House

Brushslingers

Ive been thinking of buying a house to "rent" certain employees who can't seem to hold on to money and not party, a room each with a communal kitchen/bathroom etc... ive seen it done in a couple other states but never had any real experience myself. Anyone have any? I'm tired of paying apartment rental rates for ... some people.

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Benn

GoodPainter

Hey Slinger,

I can't say that I have ever done this before, but In the near future I will be buying real estate. Do you own any yet? Ihave read alot of landlord books, talked to apartment owners, and have gained lots of knowledge. Best thing to do is buy a house if you think you're cut out to be a landlord. Remember that it is starting an actual business in its self and its not easy. It isnt even profitable for many years. You have to watch your expenses more so than a Painting Biz. And make sure that you don't give any leaway to your employees to live there...make sure to have them sign a lease and have many rules to save yourself..
If you are financially set to pay mortgage on a place without any incoming rent then read some books and start looking at the market. See what is for sale and what your options are. Try to find some plans to back you up if nessesary, if anything unimaginal should happen, explore!

Goodluck with your adventure,
and experience.

Robert

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Robert Good
It's Your Life-Make Fun Of It!
http://www.robertgoodpainting.com

Teetorbilt

My bro-in-law has a few such houses scattered around the state. I know that he established a subsidiary co. that actually owns them. I'm sure that there are tax advantages over and above the long term investment. All of this will vary from state to state and you should find a good accountant to walk you through it.

There must be something to it or he wouldn't be doing it.

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You can't solve you're problems with the same level of thinking that created the problems.

Albert Einstein

Peladu

So basically, if I am reading this right, you are still going to end up paying for your employees rental fees. You just want to lower the amount you have to pay buy owning the property? I knew Florida had some screwed up Labor situations, but never would have thought it was at this level.

KellyPainting

Sounds pretty cool. I think it would be a great idea.. if the numbers work..
I have a few friends who buy and rent out rooms... I could hook you up with there number if you'd like. Mass though

Teetorbilt

I don't think that labor law has anything to do with it.

I believe that, for him, it's an investment first, an employee perk for key personnel and a cool place to take a few days off.

His last one is waterfront on Duck Key but he's also building the hospital on Tavernier so it's justifiable, right? So what if he tows the boat to work?

I'm sure that there's more to it, taxes, business deductions, etc. or he wouldn't have done it that way. He can afford to buy them outright on his own.

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You can't solve you're problems with the same level of thinking that created the problems.

Albert Einstein

Downeast

They had paddy houses here when the Irish kids were coming over. they would put four bunks to a room and load the place up. They had to pay rent but was still cheaper than some of the alternatives.

Brushslingers

Exactly, I have a different view of employees... there are several different types of painters -

Prep boy - learning
Painter - needs supervision
Good painter - can cut a straight line, can supervise with direction
Finisher - needs nothing but pointing at a job and handing them paint

Finshers are normally artist types, flaky, come in late at times, normally in and out of trouble, almost always have no licence or money and normally additted to something. However, finishers are rare, and get 12 hours of work done in 6 hours. Part of the reason I opened this company with this name, you don't hire a ranchhand to shoot someone, you hire a gunslinger... you don't hire a painter to paint something.

I just happened to find 5 in the same city, we are HIGH end painters, for example the last bid I just put it was interior only, 15k +. These guys are key players, so I forgive a few transgrestions but, I'm tired of paying multiple electric bills and rents. For instance Fuzzy, RIP 06, died with a sprayer in his hand but, was one of the best, cleanest and fastest painters i've met in 30 years. Those kind of guys are worth the extra effort to me. Hitmen. Without em, we are nothing but the other paint crew down the street, and then *I* have to work... Oh that ain't gonna happen.

Thanks for the info though, i'll talk to my accountant and make sure it can be written off.. heh, I believe in this town I can purchase a house in the right area for around 60-80k... if you have friends who have done this before to give me some insight, please have them email benn@brushslingers.com! Thanks all!

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Benn

Peladu

Teetor, you may have taken me wrong. I wasn't referring to your Bro-in-law, but was referring to Brushslingers. The labor law doesn't have anything to do with it but Florida's labor situation does. Labor situation meaning that a lot of Florida's labor have a different work ethic; No-shows when they feel that it is, too hot, too cold, too hungover, too wasted, and (the best one being) too nice of a day to work. I think you know what I mean.

The way I read the initial post is that he was interested in purchasing this property to house his employees "who can't seem to hold on to money and not party". Which leads me to believe that he is already expecting to not get (and I quote) "rent" from these guys.

It sounds to me like he may be willing to take the money he is using to support his employees now and just purchase a home to when he can get a ROI. But then again, I tend to read into things more than need be.

Brushslingers

You are correct in that Peladu, though most labor markets have the same things down here... it's the worst i've seen. But then again we have three college's right here, so it's hard for some to escape the "partypartyparty" thing.

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Benn

Jon F

Bslinger,

....Confused, you are wanting to buy a home (actual house) and rent it to your workers? And currently, you are paying their rent, bills, etc? Are these guys legals (to the best of your knowledge)?

I have friends that do this with their "legal" employees, guys they've had for years. Works fine. Only thing I'd suggest looking into is exactly what it takes to evict someone. I think they get a total of around 90 days once you make the decision to do it. So, if your crew gives you the finger, you could potentially have to let them stay there for a couple/few months (doing who knows what to the house) until they are forced out.

Teetorbilt

Fife is right. You may want to look into buying a duplex or small apt bldg. You can apply for a hotel/motel license. Holding this license, you can evict within 24 hrs., no recourse.

__________________
You can't solve you're problems with the same level of thinking that created the problems.

Albert Einstein

Brushslingers

I have a cure for that, I just take the front door off the hinges. Thanks for the feedback though, a few things to think about.

[edit] Oh and Jon, yes they are legals.

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Benn

ejyonkman

I know this was posted a while ago... but... I had a friend in Dallas... Same situation. He bought the house... the 'rent' came out of the paycheck before they got it and it was put into a contract that the money would be taken out of the paycheck, that if they were fired for whatever reason or if they quit that they had 48 hours to exit the premises or their belongings would be removed however he saw fit. He had access and the right to enter the residence 24 hours a day with no prior notice since it was owned by him/the business. Note all of this was considered a 'perk' of the job to be able to do this. (lol he was just sick of hunting people down to find out what the h*ll was going on!) it worked for him... he just had to make sure he put everything in writing and they signed it. Hope it helps!