All Forum Posts by: Brendan Miller

@Jessica Jordan just to clarify, when I say Phoenix I mean the whole Phoenix metro area including Mesa. If you are OK with taking on lower income properties in rougher areas, then there are likely some BRRRR value add opportunities in parts of central Phoenix. That model doesn't fit with my investment strategy so I can't give you much advice, I just know property is less expensive there. However, with lower prices often comes more headaches so keep that in mind

If you live in the Bay Area and only have $15K towards a property, then this might be your only available option to own your own property locally. Especially if you're going to be paying rent, then I'd evaluate what a typical PM makes in your area (i.e. if they make 10% of gross rent, then that helps you understand how much value you bringing). Ultimately it'll come down to a conversation between you and your future partner. If it was me, I'd first try to identify what % of ownership you are comfortable with within this deal, and then I'd pose the question to your partner what % split they think is fair. If what they propose works within the % you're comfortable with, then go for it. You didn't mention how many units this was, but if it's 4 units or less, then you may be able to secure a loan with FHA financing and have your family member co-sign the loan if you don't meet the income requirements. That would allow you to bring more to the table.

@Maxim Lorenz I've always allowed them to see the unit prior to doing the rental application and background check. I'd recommend including your application requirements in the listing (income requirements, credit score, background check ,etc) that way it'll help weed out any that know they don't meet your requirements. I think it could discourage some prospective tenants away by requiring them to fill out an application and pay a fee prior to even seeing the unit. I don't think there is a right or wrong way, it just depends on the landlord

@Jevin B., the cleanest way would probably be to create an LLC and an operating agreement for how the partnership will be split. You'll have to align on what the ownership split will be based on what each person is bringing to the table. It looks like the family member is bringing most of the down payment required, and will also be providing real estate services to find/close the deal, and you'll be providing property management?

@Jessica Jordan the Phoenix market is very competitive right now with multifamily. I'm looking in the east valley (Mesa), and you can find duplexes for sub-400, and quads for around 600, but the numbers aren't very good at those prices. If you have an agent, then you can have them call the listing agent/owner and say 'i have a client that's interested in offering at XX price, is it worth us submitting a formal offer' and see what they say. If they say yes, then you may at least get a counter back from them. If they say no, then you're likely not going to close the gap to get to 75%. Getting properties at 75% of list price isn't very common in today's market especially on the MLS, you'd have better luck finding those types of deals off market going directly to sellers.

@Viral Patel if the tenant is non-responsive after a week or so and several attempts, then I'd have your PM stop by in person

@Brandon Sturgill I'd agree as well that the owner should pay it, especially since the tenant has already been getting back billed for water usage

@Viral Patel I just did this with one of my rentals. I actually wanted to sell before the lease was up, so I paid the tenant a lease break incentive of one month's rent which I paid at closing. As part of this incentive, the tenant was required to keep the unit clean, be flexible with last minute showings (1hr notice), and be cooperative. It worked really well in my situation. I would just make sure your tenant is onboard, if they aren't then you may be better off not extending their lease and listing the property for sale after they move out. The condition of the home while the tenant is still living their could affect the offer you get on it, so you want to make sure it shows well if you're listing it while they're still in the unit.

@Jeff J Theobald I think it heavily depends on the market and what the demand is for furnished units. In areas with a lot of corporate businesses, then there is often a demand for short term furnished units for several months at a time and the rent is much higher than you'd get from traditional rentals, and less turnover than STR. I'd recommend researching your market to see how many furnished units there are, what they are renting for vs traditional rent, and let that drive your decision. You could also call some local property managers and they may know if there is demand for it

@Kwatelai Jones-Quartey I'm not fully following your question, are you using the refi funds for the downpayment, or are you funding the full purchase from the refi?