It has been awhile since I had an official update on my 4-plex. The past few months have been hectic for me with the showings, fixing, cleaning, painting, and etc 1000+ things that comes with having a rental property. Turnover sucks so bad. That’s why a lot of landlords would keep the rent low so they don’t have to deal with turnover.
However, as much as I don’t like turnover, I manage to find some great reason to have tenant turnovers:
1. $10,000 raise of course. When I’d be lucky to have a $2000 raise per year. Since, I am my own boss, I can just give myself a raise just like that, when I do great work with my property! With the raise rent, I am able to cover the mortgage with 1.5 unit rented instead of 2.5 units. Improve cash flow, so I am not under as much pressure to get the apartment rented to make mortgage.
2. Improve property value. If I continue to let the property goes as the previous owner, the property will remain as a fixer upper – attract the wrong kind of tenants. But after I fix it up, raise the rent, people who don’t want to lose a huge deposit, and they will be more gentle with the place. Now, the 4-plex is a lot nicer. It’s quite pleasant to be in it.
3. Opportunity to find the right tenant. If I don’t move these people that haven’t been taking care of the place, they’d feel like they live in a slump, so what worst can’t they do? So the cycle keep on going.
4. Exercise more often. Well, before tenant turnover, I’d go to work, then home. Then a 3 times a week, I’d play something – tennis, soccer, badminton, etc. Now, if I show the property 4 times a week, I exercise 4 times. Show up to play tennis at the super nice courts a few blocks away, then show the property, or vise versa.
5. Opportunity to networking. One of my renter was actually setting me up for soccer discount for my whole entire team. We got to go down the field and play a couple games. That was an awesome experience. I now have a wide number of handyman I could call for my personal home or the 4-plex.
**At the end of the day, there will always be something good out of the negatives. You’ll just have to look for the “blessings in disguise.”
Proofs: Take a look at some of the before pictures after a group of tenants who doesn’t take care of the place moved out: