Unexpected expenses
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Unexpected expenses (by Q [NE]) Apr 16, 2017 9:03 AM
       Unexpected expenses (by Robert,OntarioCanada [ON]) Apr 16, 2017 9:16 AM
       Unexpected expenses (by Bill [NC]) Apr 16, 2017 9:16 AM
       Unexpected expenses (by Homer [TX]) Apr 16, 2017 9:57 AM
       Unexpected expenses (by Roy [AL]) Apr 16, 2017 11:28 AM
       Unexpected expenses (by Q [NE]) Apr 16, 2017 11:43 AM
       Unexpected expenses (by WMH [NC]) Apr 16, 2017 11:55 AM
       Unexpected expenses (by NE [PA]) Apr 16, 2017 12:36 PM
       Unexpected expenses (by NE [PA]) Apr 16, 2017 12:37 PM
       Unexpected expenses (by Q [NE]) Apr 16, 2017 12:51 PM
       Unexpected expenses (by LivetheDream [AZ]) Apr 16, 2017 1:44 PM
       Unexpected expenses (by Gail K [GA]) Apr 16, 2017 1:55 PM
       Unexpected expenses (by Mickie [OH]) Apr 16, 2017 2:30 PM
       Unexpected expenses (by Roy [AL]) Apr 16, 2017 5:11 PM
       Unexpected expenses (by Q [NE]) Apr 16, 2017 6:03 PM
       Unexpected expenses (by Vee [OH]) Apr 16, 2017 6:28 PM
       Unexpected expenses (by Robert,OntarioCanada [ON]) Apr 16, 2017 6:31 PM
       Unexpected expenses (by Robert J [CA]) Apr 16, 2017 6:35 PM
       Unexpected expenses (by Robert J [CA]) Apr 16, 2017 6:35 PM
       Unexpected expenses (by Q [NE]) Apr 16, 2017 6:43 PM
       Unexpected expenses (by AllyM [NJ]) Apr 16, 2017 8:19 PM
       Unexpected expenses (by #22 [MO]) Apr 16, 2017 10:17 PM
       Unexpected expenses (by Smokowna [MD]) Apr 16, 2017 10:45 PM
       Unexpected expenses (by BRAD 20,000 [IN]) Apr 17, 2017 1:45 AM
       Unexpected expenses (by Andrew, Canada [ON]) Apr 17, 2017 3:47 AM
       Unexpected expenses (by Steve [MA]) Apr 17, 2017 4:15 AM
       Unexpected expenses (by WMH [NC]) Apr 17, 2017 5:18 AM
       Unexpected expenses (by pattyk [MO]) Apr 17, 2017 6:10 AM
       Unexpected expenses (by Nicole [PA]) Apr 17, 2017 8:04 AM
       Unexpected expenses (by melinda [MD]) Apr 17, 2017 10:24 AM
       Unexpected expenses (by WMH [NC]) Apr 17, 2017 10:40 AM
       Unexpected expenses (by WMH [NC]) Apr 17, 2017 12:39 PM
       Unexpected expenses (by Blue [IL]) Apr 17, 2017 4:30 PM
       Unexpected expenses (by Ray-N-Pa [PA]) Apr 17, 2017 7:07 PM
       Unexpected expenses (by Robert Phaedra [NY]) Apr 19, 2017 1:30 PM

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Unexpected expenses (by Q [NE]) Posted on: Apr 16, 2017 9:03 AM
Message:

The rental property investment game is an interesting one. There are always the minor upkeep repairs here and there, but occasionally we need to open up the wallet and shell out the big bucks unexpectedly.

About 3 weeks ago the utility department called me and said I have a water leak between the main and the meter in my house. I went to the property and sure enough there is a big, VERY green area in the yard that is soaking wet with water. This is my responsibility to fix and the utility depth wants it done asap, so I called Joe Plumber and 2 weeks later I have a brand new 1" copper service line running to my rental at a $2400 out of my pocket expense.

OUCH!

Over the years I've replaced one other water line, 1 sewer line, roofs of course after hail damage, HVACS that have gone out, etc. These costs are all part of the game we play. The tenant is buying us a house while we assume all the risks.

What are some of your major "unexpected" expenses you've come across?

Q-Out --75.163.xx.xx




Unexpected expenses (by Robert,OntarioCanada [ON]) Posted on: Apr 16, 2017 9:16 AM
Message:

A roof, major plumbing, structural repairs, windows are done often so everything has life expectancy where one has to plan on replacing things. Have found the best option is buy better quality materials.For a roof would avoid using shingles as shingles is like renting a roof where after 7 years will be replacing. Metal roofs can easily last up to 30 years. Found was buy building materials at the Habitat for Humanity restores for lot less then the big box stores. --190.166.xx.xx




Unexpected expenses (by Bill [NC]) Posted on: Apr 16, 2017 9:16 AM
Message:

I always check my water meters in my MHP (one meter) and my private residence. When I know no water is being used the little white/red diamond on top of the meter should not be turning. --184.2.xxx.xxx




Unexpected expenses (by Homer [TX]) Posted on: Apr 16, 2017 9:57 AM
Message:

You are right, we never know what expense is coming up tomorrow, we ha a heat wave hit here in Tx about a month ago. I got a call about no Ac, I had a bad compressor, so with r 22 so high, I put in a full new r 410 system. As the installers were finishing that day I had another no cool call about a mile away, this one had an a coil leak I put the stop leak in last year, so the next day my installers put n another complete system converting over to r 410 on that one as well. Two days two new systems all unexpected. --75.141.xxx.xxx




Unexpected expenses (by Roy [AL]) Posted on: Apr 16, 2017 11:28 AM
Message:

Two weeks ago, I called every roofer in the Yellow Pages and got quotes for a new shingle roof (tear-off) which was approx. 25 squares. Quotes range from $6,000 to $8,000. I think I will just continue to patch the existing roof which has 2 layers of shingles on it.

What makes things worse is when you have 14 houses and 7 of them need new roofs. I still have not figured out how to deal with this. Whenever a tornado touches down, it always hits someone else's house just down the street.

--68.63.xxx.xxx




Unexpected expenses (by Q [NE]) Posted on: Apr 16, 2017 11:43 AM
Message:

I have new roofs (1-5 years old) on all of my properties right now, except my house. I dread the thought of hail season coming up...

Q-Out --75.163.xx.xx




Unexpected expenses (by WMH [NC]) Posted on: Apr 16, 2017 11:55 AM
Message:

We lost or had major damage to 8 roofs during Hurricane Matthew. Because it was a named storm deductibles were doubled. OOP about $23,000 so far. No insurance pay off yet, but it won't be much because we are replacing with 30-year wind-rated shingles, and insurance doesn't pay for those...

I'm pretty sure we replaced two or three HVACs last year too, or late 2015 anyway.

Always have to save for that rainy day! --173.22.xx.xx




Unexpected expenses (by NE [PA]) Posted on: Apr 16, 2017 12:36 PM
Message:

This is why I try to buy total garbage houses and remodel them. Start fresh. --50.32.xxx.xxx




Unexpected expenses (by NE [PA]) Posted on: Apr 16, 2017 12:37 PM
Message:

Q, wouldn't your insurance cover the hail damage? --50.32.xxx.xxx




Unexpected expenses (by Q [NE]) Posted on: Apr 16, 2017 12:51 PM
Message:

Insurance covers all but deductibles. Multiple deductibles added up on one hail storm can really put a dent in the funds... --75.163.xx.xx




Unexpected expenses (by LivetheDream [AZ]) Posted on: Apr 16, 2017 1:44 PM
Message:

PIGEONS! But I don't know what it's going to cost for a hitman yet. --47.216.xx.xxx




Unexpected expenses (by Gail K [GA]) Posted on: Apr 16, 2017 1:55 PM
Message:

Last year it was one new roof AND three new HVAC systems.

You plan for the biggies.

I try to look at it as just another tax deduction (something one needs to hunt down when they don't have mortgages on the rental properties).

Gail --73.20.xxx.xxx




Unexpected expenses (by Mickie [OH]) Posted on: Apr 16, 2017 2:30 PM
Message:

Last year it was a central actually unut, a retaining wall, and a roof - I went with metal when I found that because there was no tear off it was actually cheaper. So Roy if you're reading this you might want to check on metal roofs again if you haven't done so lately. --174.233.x.xxx




Unexpected expenses (by Roy [AL]) Posted on: Apr 16, 2017 5:11 PM
Message:

My dear Mickie: (Of course I am reading this,...I always read your responses,..LOL)

In the last 5-7 years, I have replaced 6 roofs on my rental houses,...all 6 roofs were metal too due to lesser replacement cost.

The roof I am referring to in this post has two layers of worn out shingles on it that really need to be removed so that weak spots in the underlying decking can be repaired. Plus, this is one of my few 'nice houses' that attracts tenants who can afford my highest rents ($775.00). My gut tells me to spring for a new dimensional shingle roof (higher appraisal value?) than a cheap looking metal roof.

--68.63.xxx.xxx




Unexpected expenses (by Q [NE]) Posted on: Apr 16, 2017 6:03 PM
Message:

I'm still not sold on the metal roofs yet. I just don't like the way they look compared to traditional asphalt.

Q-Out --75.163.xx.xx




Unexpected expenses (by Vee [OH]) Posted on: Apr 16, 2017 6:28 PM
Message:

Q, they look OK if they stay on the roof but looks lousy when the lawns have the shingles in them - worse is when the guy next door shows you the shingles and a 35bux tire repair bill. --76.188.xxx.xx




Unexpected expenses (by Robert,OntarioCanada [ON]) Posted on: Apr 16, 2017 6:31 PM
Message:

While the appearance of a metal roof is not the same as shingles the life expectancy is at least 3 to 4 times. Here it is possible to metal shingles where have not compared the price. So far in the apartment buildings and house would not ever use shingles. You Tube has videos on metal roofs where can check out even though may not consider. In Ontario metal roofs are becoming more common. In severe weather with high winds metal stands up where shingles are blown off. In the summer the house is considerably cooler as metal does absorb the heat. --186.7.x.xxx




Unexpected expenses (by Robert J [CA]) Posted on: Apr 16, 2017 6:35 PM
Message:

Shame on you! If you run a taxi service, you're not going to bring you cabs to Sears or Joe the Mechanic down the street!

It's the same in the rental business. Get several estimates and ask friends for recommendations.

Almost 40 years ago I needed a new 1" water main run from the meter to the house regulator. My first two estimates were $1,200 and $1,500.

I went to the local supply house and estimated the cost of type "L" copper pipe and fittings were around $120. So I got two helpers at $7.50 per hour to dig up the old water main pipe and installed the new one myself. Cost with helpers and material, $225. Had I got a skilled helper to sweet in the pipes for me, it would have cost an extra $200. Still 1/3 the normal price.

Estimates can run between 20% and 60% off, depending if you purchase the supplies and handymen/tradesmen to help out as opposed to a contracting firm. --47.156.xx.xxx




Unexpected expenses (by Robert J [CA]) Posted on: Apr 16, 2017 6:35 PM
Message:

Shame on you! If you run a taxi service, you're not going to bring you cabs to Sears or Joe the Mechanic down the street!

It's the same in the rental business. Get several estimates and ask friends for recommendations.

Almost 40 years ago I needed a new 1" water main run from the meter to the house regulator. My first two estimates were $1,200 and $1,500.

I went to the local supply house and estimated the cost of type "L" copper pipe and fittings were around $120. So I got two helpers at $7.50 per hour to dig up the old water main pipe and installed the new one myself. Cost with helpers and material, $225. Had I got a skilled helper to sweet in the pipes for me, it would have cost an extra $200. Still 1/3 the normal price.

Estimates can run between 20% and 60% off, depending if you purchase the supplies and handymen/tradesmen to help out as opposed to a contracting firm. --47.156.xx.xxx




Unexpected expenses (by Q [NE]) Posted on: Apr 16, 2017 6:43 PM
Message:

You have more ambition and time than I do. I got 2 estimates. One was $2800... the other $2400.... --75.163.xx.xx




Unexpected expenses (by AllyM [NJ]) Posted on: Apr 16, 2017 8:19 PM
Message:

Several water services. Ancient oil steam heaters. Roofs. Sidewalks that cracked bigtime. Cat urine destroyed apartment. Closing underground oil tanks professionally before they leaked. The oil pricing crisis and I changed everything to gas. --73.33.xxx.xxx




Unexpected expenses (by #22 [MO]) Posted on: Apr 16, 2017 10:17 PM
Message:

that bid is really high.. id shop it some more. if you dig the trench you can save a lot of $$ --70.195.xx.xx




Unexpected expenses (by Smokowna [MD]) Posted on: Apr 16, 2017 10:45 PM
Message:

The city --74.96.xxx.xxx




Unexpected expenses (by BRAD 20,000 [IN]) Posted on: Apr 17, 2017 1:45 AM
Message:

Q,

Good post!

My reaction: There is no such thing as an "unexpected expense". Casual LL have "UNPLANNED expenses".

Water heaters, AC, roofs WILL and DO go out. Gotta have a maint budget set aside at all times. No matter how optimistic we are that XX year old furnace will not last forever!

We've been at this long enought I am replacing roofs and furnaces we replaced earlier. Those beautiful new kitchens and baths we installed are now XX years old and tired.

Side note: MY 63 year old furnace is still runnign strong. It's the newer ones we are replacing.

At Convention a few years ago a speaker showed how each house must produce $XXX/mo cash flow after mortgage/ins/taxes to cover a long term "sinking fund" for major components. Most LLs are caught off guard, pay it from savings or job income.

A few years ago after a hailstorm we replaced 57 roofs, each with $1,000 deductible. A LL friend had all her homes under one blanket policy so she paid one $1,000 deductible for her XX roofs.

The good news: I contracted one roofer at a great discount and saved over $1,000 per roof so we fared OK.

Side note: over our 39 years of LLing, even with all those roofs and a few house fires over the years, we have paid waaay more to ins than we collected.

BRAD

--73.146.xxx.xxx




Unexpected expenses (by Andrew, Canada [ON]) Posted on: Apr 17, 2017 3:47 AM
Message:

Sounds like I have you all beat on waterline expenses.

I had to upgrade the water line to my apt building. A 1 and 1/2" line cost me $15,000!

And that was much cheaper than other quotes.

In toronto the city charges the property owner when the city replaces THIER water line to THIER water shutoff on the property line if the property has more than one apartment. I think this is especially unfair as the city originally approved an under sized 5/8" water line to feed 8 apts, latter requiring the upgrade. --70.29.xxx.xxx




Unexpected expenses (by Steve [MA]) Posted on: Apr 17, 2017 4:15 AM
Message:

Several years ago one of my local LL friends had an oil leak on his property. It cost him out of pocket over $143,00.00 to take care of it. --72.93.xxx.x




Unexpected expenses (by WMH [NC]) Posted on: Apr 17, 2017 5:18 AM
Message:

This just isn't in rentals, of course. I've always told folks who wanted to buy their own home that they should not accept the amount of credit the banks wants to give them. These days that is up to 45% of their income!

Because they WILL need to do maintenance. Maybe not right away but major systems are expensive and must be done immediately when a problem DOES occur - so you've got to have cash in the bank when disaster hits.

I've always said $500 per month must be saved towards these issues on top of payment, taxes and insurance. --173.22.xx.xx




Unexpected expenses (by pattyk [MO]) Posted on: Apr 17, 2017 6:10 AM
Message:

Code changed.

Also electric mask or panel boxes.

Recently mobile home underbelly and skirting... Put on a new metal roof also.

When i have bought a cheaply owner occupied home... Not up to code. No inspections for 30 years. Yet they live there as it is I can't get occupancy permit until all is up to code... The ever changing code! A moving target. --66.87.xx.x




Unexpected expenses (by Nicole [PA]) Posted on: Apr 17, 2017 8:04 AM
Message:

... during Hurricane Matthew. Because it was a named storm deductibles were doubled. ...

WMH - can you explain more on this? --72.95.xx.xx




Unexpected expenses (by melinda [MD]) Posted on: Apr 17, 2017 10:24 AM
Message:

Bats in the attic. They had been there for quite a while and there was a sizeable amount of bat poop that had to be shoveled. Heating and air conditioning is always an issue and usually NOT cheap. Roof repairs and the ever occurring appliance issues are always going on. This sort of thing just comes with the territory. Unfortunately. --24.233.xxx.xx




Unexpected expenses (by WMH [NC]) Posted on: Apr 17, 2017 10:40 AM
Message:

Nicole:

"NORTH CAROLINA HURRICANE DEDUCTIBLES

Hurricane deductibles are percentage or dollar deductibles that are higher than for other perils, or causes of loss.

They are calculated as a percentage of the dollar amount of coverage on the dwelling.

The trigger for hurricane deductibles, or the point at which they apply, varies by company. Triggers have some common characteristics: they generally go into effect only when the National Weather Service issues a hurricane watch or warning and remain in effect for a specified amount of time after the storm has passed. The intensity of hurricanes may also affect the trigger. Hurricanes are classified on a scale of 1 to 5, with 5 as the highest intensity. If the policy has mandatory deductibles, this means the insurer will not sell homeowners coverage without a hurricane deductible. When a deductible is optional, policyholders may choose a higher deductible for a premium credit.

Mitigation credits apply to qualifying homeowners in the state’s beach and coastal territories (18 coastal counties).The credits provide premium discounts for wind and hail coverage on homes with qualifying construction features that help mitigate damage and insurance losses.

The North Carolina Joint Underwriting Association (FAIR Plan) insures residential and commercial properties statewide where the homeowner has not been able to find property coverage elsewhere except in barrier islands adjacent to the Atlantic Ocean. See website for details.

The Coastal Property Insurance Pool (CPIP), formerly known as the Beach Plan, offers commercial, homeowner and dwelling windstorm coverage and homeowner coverage in the 18 eligible coastal counties of North Carolina.

Named storm deductibles in the FAIR and Beach Plans range between 1 and 5 percent.

Information Sources:

North Carolina Department of Insurance

North Carolina Joint Underwriting Association (FAIR Plan) and North Carolina Insurance Underwriting Association (Beach Plan) --173.22.xx.xx




Unexpected expenses (by WMH [NC]) Posted on: Apr 17, 2017 12:39 PM
Message:

So one property. on which we have a $2500 "regular" deductible, the storm upped it to $5177. --173.22.xx.xx




Unexpected expenses (by Blue [IL]) Posted on: Apr 17, 2017 4:30 PM
Message:

The WMh: that seems wrong, it should be the other way around! Your deductible should be less!

Last year mine were two back to back terrible terrible moveouts. --66.87.xx.xx




Unexpected expenses (by Ray-N-Pa [PA]) Posted on: Apr 17, 2017 7:07 PM
Message:

Its gets to a point that these unusual expenses are actually a norm. It doesn't make it any easier to plan for or schedule but at least the financial sting isn't so bad. I am with Ben and over hauling everything in the front which makes it a bit easier - and costly upfront. --24.239.xx.xxx




Unexpected expenses (by Robert Phaedra [NY]) Posted on: Apr 19, 2017 1:30 PM
Message:

The worst was when my handyman left the door unlocked and open to my enclosed fire escape. It was a poorly built addition and the roof leaked, but was only for use as an emergency exit. It was solid, and we had plans to replace it within the next year or two, but not that minute. The building inspector came through the neighborhood, saw the open door, and decided to help himself to a look. Saw that there were leaks and demanded that the whole structure be torn off and replaced, or the second floor would be considered uninhabitable. $20k later we had an open stair fire escape, but not at a particularly good time. --134.179.xxx.xxx



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