All Forum Posts by: Andrew K.

@Joel Florek you’ve got a popular thread going!

Regarding PM, could possibly employ a technique I’ve seen in other industries—hire a regional/area manager to oversee projects, contractors, on-site managers, new employee training, etc. Thus could be a good job for a family member who needs supplemental income. Some mobile home park owners seem to employ this technique effectively.

Any thoughts on owning complementary businesses in your rural markets? E.g. self-storage. Self-storage typically has on-site managers that could potentially be cross-trained to assist with your MF property. Tenants can rent a moving truck from you, store their extra stuff in your storage units, and rent an apartment from you. Kinda like owning the whole tenant lifecycle.

Keep the comments coming folks, loving this thread.

-Andrew

@Joel Florek I love this topic. Having grown up in a rural Missouri town, I’ve witnessed how one or two investors can corner the real estate market quickly. Cool to read about everyone’s experiences.

For me, the shortage of professional management is a significant drawback to investing in small metros. Managers in sleepy towns are not sophisticated, don’t effectively employ systems, or are plain out of touch with an investor’s needs.

I think market selection can mitigate the challenges of day-to-day operations in a small town. Possibly select a slightly larger town or one closer to metro area that offers more vendors/services to meet your investing needs.

Remember Brandon Turner’s complaints regarding managing his properties in Podunk, WA? He knew the challenges existed and the returns were worth the hassle (at that point in his investing career).

Approach rural markets with an eyes wide open view and enjoy the ride!

Best of luck to all in 2019!

-Andrew

@Mindy Jensen thanks for the update! Can’t wait to read J Scott’s updated editions! The first edition was great, this one will surely be gold.

I wish everyone a prosperous 2019!

-Andrew

@Aakash Tandel, welcome to BP and Happy New Year to you!

You received a lot of good market recommendations. Take your time and find the one(s) that work best for you.

If you do settle on the Fayetteville, NC market, you’ll find a ton of great people here on BP willing to help out.

Best of luck and have a prosperous 2019!

-Andrew

@Matt Greer yup! So much gear!  

Oh, and a good percentage of military folks are pet owners. Pretty common so get your pet policy figured out. 

I allow pets in my properties on a case by case basis. Allowing pets has led to longer tenant retention for me.  

-Andrew

All to add on to @Matt Greer's excellent run down of the Fayetteville market, I recommend that you have a clear understanding of the tenants you want.  This will help you narrow down the type of property and area that you should invest in.

  For example, Fayetteville's rental market is dominated by military members.  Get to know their needs, how those needs change over a career, and you'll really be able to focus your investing.  Fun fact, military families have a lot of "stuff", so properties with extra storage are appealing. 

  To illustrate my point further; a junior NCO or officer without children may prefer to live close to base. Neighborhoods off Reilly and Yadkin Roads are excellent choices.

  Fayetteville has very few good schools, so a mid-career/senior NCO or officer with children will be interested in the Jack Britt and Terry Sanford school districts. 

 My examples are simply to illustrate that knowing your target consumer will absolutely help you define your real estate investments.  

Best of luck to all in 2019!

-Andrew 

@Jordan Fejeran, the podcast episode @Andrew Zannotti mentioned features @Alexander Felice. He's on episode 301: https://www.biggerpockets.com/renewsblog/biggerpoc...

Alexander is crushing it in Fayetteville! I've been meaning to pick his brain more about his strategy, you'd do well to reach out also.

Best of luck in 2019!

-Andrew

@Jacob Calbillo, sounds like a cool opportunity. Please keep us posted on how it goes, especially if you have to address zoning.

 I'm always available to fish that pond!

On a serious note, land within 30 minutes of San Antonio seems to sell well. I've been looking on the north side of town (Hwy 281 area), and have found the search difficult.

Best of luck in 2019!

-Andrew

@Jeff Janaro, I hate to revive an older thread but did you close on the 28-unit?  If so, any lessons learned you want to share about the experience?

Have a prosperous 2019!

-Andrew

@Christopher G. glad to hear you've had good experience with Little & Young.  I had a terrible experience with them last year as a renter.  Going through the ordeal I randomly met the owner of the place I was renting, and after comparing notes, the owner removed their two properties from L&Y's management.  Just a bad situation all around and L&Y did not accept fault for the situation they created.

I recommend you take a hard look at the Stewart's Creek unit.  There's a reason the unit is so cheap, the complex has a terrible reputation.  It's steadily degraded over the years.  Check crime stats as well.  For what it's worth, I highly recommend you only invest in that complex after taking a hard look at your investment strategy.  If it still fits, then jump in.  

I'm really impressed at your willingness to pursue investing from overseas.  Keep at it and you'll have a nice portfolio in no time!  Keep us posted on your progress.