, here I am, stuck in this mess without my consent.

To make matters worse, he had the gall to say that he had always intended to share the rent with me. But here’s the kicker—I don’t even know how much the rent is or when the tenant moved in. He even had the nerve to tell me that he was doing me a favor by taking care of the property, like cutting the grass and paying the taxes. Big whoop! That doesn’t excuse his sneaky behavior.

Now, my brother is singing the same old tune about buying me out eventually, but conveniently claims he’s too busy to do it right now. Yeah, right. I’m not buying it. I am beyond furious. I feel like I’ve been played, and it’s clear that my brother is trying to take advantage of me.

I’ve already reached out to our attorney to see what my options are, but I’m feeling completely stuck in this mess. My brother seems to think he can just keep the house, rent it out for himself, toss me a measly portion of the rent, and never actually fulfill his end of the deal. It’s a total slap in the face.

To top it all off,

I’ve been in the real estate game long enough to know that almost every rental property listing out there comes with a dose of deception. Just the other day, I called about a 4-bedroom duplex, no pictures, gathering dust on the market for over a month. The listing agent fed me a line about it being leased out for a year at a bargain price, conveniently $250 below market rate. When I pushed for interior photos, the agent claimed none existed. “But surely you’ve seen the place,” I prodded. Silence. I pressed for a walkthrough description, and after some awkward dodging, the truth slipped out—it was actually a 1-bedroom unit. Talk about a time-saver, saving me a fruitless drive.

Then there was the duplex listed by a flat fee broker, with the owner’s daughter doing the selling. They tried to rope me in with a hard money lender deal, complete with sky-high interest rates and a price tag inflated well above recent comps. Despite their insistence that it was a steal at 180k, I knew better. In my market, the real deals disappear within days, not weeks. In a second call, they pushed for a fast cash close, doubling down on the hard money pitch. When I probed about the price, they grudgingly offered a measly 1k decrease, along with demands to waive all contingencies. Their insistence that 180k was a steal, coupled with claims of a $240k appraisal, set my BS meter off.

I’ve encountered these tall tales for years now, and they still get under my skin. Each property comes with its own set of half-truths and exaggerations, leaving me to sift through the smoke and mirrors to find the real gems. With every call and visit, I brace myself for the inevitable sales pitches and inflated claims, reminding myself that patience is key in this game of real estate roulette.