All Forum Posts by: Ashley Mullin

@David B. 

Welcome!!!  The property management is KEY to out of state investing.  You want a company that is great at communication and has good software in place that keeps track of your investment.  I would also resource craigslist to make sure the rental rates are correct for the areas.  If you are looking at the Indianapolis market be careful to not just look at zip codes.  There are good and bad pockets in every zip code here.

Good Luck!

We have a builders risk policy through our insurance broker American Business Insurance. It's a blanket policy that covers all of our being rehabbed, vacant, and occupied properties. We are able to add and remove using their online software and we tell then how much we want it insured for....PM for contact info! It's a great product .

@Marvin Song 

I have been in property management for years and this is a tough one....Here are a few points.

1.  If you don't pay it, then the contractor might not get paid.  If that happens, then the contractor good place a lien on your property.  That is a big hassle!

2.  Time is money.  I would move past it and look to the future.  It's not worth the time or energy to fight with your PM company.  Just find a new one and start cash flowing.

@Account Closed 

Sorry the format did not stay in place.  PM if you would like me to send the sample to you.

@Account Closed 

Here is a sample breakdown I use to evaluate properties.

Purchase Info
Initial Market Value	$65,000
Purchase Price	$39,000
+ Buying Costs	$780
+ Initial Improvements	$0
= Initial Cash Invested	$39,780

Income Monthly Annual
Gross Rent	$750 $9,000
Vacancy Loss	($60) ($720)
Operating Income	$690 $8,280

Expenses (% of Income) Monthly Annual
Cleaning & Maintenance (6%)	($40) ($480)
Insurance (7%)	($50) ($600)
Management Fees (10%)	($69) ($828)
Taxes (10%)	($67) ($804)
Operating Expenses (33%)	($226) ($2,712)

Financial Metrics (Year 1)
Annual Gross Rent Multiplier	4.3
Operating Expense Ratio	32.8%
Cap Rate (Purchase Price)	14.3%
Cash on Cash Return	14.0%

Net Performance Monthly Annual
Net Operating Income	$464 $5,568
- Year 1 Improvements	($0) ($0)
= Cash Flow	$464 $5,568

I have purchased and sold homes in these zip codes

64123

64050

64124

As stated above, you can't just go off of zip codes!!  Big rookie mistake in both markets!

http://www.spokeo.com/ 

@Sterling White Thanks Sterling :)

@Kortez Walker 

I think so too :)  PM the address unless Ryan has already looked at it!

@Kenneth Davis If the bankruptcy has been discharged then he can not include his rent  in the bankruptcy.  If he is currently going through it, then at anytime he can add you into it.  If that happens then you have to hire an attorney and you can't do a normal eviction.  The eviction would have to go though the bankruptcy court.  He could be in your property for months before you can gain procession of your investment.

I always stay clear of bankruptcy, but I don't mind people going through foreclosure.  I do make sure that the rent amount is less then the mortgage payment and their work history is strong!