Nick Sidotti is probably the most entertaining geru that I have ever seen and heard. His materials primarily deal with landlord issues. Though his materials are highly entertaining, they are also very useful. He is a frequent sepeaker at the National Real Estate instors (NaREIA_ cruize and conferance, and was a speaker at the Ohiuo Real Estate Investors (OREIA) Conference. The OREIA conference is the larges real estate investment conference in the united stats and possibly in the world. The last conference which was oct 30 through Nov 2 had ove 1500 attendees.
I recently bought a duplex that I owner occupy (my first home). This was a great decision for me it has afforded me to live in a safer area (tenant keeps my costs down). I would llke this duplex to be the catalist for a life time of real estate investing.
Im wondering if buying more duplex’s or getting into rehabbing would be the right thing for me to pursue. Although I love my duplex and plan to keep it for a very long time Im not sure if I want to manage/landlord multiple duplex’s. Any advice, opinions, personal experiences or pros and cons of Rehabbing vs. duplex investing would really be helpful.
Posted by jasonrei on November 10, 2003 at 20:32:48:
I’ve been a rehabber for two yrs. Rehabs pay my bills and are the source of my savings. This year I picked up 2 duplexes and a fourplex. I can imagine picking up quite a few multifamilies, but not if I have to manage them myself. The numbers will need to be good enough that I can hire a manager and still make an excellent return.
You should try both and see which suits you best. Go out and try both and find a balance.
Posted by RichV(FL) on November 10, 2003 at 19:34:03:
Amy,
Congrats on your first RE purchase. I’m mostly a buy and hold guy. But I do buy and sell. (Mostly cosmetic rehabs).
I like both, but if I had to choose between the two it would be buying and holding. The reason why is only those who learn to buy and hold will ever accumulate any significant net worth.
Posted by Anne_ND on November 10, 2003 at 13:44:12:
Hi Amy,
I’ve done my share of grousing about contractors and tenants here, but I love what I do, which is rehab and long-term rentals. It appeals to the part of my brain that likes to solve puzzles. And I really like to take something run-down and yucky and make it into a place that enhances the neighborhood.
Whether you decide to do landlording or rehabbing or both, know that there are systems that you can put into place to make the process simpler and to minimize your risk. Don’t reinvent the wheel. Buy a course or two here and really master the materials.
If you don’t have good systems in place for landlording it will limit severely the number of tenants you will be able to manage.
Posted by phil fernandez on November 10, 2003 at 10:44:22:
I do both rehabbing and am a long term landlord. Landlording is a lot easier than rehabbing.
Rehabbing takes time and money. And alot more surprises spring up with rehabbing. There’;s more aggrevation with rehabbing. Will the contractors show up etc.
Everybody’s different, but I like the idea of purchasing an investment vehicle that throws off profit in the form of cashflow, equity buildup and tax benefits with minimal effort and aggrevation. Rehabbing is not a place to start with your real estate aspirations.
Posted by Anne_ND on November 11, 2003 at 09:46:01:
Here’s some advice I picked up years ago from Carleton S: even if you plan to buy multifamilies and have someone else manage it for you, do some landlording yourself so that you know what’s involved and you understand what your manager is dealing with. It’s the only way you’ll be able to evaluate whether your manager is doing right by you or not.
Buy Landlording by Lee Robinson. It is aninexpeinsive book. Other excellent resources are Jeffrey Taylor (Mr. Landlord of mrlandlord.com, Nick Sidotti and Louis Brown
Posted by Anne_ND on November 10, 2003 at 14:12:07:
Louis Brown’s course on Landlording has great materials. Mrlandlord.com is also a good resource. A good attorney who can advise you on local laws is also invaluable.
