Today our Graduate Coaching call detailed out many insights that we can use as a new investor in Real Estate as it relates to rentals. Most of the comments came from Dave from New York State. He has been an investor and involved in rental properties over many years.
One area that he had to learn the hard way was when in years past he had an older property and a tenant’s child tested positive for lead poisoning. This is caused by children eating peeling paint that years ago included lead. Dave had to create a plan to address the issue at his rental property. He said that in his state at the time one could do one of 3 things.
- One could pay to have all the paint scraped and replaced
- One could put up sheet rock etc. of the affected walls to prevent children from eating paint in the future
- One could paint over the affected areas that have peeling paint and monitor any peeling paint in the future.
The biggest part in his state, is that if you create a plan and don’t follow through a Judge can actually slap a felony on a landlord.
Another area where kids can inhale lead is where older wooden window frames close and create paint dust from that friction.
Another insight is as one reads many Real Estate books or gains insight through coaching or elective classes and one tends to see repetition in the action items to do, then one can feel good that you are on track and are getting the insight needed.
Dave also mentioned that through the years that his % rates on his mortgage loans on his properties have always been 10% or higher because of other credit issues that he has had. He stated that even with higher rates he has made money on properties. This gives insight to new investors to look over all types of properties and focus on those that will cash flow properly. Don’t discount your possibility of getting a cash flowing property even if you have credit issues as well.
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