All Forum Posts by: Chris Bounds

Like @Ray Lai mentioned, I also highly recommend a CRM. We tried the Excel approach for maybe a month. It may work in a very lean way with a small list, but a CRM is so much better. Don't just think about serving your current needs. Think about growth. Do you want to spend a few hours building an Excel tracking system that you'll outgrow soon or would you rather spend that time setting up a CRM that will grow with you. Think like a successful business owner, not a mom & pop shop.

Fair is market value. If you're running a business, which rental properties are mini-businesses, you must get rent to market value asap. 

When we inherit a tenant on a M2M lease and are considering keeping them, we require them to fill out an application just like a new tenant. If they still qualify, then we'll have them sign a lease agreement. We do consider incremental rent increases over a short period of time. 

Welcome Claudia! Houston has an amazing REI ecosystem with networking meetings almost every night of the week. Plug in and take action!

@Dave Foster, gotcha. I'm looking to turn one into 3-4 so I'd be spreading cash around.

@Dave Foster, most of my BRRRR properties require very little to zero cash since I get them 100% financed through private lenders. Then once rehab is completed I refi out of the PL loan.

The way I understand it, a 1031 will require me to increase my cash basis of each property. I could do a cash out refi after 6 months at a slightly higher rate, but that seems to negate the benefits, long term at least.

Thanks all. It's a sizable proceed. I'm leaning towards just biting the tax bullet for the flexibility on redeployment. I utilize the BRRRR strategy so a 1031 process may complicate things more than help.

I know the question is subjective. Obviously there is a tax savings (deferred) benefit. For those who've gone through the process on a SFR, did you find it worth the extra steps, time involvement, and (maybe) hassles that come along with the process?

I'm looking to use proceeds from one SFR to invest in 2-4 other SFR.

Thanks everyone! Will check out the referrals.

I'm looking for a CPA referral from those running high volume REI businesses (flipping 20+ deals a year and owns rental properties).

Texas CPAs preferred, but if it's a quality national service I'd be interested in checking them out.

That is the wrong question. The real question is: Why would you consider DIY? The answer for an investor / entrepreneur is: You wouldn't, ever!

Follow up questions:

• Are you a GC?
• Do you have knowledge & experience managing crews of various trades?
• Do you the appropriate insurance & licenses/permits as a GC?
• What is the opportunity cost for your time?

As an investor / entrepreneur, you're running a business. An apartment complex is a business. Taking time out of your day to DIY technical trades oftentimes will cost you more in the end. If you have little to no experience as a GC, the project will likely take longer (increased holding costs), be a lower quality (decreased value), and keep you away from running your business (lost opportunity). Businesses that are operated that way are small and stay small. Those business owners really just own their own job.

Unless you have good experience as a GC and don't mind staying small, the only real reason to consider DIY is if you overpaid for it and want to save on labor costs. But again, don't even do that if you don't know what you're doing.