All Forum Posts by: Bonnie Low

Quote from @Juliette Olsen:

Quote from @Bonnie Low:

I don't have a dog in this fight because I do both. For my LTRs I use a PM and for my MTRs & STRs I self manage (both local and OOS) so I've seen the pros and cons to both. It is definitely possible to manage your own properties unless you simply don't want the hassle. There are abundant tools and resources and plenty of people to learn from in order to set yourself up for success. Sure, there are horror stories but those happen with professional PM in place also. If you have the proper legal documents in place and a strong tenant vetting process you can avoid much of the risk, though it's never fool proof, even with a PM. 

 You’ve seen both sides, which is awesome. I’m wondering what your vetting process is for tenants. @Alecia Loveless mentions having a good feel for tenants, and I think that’s amazing she is skilled in that. I am not sure I’d be so great at this or at lease I not sure I’m willing to risk. So looking for recommendations on vetting. I’ve read to have your criteria high but not so high you’re sitting on your hands for 3+ months to Find the perfect tenant. 

Appreciate your insight !!

respectfully, juliette

 Great question, Juliette. I know a lot of people use an application. I don't. I DO start with some informal conversation to get a general sense of the person. These are basic questions like what brings you to Redding? What type of property are you looking for and do you have pets? Even if this information has been provided in their initial inquiry, I'll ask it again. Then I explain my process in brief and simple terms: background check, lease agreement, collect deposits and ask if they'd like to proceed. I've used both Avail and Keycheck for background check (credit check, criminal record and eviction history) but am currently using Turbo Tenant because they partner with the banking/bookkeeping platform I use, Baselane, and I like to keep it all in one place. I'm looking for a minimum 620 credit score and no late payments in the last 12 months. No evictions. For criminal record you have to use your own judgement and follow the rules for your state. Some states don't allow you to screen out felons, others do. You just have to be consistent and apply the same standards to everyone. 

I've recently left my long time W2 job after my leave of absence expired when caring for my husband. I have a decent 401k that I do not want to leave in the stock market. Is an SDIRA my only option if I want to use the funds for investing in real estate? I know there are restrictions on how you can use the proceeds from your SDIRA investments and I do need the flexibility to pay myself out of the cash flow from real estate investments. Doing a total cash out is not an option. I don't want the tax hit. I just turned 55 and know I'm eligible to take advantage of the Rule of 55 but also know that will only get me so far relative to the tax liability. If you have an excellent financial advisor who understands real estate investing I'd be interested in talking to him/her.

I don't have a dog in this fight because I do both. For my LTRs I use a PM and for my MTRs & STRs I self manage (both local and OOS) so I've seen the pros and cons to both. It is definitely possible to manage your own properties unless you simply don't want the hassle. There are abundant tools and resources and plenty of people to learn from in order to set yourself up for success. Sure, there are horror stories but those happen with professional PM in place also. If you have the proper legal documents in place and a strong tenant vetting process you can avoid much of the risk, though it's never fool proof, even with a PM. 

Quote from @Talat Solaiman:

I am about to close on a deal to do midterm rental. Just find out the city ordinance is required if you rent any unit for 180 days or less, then you need to pull a permit. Most places is usually 30 days or less. Any thought?

 If it's required then you need to do it. If the City has put an ordinance in place they're going to enforce it 99% of the time. It may delay you a bit in getting it launched, but having to have a permit isn't necessarily a bad thing. It usually means there will be less competition.

Quote from @Arina Alexiuc:

How much is a high amount?

There are plenty of lenders who will finance all or part of your BRRRR projects if the numbers work. You're likely looking at a hard money lender or private lender, but they do exist and some will finance not only the initial purchase but the rehab as well. You probably need to have some of your own money both for a down payment and also for reserves, but you should not have to finance the whole thing out of pocket.

Quote from @Nwakaego O.:

Can you deposit checks with Baselane?

Yes, you can. It's a full service banking platform - just like you'd have at any other bank with interest bearing accounts, the ability to set up multiple accounts and sub-accounts, issue virtual credit cards and more. 

Quote from @Adam Tyer:

Hi Everyone!

I'm relatively new in my STR/MTR journey (but have extensive LTR property management and investing experience). For anyone who is in the STR industry, what would you say is your biggest obstacle to success?

A few areas I've heard are challenges are finding cleaners, increased regulation, and over saturation of the markets… STR managers and owners would you say that one of these is the caseu or something else?

All of these things can be challenges for sure, but it's also very location specific and market specific. I think most people wanting to break into investing are finding the current interest rate environment very challenging, but there's no reason not to use creative financing. Some markets are saturated, but it should be very easy to determine that and focus elsewhere. Hiring the right team members is always challenging, as is keeping them (lots of turnover). I think one of the biggest challenges or risks is the over-dependence most of us have on the OTAs. As Mark Simpson says, you're building your house on someone else's land. Driving traffic to your direct booking site, if you have one, can definitely be a challenge but I personally believe it's becoming more important all the time, particularly for STR.

Most cities have REIA groups for local investors to network. As more and more investors are focused on MTR and STR you're likely to find them at these meetings. I always find REIA meetings great for networking with local lenders, contractors, property managers and other like minded investors who are usually willing to share referrals.

Quote from @Brent Bagen:

I am struggling to choose the right app for me. I know that bigger pockets kind of promotes rentredi. But I seem to read a lot of negative reviews from tenants and it is concerning. Is it really the best app for me to go with? Turbo tenant sounded pretty good, but it doesn't have nearly as many downloads either.

I use Baselane. What I really like about it is that it's a banking and bookkeeping platform that also allows me to manage my tenants. I'm a big fan of streamlining and I just really appreciate that everything is in one place now. I can quickly create bank accounts for each property, the categories for tagging your transactions align perfectly with your Schedule E for taxes and I can do all of my tenant related functions like tenant vetting, lease creation and collecting deposits and rents. And it's free, so that's a huge plus!

No, it isn't. First, if it's priced right no one will care. Second, it would be very easy to either paint that rock to tone it down a bit or place a container plant in front of the wider section of gray rock to camouflage it slightly. Otherwise, it's a really attractive property!