All Forum Posts by: Autumn Cain

Hi Troy!

I'm giving my 2 cents here as a former Cooperate manufacturing Project manager gone Property Manager:

I think the pay structure you have currently is an awesome start! With the RE game commission is a great way to ensure you get value in and value out on a project. However, as an agent and investor, we understand an accept that our payout comes with time- however for a project manager realistically looking for a 1099, being paid at the time of work is key to making sure you have the right person on your team.

Is there realistically a way that you can create your projections of net profit on a project (in a scale format from X$ to Y$) and find a happy medium in there of expected net profit, and carve out your PM budget there? You have a risk definitely, but paying your PM on a more consistent basis may help you get a motivated professional on your team who is there to stay! Maybe go for a commission based bonus structure to take it to the next level! 

On top of ironing out pay structure, I would 1000% create clear documentation of what expectations you have for your project, and how and when you expect your PM to meet them to ensure that you receive the value and service that you are paying for. The documentation creates both a blueprint and document of accountability. 

As a Project Manager, when diving into a new initiative, I'd sit down with a project charter with our VP, and ask questions to gain a full understanding of the expectations of a project. This may be a no brainer- but think of exactly how, when, and why you want this project done so you can clearly provide that blueprint to your PM.

Is your top priority here the timeline? The payout? The budget? Or creating the most unique Fix and Flip ever seen to become tiktoc famous? This could greatly change project approach for your PM. The less confusion, the more efficiency! 

Hope this helps and Best of Luck!!

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $100,000
Cash invested: $50,000

My partner and I are getting into our first fix and flip! A beautiful chalet in Tobyhanna PA that needs some TLC to reach it's full potential.

What made you interested in investing in this type of deal?

My partner and I are interested in multifamily LTR rentals, and are beginning our journey with fix and flips to build capital.

How did you find this deal and how did you negotiate it?

I found this deal off market and found agreeable terms with the seller involving a midterm lease during renovation.

How did you finance this deal?

FHA Loan

How did you add value to the deal?

A complete house remodel and design.

What was the outcome?

Still in the process!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Armani Colon (Home Smart)

Hi Allison!

This is definitely a bummer! 

Quick question - is your clean team able to get some test strips and chemicals (or even a bromine floater) to monitor chemicals between each turnover? It may add a few bucks to your cleaning fee- but since the guest pays for the clean it becomes a pass through fee. You definitely don't need a maintenance person each time, you just need to have someone who can utilize chemicals and test strips. 

As a PM the only time I pay extra for hot tub service is 1) a complete drain scrub and refill (happens every 1-3 months, $120) or 2) If a technician visits to fix a problem ($125 trip cost) 

Hope this helps!

Hi Saeed! 

As many others have recommended, I would definitely do some deep research into an area to understand what housing rates and property taxes look like in the areas you are interested in. I would also say look at numbers of how much property value in the area has increased in the past 5 years or so, so you can get an understanding of appreciation alongside the cashflow of your investment property. Really hunt for a deal- remember if a property is cash flowing changes are the seller wouldn't be selling unless there is a point of distress.

Just throwing it out there- I live in the Stroudsburg PA area- here I have seen rental rates and property value absolutely skyrocket post covid due to the migration of people out of NYC- maybe look for areas like that that are more up and coming.

Hi Diana!

In this case I would say that for maintenance, you would be best off paying per trip/hourly for the cost of any repairs at whatever is an average median rate for a repair man in your area. Now if you have a general person who stops in to do other small tasks or do more property management style tasks (walking through the house to inspect for damages, drop anything off guests may need, change water/HVAC filters etc.) I would recommend paying them a flat rate monthly, alongside  a list of expected tasks. This can help make sure preventative maintenance as well as minor things don't cost you as much as a handyman visit. Hope this helps!

Hi Brian!

As a property manager/agent in the Pocono Mountain area (PA), I would definitely recommend taking a look into this area for STR. There are some unique factors that set aside the Pocono areas from many others like the seasonal aspects of tourism. A Cool part of the Pocono mountains is that the tourist season lasts ALL year- not just for a few months out of the year. There are diverse activities year round from lake beaches, hiking, sightseeing, leaf changing tours, skiing, indoor waterpark resorts, outdoor parks, farms, zoos and historic areas.

As far as key factors to consider outside of location I would recommend 1. Look at a house that has unique factors. Think A-frames and chalets over the regular ranch stye homes. As a PM for a wide variety of units, the fun ones always outperform the cookie cutter. As far as other factors for an area to choose, outside of the location, I'd definitely say do your homework on the general feeling of STR by Township. Is the township taking any moves against/pro STR? Do they support it? Is the community welcoming of it? Lastly I'd say research the demographic of the parties that partake in tourism in the area. Are they mostly families? Couples? Big groups? Find a house that would appeal best to who you are selling to.

3. If you are located outside of the city it is located in, I'd definitely recommend a PM. Whether that looks like one subcontractor you trust, or a company who's brand identity you can get behind. Having boots on the ground with an STR can make or break the guest experience, as well as preventative maintenance and quality upkeep of your unit.

Good luck on your journey! STR is a fun one- you'll get to have some fun and get creative with your product. Enjoy it!

Hello! (Coming from a property management and licensed agent background) This situation seems overwhelming, and I am sorry to hear this happened. Dump it seems to be the first thought here- but from your post it looks like you are seeking the unicorn solution here. Maybe not a unicorn- but a couple options I came up with: 1)Would you consider seller financing? Seller financing can be a way that 1) You aren't hemorrhaging mortgage payments while paying for work to be done. Maybe under the right terms the buyer you find may chip in to help with the water damage. (The AC unit is a smaller affordable fix in comparison). 2) Why are you struggling to find a tenant? Are there terms of the lease that make it unattractive to perspective renters? Is the rate above what is affordable in that area? (which may be lower than expected since you described the area as not awesome). 3) Rethink your numbers in dumping it- with an estimate for repairs in mind. I would get a good licensed contractor to look at the water issue, and review the repair cost in terms of how many months of income this would suck from the investment. This may make the decision easier for you. I hope this helps, and wish you the best luck!