When things go sour ...

[RedApple]

in your investing journey, how do you handle the stress ? Uncontrollable & unanticipated things like bad tenants, property damage due to flood, accidents, bad people, structural issues etc..to name a few ...

Do you get put off with how it affects your quality of life, stress level and health that you just want to give up and not be bothered with investing in property anymore ? Just to get back that normal stress free life like everyone else around. Something I so desperately crave right now.

I've only had 3 unfortunate incidents so far and already feeling so worn out and just wanting to give up despite the desire, sacrifices and a lot of hard work already made to hopefully one day achieve financial independance.

Not sure how i'd cope if i encounter any of the major issues mentioned above.

 

[china]

As a general principle, if money can sort out a problem, it is not a real problem.

 

[MTR]

Bring it on

The only stress I have is to ensure I have my ducks lined up when securing loans as I always have a number of projects on the go, other stuff is minor in the scheme of things.

Maybe it's a matter of just chilling out at the end of the day things just get sorted and you move on. I just don't let the small stuff stress me out.

Give you an example had to replace a $30,000 roof, insurance company would not come to the party, it ticked me off big time but I just paid the bill, put up a damn good fight and then moved on, 12 months later insurance company reverses its decision and we receive a refund $30,000.



MTR

 

[INVSTOR]

I was cruising along with my properties and tenants. A couple of years ago i changed how i did things and everything turned to crap. You couldn't have given me a rental property back then, I was over it, ready to sell up. I decided to give it another chance and went back to how I used to do things. There is one thing I did that I would never do again. Things are cruising again. I'm also looking into higher yield so that we can start to feel the benefits of us investing.

 

[RedApple]

money can sort out problems but how to remove the anticipation and stress involved due to fear and the unknown ?

the stress involved & its impact on one's health\lifestyle not to mention opportunity cost

As a general principle, if money can sort out a problem, it is not a real problem.

 

[RedApple]

gosh $30k, i'd be mega stressed out if that happens to one of my IPs but you are very fortunate to have gotten it back in the end. Did you have to go to court in the process ?

the $$$ cost of my few incidents have fortunately been quite low but the impact they have had on my stress level and life is just too much.

Funny how i can plan ahead and tolerate the high cost of interest rate rise without loosing sleep but if it involves unanticipate things like bad people doing the dodgy or leaking shower i get all mega stressed out cos of the unknown possible outcomes and potential damage.

Bring it on

The only stress I have is to ensure I have my ducks lined up when securing loans as I always have a number of projects on the go, other stuff is minor in the scheme of things.

Maybe it's a matter of just chilling out at the end of the day things just get sorted and you move on. I just don't let the small stuff stress me out.

Give you an example had to replace a $30,000 roof, insurance company would not come to the party, it ticked me off big time but I just paid the bill, put up a damn good fight and then moved on, 12 months later insurance company reverses its decision and we receive a refund $30,000.



MTR

 

[macca446]

in your investing journey, how do you handle the stress ? Uncontrollable & unanticipated things like bad tenants, property damage due to flood, accidents, bad people, structural issues etc..to name a few ...

Do you get put off with how it affects your quality of life, stress level and health that you just want to give up and not be bothered with investing in property anymore ? Just to get back that normal stress free life like everyone else around. Something I so desperately crave right now.

I've only had 3 unfortunate incidents so far and already feeling so worn out and just wanting to give up despite the desire, sacrifices and a lot of hard work already made to hopefully one day achieve financial independance.

Not sure how i'd cope if i encounter any of the major issues mentioned above.

In my early years of investing I always could not handle a call from my pm without stressing,I have had lots of problems since with issues but as I went further into my journey and research a lot all I know now it was stopping me from achieving more so I just make sure I have a buffer,all levels of insurance covered,backup plan and just take it as part of the process.
Macca446

 

[Jen_PFR]

Hahaha I know what you mean. A couple of months ago, it was like everything went pear shaped at once - one lot of non paying tenants, another set being unnecessarily difficult and pestering me over things which they refused to help control (eg a text msg at 11pm at night, informing me she'd seen a cockroach - when she wouldn't put food away properly, or use any kind of spray), two fuse boxes needed replacing, and a total of four hot water systems blowing up (not literally, fortunately!). At the same time we were going through settlement for another IP, which was fine in itself, but needed a fair bit of work done to it to get it rent-ready.

With all of this I also had a temporary promotion to a very senior role in my dept, which chewed up a lot of time we would usually be using after work to paint, clean and generally prep the new property.

We felt pretty shell shocked for a while there. We outsourced what we could, kept our heads down, and just kept telling ourselves it would get better..... it had to!! At least there are a few hot water systems which won't need replacing for a while now...

It's not fun when things go wrong, you just need to try and be kind to yourself and take it as calmly as possible.

 

[RedApple]

hi INVSTOR, what was the thing that worked and didn't work for you if you don't mind sharing ?

had tenant issue with my first ip too ... was so stressed and put off i didn't buy anything 4 years after that when i could have and should have !!!!! gosh all those the opportunity and potential equity loss !!!!

yea couldn't agree more on the higher yield bit. it is a great feeling to acquire a value growing asset that doesn't drain your cashflow too much.

I was cruising along with my properties and tenants. A couple of years ago i changed how i did things and everything turned to crap. You couldn't have given me a rental property back then, I was over it, ready to sell up. I decided to give it another chance and went back to how I used to do things. There is one thing I did that I would never do again. Things are cruising again. I'm also looking into higher yield so that we can start to feel the benefits of us investing.

 

[RedApple]

yes, very true. I find the lost opportunity and impact on health is the most expensive cost of all too.

In my early years of investing I always could not handle a call from my pm without stressing,I have had lots of problems since with issues but as I went further into my journey and research a lot all I know now it was stopping me from achieving more so I just make sure I have a buffer,all levels of insurance covered,backup plan and just take it as part of the process.
Macca446

 

[RedApple]

Jen, you are very lucky u're not alone. Having someone with you on the journey really helps emotionally when things go haywire and makes the process a lot more fun.

Hahaha I know what you mean. A couple of months ago, it was like everything went pear shaped at once - one lot of non paying tenants, another set being unnecessarily difficult and pestering me over things which they refused to help control (eg a text msg at 11pm at night, informing me she'd seen a cockroach - when she wouldn't put food away properly, or use any kind of spray), two fuse boxes needed replacing, and a total of four hot water systems blowing up (not literally, fortunately!). At the same time we were going through settlement for another IP, which was fine in itself, but needed a fair bit of work done to it to get it rent-ready.

With all of this I also had a temporary promotion to a very senior role in my dept, which chewed up a lot of time we would usually be using after work to paint, clean and generally prep the new property.

We felt pretty shell shocked for a while there. We outsourced what we could, kept our heads down, and just kept telling ourselves it would get better..... it had to!! At least there are a few hot water systems which won't need replacing for a while now...

It's not fun when things go wrong, you just need to try and be kind to yourself and take it as calmly as possible.

 

[macca446]

I think a lot of us on this forum could tell you some stories of dramas and stress along the way,so may we be here for some good reading but seriously try not to let it take hold of you to much just keep trying to learn,read and stay motivated quite a few people have those days in their life so unless financially you have to just jeep moving forward thats all I can say

 

[chindonly]

I was cruising along with my properties and tenants. A couple of years ago i changed how i did things and everything turned to crap. You couldn't have given me a rental property back then, I was over it, ready to sell up. I decided to give it another chance and went back to how I used to do things. There is one thing I did that I would never do again. Things are cruising again. I'm also looking into higher yield so that we can start to feel the benefits of us investing.

Hey INVSTR,

What's the one thing you would never do again???!!!

 

[MTR]

gosh $30k, i'd be mega stressed out if that happens to one of my IPs but you are very fortunate to have gotten it back in the end. Did you have to go to court in the process ?

the $$$ cost of my few incidents have fortunately been quite low but the impact they have had on my stress level and life is just too much.

Funny how i can plan ahead and tolerate the high cost of interest rate rise without loosing sleep but if it involves unanticipate things like bad people doing the dodgy or leaking shower i get all mega stressed out cos of the unknown possible outcomes and potential damage.

Perhaps I have been in the game for a while and its just part business, the good, bad and ugly.

Moving forward I have been offloading old properties because of the maintenance issues which effects my cash flow, only keep new properties now, unless development site. Perhaps something you may want to consider if stressing you.

As far as tenants go, its unknown, a good property manager will make the difference for sure.

New roof goes, long story, it was storm damage and the insurer's builder decided to drill holes in the asbestos roof to make it safe, which caused major damage, the roof was actually in good condition.

So it was a paper war, their word against our word. Spent 12 months fighting it, did not cost me anything, I got the Ombudsman involved.

The reason the decision was overturned was because I recalled that the builder contracted some other company for the "make safe" to the roof, which is placing a tarp over the roof, this was enough to provide an element of doubt.

MTR

 

[RedApple]

thanks macca, feels so much better after reading this makes me realise that these issues are quite normal and i'm not the only one that's been unfortunate.

I think a lot of us on this forum could tell you some stories of dramas and stress along the way,so may we be here for some good reading but seriously try not to let it take hold of you to much just keep trying to learn,read and stay motivated quite a few people have those days in their life so unless financially you have to just jeep moving forward thats all I can say

 

[macca446]

Hi MTR,
Yes I definitely understand where you come from unfortunately for me it was all about affordability and what I could buy for my dollars but what I am doing now is buying something that has already been renovated or really well kept as over the years all of mine have been sucking up my cash to,just this week one of my PM informs me that bathroom/toilet window needs to be replaced completely as timber frame rotted and glass about to fall out,wiring under house needs to be tidied up as all dragging on the ground,faulty taps ,mould in lounge room wall and carpet ,all I just keep saying to myself is surely it has to get better.
Macca446

 

[RedApple]

hi MTR, speaking of roof, was wondering what your thought would be on this:

I'm about to put in an offer for a fibro house(built in the 60's) in QLD that was fully renovated in 2005/2006. Looks like it dosn't need anywork done and is in great condition. This is the oldest prop i've ever considered buying (all my purchased IPs are under 20y.o fully renovated.) I've asked the agents all questions about water leak in bathroom, roof & anywhere else in the house etc and of course will do Building\Pest Insp report as due diligent. However the owner did say there was a leak on the roof which happened 3 years ago and he got it professionally fixed and it has not recurred since.

Seeing i don't even own a screw driver or know much about handy stuff around the house, is it a bad sign that an old house has had a roof leak in the past, although issue is already fixed as they claimed? Once a roof has had a leak, is it a red flag sign to stay away from?

Thanks

Perhaps I have been in the game for a while and its just part business, the good, bad and ugly.

Moving forward I have been offloading old properties because of the maintenance issues which effects my cash flow, only keep new properties now, unless development site. Perhaps something you may want to consider if stressing you.

As far as tenants go, its unknown, a good property manager will make the difference for sure.

New roof goes, long story, it was storm damage and the insurer's builder decided to drill holes in the asbestos roof to make it safe, which caused major damage, the roof was actually in good condition.

So it was a paper war, their word against our word. Spent 12 months fighting it, did not cost me anything, I got the Ombudsman involved.

The reason the decision was overturned was because I recalled that the builder contracted some other company for the "make safe" to the roof, which is placing a tarp over the roof, this was enough to provide an element of doubt.

MTR

 

[INVSTOR]

hi INVSTOR, what was the thing that worked and didn't work for you if you don't mind sharing ?

had tenant issue with my first ip too ... was so stressed and put off i didn't buy anything 4 years after that when i could have and should have !!!!! gosh all those the opportunity and potential equity loss !!!!

yea couldn't agree more on the higher yield bit. it is a great feeling to acquire a value growing asset that doesn't drain your cashflow too much.

Managing my Perth properties myself works really well for me. It's better for tenant selection, control expenses, saves management fees $90/wk, heaps easier than playing Chinese whispers from tenant to PM to landlord so less time consuming. I have property managers for my Brisbane properties and that runs fairly smoothly. I had two different Perth PM's while I lived interstate. It was a nightmare!!

What I wouldn't do again. I had a tenant for 3 years. He wanted a flat mate. He took someone in on trial for 3 months, so he had the choice to get rid of him. I did reference checks but not as thoroughly as he wasn't on the lease. After 3 months they were both really happy. I signed them both up for a year. The new guy ended up being a manipulative, phscopath. Good tenant did a runner and left me with him and all his criminal mates. I wouldn't rent to seperate parties again, I prefer couples and families. (all of this happened after original tenants divorce after 2 years)

Listen to my inner voice! If you have doubts, don't do it.

Check references thoroughly. Beware of con artists.

Timing - Time property to buy and sell so you're not holding over years of no growth, big expenses. Some properties are long term holds. (never sell) Some aren't.

Look after good tenants.

 

[alexlee]

money can sort out problems but how to remove the anticipation and stress involved due to fear and the unknown ?

the stress involved & its impact on one's health\lifestyle not to mention opportunity cost

If you can't handle it, sell and put your money in a term deposit. Stress and fear of the unknown is something you manage and prepare for. Removing it is the mainstay of religion and spruikers.

Personally, I'm more worried about the impact of my health and lifestyle of having no choice but to work until I die, or going through old age poor.

 

[D.T.]

As a general principle, if money can sort out a problem, it is not a real problem.

Is cancer a problem? Can money sort it out?