All Forum Posts by: Anthony Wienke

This is why I personally believe in making it a policy that all tenants have renters insurance as part of their rental agreement.

It only costs about 18 dollars a month and if worse case scenario (fire, flood, theft) happens, the tenants are not left out in the cold and/or holding you the owner liable. It also makes me feel good that my tenants will be taken care of if something goes wrong.

They can snicker and complain all they want about it but you can bet they'll be scrambling to find that claims phone number when the s%!& hits the fan lol.

Any who, im sorry for the loss of the building and the hardships your tenants are going through. Hope it all works out for you and them.

@Matt Lefebvre

I wish all sellers trying to get rid of some real estate would do this. Iv seen listings that were anywhere from 6 months to a year or more just sitting on the market! (your house isn't worth what you hope it is dummy!) Just digging them selves a hole really.

Welcome

If I owned just half the properties you do know I would be lovin it!

Welcome to the BP community, hope to here from some of your wisdom on cash flowing properties in the future.

I would have to say that the Missoula market is currently a sellers market at the moment. Prices are astronomical compared to other parts of the state with the exception of Bozeman.

I think you would do well around the Billings and Great Falls Montana areas. Better prices and strong local economies to support rental properties. Butte has been on fire lately with availability of rental properties but I have a feeling there could be an red flag with that. Makes me wonder why so many people are trying to sell.

My short and sweet answer would be either:

1. go for the money producing property

or

2. With so much net worth, sell what you have or use the properties as leverage to get into a sweet NNN lease. NNN's tend to be less headache and oversight than traditional apartment ownership.

Not to say your properties are not producing the income they should, but it seems that your NOI is on the low side with nine properties. While NNN leases them selves tend to be low cash on cash producing properties they will certainly give you more bang for your buck compared to what you have told us here.

Just my two cents.

Personally, I would use the "house hack" method. I would purchase a triplex or fourplex with a veterans loan (which I qualify for) then live in one unit and rent out the others.

What's better than owning my own place then having other people pay for it?!

After a few years just refinance for a single family house with a home equity loan and move out of the fourplex. Keep the multifamily investment property and start growing your real estate portfolio.

I really simplified this example but the idea is still the same.

Makes me nervous thinking about just applying a non refundable service fee when they first move in. Sure you made an extra $200-300 when they move in but once the time comes for them to move out there is no incentive to clean the place once they go.

I might suggest this fee if you really investigate the tenants past rental history and back ground well. If they are high quality tenants after the check I would suggest this. Otherwise, id say stick with the refundable deposit and explain and rationalize every possible loop hole the tenant might find and argue with you about.

Off topic, did you know land lords and apartment owners are one of the most sued individuals in the country?lol Usually involves the security deposit and/or some injury they may have had while living in the rental.

Welcome! Im trying to work out my first deal now.

Hope you have all the success you could ask for!

@George N.  Just from a long time renters point of view. I have to say that 1 bedroom apartments are nearly impossible to find and afford in Bozeman.

One bedroom apartments might have some high turn over rates but you could be looking at charging upwards of $800+ for a 500 sq ft apartment.  

The town is just saturated with 2 to 4 bedroom units, it wouldn't be a bad idea to target the college population with new affordable one bedroom units.

Just my opinion of course.