Owner Occupy Landlord Strategies

[Eric Dufault]

Good Afternoon BP,

I'm currently looking into purchasing a multifamily that I intend to occupy for until I can get another property. This will be my first investment. I'm going this route because I am utilizing a VA Home Loan and whatever property I purchase needs to be my primary residence in order to qualify.

I am curious what are some of the strategies to adapt in order to avoid having to deal with tenants banging on my door every time a light bulb goes out. I plan on forming an LLC, having rental checks emailed to my work address or a PO Box, and pretty much pretending to be a fellow tenant. I'm a very forthcoming person and usually wouldn't consider these options but they might be the best way to go. In order to be successful, sometimes you have to step outside of what youre comfortable with, so I'm looking to this forum for advice.

I'm looking for people who have been in a simiar position and are willing to share some lessons learned.

Thanks for your time.

-Eric Dufault

[Kevin Fletcher]

I lived in my 3-unit for 4 years and I think it'll be kinda tough to tell your tenants that you don't own the place. Its public record, so if they wanted to check they could. You will be giving 10% of your cash flow to a property manager, when 9 times out of 10 its a pretty easy job (depending on the property). Plus, these land lording skills I think are important to learn. I understand that you are worried about your tenants knocking on your door, but there are other ways to set boundaries so they don't bother you constantly. First of all, I was extra careful on who I decided would live there. I never rented to college kids, tenants with pets, and I generally took time to really do a quality background check on every potential tenant. You have to see if you get along with them. If you're going to live there, I would even take a month less rent (if needed) to really take the time to get the right tenants. Don't rent to anyone who gives you any sign that they'll be annoying.

And if you do decide to use a property manager, just play the ignorance card and tell them to call the property manager. That is even something you can stipulate in the lease, that "contact property manager for any and all problems with the unit" and make them initial it, highlight it, or do whatever you can to make them understand that they need to leave you alone