45) Self Storage, Stupid Questions & Supply

House Money Weekly

In this week’s House Money Weekly segment, Lauren and Alan get together with their special guest Nick Hooyman. They discuss blog 143, 3 Wrong Questions Real Estate Investors Ask at an Open House. Alan recently did an open house for duplex in Atlanta and wrote this blog based on that experience. The first wrong question to ask is: can I add a driveway? The investor said he would want a driveway if they lived there. Take your emotions out of it and understand what you're buying. Nick also did something very similar to this on his first flip. He built a shed and a fire pit and when it was time to sell it, six months later, they demolished the shed and then planted it over the fire pit. Lauren tells investors especially for short term rentals when you're thinking about adding an amenity or changing something, wait until you go live and see if anybody mentions it. The second wrong question to ask is: what's the cost to convert the range from electric to gas? What Alan learned from his lower income tenants is that they don't want gas because it typically requires two security deposits, one for the electrical bill and one for the gas bill. As an investor, it's not what you want but it's understanding what your tenant wants! The last wrong question to ask is: can I add a fence? A lot of new investors think a fence provides protection and tenants want a fence for their pets. Alan learned over 25 years of real estate investing that typically a fence becomes the gateway of clutter, then the whole fence line is filled with clutter that the landlord has to take care of. One reason Lauren doesn’t like fences is because they are expensive and high maintenance, but a fence is a good idea and you can look at it as an investment if you’re able to charge more rent because of it.

 

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