Category: Income Properties
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Four steps to a tough negotiating stance
Reader Question: A real estate agent approached us with a commercial client who would like to buy our property. The agent wants to list our property to get the process started. Why would we need to list the property if she already has the buyer? And what should we pay for commissions on this type…
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Six tips for out-of-state landlords with a trashed home
Reader Question: We have a trashed home. My husband and I live on the east coast. Our son attended school in the Midwest, and we bought a home there. We completely renovated it like a new home. After graduation, we hired a management company to rent and oversee the home. Our manager informed us the tenant…
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Fair Housing Act and the non-payment of rent
Reader Question: I have a minority tenant living in my duplex who is behind over two months rent. I had given them extra time when they first missed the payment because I fear being sued or reported and because they take good care of the apartment. They have twice since broken a promise to pay.…
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Five tips to evaluate income property
Reader Question: We want to make our first real estate investment purchase. We have decided on investing in older 2-4 family apartments. It appears there are different ways to decide what a property is worth. How do you evaluate an old three family? Julie and Rob P. Monty’s Answer: There are many theories regarding…
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Ten tips to avoid tenant complaints
Reader Question: We own 75 units in 20 buildings. My husband has a good day job, and I manage the apartments; it is not easy work. We have had tenant complains, but we have shrugged it off as sour grapes or “It goes with the turf.” Yesterday we got a complaint letter that several tenants…
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Seven costly mistakes of new real estate investors
Reader Question: We just backed out of our first real estate investment deal. We took some bad advice, but luckily, discovered an undisclosed issue through a whistleblower. It made us ask ourselves, what else could we have missed? What are the biggest mistakes of new investors? Justin and Ann P. Monty’s Answer: Every year new…
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Profit with adaptive reuse
Reader Question: Our partnership has been in commercial real estate for 15 years. We own a number of income properties. We have been toying with the idea of converting an old, vacant building. It seems solid but in rough shape. One of the issues holding us back is we are not certain to what use…
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Successful rezoning property requires a plan
Reader Question: I own a parcel of vacant residential land. I believe it would be more valuable rezoned to multifamily or commercial. What should I do, and not do, in the rezoning process? John K. Monty’s Answer: The first step is to confirm that rezoning creates additional value. While rezoning can bring additional value,…
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Before you become a real estate investor
Reader Question: I am 24 years old, single and college educated with a good job. I am fascinated with becoming a real estate investor, and I would appreciate any insights you would offer. The question is; Where do I start? Marc G. Monty’s Answer: Our country’s foundation is real estate. Real estate is the largest…
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8 good tips to renew older apartments
Reader Question: Monty, we inherited two 16-unit apartment buildings from my father. They have been in the family for over 30 years. I never took an interest in real estate until now, but as a kid I did mow the lawns. They are free and clear and we intend to keep them. Dad was a…
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The benefits of owning small apartment buildings
Reader Question: Monty, my wife and I are 32 years old and have just finished restoring a big Victorian 2 family home in NJ. We took on a bit of debt, but I just paid all of the credit cards down and completely paid off a pretty big loan. We currently owe around 280k on…
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Utility bill increase squeezes tenants
Reader Question: I am a long time resident at an apartment complex that used to have utilities included with the rent. In 2010, they switched to charging shared utilities. The average monthly increase was about $20 -$30. Since April of 2013, the complex is now using a 3rd party billing company. The utilities added to…
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How to raise rents
Reader Question: Hello, Monty! We are “babe in the woods” investors. We have a duplex in Portland, Oregon. We are not sure whether to raise rents at this time. Expenses have gone up about 5% since January 2013, in line with inflation in the state. Everyone’s heard the bad job data, and we’re afraid…