Archive for the ‘how to turn your home into a rental property’ Category

Abraham Lincoln and Storytelling – The Story Behind the Book

Monday, September 22nd, 2014

How Abraham Lincoln Used Stories to Touch Hearts, Minds & Funny Bones

 

“I am Terry Sprouse and I am a Lincoln-holic.”

But, let’s go back to where it all began.

I first became acquainted with Abraham Lincoln when I was a Peace Corps Volunteer in Honduras in 1986. Like most PCVs, I was starved for any reading material that was written in English, a thing more valuable to me than diamonds.

A Life Changing Book 

One day, I received a large package from my mother. It was book entitled “Abraham Lincoln – One volume edition” by Carl Sandburg.

I was captivated by the personality of Lincoln, as well as the elegant manner in which the book was written. As I read the book, I felt like I was experiencing a beautiful dream that I never wanted to end. I read the book through many times and highlighted passages that I wanted to remember.

I think the life of Abraham Lincoln is the most intriguing story in American history. Poor farm boy rises, like Venus from the half-shell, against all odds, to become President of the United States. And beyond the Presidency, he achieves legendary status through unparalleled displays of grace, charm, and good humor.

I planted a goal in my mind to write a book that would inspire people the way that Sandburg’s book had inspired me, and maybe even write a book about Lincoln. I read everything I could get my hands on about Lincoln.

28 Years Later- The Book is Written

Fast forward 28 years. I have been a member of Toastmasters (public speaking club) for several years, and I delivered several speeches about Abraham Lincoln. In 2012, I completed a book with my wife (Turn Your House into a Rental House Instead of Selling It!) and I was casting about for a topic for my next book.

Then, the goal that I had planted in my mind to write a book about Lincoln came back to me. I initially thought to write a book containing Lincoln’s best jokes that I could sell in conjunction with my making Lincoln speeches at various groups and organizations.

Gradually the book got longer and stronger, as I decided that some supplemental text would make it all the more interesting. I added chapters on the techniques that Lincoln used to tell his stories –mimicry, self-deprecating humor, and adding a moral to the end. Then another chapter on childhood influences that molded young Abe into a storyteller. Another on how he “Lincolnized” old stories to make them his own.

Throwing modesty to the wind, I also included a chapter on how I use Lincoln-like stories to teach my young boys valuable lessons and in radio interviews to promote my books.

I presented many of my ideas in speeches to my Toastmaster Club. In the process of writing the speeches and receiving feedback from club members, the text improved, and ultimately wound up as content in my final book.

With the publication of my Lincoln book, the 28 year wait is over and my mind is at ease.

Yes, I am a Lincoln-holic, and gratified to be in such good company.

 

See also:

Abraham Lincoln Storytelling Secret – Add Voices

What Mr. Lincoln Taught Me About the Power of Stories

How Abraham Lincoln Used Stories to Win the Presidential Nomination (a lesson for the 2016 Candidates for President)

How Abraham Lincoln Used Stories to Connect with People

Lincoln and Storytelling – Morning Blend Interview

Feb. 4: “Abraham Lincoln and the Power of a Story” at AZ Senior Academy

Lincoln Storytelling at AZ Senior Academy and Aztec Toastmasters (Video)

Follow Abe Lincoln’s Storytelling Example

Following in Lincoln’s Footsteps: My presentation to the ALP Convention (video)

Abraham Lincoln and Leadership through Storytelling

Volunteering at Pascua Yaqui Youth Career Academy Job Fair

Review of “The Hour of Peril” – 5 Abe Lincoln Anecdotes

“Turn Your Home Into a Rental House” is 2013 National Best Book Award Winner

Sunday, November 17th, 2013

I’m pleased to announce that the book that Angy and I recently authored:

“Turn Your Home Into a Rental House, Instead of Selling It!” is the winner of the 2013 USA Best Book Award: Real Estate Category. Here is a link to the contest web page.

       


 

 

 

 

 

The USA Book News Press Release:

For Immediate Release
November 2013
Contact: USA Book News
E-mail USA Book News

 USA BOOK NEWS

ANNOUNCES

WINNERS AND FINALISTS

OF

BEST BOOK AWARDS

MAINSTREAM & INDEPENDENT TITLES SCORE TOP HONORS

in the 10th ANNUAL USA BEST

BOOKS AWARDS

LOS ANGELES –USABookNews.com, the premier online magazine featuring mainstream and independent publishing houses, announced the winners and finalists ofTHE 2013 USA BEST BOOKS AWARDS on November 14, 2013. Over 400 winners and finalists were announced in over 100 categories. Awards were presented for titles published in 2012 and 2013. Jeffrey Keen, President and CEO of USA Book News, said this year’s contest yielded over 1500 entries from mainstream and independent publishers, which were then narrowed down to over 400 winners and finalists. 

Highlights include the following Award-Winning Titles: (Fll results listing available on USABookNews.com)

Animals/Pets: General

Chasing Doctor Dolittle: Learning the Language of Animals by Con Slobodchikoff, PhD
St. Martin’s Press
978-0-312-61179-8

Autobiography/Memoirs

IMPOSSIBLE ODDS: The Kidnapping of Jessica Buchanan and Her Dramatic Rescue by SEAL Team Six by Anthony Flacco with Jessica Buchanan & Erik Landemalm
Atria Books/Simon & Schuster
978-1-4767-2516-1

Business: Real Estate

Turn Your Home into a Rental House Instead of Selling It by Terry Sprouse and Angy Sprouse
Planeta Books LLC.
0978-1-979-85665-5

Children’s Picture Book: Hardcover Fiction

In the Beginning: Moral Tails in an Immoral World (Maurice’s Valises) by J.S. Friedman, illustrations by Chris Beatrice
Mouse Prints Press
978-9491613036

Keen says of the awards, now in their eleventh year, “The 2013 results represent a phenomenal mix of books from a wide array of publishers throughout the United States. With a full publicity and marketing campaign promoting the results of the USA Best Book Awards, this year’s winners and finalists will gain additional media coverage for the upcoming holiday retail season.”

Winners and finalists traversed the publishing landscape: St. Martin’s Press, Random House, Simon & Schuster, Penguin, John Wiley & Sons, Farrar, Straus and Giroux, Hay House, Llewellyn Worldwide, Thomas Dunne Books, Oxford University Press, American Cancer Society and hundreds of independent houses contributed to this year’s outstanding competition.

Keen adds, “Our success begins with the enthusiastic participation of authors and publishers and continues with our distinguished panel of industry judges who bring to the table their extensive editorial, PR, marketing, and design expertise.”

USABookNews.com is an online publication providing coverage for books from mainstream and independent publishers to the world online community.

A complete list of the winners and finalists of The 2013 USA Best Book Awards are available online athttp://www.USABookNews.com.

 

###

7 Reasons to Live in a Fixer-Upper House While You Repair It

Tuesday, June 18th, 2013

Turn a Rental House into Your Home; Then Your Home into a Rental House?

For small fixer upper house investors, like my wife and I, it can pay off big dividends to move into the future rental property that we are repairing. We don’t always do it this way, but we find there are compelling advantages to this technique. These advantages include:

1.) Reduce Financial Strain

We don’t have to make house payments on a property that has no tenants paying rent. In other words, living in the house while we repair it is better than having it empty. If I we live in it, we make the mortgage payment that I would normally have to make anyway. However, if we tried to repair the house, while still living in another house, we have two mortgages to pay, until we can finish repairs on the new house and then rent it out.

This can be a real strain on the budget, especially when repairs go on longer than anticipated. What we like to do is to turn our former home into a rental house and move into the fixer-upper. We usually plan to stay in the new residence anywhere from 6 months to 2 years.

2.) Better Loan Terms

We get better loan terms as an owner occupant. Interest rates on a loan can be one percent lower if we purchase the house as an owner occupant, rather than as an investment property. The less we pay each month during the repair process, the better.

3.) Learn Repair Skills

Instead of rushing through the repair process and having to contract out much of the work, in a more drawn out process we can take the time to learn new repair skills. It also affords us the luxury of being able to make mistakes and learn from them. For me, at least, that is an integral part of the learning process.

4.) Make More Money When Renting

Because of the lower loan terms and lower monthly mortgage payments, when we later rent the property out, we can turn a tidier profit each month. Or, we can make it more attractive to potential tenants by offering to rent it at a lower price.

5.) Accommodates Our 8-5:00 Jobs

Feverishly repairing a new rental property nights and weekends, puts a strain on my wife and I, since we both have day jobs. Stretching out the process reduces the stress level considerably.

6.) Get to Know the House

A slower repair process allows me to really get to know the idiosyncrasies of the house. Later when tenants request repairs, my in-depth knowledge of the house may make these future repairs easier.

7.) Reduce Taxes If We Sell

Although, we believe in the buy-and-hold strategy, if we live in the house for two years and decide to sell, we can sell without paying federal capital gains taxes. If the capital gain is less than $500,000 for couples, the sale of the house is never reported n federal IRS forms.

One Caveat

If you follow this strategy and have a family, expect to live under some primitive circumstances for awhile until you start to get things ship-shape. My kids are thrilled at camping out in a new house, and as long as I get the showers working fairly quickly, my wife is happy. If you take the perspective that it’s an exciting adventure, you won’t be disappointed.

 

Related Articles

 

6 Steps to Roof Maintenance (for the Home that will Turn Into a Rental House)

 

How I Evicted A Problem Tenant in 4 Steps

 

When to Hire a House Inspector – Radio Interview with Rich Peterson

 

Getting Rid of Bad Tenants

 

“Turn your home into a rental” on Mark Wayne Show

 

7 Reasons to Live in a Fixer-Upper House While You Repair It

 

6 Steps to Roof Maintenance (for the Home that will Turn Into a Rental House)

 

Our First Rental House Plunge

 

10 Most Frequent Problems Found by House Inspectors

 

5 Steps to Get Your House Ready to Rent by Terry Sprouse

 

5 Steps to take if your house is flooded

 

Some perfectly legal ways to maximize your rental profits

 

Add “Start a Rental House Business” to Your Bucket List

 

The 5 Rules on How to Lose Money and Get Your Rental Property Trashed by Tenants

 

Window Repair with #2 Son

 

Required Roof Maintenance for Fixer Upper Houses

 

Learn to Repair Your Fixer Upper Houses

 

How I Got Started In Fixer-Upper Houses

 

How to learn to operate a fixer upper house business

 

The Peaceful Warrior and Fixer-Upper Houses

 

6 Steps to Roof Maintenance (for the Home that will Turn Into a Rental House)

Thursday, June 13th, 2013

“Refusal to accept the death of a dream would seem a historical imperative in realizing it.” (Referring to Abraham Lincoln’s long held conviction that he would someday be president.)

–Chris DeRose, Congressman Lincoln

Holy Mackeral! It’s time to prepare the roof for summer.

We can ignore it no longer. It’s time to get up on that roof and get the cooler in working condition (for those of us in the southwest), and to re-coat the entire roof in preparation for the upcoming monsoon season.

the water cooler (a.k.a. “swamp” cooler)

We will eventually turn the home into a rental house, so we must keep the roof in top condition. Later, we need to fix one of our rental house’s roof too.

Water Cooler Issues

This year, the copper tubing broke on my cooler due to cold weather. I used to drain the tubing every year before winter. Then, a friend told me that was a waste of time because it never got cold enough to break the pipes.  Now I have one additional broken pipe, and one less friend.

Just kidding. Actually my friend is only serving time in the  penalty box  — for the next 2 years!

valve attached to new tube

 

copper tube

Fortunately, it’s an easy fix to change the tubing. Here are the steps:

1.) At Ace Hardware, I bought 8 feet of copper tube at $1.29 per foot,

2.) I cut off the old tube, and

3.) I attached the new tube using couplers, also from the aforementioned Ace Hardware Store.

copper tube cutter

Applying Rubberized Roof Coating

Last weekend we tackled this job at our house.

We used 4-5 gallon buckets of Tucson Rubberized Roof Coating. Each 5 gallons covers about 400 sq. ft.

The procedure was:

1.) One day before, wash off the roof with a high powered water spray,

2.) Stir up the paint with electric drill and large paddle stirring attachment,

3.) Place my two sons on roof with rollers and paint, and stand back as they lather it on like shaving cream.

 

“chips off the old block” lathering it on

 

making steady progress

Blog recommendations:

6 Steps to Roof Maintenance (for the Home that will Turn Into a Rental House)

How I Evicted A Problem Tenant in 4 Steps

When to Hire a House Inspector – Radio Interview with Rich Peterson

Getting Rid of Bad Tenants

“Turn your home into a rental” on Mark Wayne Show

7 Reasons to Live in a Fixer-Upper House While You Repair It

6 Steps to Roof Maintenance (for the Home that will Turn Into a Rental House)

Our First Rental House Plunge

10 Most Frequent Problems Found by House Inspectors

5 Steps to Get Your House Ready to Rent by Terry Sprouse

5 Steps to take if your house is flooded

Some perfectly legal ways to maximize your rental profits

Add “Start a Rental House Business” to Your Bucket List

The 5 Rules on How to Lose Money and Get Your Rental Property Trashed by Tenants

Window Repair with #2 Son

Required Roof Maintenance for Fixer Upper Houses

Learn to Repair Your Fixer Upper Houses

How I Got Started In Fixer-Upper Houses

How to learn to operate a fixer upper house business

The Peaceful Warrior and Fixer-Upper Houses

“Turn Your Home Into a Rental House!” finally sees the light of day

Wednesday, May 15th, 2013

 

Although it took a little longer than we anticipated, “Turn Your House Into a Rental House Instead of Selling It!” has finally popped out of the incubator and is available as a paperback book.

In a nutshell, what is this book about?

With my charming wife and business partner, Angy, as co-author, we have created a guide on how to find properties, live in them, and then turn them into a rental house, instead of selling them.

According to the “American Association of Realtors,” the average American purchases seven houses during their lifetime. Angy and I believe that those seven houses should be converted into rental houses and held for the rest of our lives. They are valuable assets that will generate monthly income for the hard years to come, and provide further assurance of long-term economic family security. Like the old folktale says: “Don’t kill the goose that lays the golden eggs.”

How does this book help the average Joe?

We show the average Joe where to find the best properties, how to pay for your houses, property inspection, the nitty-gritty steps on how to prepare your new rental house for tenants, how to attract and screen tenants, managing tenants, and complying with EPA regulations. The appendix includes samples of leases, property inspection sheets, tenant selection rating sheets, and many other valuable forms to get you started in your rental house business.

What do millionaires do that most people don’t do? 

Go into politics?

Buy their own Starbucks?

Become a bearded recluse?

Well, those are some of the things they do, but according to Thomas Stanley, in The Millionaire Next Door, most American millionaires own their own houses, and they own at least one rental property.

Our perspective is, “If it works for millionaires, it ought to work for us too.”

Our hope is that this book will inspire you to buy a rental property and to receive the enormous benefits from that one bold action. Even if you buy just one rental property throughout the course of your entire life, your economic picture will almost immediately get better.

You may wonder, as we did, “Why didn’t we do this a long time ago?”

Where do we order this book?

Click here to order the book through Amazon.com.

—–

Recommended reading:

The Short and Sweet Guide to Target Retirement Funds at Fearless Men

Creating an Outsourcing Master Plan For Your Business at Louisville Gals

Top Sights In Australia For The Adventure Seeker at Untemplater

Is There Right Time to Buy Real Estate? at KrantCents

How To Easily Reduce Your Utility Costs | 5 Simple Steps FRugal Habits

How Big Should Your Emergency Fund Be? at Work Save Live

Working Towards A Debt Free Lifestyle In 8 Steps at Canadian Budget Binder

Help Me Spend $1100! at Eyes on the Dollar

How You Can Start Freelancing at the End of This Article at Modest Money

10 Most Frequent Problems Found by House Inspectors

Tuesday, December 11th, 2012

These kids come to me and ask, ‘Hey Arnie, are you God?’. I just laugh and say ‘Nice try, but keep looking.

— Arnold Schwarzenegger

Buying fixer-upper houses, living in them, repairing them, and eventually renting them out is a safe way to generate short-term income and long-term economic security.

Even Arnold Schwarzenegger,  in his new book Total Recall, cites investing in real estate as a valuable step on his road to financial success.

But, how can you be sure that a house is worth what you are offering to pay for it? Based on experience, we can “eyeball” the property and probably be able to make a pretty accurate estimate of its worth, maybe 75% of the time

That’s probably closer to 95% of the time for Arnold, with that Terminator vision of his.

Get a professional inspection

However, that’s not good enough. We need more information than our educated eyeball can provide in order to:

1.) Avoid any surprise defects. After you buy the property, trying to get reimbursed for those defects will be too late.

2.) Negotiate a lower selling price for the house.

I hire a professional inspector to provide me with a complete written inspection report that can be used to negotiate a lower price on the house if it uncovers anything that is in need of repair.

Looks straight to me. Why do you ask?

When having the physical inspection done, you should be aware of the most common house problems.

Ten Most Frequent House Problems

 A survey of U.S. home inspectors resulted in this list of the most frequently encountered problems:

 

1.) Improper Surface Grading/Drainage 
This is responsible for the most common of household maladies: water penetration of the basement or crawl space.

2.) Improper Electrical Wiring 
Includes such situations as insufficient electrical service to the house, inadequate overload protection, and amateur, often dangerous, wiring connections.

3.) Roof Damage 
Involves roof leakage, caused by old or damaged shingles or improper flashing.

4.) Heating Systems
Problems in this category include broken or malfunctioning operation controls, blocked chimneys, and unsafe discharge of exhaust.

5.) Poor Overall Maintenance
Includes signs such as cracked, peeling, or dirty painted surfaces, crumbling masonry, makeshift wiring or plumbing, and broken fixtures or appliances.

6.) Structural Problems
Many houses, as a result of problems in one or more of the other categories, sustain damage to such structural components as foundation walls, floor joists, rafters, window and door frames.

7.) Plumbing 
Problems consist of the existence of old or incompatible piping materials, as well as faulty fixtures and waste lines.

8.) Exteriors 
Flaws in a home’s exterior, including windows, doors, and wall surfaces, are responsible for the discomfort of water and air penetration. Inadequate caulking and/or weather-stripping are the most common culprits.

9.) Poor Ventilation
Perhaps due to overly ambitious efforts to save energy, many home owners have “over-sealed” their homes, resulting in excessive interior moisture. This can cause rotting and premature failure of both structural and non-structural elements.

10.) Miscellaneous
Includes primarily interior components, often cosmetic in nature. May include dents in doors and walls from children’s unsupervised indoor karate practice, or possibly from having Bigfoot (or the Governator) as a former resident. (I inserted those last two examples based on some unfortunate personal experiences I have had.)

A specialist in mold removal or riled up Governator?.

A home inspector’s standard practice typically does not include the following, for which a specific license to inspect and identify is required:

  •  Asbestos
  • Radon Gas
  • Lead Paint
  • Toxic Mold
  • Pest Control

If you suspect the presence of any of these items, you would contract with inspectors in these areas independently.

 

 Related Posts

Remove that Garbarge Disposal Now!

6 Steps to Roof Maintenance (for the Home that will Turn Into a Rental House)

How I Evicted A Problem Tenant in 4 Steps

When to Hire a House Inspector – Radio Interview with Rich Peterson

Getting Rid of Bad Tenants

“Turn your home into a rental” on Mark Wayne Show

7 Reasons to Live in a Fixer-Upper House While You Repair It

6 Steps to Roof Maintenance (for the Home that will Turn Into a Rental House)

Our First Rental House Plunge

10 Most Frequent Problems Found by House Inspectors

5 Steps to Get Your House Ready to Rent by Terry Sprouse

5 Steps to take if your house is flooded

Some perfectly legal ways to maximize your rental profits

Add “Start a Rental House Business” to Your Bucket List

The 5 Rules on How to Lose Money and Get Your Rental Property Trashed by Tenants

Window Repair with #2 Son

Required Roof Maintenance for Fixer Upper Houses

Learn to Repair Your Fixer Upper Houses

How I Got Started In Fixer-Upper Houses

How to learn to operate a fixer upper house business

The Peaceful Warrior and Fixer-Upper Houses

Strategic Use of Memos to Manage Tenants

Thursday, November 29th, 2012

Update on “Best Real Estate Investing Blog” Contest

The results are in for the Best Real Estate Investing Blog Contest, and while I did not win, I took the loss in stride, with a minimal of gratuitous moping and whining.

I want to express my heartfelt gratitude to all of you who voted for my blog. Thank you for your support!

Congratulations to Susan Lassiter-Lyons at The Investor Insights for winning the blog contest!

Memos and Tenants

A light, tender, sensitive touch is worth a tone of brawn.

–Peter Thompson

As I mentioned in an earlier post, when we hear our tenants humming “Stairway to Heaven” that’s a sign that they may be  they ready to move on.

However, my wife and I do everything in our power to keep them from ever even consider moving. We want them to stay forever! It’s the best way to keep our business operating smoothly and profitably.

In the rental house business, we use a light touch when communicating with tenants. A phone call is good when you need to quickly get in contact with your tenant, but if it’s not an urgent matter, our preferred means of communication with tenants is by sending them memos by regular mail.

Use the low-key approach

For example, if the tenant is not keeping up the yard work around their rental property, as agreed upon in the rental contract, we will write them a note in a calm and respectful manner identifying the problem. We may make a reference to the section of the contract that requires them to keep up the yard (but only if they are a repeat offender), and describe what needs to be performed to meet the terms of the agreement.

A phone call could easily put them in a defensive position, and turn into a heated conversation, which is the last thing we want. With a memo, the tone stays calm and the point gets made. And, we have a written record of what we have told them that we keep in the tenant’s file folder.

Keeping tenants informed

We keep our tenants informed about activities that we have planned for their property. We will usually call and let them know well ahead of time if we plan to do some preventative maintenance, on the roof, for example. If a plumber cancels an appointment, we’ll call them so they are not waiting around all afternoon for no reason. It’s really just practicing common courtesy.

As an example, here is a memo that I recently sent to two of  our best tenants:

MEMO

Date: November 5, 20xx
To: xxxx and xxxx
Location: 2551 N. Banyon Blvd.
Re: Yard work

 This is just a friendly reminder that the front yard looks like it might need a little maintenance. I noticed that the weeds were starting to take over the yard a little.

 If you could tidy it up a bit, I’d appreciate it. If you need a weed wacker just let me know. I’d be happy to loan you one.

 I’m very grateful to have you as tenants. You have been really great about taking caring of the property.

 If anything comes up where you need any help with repairs or anything else, please don’t hesitate to contact me.

 (If you have already done this yard clean up, please disregard this letter.)

With best regards,
Terry Sprouse
270-xxxx

 ——–


 

 

5 Steps to Get Your House Ready to Rent by Terry Sprouse

Tuesday, November 13th, 2012

“Life is either a daring adventure or nothing.”

Helen Keller

If you are following my suggestion and turning your old home into a rental house, or if you are just purchasing an investment fixer upper house, use these 5 steps to prepare your house to rent out.

 Step 1:  Remove Furniture

Move all of your furniture and personal belongings out of your old house. The absence of these items makes the house look bigger and the home is more inviting if it is not cluttered up with beds, chairs, food supplies, and toys. It also makes it easier to do a thorough job of cleaning the house.

This only applies to the first time you rent out your new rental house. After tenants leave in the future, they will take most of their things with them. Of course, some tenants do not follow the normal procedure, and they may leave in the middle of the night to avoid paying their last rent check.

(Occasions like this make it tempting to slip a magnetized GPS tracking device under the fender of the renter’s car.)

An incident like this happened to me a couple of years ago. Not only did the tenant leave a pile of clothing, bottles and boxes of cleaning supplies, cupboards of food, and a sofa, but also left behind a car that didn’t work. (So much for the GPS idea.)

Renters like this one are the exception. Tenants normally take all their things with them when they leave, making it easy for me to prepare the property for the next tenant, and without much effort, present an appealing yet empty house.

Step 2:  Clean Up

 Thoroughly clean the house. This includes painting walls (a fresh coat of paint makes the place look and smell good), washing floors, cleaning appliances (especially the oven), shampooing carpets, washing the windows, cleaning the bathrooms and checking the roof.

 Step 3:  Make Repairs

 Take care of all repair work. Leave nothing to chance and make all repairs before tenants move in. Change broken outlets and switches, patch holes, remove stains, replace cracked and broken glass, repair dripping faucets, replace missing shingles, and fix roof leaks.

The old saying that “Left to themselves, things always go from bad to worse,” is especially true with rental houses. It’s tempting to assume that that small leak in the bathtub, or a toilet that flushes most of the time, won’t bother anyone. But trust me, you will get that call to repair the bathtub or toilet at the most inopportune time.

This doesn’t mean that everything in the house has to be new, but everything should be in working order.

It is a rental house after all, and not Buckingham Palace.

For example, bedroom doors do not have to be replaced every time they have a crack or a hole in them. I rehabilitate the door with wood putty, and a fresh coat of paint. The guy in the “Easy Repair of Hollow Core Door” video below uses drywall mud to fill the hole, with equally good results.

 Buy used construction materials

Missing or broken light switches, outlets, covers can be replaced inexpensively with quality used ones. I have also purchased reliable doors, cabinets, stove tops, dishwashers, and toilets at stores that recycle construction materials, for pennies on the dollar. The Habitat for Humanity Store is one such place that I frequent for good used materials. There are 825 Habitat Restores in the United States and Canada. You can locate a store near you at www.habitat.org

Buy new or used appliances?

 If broken clothes washers or dryers cannot be easily repaired, our policy is to replace them with a quality used one, or with lower end new appliances (like the Kenmore brand from Sears).

 Buy bargain appliances before you need them

 Craigslist and yard sales are great places to find good used appliances at bargain prices. If I see a nice working appliance for a good price, I will purchase it, even though I don’t have any immediate need for it. I’ll just store it in our shed until I need it.

I bought a like-new furnace at a yard sale for only $40 and installed it into a rental house and it has worked great. For furnaces, there are very few moving parts to worry about, and the wiring is relatively simple. As long as the motor works, you’re home free.

I once literally picked up a clothes dryer from the side of the road that had a “Free Dryer” sign taped to it. I gave it a new home and it has been working

Low maintenance yard (in the southwest)

reliably for over 10 years now. The only repair, about five years ago, was that I had to change the on/off switch on the door.

Step 4:  Simplify Landscaping

The front yard of your rental houses must look great. Curb appeal gives the potential tenants a good first impression. Simple and neat landscaping gives the client  comfort that the yard is low maintenance and ecologically and economically low in water consumption saving the tenants money on water and saving you time later not having to replace a yard of dead plants.

This yard went too low maintenance!

I personally like to utilize decorative rocks on our rental yards, and plants that don’t require any watering, like Mesquite and Palo Verde trees, which have long roots that tap into the aquifer.

 Step 5:  Re-key the Locks

 One other thing that I like to do before a new tenant moves in is to re-key all the locks. This is cheaper than buying new doorknobs, and it provides security for our tenants. This protects you and your tenants in case a previous tenant has surreptitiously kept an extra copy of a house key.

 

Related Posts

Remove that Garbarge Disposal Now!

6 Steps to Roof Maintenance (for the Home that will Turn Into a Rental House)

How I Evicted A Problem Tenant in 4 Steps

When to Hire a House Inspector – Radio Interview with Rich Peterson

Getting Rid of Bad Tenants

“Turn your home into a rental” on Mark Wayne Show

7 Reasons to Live in a Fixer-Upper House While You Repair It

6 Steps to Roof Maintenance (for the Home that will Turn Into a Rental House)

Our First Rental House Plunge

10 Most Frequent Problems Found by House Inspectors

5 Steps to Get Your House Ready to Rent by Terry Sprouse

5 Steps to take if your house is flooded

Some perfectly legal ways to maximize your rental profits

Add “Start a Rental House Business” to Your Bucket List

The 5 Rules on How to Lose Money and Get Your Rental Property Trashed by Tenants

Window Repair with #2 Son

Required Roof Maintenance for Fixer Upper Houses

Learn to Repair Your Fixer Upper Houses

How I Got Started In Fixer-Upper Houses

How to learn to operate a fixer upper house business

The Peaceful Warrior and Fixer-Upper Houses

The right way to handle tenants who are moving out

Wednesday, November 7th, 2012

Eventually, tenants experience that “feeling I get when I look to the west, and my spirit is crying for leaving,” which Led Zeppelin describes, and they move away.

When this happens, you will want to make the transition of the tenant out of the house as smooth as possible. The best way to do this is by telling the tenant what you expect from them. We send a letter that clearly spells out the checkout process. This way there are no misunderstandings, we are all on the same page, wavelength, sheet of music, or stairway to heaven.

Move Out Information Letter to Tenants

Some key things that we mention in our letter are:

1.) How much of their security deposit will be returned.

2.) There will need to be a review of their check in sheet (and attach a copy for them).

3.) What you expect in terms of house cleaning.

4.) Reminders to contact the utility companies to disconnect services in their name.

5.) Reminders to cancel newspaper and other subscriptions, and to provide the Postal Service with a change of address form.

6.) Reminders to contact us when they are ready for the final house inspection.

7.) A note that if keys are not returned, they will be charged.

8.) Any costs that we must pay to repair the house will be taken out of their security deposit, and we will refund the money due them within 10 days.

Download a copy of my “move-out” information letter to tenants.

(The link to my letter may not work on Internet Explorer. It seems to work fine with Google Chrome.)

Why be lenient with the damage deposit?

In general, we are pretty lenient when it comes to charging tenants for little things on the checklist. If they move out, and they have been good tenants, we are going return to them most, if not all of their security (or damage) deposit back, barring some obvious big broken item.

Our perspective is that we made a lot of money from the tenants over the years, and we don’t want them to leave on a sour note just because they thought we might have overcharged them on some ticky-tack repair.

 

Men of the World Unite!

John and Todd over at FearlessMen.com are staging a mustache and beard growing contest to help raise funds for charity.

I have confidently signed up to participate in the contest, and I have every intention of winning!

I invite you to join me.

The rules are simple:

1. Starting November 1st, start growing you mustache or beard. In the process they will encourage others who see them as they selflessly promote this great cause, to donate to the selected charities.

2.December 1-16 the contestants will have their photos posted at Fearlessmen.com so everyone can vote on said mustaches and beards. On Dec. 17th, the winner will be announced

3. The winner will receive prizes.

For complete details, charge over and read John’s article:

Fearless Men’s Beard and Mustache Competition | Movember 2012.

 

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Coming VERY Soon!

How to Turn Your Home into a Rental House, Instead of Selling It
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What Riles Me Up – How to be a great radio show guest

Wednesday, October 3rd, 2012

Yesterday, I participated in a telephone seminar on “how to be a good guest on radio shows.” I have been on many radio shows to promote my books, but I’m always looking for new ways to be a better guest, or perhaps more appropriately, a greater guest.

One point that the presenter mentioned really struck me. He said that radio shows prefer guests who have a strong opinion. They want you to be riled up about something.

Not gonna take it.

The presenter asked, “Why are you angry? What are you going to do about it? What makes you angry about your profession?”

I told the presenter, “I buy fixer upper houses in Arizona and turn them into rental properties, and I write books, but I’m not really angry about anything.”

He said, “Aren’t you angry about the economy, or the fact that a lot of Canadians are buying up foreclosed houses in Arizona?”

I said, “No way.

Let me entertain you, eh?

Sure, our Canadian friends have infiltrated the entertainment industry with singers, actors, and comedians practically indistinguishable from their American counterparts, but they don’t buy fixer upper houses, which is my gig; and the recession makes houses cheaper for me to buy.

But, I was angry when I had my work hours reduced during the 2001 recession. That forced me to change my way of thinking about what constituted economic security, and got me started on my fixer-upper house business. That’s also motivated me write my first book.

Looking back, I was wrong to be riled up at the recession. What I should have been riled up at was my own blindness and misplaced faith in something as ephemeral as a steady economy. I should have been riled up that I waited for a disaster to strike before I took action.

Maybe my approach should be that I am riled up about other people who don’t learn from their own painful experience, or from mine. Not that everyone should run out and buy fixer-upper houses, but everyone should  establish economic security, or carve out their niche, apart from, or in addition to, their 9-5 job.”

He replied, after a thoughtful pause, “maybe that’s it … people who never plan for a safety net.

This is the major problem we are seeing … if people prepared, they wouldn’t be so panicked.”

So that’s it.

Now I have something to be riled up about; to express my rightful indignation over.

Preparing for my next  radio interview

Watch out!

When I hit the radio waves to promote my next book I’ll come out swinging! Grrrr!

Weekly Blog Roundup

Additional recent blog articles that I liked:

How to make a vacant property look occupied at Landlord Investor

Amazing Entrepreneurs – Interview With Diane Conklin at Louisville Gals

5 Thoughts Women Wish Men Knew and Theodore Roosevelt at Fearless Men

5 Easy Methods to Save Money without Thinking at Frugal Habits

Greek Hummus Dip Recipe at Work Save Live  (mmmm)

PoP Balance Sheet – September 2012 at Planting Our Pennies

What Happens to Kids Who Were Bullied? at Blue Collar Workman (Are you looking at me?)

GRE Tips: Acing The GRE As A Middle Aged Person Long After College at Untemplater

Tax Implications Of Running A Blog at Modest Money

Why buying the most expensive motorcycle on Ebay saved me money at Reach Financial Independence

Too Old To Have This Much Crap at Any Shiny Thing

Rental Property Series: How Much Did it Cost at Eyes on the Dollar

Extra Income During the Holidays at Making Sense of Cents

 

Coming Soon!

How to Turn Your Home into a Rental House, Instead of Selling It