| dy"> | | | | The plan was fine -- there was nothing wrong |
| Mistake #1: Tearing down and rebuilding | | | | with the plan. It was the implementation of that |
| Tearing down and rebuilding single-family houses | | | | plan along with the costs associated with it that |
| (one for one) in my market is cost prohibitive. | | | | caused me all the problems. I spent way too |
| Purchasing a house with the plan of tearing it | | | | much money. I had the wrong contractor on the |
| down and building another in its place does work in | | | | job. The job took way too long. I did not pay |
| some markets, but not mine yet. There are still | | | | close enough attention to the project in the |
| enough building lots available and the cost of | | | | beginning. I could go on, but my stomach is |
| getting rid of the old house is very expensive. | | | | starting to hurt. The end result was that I have a |
| The dump fees have climbed enormously over | | | | house that is over built for the neighborhood and I |
| the last few years. In addition to that, you must | | | | can't sell for what I have into it. It is currently |
| go through all of the asbestos and lead | | | | rented out and has a negative cash flow. |
| abatement processes before you can tear the | | | | Someday I will be able to get rid of the house, |
| house down. This adds a lot of costs to the | | | | but I will never get rid of the bad taste in my |
| building site you end up with. If the zoning changes | | | | mouth. |
| so that you can rebuild more units, it may be a | | | | Mistake #3: Dolling up and "ginger breading" your |
| different situation entirely. I purchased an old | | | | rental houses like you would your own house |
| house a couple of years ago in an area that was | | | | Please do not misunderstand me. I hold my |
| recently rezoned to encourage multifamily units. I | | | | residents in the highest regard and in no way |
| tore down the house and built a 7-unit townhouse | | | | think that I am better than them. I know that |
| building on the site. In this case, it was worth the | | | | without them I cannot do what I do. I also do the |
| exercise of tearing down the house to go from | | | | best that I can to provide them with clean, safe |
| one house to seven units. | | | | and efficient housing. On the other hand, I also |
| Mistake #2: Adding another story | | | | know that my lifestyle differs from theirs in some |
| I will not add another story on to an existing | | | | major ways and a lot of these differences are |
| house in my market again. Mere words cannot | | | | the differences between owning and renting. |
| express how painfully true this statement is. I | | | | Although I strive to have my residents take pride |
| made a huge mistake awhile back that I am still | | | | of ownership in their rental home, it is still not the |
| paying for. I purchased a house that needed | | | | same as being the one that pays the mortgage. |
| rehabilitation and at the time it seemed like a good | | | | The difference between being an owner and a |
| idea to add another story to it. This would give | | | | renter is one that I have learned to respect. It |
| the house an additional two bedrooms, one of | | | | helps remind me of the all-important fact that this |
| them being a nice master bedroom with a bath. | | | | is a business and must be run that way. |