Customer Reviews

Fix 'em Up, Rent 'em Out: How to Start Your Own House Fix-up & Rental Business in Your Spare Time; or, Investing in Real Estate and Creating Wealth with Fixer-Upper Houses

5 star:		(20)
4 star:		(6)
3 star:		(0)
2 star:		(0)
1 star:		(3)

 

 

What a unique and useful book this one is! First, I will state that I have dabbled in this sort of thing, i.e. fixing up old houses for resale, for a number of years now. To be honest, had I had access to this particular book twenty years ago, I would have been able to avoid a lot of mistakes and a lot of grief. Some of what this book addresses I have learned over the years through trial and error and simple luck. Mr. Sprouse has been able to articulate what I have known, but was unable to say for myself. I must say that the author was able to point out much that I have missed or was unaware of. Reading this work was a very pleasant learning experience for me. This is a very useful book for anyone wishing to purchase old homes, fix them up, and either rent or sell them. This is a wonderful resource!
The book is actually rather funny, or I should say amusing. The author has a quick wit and it shows through his writing. The book, even though dealing primarily with physical things, is so much more. The author has given us a good dose of old fashion common sense, philosophy, and very sound advice. He has done this in a way that fits perfectly with the subject his is addressing. Attitude in any endeavor is extremely important and the author quite well makes this point.
Now take note. This book is not one of those flashing works similar to some of the late night T.V. infomercials, which promise instant wealth (picture of a dorky looking guy with gold chains driving a new Hummer that is setting in front of his multimillion dollar home telling you that he just made a zillion or so dollars with nothing down, no credit and no work, and did it all in just six weeks...just sent him $19.95 and he will tell you how he did it). The author plainly states (and I know his advice here to be a fact), that this sort of endeavor takes work, lots of work, and to make money at it, takes time. Simply put, "there are no free lunches." So, if you are looking for a get rich fast scheme, then look else where. The author is not in any way into trying to sell one of those silly pyramid deals that, in truth, simply never work.
What this work does give you is ideas and an outline, that through hard work, common sense, and a bit of luck, you can do quite well for yourself and have a bit of fun while you do it. The author is quick to point out the down side of every aspect of this business and points out ways, if there are any, to avoid them. On the other hand, the author does a wonderful job of pointing out the positive. He not only emphasizes the financial aspects, but does a very nice job of drawing attention to the many side benefits involved, and there are many of these! I like the way that the author directs your attention to the fact that a job well done is a wonderful feeling. The author has listed given us a great list of other books and resources to turn to which I find most helpful. Actually, his list of places to go for information is almost worth the price of the book alone.
NOTE: Even though this work deals with the fixing up of older homes, the principles set fourth in this work will work for just about any business a person would want to set up or start. There is wonderful, good and sound advice in this book. Even if you are not into the fixing up of old places, it is well worth the read. I would certainly hope this author expands into other areas. His ideas and general outlook on life are/is quite a bit better than those of many of the ones touted by the so called "experts." Recommend this one highly!

Are you thinking of buying, selling, or renting property out? Then get this book! Compact, easy to read, and packed with step by step instructions for several phases of making real estate work for you, Terry Sprouse has written all the basics in a way that anyone can understand, and will be especially welcome in steering people through this time of fluctuating and uncertain markets, so that you'll make the most of every dollar you invest or gain as a buyer, seller, or landlord, and the principles will even make sense for you in other forms of business, as I found that some of what is in "Fix Em Up Rent Em Out" could even be applied to my career as a free-lance artist.

I've always been tempted with the idea of buying a "fixer upper," whether to live in myself or rent out (I've done it several times for other people in exchange for cheap rent, never for myself), and Sprouse gives the complete details on what I could expect to find in this adventure. You'll learn a lot from his Tables too, which at a quick glance one can get information on cash flow, interest, appreciation, even the tools to have on hand (it is recommended to learn how to do as many repairs as you can yourself) and much more. There is even one table on page 84-85 on "The 5 Rules on How to Lose Money and Get Your Rental Property Trashed by Your Tenants" that is funny as well as wise counsel.

There's great advice in Chapter 8 on what to look for in a prospective tenant, and how to make out a rental contract that suits your requirements; Chapter 9 is about taxes. Read and memorize! You'll be glad you did. One of the final chapters is on how to make this real estate experience a family affair, and lists some activities young children can do to help and the advantages to having the kids be involved in the process. It is followed by "A Tale of Two Investment Strategies," where you read from start to finish Sprouse's experience with two properties, and the last chapter is "The Big Picture," which explains that "Even When You Lose You Win," with a positive outlook to always grow as we learn (and of course always taking lots of photos and notes on the progress for future reference).

This is one of those rare books you'll find yourself highlighting a lot and marking with added thoughts that apply to your specific situation. It also includes some valuable appendices, from "Useful Websites," to additional reference materials, though this handy real estate book is the ideal place to start, if you've ever thought about buying, selling, or being "Mr. Landlord."

Please save your money. Amazon reviews are generally pretty spot on, but I genuinely don't understand the rave reviews here. This is a very slim book, huge font, filled more with this guy's life philosophy than how to fix up and rent out houses. There's nothing wrong with his philosophy. The author comes across as a self-reliant, modest guy with a strong work ethic and some good life perspective. However, it would be an extreme exaggeration to call this a book on "how to start your own house fix-up & rental business..." The sections on identifying, financing, repairing, and managing rental properties are covered at a very surface level. You can easily find all of this information for free online, in one of many intro articles to real estate investing. I've read many real estate investing books, and there are many, many better books out there.

I guess on the positive side, it only took me a 40 min train ride to read the entire book, so at least I didn't lose too much of my life on this.

The housing market being what it is, with two of the highest subprime home loan, foreclosure markets being in the Stockton and Sacramento areas, this book may be of value to those wise enough to have some savings to invest in houses being foreclosed on, like one I saw for $79,000 that sold orginally for $205,000. And yes we are a family with rental properties and properties bought and fixed up and then sold.

The parts of the book I found of value are those dealing with learning to do jobs like sheetrock, tile, windows, doors, floors, etc yourself. Depending on where you live and if you want bank financing, you may be required to have all the electrical and plumbing done by a licensed person. Some counties here in California allow you to do these things as long as you have a qualified elctruician or plumber check your work as you go to make sure its safe and sane.

Am glad the author notes that the law (1997 Taxpayer Relief Act) now allows you to pay no Income taxes on a home you have lived in for two years that you then use as a rental when you buy another home to live in as your main residence. However this exclusion is only available once every two years, which is great if you buy a place to live in that needs some repairs that you can do over time. You not only get a place to live but can do the work over time and do it right. Then sell or rent it out and get another place an repeat the process.

The book also has an excellent piece on Increase Cash Flow, Sell One House to Pay off Another. As well as a piece Know When To Sell which is as important I believe as knowing when to buy and when NOT to buy. The San Francisco Chronicle has had some excellent articles on some folks who did subprime loans and bought investment properties when the market was hot a couple years ago, and then their adjetable morgages went sky high, renters couldnt afford the rent needed to pay the owners morgage and many owners with multiple properties were foreclosed on, their credit ruined, and then they had to file for bankrupcy and some lost their own homes.

As for rentals. Good pieces on Curb Appeal, Background checks and avoiding bad tenants from the get go. Rental/lease contracts, advertising, dealing with problem tenants/renters, evictions, repair issues, insurance, and very important record keeping. As a renter I always have taken photos of places before moving in and also recommend renters take photos, and detailed notes of even minor damage that can eveolve into big damage and if not noted, can be attributed to you and not the foremer tenants or the owners lack of responsiblity.

The last part of the book makes a great suggestion if you have kids over the age of 8 or 10, who are old enough to help out with caring or repairing a rental property. Its a great way for them to learn as they grow. By the age of 16 many kids will know how to do sheet rock, tile, flooring, installation of bathroom items, and fixing up the yard. I even suggest to take a small percentage of the income earned on a rental or sale of a property and stick it away for them so when they become 18, you can help them invest in a place to rent or sell, and help them become finacnially independent and wise beyond their years.

How to get into the rental property business? This author takes you through the pitfalls and positive aspects of buying, fixing up and renting out properties.

Author Terry Sprouse is very insistent that the successful property owner will be needing to use "sweat equity" and careful shopping. He notes that good enough is good enough for rental properties--find nice linoleum at liquidation sales, look for good, if slightly dinged appliances and be sure to do as much of the work as you can yourself. Making it a family project is a suggestion.

He also gives a bible of how to lose your shirt by wrongful renting practices and helpful suggestions on finding the ideal renter, and dealing with problems that crop up (example letters about excess noise, lease month-to-month to be able to evict troublesome renters.)

He also deals with buying and selling. This is a very nice, short but pithy and meaty book for the beginner. You probably couldn't find a better place to start if you are considering investing in a rental property than Sprouse's witty and concise book. Recommended.

My first real estate investment book purchase wasn't actually about real estate at all-RK's Rich Dad books inspired us to action and I will be forever grateful.

Unfortunately, most of the real estate advice and examples were seriously dated, going back to before the humongous tax reforms that changed real estate investment forever back in the '80's. I came away with some vague ideas on buying property for nothing down on the courthouse steps, forming an S Corp and hiding out our assets in Nevada.

It took months of re-programing just to pick through the train-wreck on the floor of my brain to form a coherent plan that might someday work in our locale. I feel a bit silly now... if I'd just known that RK's strength is financial literacy and inspiration, maybe I wouldn't have gorged on multiplex ownership at the all-you-can-eat buffet.

To The Rescue:


Just finished reading Terry Sprouse's book, Fix Em Up, Rent Em Out, and sitting here wishing I'd had this resource back then. This is just right-concise and tightly focused with a workable plan to get moving forward. Had this been our first intro to REI, we might've started 2-3 years sooner.

The first sentence of the introduction targets Terry's audience like a Patriot Missile:
"This book is aimed at the person who has a strong desire to invest in real estate but wants to keep his or her regular 9 to 5 job."
And with that, the cobwebs of my mind cleared-most REI books are a waste of money because they just don't apply. An innocent newbie could plow through 18 chapters before discovering the intended audience is "twenty-two year old felons from Detroit with ADD and shattered credit who can't hold a job more than 6 months due to authority issues."

But I digress...

My favorite chapters have to be Chapter 8: Renting Out Houses (we've been landlords awhile and I still yellowed up the whole chapter) and 11: A Tale of Two Investment Strategies (love, love, loved reading about his experience with these two houses~)

Without breaking a sweat, about 10 people come to mind who could use this book. Good job, Terry- very nice indeed:)

While I wrote a jacket review for this book, I need more space to rave about what Sprouse has created in this easy to read guide to prosperity. He is not just teaching how to build prosperity through ownership of real property, though he does that very well. This book provides insights into the simple joys of living each day, with advice ranging from how to learn from professional craftsmen to how to mentor your kids. To paraphrase these chestnuts - "...Let your kids see you working with your spouse in a respectful and joyful way..." and "...even if they are small, kids need to feel like they can make a contribution, so find size and age-appropriate chores for them..." This is a must read for every person working to make life better and build prosperity.

I was skeptical when I began reading this book, because I've read so much analysis of the subprime mortgage financial crisis that considered real estate speculation as a sign of a bubble. Until late 2007, too many people were buying second houses because they were sure they could flip them for a profit in a few months. For years they succeeded -- until the bubble burst.

However, the premise of this book is much more conservative. Buy houses below market value because they're in need of repair. Spend months or years repairing them as inexpensively as possible, then rent them out for a positive cash flow. And if your family lives there until it's rented, you don't have to pay a second mortgage and you can take advantage of the tax laws.

Such a plan makes sense in any market because, by fixing up houses in good neighborhoods, you're adding value. You're not just gambling the local real estate market will continue to rise.

This is not a plan for everyone. Me, I want the freedom to travel and move around. But I sure wish I'd started doing this right after high school. If I had, I'd be one wealthy dude now.

Now that the real estate bubble has burst, I suspect this strategy is even more workable for people who can raise some cash and obtain the credit. That's because market values of houses have gone down tremendously. Even houses in good condition can't be sold. You can probably find many fixer upper bargains that banks are anxious to unload.

Highly recommended for everyone willing to work hard and keep their credit scores high.

I recently ran across this book after reading Terry's blog. In fact, I just finished reading it today over my morning coffee.

I recommend this book for any aspiring (or greenhorn) real estate investor. Having just completed my first fix up, I learned much from Terry's methods but I especially related to his philosophical approach to life in the world of real estate investing. In fact, one might subtitle this tome, "Zen and the Art of Rehabbing".

Blended with this extremely practical and useful guide to finding, fixing and successfully renting properties are the intangibles of rehabbing and landlording. Terry waxes about the pride he feels from taking on and completing a repair job and the confidence that builds for tackling more complicated tasks.

Two parts of this book alone make it worth adding to your REI library:

Chapter 9, "Let the Tax Law Help You Make Money was invaluable to me. As I mentioned before, my wife and I just completed an extensive remodel in our SFR rental. Along with my sense of pride for completing this daunting project, I have several thousand dollars of receipts stuffed in a file folder. He clearly laid out the difference between repairs and improvements how the IRS treats each category. Thank you Terry!

The reference sections in the appendices are as complete as they are varied. Especially helpful to me was the list of books the author consulted to write this book.

I encourage you to add this book to your REI library. It's a keeper.

Having thought about getting into the fix em up business myself,I was thrilled when Terry handed me a copy of his new book on that very topic. I found his book very easy to read, humorous (if you know Terry that is no surprise!) and it took the mystery and intimdation out of real estate investing. Not only is it informative about all the aspects of repairing properties and renting them out, but it has a lot to say about living a positive and challenging life. Again, no surprise if you know Terry. No matter what Terry would have written about, it would have included his philosphy for living a happy and productive life. This book belongs in the motivational section of the bookstore as well as the home improvement and investing sections. I would recommend this book to everyone, even those who have never picked up a hammer before and may never plan to.