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Old 07-30-2015, 11:32 PM
 
Location: OC/LA
3,830 posts, read 4,661,125 times
Reputation: 2214

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Quote:
Originally Posted by Ultrarunner View Post
^^^ This is how it's been for a lot of people I know... not always a dump... but, always the worst house or the neighborhood fixer...

One instant bonus is the encouragement you get from neighbors when they see the worst house being transformed... people would come over to introduce themselves... many thought I had been hired to haul away the trash and more than a few were surprised when I said I bought it and intended to move in and fix it up...

It really changed me becoming a homeowner and doing my own work as money would allow...

The rest of the story is my family thought I had made a big mistake... my step grandfather came down to see the place and told my grandmother that I was so excited telling him how I was going to fix up the place... he didn't have the heart to tell me I should just walk away... he really did say it was a mistake of being young and inexperienced and was mad at the Real Estate lady.

I've posted a few pictures of the place before... and it really was that bad... yet the power and water were still on...

In 2007 it was worth many times what I had into it... in 2012 it had fallen a lot... lots of bank owned properties in the neighborhood... at the market bottom it was still worth double the money I had spent and I had a real good renter who is still there today...

Don't really know what it would sell for today... I imagine all that was lost has been recovered and then some. I do know it would rent for a lot more than I am charging... but having a great tenant with almost zero repairs is worth a lot to me... she is still paying the same rent she paid in 2007
Lol this makes my head hurt

You have to at least do small 2-3% annual increments unless there is a serious market issue and then it's fine to keep it steady.

Your costs have gone up since 2007 (insurance, lawn service, taxes, etc.). No reason that rent should stay flat for 10 years.

 
Old 07-30-2015, 11:49 PM
 
28,113 posts, read 63,642,682 times
Reputation: 23263
Very true...

It's just I never have to do anything there... and the rent is put in my hand on the First of every month... we work in the same building and this is how I learned she was looking for rental...

I have to be careful because several of the area Foreclosed homes back on 2010-11 were virtually destroyed... stripped of anything of value... copper pipe and wire and one burned down from squatters, broken windows, trash etc.

A couple of months after she moved in... she added $10 to the rent and I asked why... she said she went to the market and the bleach bottle leaked and she didn't realize it until she saw the spots on the carpet... told her it was not necessary... she insisted because she didn't want to have to pay for new carpet all at once... never had a tenant ever do this...

I have other rentals where the rent goes up because the renters are so needy... not a week goes by without something...

My one hope is for all the bad landlords and tenants to find each other and leave the rest of us alone.

Always go to market when I have vacant units...

She moved in December 2007... so about 7 years flat rent... expenses have been fairly flat.
 
Old 07-31-2015, 12:28 AM
 
Location: OC/LA
3,830 posts, read 4,661,125 times
Reputation: 2214
Quote:
Originally Posted by Ultrarunner View Post
Very true...

It's just I never have to do anything there... and the rent is put in my hand on the First of every month... we work in the same building and this is how I learned she was looking for rental...

I have to be careful because several of the area Foreclosed homes back on 2010-11 were virtually destroyed... stripped of anything of value... copper pipe and wire and one burned down from squatters, broken windows, trash etc.

A couple of months after she moved in... she added $10 to the rent and I asked why... she said she went to the market and the bleach bottle leaked and she didn't realize it until she saw the spots on the carpet... told her it was not necessary... she insisted because she didn't want to have to pay for new carpet all at once... never had a tenant ever do this...

I have other rentals where the rent goes up because the renters are so needy... not a week goes by without something...

My one hope is for all the bad landlords and tenants to find each other and leave the rest of us alone.

Always go to market when I have vacant units...

She moved in December 2007... so about 7 years flat rent... expenses have been fairly flat.
I'm sure you could raise the rent 3% each year and when she eventually does leave it won't be because of the rent increases.

She knows she's under market, where would she move that would be cheaper?
 
Old 07-31-2015, 04:00 AM
 
28,113 posts, read 63,642,682 times
Reputation: 23263
Quote:
Originally Posted by HyperionGap View Post
I'm sure you could raise the rent 3% each year and when she eventually does leave it won't be because of the rent increases.

She knows she's under market, where would she move that would be cheaper?
In today's market... no where I can think of unless very far away or a shared arrangement.

She is an older lady that is a housekeeper at the same Hospital where I work...

I imagine she is still planning to move back to Alabama when she retires... all her family is back there.

You could say it is one of the prerogatives of managing property owned versus managing property for others...

When I manage property for others... the only question is how much will the rent increase... not if it will...

Turnovers cost and there is something to be said for having a problem free tenant... it wasn't long after she moved in that the market tumbled and move in specials and even rent reduction were common...

Told her on the first anniversary... if she was happy living there and there were no problems... she did not have to worry about annual rent increases... and in December it will be eight years... times flies.
 
Old 07-31-2015, 07:20 AM
 
Location: Altadena, CA
1,596 posts, read 2,057,445 times
Reputation: 3004
Quote:
Originally Posted by Ultrarunner View Post
In today's market... no where I can think of unless very far away or a shared arrangement.

She is an older lady that is a housekeeper at the same Hospital where I work...

I imagine she is still planning to move back to Alabama when she retires... all her family is back there.

You could say it is one of the prerogatives of managing property owned versus managing property for others...

When I manage property for others... the only question is how much will the rent increase... not if it will...

Turnovers cost and there is something to be said for having a problem free tenant... it wasn't long after she moved in that the market tumbled and move in specials and even rent reduction were common...

Told her on the first anniversary... if she was happy living there and there were no problems... she did not have to worry about annual rent increases... and in December it will be eight years... times flies.

You're a great landlord and you and your tenant have a great partnership. Good on you!
 
Old 07-31-2015, 10:42 AM
 
Location: O4W
3,744 posts, read 4,782,572 times
Reputation: 2076
I met this guy the other day that moved here from LA. He said he lived near Crenshaw and was paying $700 a month for a one bedroom. Even though he moved here he kept his apartment because it's so cheap. He said he got the cheap price because he been staying there for so long
 
Old 07-31-2015, 10:59 AM
 
Location: OC/LA
3,830 posts, read 4,661,125 times
Reputation: 2214
Quote:
Originally Posted by afdinatl View Post
I met this guy the other day that moved here from LA. He said he lived near Crenshaw and was paying $700 a month for a one bedroom. Even though he moved here he kept his apartment because it's so cheap. He said he got the cheap price because he been staying there for so long
It could be rent control.
 
Old 07-31-2015, 11:11 AM
 
Location: O4W
3,744 posts, read 4,782,572 times
Reputation: 2076
Quote:
Originally Posted by HyperionGap View Post
It could be rent control.
Yeah probably
 
Old 07-31-2015, 11:15 AM
 
10,097 posts, read 10,004,423 times
Reputation: 5225
Of course there's no other way
 
Old 07-31-2015, 01:13 PM
 
Location: OC/LA
3,830 posts, read 4,661,125 times
Reputation: 2214
Quote:
Originally Posted by radiolibre99 View Post
Of course there's no other way
If ultrarunner doesn't raise his rent for 15-20 years it could be like that too.

Once had a tenant stay in a place for 23 years. Raised the rent every year but in the end was still under market because rents went up so much.
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