Archive for the ‘repairing rental houses’ Category
Friday, August 10th, 2012


Tthe Arizona Network of Real Estate invited me to give a presentation to their group about my book “Fix em Up Rent em Out.”
I thought the video might be available to the general public but it looks as though that’s not going to happen.

However, so that no one feels left out, I am going to provide a summary of the key points that I hit during the presentation. As someone who was regularly picked last for teams in gym class, I’m sensitive to people feeling left out. Casting modesty to the wind, I am also including exclusive photos of the event.
So here are:
The 5 Rules on How to Lose Money and Get Your Rental Property Trashed by Tenants (based on an article by Andrew Stefanczyk)
1. Choose the Worst Possible Area
Location will determine the kinds of tenants you will attract, and how much rent you can fairly charge.

Do you want these bearded wonders as tenants?
The best approach is to identify target areas in your city where you would like to focus your purchases. I like to focus on “transition zones” (where there is a mixture of housing types) which are good for investors because we can purchase properties at lower prices, and there is high demand to live in these areas.
2. Put in the very best of things when fixing up an investment property
Use new and expensive sinks, doors, refrigerators, light fixtures, etc. Never shop at stores that recycle construction supplies. Spare no expense.
Of course, the problem is that tenants will not take care of our properties as well as we would,

Habitat Store
so we end up with many broken or worn out items. The better alternative is to shop at used building supply stores, and to purchase good, inexpensive, supplies for our rental houses. One such store is the Habitat for Humanity store.
3. Make sure you have absolutely no experience in make basic repairs
Not knowing how to change electrical outlets, unclog drains & toilets, and replace broken windows will cost quite a bit down the road.
The better way is to:
A. Learn as you go, and comply with EPA regulations
B. Take construction classes at junior college
C. Learn from handymen and contractors
D. Take the Zen approach to house repair – learn to do everything yourself
5. Utilize fix-up books, investing books, & YouTube to find answers on how to make house repairs
4. Do not screen your tenants
Being as uninformed as possible about who you rent to may be the best way to lose money as a landlord. Do not ask for or check references. Do not call previous landlords and ask questions like, did they pay rent on time? How was the condition of the house or apartment when they left? Did they ever disturb neighbors with loud music or shouting matches? How often would you have to make special trips for repairs? Being as uninformed as possible about whom you rent to will make a huge difference and will increase the chances that you will get tenants that will trash your property and refuse to pay rent.
However, the better way is to:
A. Use a checklist for tenants. Decide what kind of tenant that you want ahead of time.
B. Look at their paycheck to verify income.
C. Check county records to see what illegal activities they’ve been up to.
D. Know the Fair Housing Act. Never select tenants based strictly on “race, color, national origin, religion, sex, familial status or handicap (disability).”
E. To find new tenants, use Craiglist, put up arrow signs, and host an “open house.”
5. Make sure you have not learned about your rights as a landlord
Be completely unfamiliar with the eviction process to guarantee long, drawn out disputes with tenants. Don’t keep up to date financial records or copies of correspondence with tenants. Most states provide online information about tenant and landlord rights so avoid reading these.
The better way is:
A. Get an authoritative legal guide like “The Arizona Landlord Deskbook” by Carlton Cassler.
B. Copy forms and letters from your legal book to send to tenants.
C. Comply with legal ways to deal with bad tenants.
D. Use memos to communicate with tenants so you have a record of correspondence.
E. Use a month to month lease instead of long-term lease to more easily scrape off bad tenants like barnacles.
F. Reward tenants for paying on time by discounting their rent $25. 
G. Send good tenants Target gift cards for Xmas.
In Conclusion
Share Your Knowledge
“Each of us has cause to think with deep gratitude of those who have lighted the flame within us.”
–Albert Schweitzer
Carve Out Your Niche Update
My award-winning book on self-publishing, Carve Out Your Niche, is now available in Kindle format.
The Midwest Book Review called Carve Out Your Niche,
“Invaluable for anyone seeking to successfully write, publish, and market their own work.”
Tags: Arizona Network of Real Estate, avoid losing money with rental houses, buying rental houses, carve out your niche, construction materials, do it yourself, Habistore, Habitat for Humanity, landlord rights, learn to make repairs, managing tenants, screen tenants, share your knowledge, target areas, transition zones, Zen
Posted in Arizona Landlord Deskbook, book review, book review real estate investing, book reviews, buying real estate, carve out your niche, create wealth in real estate, do it yourself, excellent real estate books, finding tenants, Fix em Up Rent em Out, fixer upper book, fixer upper houses, for rent, home buying, house buying, house repair, house repairs, how to make money renting housing, How to manage tenants, How to start your own house fix up and rental busines, investing in real estate, investment house, investment property, investmet properties, landlording, learn repair skills, learn to invest in real estate, learn to make repairs, legal information, making repairs, managing tenants, maximize rental profits, month to month lease, mortivation, opportunity zone, places to advertise for a tenant, presentations, quirky tenants, real estat investing, real estate books, real estate investing, real estate principles, rental house improvements, rental houses, rental management, rental properties, rentals, renting, repair, repair books, repairing properties, repairing rental houses, repairs, selecting tenants, share your knowledge, success, tenants, tenents, transition zone, Zen of Real Estate Investing | 14 Comments »
Saturday, July 28th, 2012
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Last Saturday I took my 10-year-old son along with me to repair a window in one of our rental houses. I like to take one of my boys along so they can learn a thing or two about how to repair things, as well as so they can see how I deal with tenants, and, mainly so that we spend some time together and have fun together. I always try to make it fun for them. For example, we went to ACE Hardware to get a new window cut, we looked at the stuff he likes to see, like BB guns and rockets, and, I bought him a bag of Boston Baked Beans.
It was really a big help to have #2 son along. He not only does what I ask him to do, unlike his teenage brother “Mr. Cool Guy”, but he also brings an enthusiastic spirit to the endeavor. One of the first things I have to do is to chip out the old putty from around the window. It’s my least favorite part of the job since it involves a lot of tedious work. After I explain what I am going to do, my son responds. “Can I do it?” I say “okay, go at it,” but I’m thinking, “Well, if you really insist!” What is old hat to me is new and exciting to him.
When we arrived back from ACE with the new window, I accidentally broke the window as I took it out of the back seat of my pick-up. I thought it might discourage my son to head back to ACE again to buy another window, but his response was, “I need a refill on the Boston Baked Beans anyway.” After that the broken glass incident became a running gag with comments like “is it time to break the window again?” and “let’s break the window again and get some more Boston Baked Beans.”
I must admit, it’s not nearly as entertaining when I have to do those little repair jobs all by myself.
Tags: house repairs, repairing broken windows, repairs to fixer upper houses
Posted in do it yourself, family working together, fence repair, Fix em Up Rent em Out, fixer-upper business, help, house repair, house repairs, investment property, learn repair skills, learn to make repairs, making repairs, painting, repair, repairing properties, repairing rental houses, repairs, son, window repair | 5 Comments »
Monday, July 2nd, 2012
One of the jobs associated with operating a fixer upper and rental house business is to keep your rental properties in ship shape!
With the annual approach of summer rains, now is almost the last chance to make rental house roofs water proof before the watery onslaught. As someone who has a sworn aversion for arriving too early to parties, I subscribe to the time-tested philosophy of “better late than never.”
This morning I applied some black roofing cement on some areas on one of my townhouse roofs. I had located some cracks upon my inspection of it about 2 weeks ago.
The first photo shows the area in question, where I had previously applied a small amount of plastic roofing cement, but today I was going to put on some more and cover a broader area.

The second photo shows the application of the plastic roofing cement. We apply one layer of cement, then put a white membrane on top of that, followed by a second layer of cement. The membrane allows for more cement to be applied.

Below is the “after” photo. You can see that in addition to the corner, we hit a few other cracks with our roofing cement on the sides of theroof. Later, we’ll come back with white roofing paint to cover the black cement.

A good rental house
My wife and I purchased this 2 bed 2 bath townhouse in 1993 and lived in it for 10 years before moving on to a bigger house (to accomodate our growing family), and turning this property into a rental house in 2003.
Its been one of our best rental houses because it is in a “transition” zone (aka “opportunity zones”) where there is heavy demand for housing, and it is easy to care for because it is compact (1100 sq ft with small front and back yards). The townhouse perfect for single people or small families.
We originally purchased it for $53,000 and we charge $750/month (more if the tenants have pets).
Tags: fixer upper houses, fixing leaks on roofs, opportunity zones, roof repair, transition zones
Posted in Fix em Up Rent em Out, fix up houses, fixer uppers, fixer-upper business, flipping houses, house repair, house repairs, How to manage tenants, how to start a real estate business, How to start your own house fix up and rental busines, learn repair skills, learn to make repairs, making repairs, managing apartments, managing tenants, maximize rental profits, opportunity zone, property damage, purchase second home and turn current home into rental, rental house improvements, rental house protection, rental houses, rental management, rental properties, rental property, rentals, renting, repair, repair books, repairing properties, repairing rental houses, repairs, spare time, tenants, tenents, transition zone, turn my home into a rental, turn your house into a rental, turning a primary into a rental, turning an owner occupied home into an investment property, turning my home into rental property, turning your home into a rental property, Uncategorized | 5 Comments »
Tuesday, June 19th, 2012

Learn to Make Repairs
Never miss an opportunity to do your own repair work. To become an expert in the fix em up rent em out business, you must learn this. Think of it as part of your educational process. You lose two ways when you hire someone to do your work. First, you lose the chance of a free education, and second you lose the money that you would have saved by doing it yourself.
It may take you four hours to change an electrical receptacle or fix a toilet that won’t flush, something a professional could do in minutes. Don’t be concerned, in the long run you have learned a skill to be used for the rest of your life.
Trust Your Karma
After going through my explanation about how everyone can learn to repair a house, a friend of mine insisted that it was impossible for him to do fix-up work; it just wasn’t in his genes. I replied that his way of thinking was his dogma. My karma told me that he could do it. In time, little by little, he did learn to make repairs and he came to enjoy it, even relish it.
My karma ran over his dogma.
Work with a Handyman
Having said the above, I also think that you should have a good handyman to back you up. Although there are many things that you can learn to do, you also have to know your limitations. There will be times when you can’t make a complicated repair. Someone with experience must be called in. For many things you can be the expert, but for some things you can’t. Ideally you should establish a good working relationship with a true handyman that you trust and is available to help you out as needed, particularly in the first few years of your business. To keep costs reasonable, always pay contractors or handymen by the job and not by the hour.
Your attitude should be that you want to learn how to do everything yourself. You don’t learn to ride a bike by watching someone else do it. The only way to learn is by doing it yourself, and the more you do it, the better you will be at it like my first grout repair project, and when learning to lay tile. Practice doing all the steps in the process until it becomes second nature for you.
* * *
Tags: Fix em Up Rent em Out, learn by doing, learn to do everything yourself, learn to repair houses, repairing rental houses, trust your karma, work with a handyman
Posted in house repair, house repairs, learn to make repairs, making repairs, repair, repairing properties, repairing rental houses, turning your home into a rental property, Uncategorized, Zen of Real Estate Investing | 18 Comments »
Tuesday, May 1st, 2012

The intrepid Sharon Vornholt, of Louisville Gals Real Estate Blog, interviewed me last week about my book (Fix em Up Rent em Out) and how I got started in my fixer-upper house business. Today she posted the interview on her website. It’s entitled “Escaping the 9 To 5; How I Did It Interview With Terry Sprouse.”
I encourage you to check out some of the other interviews that Sharon has conducted with several real estate investors. Its always interesting for me to hear how other people operate their businesses.
Upcoming Speaking Engagement
I will also be making a presentation to the Arizona Network of Real Estate Investors. Mark your calendars.
Where:
Fidelity National Title, 6760 N. Oracle Road, Suite 100, Tucson, AZ
When:
June 7th, 2012
Time:
Meeting begins at 5:30 pm, presentation at 6:00 pm
Also for your reading pleasure:
Top (Secret) Book Marketing Tips on Amazon – Part 2
Tags: Arizona Network of Real Estate Investors, how I did it, how I got started, Louisville Gals, self reliance, Sharon Vornholt, speaking engagement
Posted in how I got started in fixer uppers, how to make money renting housing, how to start a real estate business, How to start your own house fix up and rental busines, repairing rental houses, turning an owner occupied home into an investment property | 12 Comments »
Thursday, April 5th, 2012

The fixer-upper house business is a great business to be in these days. But, if you are just starting out, and are as green as a gourd, as I was, you need some help.
To speed up the learning processes, you need to have a collection of reference books on home repair, buying and selling houses, rental properties, tax law and all other aspects of real estate.
If a home without books is like a body without a soul, then a fixer-upper business without reference books is like a cook without a cookbook.
You may not know everything at the start of your new business and you may need help in some areas, especially in the initial stages. However, each time you pay to have someone do work for you, or go through some new process, you should observe everything, ask questions and learn the process.
That way, the next time you will be able to do it yourself, or at least perform a larger part of the project. The key is to keep doing things over and over until you master how it works. You will eventually reach a point where you make decisions of where to make repairs and which houses to buy based on your instinct.
Books will help you to reach that point sooner.
Here are some books that I have found particularly useful to have on hand:
1. Fix em Up, Rent em Out, by yours truly. Yes, believe it or not, I read my own book! Anyone who says otherwise, is just itching for a fight.
2. Investing in Fixer Uppers, by Jay DeCima. His first, and still my favorite, of his books.
3. Investing in Real Estate, by Gary Eldred.
4. Arizona Landlord’s Deskbook (or the equivalent for your state.) by Carlton Casler.
5. Real Estate Debt Can Make You Rich, by Steve Dexter.
6. Wiring 1-2-3, by Home Depot
7. Plumbing 1-2-3, by Home Depot
8. Tiling 1-2-3, by Home Depot. Are you getting the impression that I like the Home Depot books? In addition to mastering the art of tile installation, I made my first grout repair after reading this book.
9. Fix it Yourself Manual, by Reader’s Digest.
10. Upside Up Real Estate Investing, by Bob Zachmeier (teacher of the first real estate class that I took).
Tags: Fix em Up Rent em Out, fixer upper houses, investing in fixer upper houses, investing in real estate, real estate books, upside up real estate investing
Posted in Fix em Up Rent em Out, Fixer Jay, fixer upper book, fixer upper houses, fixer uppers, fixer-upper business, how I got started in fixer uppers, how to make money renting housing, how to start a real estate business, How to start your own house fix up and rental busines, investing book, investing in your spare time, real estat investing, real estate books, real estate investing, rental house improvements, repair books, repairing properties, repairing rental houses, reviewing books and records, turn my home into a rental, Upside Up | 13 Comments »
Wednesday, March 28th, 2012

Learn the Ropes
My wife and I didn’t know much about repairing houses before we started our fixer-upper business, but like fine wine, we got better as time went on. One important rule in the fix-up profession is that you must constantly strive to become self-sufficient and learn all aspects of the profession. You must become an expert in your new business, even if you only do it part-time.
You can learn from others, but you have to rely on yourself to get ahead. Like the novice swimmer who is tossed in the pool, sometimes it’s sink or swim. You must learn by doing.
Trust Your Own Judgment
There are times when destiny forces you down a certain path in life. Other times, you make you own destiny by choosing to walk down a difficult path.
My plan when I bought my first fix-up house was that I could learn as I went along. I thought if others had learned to do it, so could I.
When I bought my fist fix-up house, it was like being stranded on a desert island. I was forced to learn new skills to survive, like Robinson Crusoe. The best way to learn new skills is by putting yourself in a situation where you are forced to change and adapt.
Before embarking on his life-transforming mission, the hero in the book Dune was advised, “Unless you change, something inside you sleeps.”
Foreclosure Update
The bank accepted someone else’s bid over mine for the foreclosed property that I bid on. My new target property is a 3 bed, 3 bath townhouse that is being offered for $69,900.

In this market, persistance is the name of the game. You just have to keep looking and keep bidding until you land a property at the price you desire.
Tags: Dune, fixer upper houses, forclosures, learn as you go, rental houses, Robinson Crusoe
Posted in fixer upper houses, fixer uppers, fixer-upper business, fixing rental houses, foreclosures, how I got started in fixer uppers, investing financial independence, investing in real estate, investing in your spare time, investment house, investment property, investmet properties, rental properties, rental property, repairing properties, repairing rental houses, Uncategorized | 5 Comments »
Tuesday, January 17th, 2012

This is a guest post by: Erik Braunitzer of Douglas Elliman Real Estate Company, agents for NYC Apartments.
The bathroom is an essential part of most every home. However, the bathroom is also an area that is often neglected when it comes to creating an environmentally friendly and green space. Luckily, when designing or remodeling your home, the nation-wide renewed focus on green living has opened up an entire marketplace full of green items.
And what most homeowners and contractors don’t realize is that going green really boosts the value of your home. Things like geothermal heat, 95% efficient furnaces and walls made with reclaimed materials are just a few examples of expensive but worthwhile home investments. One of my favorite areas of focus is the bathroom.
Recycled Glass Tile: Tile is a commonly used throughout the bathroom, from floors and shower walls to backsplashes and accent work. Consider using recycled glass tiles, which come in a wide range of colors, shapes and sizes. Recycled glass tile is installed in the same manner as regular tile, and can come in pre-spaced squares allowing for easy installation and grouting.
Sustainable Harvested Woods: Wood is often used for vanities and even flooring for bathroom spaces. However, many wood products require the use of environmentally unfriendly or even illegal logging practices to supply the material. Choose products with a Forest Stewardship Council approved sticker on them, or choose more environmentally friendly products like bamboo, cork or wheat straw. Storm-feld tree products are also an option for a greener bathroom. Avoid wood products made from particle board, which often contains formaldehyde.
Recycled Metals: Recycled metals can be used in your bathroom from cabinet pulls to fixtures. Look for products such as recycled metal counter tops, vessel sinks made from recycled metal, recycled aluminum tiles, salvaged brass faucets, and recycled bronze metal hardware.
Composite Terrazzo: Another way to use recycled materials for vanity countertops is through composite terrazzo products. These counter tops are made from a wide range of different materials, such as recycled glass, which is then combined with an epoxy binder or cement to create the hard and formed surface of the countertop. Because there are different types and colors of materials used in each piece, you get a unique finished look to the product you install.
Salvaged Products: Whenever possible, try to use recycled salvaged products in your bathroom remodel. Often times home owners will get rid of light fixtures, cabinets or sinks that are still in style, but that do not fit their own current personal style. Purchasing these products from salvage stores reduces the chances that the product will find its way into a landfill, as well as can provide a unique or vintage look to your bathroom space.
Windows: Install windows in your bathroom to bring in natural light. The more natural light you have flowing into your bathroom, the more open it will feel and the less electricity you will need to use, which reduces your energy waste and brings down your electric bills. Install Energy Star rated windows to help reduce the loss of heat or cold air during the winter or summer months.
Toilet: Toilets make up a significant portion of water usage in most households. Each flush can waste gallons of water, even though newer toilet designs can provide the same performance with less water. Look for toilets made to the HET Standard (or High Efficiency Toilet) which guarantees you’ll be using less water with each flush.
While these steps may seem small, every choice helps create a better world for you, your family and generations to come. By making these simple choices, you can make a positive impact on the environment, all without sacrificing style or function in your bathroom.
Fix em up Rent em Out
Tags: bathrooms, environmental concerns, repairing rental houses
Posted in bathrooms, environmental concerns, fixer upper houses, house repair, house repairs, rehab, repair, repairing properties, repairing rental houses, repairs | 3 Comments »
Saturday, July 9th, 2011
I’d like to share with you an email that received from an insightful real estate investor who, I think, uses a great way to increase his rental profits.
Hi Terry;
I have been the landlord of a triplex for just over 5 years. For most of that time, I simply maintained the property that I owned after making a couple of bigger renovations (windows and insulation). The biggest challenge I had was that my existing tenants paid way below market rent and rent control would not allow me to increase rents beyond 0.7%-2.2% each year. I felt stuck.
Recently, one of those tenants moved out. I managed to gut and redo the one bedroom unit and once it was finished I rented it out for almost double what I was getting before! This took the pressure off quite a bit but I realized I had to get my other “long term” renter out of her apartment. I ended up paying her to leave (2 months free rent) but it looks like it paid off. Her rent for a 2 bedroom was $474.77, but I have a lease now on the apartment for $799 a month. Surprisingly, I got this tenant because they saw pictures of the first unit I did and knew that I was finishing the second unit the same way. When they did the walk through the place was gutted and I didn’t even have the walls framed in yet!
I have looked at some other systems out there, but it seems to me that the only one that really works is finding a run down property with below market rents in a good area, fixing it up, and rerenting to higher classed tenants. If I knew a few years back what I know now, I would get the old tenants out ASAP even if I need to use my “cash for keys” program.
Right now I work full time so I rely on a dependable contractor that I feel I can trust. I hope to start renovating my own houses down the road, but I think I might need to get rid of my job to free up the time. Currently, I just do a walk through each day to see what work has been done and simply manage the renovation. Once the triplex is completely turned around next month I figure I will start looking for another project; I just need to convince my wife who still has fresh memories of my less stellar tenants.
Anyway, wishing you all the best!
Jim Thrower
Tags: increase profits or rental properties, maximizing profits with rentals
Posted in Fix em Up Rent em Out, fixer uppers, for rent, rental, rental house improvements, rental houses, rental properties, rental property, rentals, renting, repair, repairing properties, repairing rental houses, repairs, safe ways to invest in real estate, small investor, start small | 1 Comment »
Wednesday, July 6th, 2011

Govern a great nation as you would cook a small fish. Do not overdo it.
–Lao Tzu
A key to fixing up a house is to know when to stop fixing up. You want the house to look good, yet you know that people are not going to care for your house the same way that you would. For rental properties, I don’t purchase the most costly, or even new, materials. I do a lot of my shopping at stores that recycle construction materials, like Habitat for Humanity’s Re-stores. You can get bargain basement prices on things like doors, kitchen cabinets, hinges, toilets, paint.
Need I say more? It’s a fixer-upper person’s paradise.
If I know that I am going to sell the house I may install higher grade of materials, especially where it really counts, like the kitchens and bathrooms. As Lawrence Dworin says in Profits in Buying & Renovating Homes:
“It’s easy to get carried away on renovation projects – wasting time and money on repairs that buyers won’t pay extra for. I assume you like to do good work. We all do. And we’d like every finished project to be a showplace. But you can’t make money that way. Your buyers have a limit on what they’re willing to pay. That’s why you’ve got to limit repair costs. In this business, you concentrate on fixing code violations and creating a clean, safe, livable house.”
Tags: Fix em Up Rent em Out, fixer upper houses, Habitat for Humanity, Lao Tzu, Lawrence Dworin, Profits in Buying & Renovating Homes, Re-store, rental houses, Terrry Sprouse
Posted in fix up houses, fixer upper houses, fixer-upper business, for rent, house repair, house repairs, how to make money renting housing, rental house improvements, rental properties, repair, repairing properties, repairing rental houses, repairs | 3 Comments »