A real estate investor discovers a roach infestation in a newly purchased 76-unit building. He names one "Rachel the roach" and explains why extermination costs are negligible when the property generates tens of thousands monthly in cash flow. Pest control should be factored into acquisition costs before tenants move in.
Chapters
One of my least favorite things to have in units when you buy a building is when they come with pets. This is Rachel the roach. Rachel is not a welcome guest. I've noticed that she has some friends here. I don't want my roaches having friends here. This is an otherwise almost ready-to-go unit. I'm walking all the units, I found a couple of them here and there. What does that tell me? First thing we need to do is get an exterminator. Now, on a single-family house, that'd be kind of a bummer because it's like, man, the expense. On 76 units, if you buy a little bigger, it's a rounding error. We cash flow tens of thousands of dollars a month on this property. There's tons of overhead to come in and fix problems like that. But if you have unwanted guests or bonus pets that come in your unit, get rid of them before you get your tenants in there and buy buildings that are worth the cost of extermination. Later, Rach.