Does It Get Any Better Than This - Posted by phil fernandez

Posted by TRandle on April 06, 2000 at 08:24:12:

I sent you an email a while back, but never got a response. I figured you’ve been swamped. Hope all is well. Kelly and I picked up 3 deals in March (Yeah!), one of which was Kelly’s first. Take care…

Does It Get Any Better Than This - Posted by phil fernandez

Posted by phil fernandez on April 04, 2000 at 16:34:27:

Often I hear newer investors who don’t want to be landlords. They don’t want to deal with stopped up toilets and upkeep. Or they are concerned about a tenant not paying the rent. Or trashing the place.

Much of this believe is misplaced. Screening will eliminate many of your tenant related problems. Good tenants DO pay their rent on time and the DON’T trash your rental.

If the toilet is leaking you call the plumber.

And all this time the tenants are paying off your mortgage along with supplying you with a nice monthly cash flow. What made me think of this post was I was sitting around figuring out what some of my long term tenants have paid me in total rent throughout their stay with me.

One tenant has been with me for 13 years. That’s 156 rent checks at $525 per month. ( Yes the rents have not always been at $525, but for illustration purposes) equals $81,900. This one tenant has paid me about $81,900. That’s cash folks.

Another tenant has been with me for 9 years and pays $600 per month. This tenant has given me about $64,800.

And that’s just two of my tenants. The numbers are quite mind boggling. So I ask does it get any better than this.

Ain’t it great! - Posted by Rob FL

Posted by Rob FL on April 05, 2000 at 18:47:32:

I constantly hear people knock the landlording profession. I figure most are ignorant. Kiyosaki praises rentals in both his books. I heard Ron LeGrand speak and in spite of all his quick-turn talk he admitted that he also has many rentals.

Wife and I bought a house last summer and rented out the other side of the duplex we were previously living in. She just quit her day job because we make as much cashflow each month off the duplex now than she did at her full-time job.

As for leaky toilets and the such, my tenants know going in that anything under $30 is their responsibility. Just make sure to do periodic inspections.

Ain’t it great!

Re: Does It Get Any Better Than This - Posted by Rick V

Posted by Rick V on April 05, 2000 at 02:13:25:

It is nice having long term tenants. Hopefully, the shorter term tenants don’t make up for the long terms ones (in aggravation).

By the way, I would never call a plumber for a leaky toilet, 9 times out of 10 you will be paying a $60 service call to replace a $3.00 flapper. Hopefully, you are just exagerating and have a fix-it person who will only charge $15 - $20 tops.

More! More! More! Well done, and I hope we see a lot more - Posted by Lib Cassin

Posted by Lib Cassin on April 04, 2000 at 21:54:20:

like this, I have had a little duplex for two years (I consider myself a newbie) 800x2 each month = $1,600 per month times 24, same tenants, no hassle, never call
I love it!

Ditto - Posted by Laure

Posted by Laure on April 04, 2000 at 20:45:40:

I like one Tenant so much, I was thinking of giving her a Life Estate for her/my house in my will ! She has now been with me for 13 years and counting ! NEVER calls me for repairs, and pays her rent on time ! I moved her to another of my rentals last year, and sold her original house for a huge profit. She never wants to move again.

Still counting… 550/mo x 12 months x 13 years= 85,800.

Laure :slight_smile:

How about going from 50 empty units to a full house ? - Posted by JohnG

Posted by JohnG on April 04, 2000 at 20:41:37:

How about this one ?

I bought a distressd property a year and a half ago. There were 50 empty units out of a total of 80 units. And the tenants that were there were not ones you would pick as class A tenants.

I was absolutely excited - if there were these many vacancies then I knew I could get these units at a real good price. And I did.

Next, I fired the management company. THere was no magic here - the units were in foreclosure and the previous owners didn’t spend any money for a few years. We came in and really got to work. The whole gamut - paint, carpet, lino, appliances etc.

What is so exciting is that a year and a half later we are all full and we are generating a $50,000 a month rent roll - that was my goal way back at the beginning and let me tell you - that really makes this game exciting.

Now that I am sitting on a gold mine, I have it up for sale and I’m looking for another “patient” that is on the respirator !!!

Re: Does It Get Any Better Than This - Posted by CarolFL

Posted by CarolFL on April 04, 2000 at 19:00:21:

Phil, thanks for an enlightening post for “our” side!
We haven’t been in the game long enough to chalk up such sums, but what we HAVE done is just about got ourselves ready to leave town for 6 months with 30-odd properties here - rented, l/o’d, etc.

Our cash flow from these is not HUMONGOUS… but it’s ok. and we are setting things up so we are not tied to them.

In addition, we have a broker here we like and trust, and may STILL be able to do some flips while 2000 miles away - who knows?

If a really good deal comes up, maybe one of us will fly home and check it out.

This landlord thing is not ALL bad - and we get a huge satisfaction from working things out with the tenants when life changes come along. I guess it’s our way of paying back a bit to the universe for our bounty.

Have a great evening.
Carol and Dennis

Re: Does It Get Any Better Than This - Posted by TRandle

Posted by TRandle on April 04, 2000 at 17:56:41:

I don’t quite have the years yet, but I do have one tenant getting ready to sign up again. He’s in for 4 years already at approx. $800 per month. That’s somewhere in the neighborhood of 38k, with another 10k coming this year.

The prior tenant on the other side of this duplex was also in for 4 years. Yep, pretty amazing from that perspective. What did I do with that 75k? Darned if I can find it…

Amen brother!! (nt) - Posted by Mark (SDCA)

Posted by Mark (SDCA) on April 04, 2000 at 16:44:07:


Re: Does It Get Any Better Than This - Posted by Robert McNeely

Posted by Robert McNeely on April 04, 2000 at 16:42:29:

I know what you mean! Bought a house in 1976, for $14,500. Rented to my last tenants for 11 years, then they wanted to buy it. Sold it to them in 1998 it at a low low price of $55,000.

Re: Does It Get Any Better Than This - Posted by Alex Gurevich, TX

Posted by Alex Gurevich, TX on April 05, 2000 at 18:22:18:

>>What did I do with that 75k? Darned if I can find it…


Another good question is: “what did I do with the depreciation I took” (and need to pay 25% tax on upon sale.