Who is Americas Housing Alliance?
I manage a national ‘buy and flip’ turnkey property provider for investors. It’s a difficult task to manage geographically remote from HQ. There is a dependency on numerous renovation contractors and third-party property managers. We try to set a high-bar on our rehab work. When average age of our properties are 1950s through 1970s; it is critical to keep the SOW very detailed. When we find issues in our work, we strive to address it. This becomes an emotional business when Buyers expect a trouble-free and maintenance-free experience because it is labeled a ‘turnkey’. I recommend keeping a 5% reserve of money for maintenance and repair as well as for vacancy.
I also recommend you always have a third-party inspection.
Finally, insist that your property manager place a credit-worthy tenant where the rent requires 3x the amount in monthly income.
I'm not a fan of the term "Passive Income". If you choose to be in the SFR business; remember it's a business.
If you follow this guidance, it’s a great business to be in; especially B-Class properties.
Feel free to reach out if you want to discuss more.
John M Knab
Americas Housing Alliance, CEO