All Forum Posts by: Account Closed

Fix them.

What kind of investor are you?  Serious about providing quality rentals or a slum lord?

What kind of rental do you want to provide?  If your family was renting it, wouldn't you want to be able to open your windows without mosquitos getting in?

I always make sure that everything is in working condition on move-in.  Then if tenants break something...HOLD THEM ACCOUNTABLE.

First of all, it depends on your goals.  Are you looking to generate cash flow, appreciation/capital gains or both? 

If both, my response is as follows:

In order of priority:

1. Population Growth (determines appreciation potential)

2. Job Growth (determines appreciation potential)

(1 and 2 work together)

3. Price to Rent Ratios (determines cash flow potential)

4. Property tax rates (high taxes will lower your cash flow rendering the market unattractive)

5. Unique culture (determines appreciation potential)

Other considerations:

At the city level...

Quality of Masterplan (determines quality of development/walkability/quality of life)

Crime rates

Path of Growth

Neighborhood quality (Are there Starbucks and nail salons or Mexican Grocery markets? What kind of cars do neighbors drive? Where do they work?)

I can offer assistance, market info, and contacts for Austin, Dallas, San Antonio, and Charlotte markets...as well as contacts to investors, deal syndicators.  I run the largest real estate investor groups on Linkedin and local groups in the San Francisco Bay Area...

Thanks,

jon.

ACCOMPLISHED CHICAGO INVESTORS. 

I'll be in town from 5/29 to 6/1...Wanting to meet.

Coffee, brunch, a property tour. All would be great. Chicago is new to me.  I'm just looking to connect with other accomplished investors.

I've investing in properties nationwide, including the San Francisco Bay Area, Austin, Dallas, San Antonio, Charlotte, etc... generating over 20%+ IRRs.

If you can meet, please send me a note with your contact info.

Yes @Kerry Baird

Lots of money to be made in the space, hence the growth of lenders new offerings. Most owners of SFR portfolios are smaller guys who own 5-10 homes.

If it has sufficient bathrooms and the design is such that you can add a bedroom at lower cost, it's worth evaluating.  That said, it is unlikely that the payback will be worth it. 

If it's short on a bathroom, I would consider it (example: 4 bedroom/1 bathroom OR 5 bedroom/1 bathroom).  Otherwise do not.  Do not add a bathroom when it is not clearly needed.  It is unlikely that the numbers will justify it.

Do not allow pets unless prospective tenants prove that they are responsible first.  If tenants are responsible in one area of their life (ex. financial/credit), it is extremely likely that they will be responsible in most/all areas of their life.  I personally allow pets in all my rentals, but all my tenants are responsible and have credit scores of 600+.

If you're having to lease to tenants who are not responsible, DO NOT ALLOW PETS.  They will not be responsible pet owners.  This will prevent the types of issues you are currently managing from ever occurring.

Many investors on this board have asked me about sources of debt financing for single family portfolios... In addition to portfolio lenders and securitizing lenders, this is one source of long-term (30 yr) debt you might consider..

NOTE: I am in no way associated with any lender, including Lima One Capital.  I am a residential investor.

FYI: If you're a single family rental investor who has 10 loans or very close to 10, you'll need a new source of debt.... Fortunately, Lima One Capital recently came out with a new lending program that includes unlimited loans.  Here are the details: