Market 02 Update 08

A long journey

Well its been a long journey on this rental. We have just four weeks left to get the interior finished and its going to be close. There is still quite a bit of work to do, but it is coming together rapidly. Depsite some setbacks with a nasty chest infection and my helper got stomach flu and now has a swolen knee and has missed quite a bit of work, I think we're still on schedule to get done by the end of this month.

Amazing feelings!

The drywall in the living room is about done. I wish I had done this room first now, when you walk into the house suddenly the whole place has a new feeling about it, simply because the living area is the first thing you see each day. I've been staring at nasty lathe, studs and old plaster now for three months and it is pretty depressing. But now I walk in and see fresh new drywall and the whole feeling of the house has changed! Its amazing how something like that can change your attitude, but it really does. So from now on, if the living area of a house looks like crap, I'm going to do it first, so my morale stays high and I'm not looking at drab old crap for so long. Which brings me to my next subject.

My new old rental strategy...

Well after doing so much work to a house and realizing we'll have five months into this house before its all said and done, I'm think that its going to be a lot better in the long run to pay a little more for homes that are not so destitute; ones that can be completed in eight weeks or less. I realized that at this rate we're only going to add two rentals a year. When you have to split your profits with a partner, it seems crazy to do all this work and only show a few hundred dollars a year in cash flow increase. So I think its going to be better to pay a little more for a house that doesn't need a ton of work, and then get it done faster, that way I'm adding 6 new income streams per year instead of only two. Over just a few years time the growth is exponential and the numbers on paper are impressive.