Comments on: What the real estate investment books don’t tell you about the rental market

By: TheLandlord

TheLandlord — Sat, 28 Apr 2007 22:57:21 +0000

Thanks for the plug Chris.

We actually do keep cash reserves on hand for this express purpose. In fact, it’s more than 3 months worth of mortgage per unit come to think of it.

We haven’t had to use the reserves yet (thankfully) but it’s there if we need it.

By: Chris Lengquist

Chris Lengquist — Sat, 28 Apr 2007 21:10:07 +0000

I advise all my clients to keep a minimum of 3 months mortgage payments on hand and liquid. And that is per property. You just never know. By the way, I like your site enough that I gave it a plug on mine.

By: The Landlord

The Landlord — Fri, 27 Apr 2007 04:05:54 +0000

Chris,

I completely feel that right now. This rental market is the worst that it’s ever been here. We will continue to tough it out but it’s SO not fun! I guess conservatism is the key when it comes to investment.

When we invested, I thought we were being conservative but if we’re hurting this bad now it obviously was not enough.

Thanks for your comment.

By: Chris Lengquist

Chris Lengquist — Fri, 27 Apr 2007 03:54:04 +0000

The KC rental market is stronger now than it has been in quite a while. Two years ago I had to offer incentives (free month, lower rate, sometimes both). Now I’m renting inside 2-3 weeks at asking. Of course, some areas are still better than others here in KC. But I feel for you. Carrying 2 or 3 vacancies can really hurt. I survived but didn’t like it.

By: TheLandlord

TheLandlord — Sat, 21 Apr 2007 13:35:20 +0000

Chris, thanks for your comment. We were actually in contract to buy a multi-family building but a number of things just didn’t smell right to me. We never ended up buying it and the very next hurricane season, the building lost it’s roof (for the second time since it was built) and as a result had no tenants for 6-8 months.

I can’t imagine what the insurance is for that place now.

By: Christohper Smith

Christohper Smith — Fri, 20 Apr 2007 18:10:36 +0000

With regards to insurance: things are getting tougher in Texas, especially for multi-family properties. Hurricanes, Katrina fallout, multi-million dollar mold settlements, and other issues are contributing to this. I have a specific issue I’m in the middle of right now that I’ll write about soon.