shocked how much this tenant just cost me... stripped house

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부동산 임대 물건의 5년 넘는 운영 비용을 영수증 기반으로 정리하고, 세입자 관리·수리·업그레이드 판단(워터소프너, 스프링클러, 바닥재)과 비용 대비 수익률을 설명. 주식·금융시장 관련 가격 예측 발언은 없음.

다듬은 글

※ 자동 자막 원문(다듬기 전)

01. now today started like any other typical day for a 27 year old real estate investor and his son Jack we head on over to a rental property a tenant just well moved out on and a lot of you have been asking for specific examples of how much money this property has cost us since we first placed the tenant and today I've pulled every single receipt on this property for the last 67 months that this property has been a rental that means I'm going to walk you through exactly the mistakes I made and the decisions we'll be making today now it helps to know that we bought this property in March of 2014 I mistakenly thought that I've owned this property longer than I actually have but it was exactly March of 2014 when it looked at the records and we bought this for three hundred eighty-five thousand dollars since this was our first rental property we spent thirty two thousand dollars fixing it up and adding a fourth bedroom there wasn't a wall originally where the second bath is off the kitchen this wall so we throw up a wall and created a fourth bedroom which helps us get more rent for the property now because we got this property for significantly below market value after we put the 32 thousand dollars into it we essentially boosted our net worth by $130,000 and since we had already owned our first house which we bought below market value we had doubled our net worth because we bought these properties right we bought the wedge deals I always talk about on this channel or show you how to buy and help you analyze auren and I could have sold both of these properties and within 18 months our net worth would have gone from $18,000 and no property ownership to selling two properties and having a net worth of over a quarter of a million dollars thanks to buying right to me this goes to show that anybody can do this but anyway we put thirty two thousand dollars into this rental property here's some pictures of what the property looked like when we went to rent it out it kind of gives you a good feel as to how we remodeled it into the rental grade property is that it is first things first it's always extremely important to place high quality tenants to prevent any kind of disaster tenants from destroying your property or not paying the worst and biggest risks in real estate are damaged real estate and vacant real estate usually with high quality tenants and concepts known as a tenant a leverage which we teach not only in the investing course but our going into massive detail on ihen you have tenant leverage you usually don't have to worry about damage however sometimes small and minor things can slip through the cracks and that's where it's very important to be diligent when you're doing your inspections for example when I walked up to the property it looks okay but when I try to use the garage door remote garage doesn't open now I'm familiar with ground fault circuit interrupters and I've installed electrical panels before so I'm gonna do some basic diagnosing myself and we'll see what's going on something else to know about the outside of this property is it actually doesn't have sprinklers which can be a little bit annoying but it would cost us around thirty five hundred dollars to install sprinklers if a tenant was willing to pay us twenty dollars an extra rent because they had sprinklers installs we might make about two hundred forty dollars per year in extra rent which would work out to maybe six point eight percent on a return on our money but worse it would probably take about fifteen years of increased rent to actually pay for the sprinklers which that doesn't make too much sense since there's a good chance in 15 years we'll probably have to replace some of the pipes and sprinkler heads anyway on the flip side here's a water softener tenants in this particular area pretty much require one otherwise the water's too rough and the soap doesn't suds up without it it's basically just a big salt tank washer now this machine costs us about $72 per month as a rental and I'll tell ya I hate renting things here's an example as to why I hate renting things if I installed a unit for about nine hundred dollars and the tenant provided their own salt as part of their lease agreement I'd save that seventy two dollars every single month now that means this machine would probably pay for itself within the first thirteen months that's a much much better payback period in addition to that an extra seventy two dollars per month is a pretty nice rent boost and after those thirteen months I'd be getting an extra seventy two dollars per month in net rent now to add salt to the wound no pun intended the system already needed $144 repair back in August of 2018 so that more frustrates having a rental not only were we renting it but we had to pay for a valve repair on it it's one thing if you rent something and they cover everything it's another thing if they nickel and dime you and you have to pay the rental fee so this is honestly motivating me to start shopping for a water softener again which I teach in the real estate investing course how to get about twenty five to thirty percent off on these water softeners with some special discounts that I set up with course members in the real estate investing course now so far though I'm pretty satisfied of the outside I'm only upset that the garage door isn't opening yet I do notice that the chimney cap is missing and there's a satellite dish installed which both of these things are a little bit of a bother I can't stand having satellite dishes installed and tenants usually install them without our permission guess what happens though the tenants turn off their service they leave the satellite dish the next tenants come they install their own satellite dish and then before you know what my property's got four or five satellite dishes on it all from different tenants and guess who has to remove them all me now something else to know while I'm out here in December of 2015 or about a year and a half after we placed our first tenant we had to replace a furnace but we don't replace it until three service calls happen so in total we spent about two thousand to 23 dollars over for trips and service calls to replace a furnace the furnace company told us they suspected it was due to a power surge which can happen in these mid-century neighborhoods basically one part just breaks after another which can be a sign of a power surge so I ended up installing this funky-looking thing under our electrical meter here it cost me about $200 for the material and around $112 to install this what's called panel surge protector I think it's a little bit of self insurance on the property oh and while we're looking at the outside of the property it's important to know this about the roof now this is that particular house where the day I bought of this property a roofer told me Kevin you need to replace this roof or right now and it's got three layers on it it's a disaster it's squishy in certain areas instead in 2017 we spent about two thousand dollars replacing the ridge caps and that's it as you can see it's just rained a lot everything's bone-dry so far but what I would like to do is these protrusions coming through the roof it's a nice cosmetic trick to just spray paint them black or bronze or whatever just to get rid of sort of that crusty look they have so yeah I ended up spending two thousand dollars tuning up the roof in 2017 the problem is the roof is still old so this is definitely a risk factor that I'm still keeping an eye on the good news is it's been raining for weeks and there haven't been any complaints of a leak on the inside I'll tell you though spending $2,000 is a whole lot better than spending $11,000 for an entirely new roof when it's not yet necessary instead I could throw that money into more real estate or stocks if I want now let's start heading inside and on the way to the inside you might actually notice some of these dual pane windows here these do opening windows were fortunately installed by the prior owner which is another great element of getting a wedge deal however in 2018 we did have to spend about $110 replacing one of the window sashes which keeps the window balanced when you open and close it oh and pro tip remember to take a lot of photos when your tenants move out and when they in it's very important to document the condition before and after it's worth paying for the extra iCloud storage on that note dozens of existing course members have been emailing me asking about why it's pricier than the other courses that course which we're putting together right now is actually being put together by the expertise of not just myself who's been a real estate broker for ten years and a property manager earlier in my career but my wife who's been a property manager for ten years and my mother-in-law has been a property manager for thirty five years she's a straight-up boss when it comes to handling tenants maximizing profit and minimizing problems so you're really getting the knowledge of three people in this a course and because of that the curriculum keeps growing far and beyond what we even have listed on the online description page for it but anyone in the real estate agent sales course or the investing course already knows that I'm a big fan of over-delivering anyway welcome back inside as you can see the flooring has been stripped also our painter accidentally used the gray color scheme on the fireplace which the entire house has a beige color scheme so we're gonna have to paint that white though it does look a lot better than what it looked like before so here's a scoop the carpet was in pretty decent shape and we were thinking of keeping the carpet this is where we could have gone in three directions we could have cleaned the carpet and just rented out the property again right away this would have been great because we would have been able to really minimize our vacancy kind of like what we did between the first times we rented it our first tenant moved out September 2nd of 2017 and our second tenant moved in September third of 2017 we had one day of vacancy and in that one day we had a painter come in and touch-up paint and the prior tenants already cleaned the carpet before they moved out that way when it came time for ten at number two to move in because tenant number one properly cleaned the property before move out the property was ready to be rear nted with basically zero vacancy call it one day's worth keep in mind every day this particular place is vacant it costs us about $100 now the other option would have been replacing the carpet which would have cost us around $2,500 and that would been completely done in one day which is not a bad option now even though we were leaning towards going in the carpet direction again much like the decision we made the first time when we didn't have a lot of money to properly floor the property in this case we decided to go with a waterproof luxury vinyl plank throughout the entire property so that way we can get rid of the damaged linoleum in the kitchen and bathrooms and we figured hey why not just have one consistent floor a designer telling you you need 7 different types of checkered flooring throughout a house it's just not cool now even though the flooring is costing me about $8,000 with new four-and-a-half-inch baseboards and this luxury vinyl plank my expectation is we'll be able to rent this property for at least $75 more per month if not even $100 more per month that means replacing this flooring will net me an additional nine hundred dollars or more per month or about an 11 percent ROI on this floor that'll take almost nine years to pay for this flooring but my expectation is this flooring will last 20 years and might actually encourage a tenant to stay in the property longer unfortunately tenants staying in a property longer is really hard to measure it's kind of when that lease renewal time happens you're wondering oh is the tenant gonna stay are they gonna move well sometimes tenants can look and go however sick of living and carpet we're going to move at flooring change like this might actually induce them to stay an extra year which I can't really put a value on now I'm just confident that this is a step in the right direction I'm just not as confident about doing those sprinklers though I'm pretty dang sure I'm gonna be doing that water softener now regarding the rest of the inside and the tenants did a pretty decent job overall though they said they couldn't clean the windows because it was raining and they only cleaned the inside which is helpful to not know this isn't just some random expectation we have there was a specific provision in this specific lease agreement that the tenants agreed to up front which said the tenants would professionally clean the windows and track upon move out now it hasn't exactly been raining every a day but when I did a quick little test of the cleanliness of the windows on the inside on various different windows let's just say the windows weren't cleaned on the inside and neither were the tracks which the window tracks are the parts that usually need the most cleaning in fact over time little rocks can scratch the tracks and metal and just damage the windows so it's very important that the proper cleaning is done to the windows now this is also the property where tenants installed drywall in the garage there was a lot of confusion in the last video we made regarding this drywall as to why Lauren would be upset that the tenants made an improvement without her permission well one of the reasons Lauren was upset was because without Lauren's permission as the property manager there's no way Lauren can verify that work is done correctly and I hate to say it but when I look at this 3/8 thick drywall I can't help but suspect that one of the reasons the garage door opener no longer works is because when they uninstalled this electrical system and reinstalled it something ended up breaking this now means we have to hire an electrician to come out and diagnose the problem pinpoint exactly where the problem is and if it's concluded that it's ultimately the tenants fault which I hate to say but I suspect it is the tenants are going to have to pay for that electrician and the tenants asked for permission upfront the work could have been properly verified at the time of install and they would have actually protected themselves from us making the assumption the work that they did cause damage now obviously we're still getting an electrician involved to verify this but this is why as a tenon even if you're making an improvement it's just a really good idea to ask your landlord first all right so now let's take a look here at the spreadsheet showing the exact amounts that we've spent on the property and the dates we've spent them on and then I've got one more little surprise that I want to show you so I've already mentioned most of these but all in over the exactly 67 months we've spent six thousand six hundred and seven dollars which is just under a hundred dollars per month in repairs this is pretty consistent and this is exactly why I teach in the real estate investing course always set aside two hundred dollars per unit in reserves because we follow our own advice and this means we have an extra six and $700 that we could spend now without investing more money if we spend more it just means we're putting a little bit more of an investment into the property obviously whatever security deductions we make will just go to curing whatever the tenant damaged so not even really considering things like additional cleaning or that electrical work because that's going to be the tenants responsibility most likely now before I show you the last surprise let's just go through the numbers of the work we're thinking about doing now right now my goal is to spend about a thousand dollars on touch-up paint about thirty two hundred dollars on labor for the flooring and baseboard and about forty six hundred dollars for the floor material and baseboard itself well spend about two hundred dollars for the chimney cap and the satellite that's a miscellaneous repairs like repairing the doorbell or placing the smoke detector batteries and just making sure everything is fit and ready for the next tenant this puts us all in at spending nine thousand five hundred dollars now unfortunately that is two thousand eight hundred dollars of more than we have left in reserve but even with the water softener this means I'm only taking three thousand seven hundred dollars out of my pocket towards getting an ROI boost on the water softener of essentially seventy two dollars per month after the first bit and I'm gonna be able to rent the property for more immediately with that more expensive and high quality flooring also I didn't pay for this the property's reserved paid for the vast majority of these upgrades because we've owned it for the last sixty seven months which means I'm barely coming out of pocket to generate a really nice return on my investment in upgrading the water softener and the flooring now the last thing that really upset me was I think the tenants I hate to say it tried to trick me take a look at this here when you first look at the oven it actually looks pretty clean you might look at the glass on the door and say ah looks clean you might look at the bottom on the inside looks clean sounds good but it's not until you actually stick your head in the oven that you notice how dirty and greasy the sides and back of the oven are what's also sad is if you look at the spreadsheet we just replaced this stove brand-new six months ago it's also pretty obvious that the tenants used this kitchen a lot for cooking because I hate to say this but look inside the garbage disposal this thing looks like it was used every single day especially since it was brand new not that long ago so anyway there might be some additional deductions here but overall the tenants did a great job and I don't expect there to be a lot of deductions at all overall this is a great property and I hope you've learned something in this video feel free to follow me on Instagram smash the like button and until next time