This is the third of the series (read to find out how to win a free copy) of posts reviewing the book, Fix ‘em Up, Rent ‘em Out: How to Start Your Own House Fix-up & Rental Business in Your Spare Time. The author, Terry Sprouse is also the blogger behind the blog, Fix ‘Em Up.

Right out of the gate, Terry admits he and his wife were pretty much novices when it came to repairing fix-up homes in the beginning. Just like anyone who is beginning something for the first time, whether it is cooking, riding a bike, or sales for the first time, we all get better over time. Terry emphasizes throughout this chapter how learning by doing can not only just make you “self-sufficient” but also more knowledgeable.

As with anything for the first time, when you purchase your first fix-up property, you will find yourself learning how to handle situations that you would normally otherwise not know about. One of these situations includes learning new skills.

Terry suggests acquiring a collection of reference books to help accelerate your learning curve. Include books on home repair, buying and selling houses, rental properties, and such. I agree with him on this. Not only just books, but magazine articles, recorded shows, etc…

I like this part Terry mentions here.

You are not expected to know everything in the beginning.

While you will have opportunities to do you own repair work, you should consider two things before hiring someone to do the work you can do.

1. It is a free opportunity to learn a new skill.
2. You would loose money by paying someone to do the work for you.

Having said that, Terry explains that it may take you some time in the beginning to know what to do before you can master it. Meanwhile, it pays to have a good handyman as a backup. There will be times when the repairs that needs to be done are beyond your limits and you will have to turn over the task to a handyman who is an expert. Not only will you build a working relationship, you will also have the opportunity to learn by watching your handyman.

There are other areas where you will have the opportunity to learn other aspects of rental properties such as taking real estate courses at community colleges and open universities taught by real estate professionals. Terry points out the cost for these courses would “outweigh the benefits” you gain from the knowledge you receive.

Get At Least Two Bids On Everything

This is probably the most important lesson in this chapter. Whether it is for repair work or for a mortgage on your rental property, unless you get two bids, you will not know whether the person who is offering you the deal is the best deal. Terry provides a simple calculation table that shows you how much cash flow you would receive on the property based on the sales price, your down payment, the amount of mortgage, interest rate, monthly principal and interest, taxes and insurance, and rental payments.

The best statement reflecting this section is a sub-heading.

Do the Math - Don’t Leave Your Profits to Chance

What do you need to learn before you decide to purchase a rental property?

Read more to find out how you can win a free copy of this book .

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