Archive for the ‘repairing rental houses’ Category

How to Learn the Skills to Repair Houses, part 1

Tuesday, September 25th, 2007

I recently received a question asking, “My background is not in the building trades. How do I learn the required skills to start a business in repairing houses and renting them out?”

In terms of how to learn to repair houses, I will answer that question in two parts. The first part today, and the second half of my answer will be in a subsequent blog article.

How to learn the appropriate skills:

1. Learn by doing. When Orson Wells directed his first movie, “Citizen Kane,” he said that he felt “like a kid with a giant train set.” One nice thing about buying a fix-up house is that it’s like having giant practice house, where you can practice learning to do repairs. Since the house is already pretty well beat up, its OK if you make a few mistakes along the way. You can always go back and correct them later.

My philosophy is that the best way to learn is by doing. Granted, you have to gradually work your way up, if your are beginning near the bottom. At first you will have to hire out for most of the moderate or difficult repairs. Make sure you watch, or assist in doing, the repair when you pay someone to do it. That way you can do it, or at least do part of it, the next time you encounter the same situation.

Just last week, I had to hire someone to repair my air conditioner in a house that I am living in and fixing up at the same time. I took time off my 9-5:00 job to be on the roof with the repairman and observe what he was doing. I saw all of the tests that he performed with the multi-tester to identify what was wrong. The problem turned out to be two capacitors that were blown. If a similar problem arises in the future, I will know how to check and replace the capacitors myself.

If you have to pay someone to make a repair for you, make sure that you get your money’s worth by watching the repairman, and learning how to do it yourself.

2. Take community college classes. Most community colleges offer courses in the building trades – plumbing, electrical wiring, air conditioning and furnace repair, and woodworking. For a fairly low price, you can learn how to make repairs like a pro by taking these classes. I have taken several classes and they have been well worth the investment of time and money. Besides leaning the skills in a supervised environment, you also learn how to use the correct tools in the proper manner. As part of the program, students are required to take an 8-hour OSHA course in how to be aware of work site dangers, to do work in a safe way, and to avoid accidents. I highly recommend that anyone who does repair work take the OSHA class.

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How to Make Money in Real Estate – Stick to the Basics

Friday, September 14th, 2007

One of the surest ways to make money in any endeavor is to follow in the footsteps of other successful people. Astronaut Neil Armstrong followed in the steps of John Glenn. Comic actor Ben Stiller followed in the steps of his show biz parents Stiller & Meara. The same is true in real estate. Plenty of people have gone before us.

Buying lower-priced fixer-upper houses, using your own time & effort to fix them up, and renting them out has been a tested and true path to generate wealth & security.

The four chief benefits of purchasing fix-up houses are:

1) if you buy a house in need of repair, a fixer upper house, you pay less for it than for a house in good shape. Since you paid less, you can take out a smaller loan and have lower monthly payments.

2) By doing repairs yourself (as much as you are able to), you save the money you would have paid others, and you learn new repair skills.

3) By renting it out, you get a house that is constantly increasing in value (by an average 5% per year) the same time the rents are going up.

4) When you get older, your loans will be paid off (or close to it) and the rental income you receive are like a pension for your retirement.

Granted, it is hard work to find a house, make repairs and learn how to deal with tenants. But you also learn valuable technical and people management skills that you can use in other parts of your life, and pass along to others. Mostly, there is a great sense of satisfaction in your accomplishments, a stronger sense of security, and more income, which means more freedom.

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Unclog a Shower Drain – another tip from Bryan Wittenmyer’s “Perpetual Income”

Tuesday, September 11th, 2007

Another excellent tip for us fixer upper rental house investors, from Bryan Wittenmyer in “Perpetual Income: How to Generate Cash Flow from Low-End House Investment,” is how to cheaply unclog a shower drain.

Wittenmyer suggests 1) pouring several quarts of boiling water down the drain to dissolve the old soap. Repeat this process after five minutes. Then, 2) following the hot water with a gallon of Clorox to dissolve the hair clogs. For the price of a $1-$2.00 bottle of Clorox, you have saved the cost of a plumber’s visit.

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Generate Cash Flow from Low-End Investments – Bryan Wittenmyer

Monday, September 10th, 2007

For those of us in the fixer upper rental house business I like to share interesting books that I happen to be reading.

I am presently reading Bryan Wittenmyer’s book Perpetual Income: How to Generate Cash Flow from Low-End House Investment. The author writes a book that truly gets down to the nuts of bolts of all aspects of finding, buying and renting low-income properties. A lot of real estate books are 90% fluff and 10% substance. This book is 100% substance.

The key, as Wittenmyer explains it, is to buy low-end (and not slum) housing because it is cheaper to buy, pays a pretty good monthly rent, and can be paid off quickly. This book has an enormous amount of really practical suggestions that apply to both low-end housing as well as middle-end properties.

I particularly enjoyed his section on what to repair, in recognition of the fact that the tenants will not take care of the property anyway. I like his practical advise on how to repair typical rental problems, but by spending the absolute least amount of money in the process. One suggestion was to mix leftover paints together in a five gallon paint bucket, and use the resulting grey paint to paint attics, or other areas where the color doesn’t matter. He also suggests not washing a wall before painting (unless heavy dirt exists) because paint can do a great job of covering the fingerprints and odors. Wittenmyer says, “why waste time cleaning when you can paint over it?”

I couldn’t agree more.

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Rental House Repair: An Easy Fix for a Sagging Fence

Sunday, September 9th, 2007

Since this blog is supposed about fixer upper and rental houses (when I don’t get off track), every once in a while I like to pass along fix-up short-cuts that I use.

This past spring I had a townhouse become vacant. There is a small yard in the back of the house with a 6-foot wooden picket-type fence. It was leaning quite a bit on two sides, primarily because some of the bigger 4×4 posts that are planted in the ground had broken off at ground level. I didn’t want to replace those broken posts, which would involve a lot of digging, and removing the fence sections that are connected to the 4x4s.

Instead I bought 4 or 5 six-foot stakes (there is probably a more common name for them that I don’t know) at Lowe’s for about $5.00 each. I pounded them in the ground with a stake pounder (again, probably not the official name) which cost about $20. Then, I straightened up the fence and attached it to the stakes with plumbers tape and screws.

Now the fence stands up straight after about an hour of work to do both sides of the fence. I acknowledge master handyman, Lee Anderson, for introducing me to this technique.

If anyone else has any other techniques, feel free to pass them along and I will post them on the blog.

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My List of House Repair Books – The Best of the Bunch

Thursday, August 23rd, 2007

**Book Update** My forthcoming book entitled “Fix ’em Up, Rent ’em Out: How to Start Your Own House Fix-up and Rental Business in Your Spare Time” is in the final stages of production and will be available at Amazon.com in September 2007.

In operating a house fix-up and rental business in my spare time, I have found the following books to be very useful. If I encounter a repair that I have never done before, the books on the link below are my guides.

In 400 B.C. Archimedes said, “Give me a lever long enough, and a fulcrum upon which to place it, and I shall move the world.” Your tools and books are your lever and fulcrum. Once you have them there will be no stopping you.

House Repair Books – The Best of the Bunch

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My List of Top Books on Fix Up House and Real Estate Investing

Tuesday, August 7th, 2007

Learning about real estate investing, just like life itself, is a never ending process. You should be gathering information about house repairs and investing everywhere you go. Never let an opportunity pass to learn. I encourage you to buy books and videos on house repair and real estate investing.

Your books are invaluable guides when you are starting a project you haven’t done before, or in the middle of making a repair, and need reliable input on how to do it. I like to scour the fix-up book and real estate book areas at used book stores for good buys. I buy a book as soon as I see it, if I know that it has valuable information. In the past, I have waited to purchase the book only to return later and find that the book I had wanted was gone. The price you pay will literally be a drop in the bucket compared to the money you will save in the long run.

Click to view my Top Books About Fix Up Houses and Real Estate Investing located at Amazon.com.
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