All Forum Posts by: Andy Bahr

Thank you, Jay! Just sent you a note via connection request.

Does anyone have any good lenders that will lend on raw land? If so, please provide. Thank you!

 Good Morning Luiz!
There are many ways to find Mid Term Rental Guests. And for clarity, that typically means 3-9 months, and can at times go longer. The common ones are Furnished Finder for nurses, and then all the room websites like roomies.com. However, the more tenant sources you have the better right? So building relationships with large Charlotte companies that have people moving here for work or internships, baseball players in summer training  programs, police officers/firemen/etc, teachers, mechanics, contractors, etc. You can also outsource it and hire a property manager. Another way to get started is fill your homes using Air BnB with a 3 month minimum, however those guests tend to not be as invested as someone you find off of Craigslist or someone already living locally.  I've had experience with almost all of these and my favorite is to use a property manager. As a busy realtor in Charlotte, I try to think "who not how" when coming to things. It costs more, but it saves me time, and time is limited. We can always earn more money but we can't earn more time. 

Hi Jake!
Great question and a common one that many face! I'm a realtor in Charlotte and a former loan officer as well. If I were you, I would consider a refi. Rates are coming down, slowly, but they are coming down. You probably have a great low rate mortgage, and might not want to raise the interest rate. The thing is, is many times the equity that you will build owning 2 homes instead of 1, will be more beneficial to you. And since you really don't want to sell the property, just keep it as a rental and every 5-10 years take out the equity and buy another rental or primary. This will allow you to scale. I personally have a few rentals in Charlotte and love this strategy. Of course you want to pay attention to market cycles etc. However, in the long run, I love the "buy a house a year" strategy (as a primary, for preferred financing) and just keep moving (pending that your spouse is on board with this of course, if you have one).
Additionally, as long as you put 20% down, it typically keeps you safe in terms of cash flow, and then you simply have a couple dozen houses with tenants paying off your mortgages. Of course, easier said then done, and evictions and issues/extra expenses pop up, but if you keep the long term vision, it tends to build on itself quite nicely. I'm in the beginning phase of this vision but so far so good.

 Hi Brandon!
Connect with David McAnulty. He's a builder in Charlotte looking for lots, north of Uptown to Huntersville.

David McAnulty: 704-791-1200

 Hi Michael! Great Question!

This is a very important topic as not all property management companies are the same. I have used a laundry list of questions, however, here are a few:
-How many properties in the area, do you manage, for my same purpose (STR, LTR, MTR, etc)?
-What is your process for evictions and/or non paying tenants?
-How large is your maintenance team? Meaning how long should I expect to wait for routine repairs to be made?
-Are you open to a bonus/penalty system, for the overall occupancy and financial performance of the property?
-If we do more than 1 property together, do I receive a better property management fee?
-What should my communication expectations be? Meaning, can I receive a weekly report of what is going on , as we will properties?
-When you are out of town, who is your backup for coverage, for both maintenance and also general questions?

 Hi Ananth!

Unfortunately, it's a numbers game. If you have enough rentals or do it for long enough, you'll run into folks who take advantage of the system. Personally, I try to do cash for keys to get them to leave. It is faster and cheaper. However, once they are 30 days late, they automatically are sent to the eviction attorney, if not sooner. For me, I like to have a predictable system. It takes the emotion out of it and also puts me more in control. If I am constantly waiting to hear back from a tenant, I just assume worst case scenario and speed up the process. Again, non emotional. I also have a property manager in place which makes things much easier. And of course doing your best to vet to find the best tenants upfront, will save you some of the issues later. However, it can sound easier than it is. Overall, I have a system and take the long term approach/vision. I hope this helps.

 Good Morning Miguel!

Congrats on joining the MTR Community, with multiple units! That's great.

I can only speak on my experience. I'm in Charlotte, NC so it might be similar to your southern city, however, further research is recommended. I currently hire a property manager for 5 MTR properties. I have my real estate agent license and am an active agent, and have no desire to manage the rentals. I currently pay 12% for MTR management. In the past I have paid 15% with a different company. Also, important to note: Not only are my properties MTR, but they are also rent by the room.

My overall opinion is that anywhere from 12-15% would be a fair fee for MTRs.

I hope this helps, and good luck!

Good Morning Cameron!
I am in Charlotte and a lot of folks invest here for appreciation. I really don't think you can go wrong with the southeast. Droves of people are moving here. And investors are going to the secondary markets around Charlotte, or they are using creative strategies such as rent by the room, to receive some level of cash flow.

All that to say, I grew up in Ohio, and it was always a good cash flow market. For your cash flow focused investors, I would assume Detroit, Cincinnati, Memphis, and Kansas City, as well as your market of Indianapolis.

It is looking like we'll get 1 cut, maybe 2, from the Federal Reserve next month. It will be interesting to see how many people spring into action because of it, or if they simply hold on to the early spring of 2025.

 Hi Eryn!
MTR by the room is a fun one! I've done it both on Air BnB and by going direct, with a 30 day min stay, averaging out to be about 3-6 months each guest. I have used sound machines in rooms and they work great, especially if you are renting by the room, it gives each person some privacy. I would also recommend hair catchers for the shower drains and sinks. I have done interior ivy walls, ice cream makers, fresh squeeze orange juice, and even converted an outdoor shed into a "Van Gough Art Studio" to give 1 house a leg up. At the end of the day you want to make it pleasant and safe. 
One last point: If there is a higher tenant to bathroom ratio, a simple dry erase "shower schedule" on the back of a bathroom door can work wonders. It might not be a permanent solution however it does keep things organized for a temporary amount of time, if needed. We also put "Please take off your shoes" signs, along with a shoe rack, right inside the front door, to limit dirt traction. As a broker in Charlotte, I love everything that you can do in real estate. Hope this helps!