Watch Out...Here comes Chris and his wife!!!

My apologies to those folks that live in Virginia/D.C. and the North Carolina Outer Banks.  Apparently now that we have visited those place everything is falling apart.  First, the Outer Banks are being evacuated for Hurricane Irene and second, the Virginia/D.C. area just got hit by an earthquake.  I promise we had nothing to do with it, and we hope to not lose our friends in that area.

However, not to rub salt in the wounds of those up there, things are going along swimmingly with the rental business for now, but I'm sure it's only a matter of time before I'll have an interesting story to tell or lesson to learn.  The wrotten food and dildo have been successfully removed from the house I previously mentioned and the home has been rented to the new residents...  Plus a Bonus... the new tenants are building a very nice privacy fence around the backyard (I'm paying half the cost, but nice to have the labor done for me)!

Still struggling with one tenant being late with rent, which is a lesson I learned quickly and now I'm dealing with the consequences.  Never, NEVER allow a tenant to work out a rental payment plan other than what is specifically laid out in the lease.  I could just say forget it and kick them out, but I'm a weenie wanting to help them out.  They are catching up quickly thankfully, but they are on very thin ice.  This is the final time I will ever allow any deviation from the lease. 

Unfortunately, sometimes when you try to help someone out or be flexible people take advantage of you.  In other, unrelated instances I have been taken advantage of and left hanging being owed hundreds or thousands of dollars.  Good and bad has come from these situations.  Good:  I have a spine now and can be firm with people and stick to a lease making life a little easier.  Bad: I can be firm and good people may not be afforded opportunities I once may have been willing to allow in the past, because of the bad people.  Sorry if I sound bitter or harsh, but business is business and I can't allow my livelihood to be ruined by those with a lack of conscience.

Wow... going back and reading that I sound very angry.  Sorry folks...just had to rant a bit.  I promise things are going pretty well right now =)

A Vacation... and the "Welcome Home Gift" I could have done without!

Well, it has been a while since I last posted, and I'm going to take a little break from giving you every little detail of my 4 1/2 year journey leading up to this point in the rental business to share something a little less boring.  By the way, I have several unique stories about odd tenants, weird situations, and new ideas that I hope to share as the blog continues to grow, and I hope it may help others in the business too.  Plus, I would like to hear from you.

My wife and I just got back from a much needed long vacation (3 weeks to be exact).  Let me tell you now that travelling is in my blood, and I don't handle going more than a few months without a vacation very well.  It's a drug!

We took a roadtrip visiting much of Virginia, from the mountains, to Washington D.C., to Colonial Williamsburg, to Virginia Beach.  Then continued to the Outer Banks of North Carolina and made our way across N.C. to the mountains.  We loved every bit of it....well, except Newport News.

Here are 3 sample pictures just to add a splash of color to this little blog (over 1,000 pics were taken):

D.C.

Virginia Beach

Stuck in the sand on the Outer Banks



Not only did the vacation make me want to never come home again, but it also inspired me to expand the rental business outside of my home state.  I would love to have vacation rentals in places like the Outer Banks, Florida, or the mountains.  Just a note: I found some great deals on condos by the Atlantic.  Then I would also like to have properties in more college towns and military towns (those, I believe, are the key locations for a successful long-term rental business).

I have always wanted to grow beyond my little college hometown.  It has treated me well so far, and I will continue to invest where the money is good, but I can't wait to expand NOW.  However, I must be patient and allow some of my current properties' loans to be paid down.  Patience is something that is necessary and not always within me.  You may hear me mention my lack of patience throughout my stories.  It's something I struggle with, and my wife will agree.

ANYWAY....

You've heard enough that I love our vacation.  Now on the "Welcome Home Gift" I could have done WITHOUT!

Let me preface this by saying one of my tenants became sick to the point hospital bills were higher than he could handle, forcing him to move out.  I knew this prior to the vacation, and we worked things out so he could be out before I left for vacation and I could inspect.  Even though he was not getting his deposit back (due to moving out early, and a lack of communication at first) he did a fairly good job of cleaning the house...or so I thought.  I made a major error when he moved.  I did not check the inside of the frig and in the bathroom cabinets.  I made the assumption that because the house was in fairly good condition, and the assumption this guy had some sense that the cabinets and frig would be clear too.  

WRONG!!!

The frig was full of meat, cheese, butter, milk, and an ice cream cake when the power was turned off.  Unfortunately, I arrive home over 2 weeks later.  Let me just say lesson learned.  The smell and bugs were beyond belief.  In fact, after much cleaning I ended up having to buy a new refrigerator...

...But here is what tops it all off...  a dildo!!!... in the bathroom cabinet.  I almost quit the biz right there.

A Big Decision

As mentioned in the previous post I am a licensed real estate agent, and this was my full-time career for 4 years after college.  Then an opportunity fell in my lap for a job at a local college.  A CONSISTENT PAYCHECK!!!  No more depending on commissions that may or may not work out!

Unfortunately, this also limited my time with the rental business, cut time available to work on my properties, and I had to cut most of my real estate sales opportunities.  After 2 or 3 years at the college it became very apparent that I may be good at working with students and helping those interested in college, but I have no passion for it.  My passion is my real estate business and the idea of being my own boss.

Yes, starting your own business is a very risky, stressful, and often a religious experience.  However, I have the unwavering support of my wife, and the experiences and lessons my father has learned over the years (he is also in the rental business).

Knowing all of this has led me to a decision I have been wanting to make for a while now.... Do I stay working for a small, constant salary, or do I jump off that cliff called "my own business" with no bottom in sight in hopes of landing on something soft, standing on my two feet, without shattered legs and spine (metaphor, of course)?

I have chosen the cliff!  I do like adventure afterall (as you can see by my love for mountain biking).  This will most definitely be an adventure. 

I'm known to worry and stress about things, and I will probably continue to do so with this decision, but overall I truly believe I will be happier.  Yes, I may have to give up some dinners out on the town and a vacation or two, but it WILL pay off many times over the other option.  If you disagree don't tell me...let me live in the moment for now.

I will be saying goodbye to my full-time job at the college on August 31st.  I will update you on my mental status at that point.

A Little Background

I started in the residential rental business in 2007 at the age of 25.  It all began with the purchase of two little houses I found out about strictly by luck.  Thanks to the fact I was also a fairly new real estate agent, aka independent contractor, I could not get financing (it's especially hard to get financing when buying an investment property, on top of trying to prove income for the previous 2 years).  So, in comes dear ole dad...my first lender.

Now I own 6 rental houses (all with mortgages, but all stay rented).

I won't bore you with the details of the last 4 years, but I will say I have dealt with a wide variety of issues...one or two of which people that have been in the business for decades have not experienced.

There have been perfect tenants who have been renting from me since the beginning with no problems, and tenants that have disappeared in the dark of night with no warning.  There have been tenants that I tried to help as part of a church charity (that blew up in my face quickly), and there have been tenants I've had to kick out because of drug issues and complete stupidity...then they thought I would give them a good reference at the next place they rented.  Can you believe that?!?  I've seen many different personalities in 4 years, but thankfully most have been good.

This brings me to one of the biggest and most helpful lessons I have learned so far:

ALWAYS have an APPLICATION along with the LEASE!!!  A simple signature on the lease won't help if they disappear.  Get all the information you can!

Ok, I promise future posts will be shorter.