382: The REAL Cost of Bad Tenants and “Cheap” Contractors (Mistakes to Avoid!) w/Dan Stowell

Real Estate Rookie

BiggerPockets

How To, Education, Business, Investing, Entrepreneurship

4.8 • 1.7K Ratings

🗓️ 20 March 2024

⏱️ 48 minutes

🔗️ Recording | iTunes | RSS

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Summary

Want a successful, cash-flowing rental property? Make sure you don’t overlook the tenant screening process or hire the “cheap” contractor. Otherwise, you could be dealing with floods, evictions, project delays, and other issues. Fortunately, today’s guest has already dealt with these headaches so that YOU don’t have to! Welcome back to the Real Estate Rookie podcast! Investor Dan Stowell has endured not one but TWO horror stories during his real estate journey. As you’re going to learn today, the consequences of placing a bad tenant or hiring the wrong contractor can be severe. After a tenant caused $47,000 in water damage (and didn’t have renters insurance!) and a renovation on his primary residence turned into a 1,000-day rehab, Dan had every reason to give up on real estate investing. Instead, he tackled each challenge and used these expensive lessons to make him an even better investor! In this episode, Dan offers several tips that will prepare you for anything that could be thrown your way. You’ll learn how to screen a tenant, how to avoid bad contractors, and, most importantly, how to react when things go south. Stay tuned until the very end to find out what became of Dan’s problematic properties! In This Episode We Cover: How Dan survived $47K in water damage and a 1,000-day rehab (on two different projects!) The REAL cost of placing a bad tenant in your rental property How to improve your tenant screening process (and red flags to watch out for!) The BEST way to build out a scope of work for your next rehab project Why you shouldn’t hire the “cheap” contractor for your home renovation project Why documentation is key when dealing with tenant and contractor issues And So Much More! Links from the Show Find an Agent Find a Lender Ashley's BiggerPockets Profile Ashley's Instagram Tony's BiggerPockets Profile Tony's Instagram Real Estate Rookie Facebook Group Join BiggerPockets for FREE Submit Your Real Estate Rookie Question! Apply to Be a Guest on the “Real Estate Rookie” Podcast The REAL Side of Real Estate: When Rehabs and Rentals Go Wrong Leaks, Surprise Rehabs, and the Reality of Buying Your First Rental Property How to Protect Your Rental from Fires, Floods, Lawsuits, and Liability Connect with Dan Dan's BiggerPockets Profile Dan's Instagram Check the full show notes here: https://www.biggerpockets.com/blog/rookie-382 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email: [email protected] Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	This is real estate rookie episode 382.
0:04.8	Today's guest has not one but two different horror stories that we're going to cover.
0:09.8	They range from $50,000 worth of water damage and a remodel that took over a thousand days.
0:18.0	So you don't want to miss some of the lessons learned from this one.
0:21.0	I'm Ashley Kerr and I am your host of the real estate rookie horror show today
0:26.2	where every week three times per week we're bringing you the inspiration motivation and hair raising stories like today that you may need to learn to be
0:35.7	successful. I'm here with Daniel Stoll, an investor out of DC that has been investing
0:41.4	for four years.
0:42.8	We are going to cover a nightmare remodel
0:45.3	and things you need to know when using Flipper
0:48.7	Contractors on your 203K loan for your primary. We'll also cover what a 203K loan for your primary will also cover what a 203-K loan is.
0:55.0	Also why interest rates and deal analysis matter more than you think,
1:00.0	why renters insurance may not always be the safe bet when placing tenants.
1:05.0	Daniel, welcome to the show.
1:08.0	Thank you so much for being able to join us today to talk about these traumatic experiences that you're going to share with us.
1:15.5	Thanks actually I'm really looking forward to it and I know there's a lot that can be learned from
1:19.7	some traumatic real estate experience. So happy to share. Well Daniel I appreciate you coming
1:24.8	on to the show today. Let's get started with what is the first horror story that you
1:30.3	want to talk to us about today. Kind of set the tone, set the picture,
1:34.1	give us some description of where you are at your own life
1:38.0	and what's happening with this nightmare.
1:40.4	Sure, thank you.
	...

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