All Forum Posts by: Brandon Penn

install either motion sensing lights or a switch that is a timer so instead of turning the light switch on they are turning the timer on for 5-10 minutes

Great post Shiloh! This is why I don't look to keep leveraging my properties. While they don't make much now, as long as I let them get paid off over 15 year term I can retire at 45 with quite a bit of money coming in every month. Rentals are a get rich slow game, and as long as people go in with that mindset it is a great form of investing for retirement. The other option as you said would be to grow the business to a point where you can afford infrastructure to manage the rentals which will take a lot of doors.

The cap rates have gone down in my area (Erie, PA) but we are still seeing decent returns. Cap rates 10-15% on 1-4 units. Larger deals are harder to find and have been closer to 7-8%

I would suggest working that job and work on your credit over the next couple of years. Save up as much money as possible and then purchase a multi family with a residential loan. Live in one unit and rent out the others. It will get your feet wet with managing tenants to see if this is something you really enjoy doing and you can get in with low money down and a 30 year amortization which makes that cashflow better. This will also give you the experience that you can offer to potential partners.

I have many tenants that after seeing their decor, clothes they where, etc that I know we have a lot in commmon and could probably be friends, but I would never. As a landlord you should always keep a strict divide between friendship and business. That is one of the most common reasons landlords flame out. They rent to family/friends or become friends with their tenants and this allows for said tenant to take certain liberties like paying rent late or not at all because hey whats a few hunder bucks between friends right? I even go to the extent that I RARELY ever rent to my friends. In the 9 years and 140+ doors I've only rented to two friends. In both cases I sat them down and made sure they understood that there was me as their landlord and me as their friend, and they would not mix. You miss rent I will evict you. Then you can call me later and we can have a beer and talk about how your landlord sucks, but there is a very strict divide there and while I have had luck, I strongly advise against it.

Hey Dalya, I don't currently manage in the corry area but could consider it if you plan to expand in the area. Otherwise Marsha Marsh Real Estate Services has a precense in the Corry area and I know they do some property management.

Take the money, and move on. Not worth the headache or time when you could put that money to use somewhere else.

So taking a 1,000 foot view from what you have described, and being a Realtor myself, it sounds like they are trying not to get themselves into trouble. Technically as a real estate agent, we are not supposed to give you advice outside of our expertise which is real estate sales. For instance I have over 130 doors, most of which needed full rehabs so I am very familiar with renovation costs. However I'm not a licensed contractor so am not an expert in that field. To give an example of how this could be a problem. I know a foundation issue could be fixed for 5-10k with a repair, and I tell you that it isn't that big of an issue and what I think it should cost, and then you hire a foundation guy who will only rebuild the whole wall which now costs 30k you could turn around and sue me. What an experienced agent should do is say "in the experience I have had this has what I've paid to correct the issue, however you need to speak with a proffesional in the field", and then I would give you the phone number for said proffessional.

Brother, if you are look for buy and hold let me tell you about Erie pennsylvania. You can buy a duplex with tenants or rent ready for renters between 50k-70k with rent values of 500-650 per door. We have a ton of development coming to the area and I personally believe we are going to see a boom here in the next 5 years or so in values.

I know 2020 has been tough for a lot of people with the pandemic and everything, so I don't want to come off as bragging or unempathetic but I think it's important to share the good things that 2020 has brought. I have honestly had one of the best years for my business and personal life.

In March of 2019 I purchase a large portfolio that brought my unit count over the 100 threshold. It had about 30% of the units vacant and in great disrepair. From March until now, i've been able to renovate all of the original vacant properties and rent them out except for about 6 units. I have had a lot more come vacant that needed major repairs too, but i'm don't to about 15% vacant for this portfolio now.

My laundromat had an increase in revenue by 50% and I believe the pandemic actually had a lot to do with that. 

I got engaged and have a great family life. 

For 2021 I really want to leap to the next level. For my rental business I plan to be 98% occupied by the end of Feb. I would like to purchase a mobile home park by the end of the year. I would also like to see my laundromat go from gross income of 120k to 150k with it increasing to 250k by the end of 2024. I want to vault my real estate sales business and property management buisness to the next level as well and hire an assistant to help me keep expanding. For my personal life I want to educate my children in investing and spend more fun time with them. I also want to help my fiance reach all of her goals, and continue to keep the spark alive as we plan for a future wedding.

How was your 2020? What plans do you have for 2021?