All Forum Posts by: Brian Johnson

Very good information with this question regarding PM fees.  I myself went from Landlord owner operator to hiring a Property manager when I relocated to Tampa Florida.  The set fee was 10% but once I handed over my 5 units they went down to 9%.  I have to say if I did not have my contractors inline to make the repairs.  The PM company would have really done a number on me with repair cost.  

I had one repair they called me about and just being curious I ask for there quote for the repair to fix a roof repair with rotten wood.  When they told me it would cost $1,000 I could not help but laugh and say I will call my GUY!  Not only did my contractor done roof repair, clean gutters and cut the large branch hanging over the troubled are for around $450.00!  Trusting people is GOLD 10X'S!!

The lesson to the story is find reliable contractors/ plumber/ electrician to do the work.  Post up on BP if anyone can offer any suggestions on good contractors in your area.  I think you it will be useful information.  

I go to some Real Estate investment groups in the Tampa Bay area.  It is another way to get to know like minded people.  BiggerPockets is a wonderful forum for knowledge and networking.  

Best of luck to all. 

@Robert Aurie that is a lot of properties!  That is great!

Based on your income spreadsheet.  I would pass on that deal.  I do not see a real profit each month.  Looks like a loosing deal.

Those are some good returns.  The best to you and your business endeavors.   

Welcome to BP Jacqueline and yes you came to the right place.  I wish I found this forum before i read like 20 books on real estate investing.  

Real estate is great to invest in if you have extra money and in the long run you will see it paying you in great dividends.  The buy and hold rental investment is  a long term investment tool.  For the average investor.  I would not expect to see positive return for about 5 years.  Keep in mind I my view of positive return is not until I recap all my money I put down on the property to buy it.  I do see many methods in buying but I am referring to just using a conventional loan. 

Being a investor myself and owned 9 units and now 5 units.  I would strongly recommend NOT to start off buying low income properties.  Low income properties has potential of greater cash flow but also comes with more hand on effort.  I had a 4 plex in low income and it was one issue after another.  It was not even my first but I wanted to try low income.  It was a great learning experience but so glad I did not start in it.  Otherwise I would most likely have zero properties now. 

A safe cash flow I like to see on my rentals are around 30% to 40% over my total mortgage/tax/insurance.  Anything over that is good for middle income properties in Tampa. This way u set about 20% back for maintenance if you need.  Also it would be wise to set back additional $5000 in a saving just to cover something major like a AC unit.  This is my safe zone of investing.  This makes me feel good about the property I buy.  Everyone is different and you need to find your comfort zone.

If you have any other questions  just send me a message. I hope this helps

I live in Tampa and I have to admit it does drop a touch below 55 sometimes.  I think this last winter it got around 45.  I came from Kentucky so any temperature above freezing is great in my book.  The cold spell lasted about 4 weeks I think.  

Anyway getting back to the condo vs. house. The condo is for sure the easy way with maintenance, and streamline a renting roster. As you know the Tampa Bay area has some very nice beaches. They are a hot tourist area. For the $250K price point you can find a nice condo but you also said you wanted to minimize HOA/ condo fees. Often those can be high and can destroy profits if not careful.

I am curious what do you consider high HOA/condo fees? I know you mentioned a home to by and rent but then once you work in remote cleaning crew, property management, repair expence, along with ALL utilities. Running a SFH (single family home) as a weekly rental becomes more difficult. You could pay a company to do all those things but once all the cost and expenses are paid. I would guess it would be close to your HOA/ condo fees.

Just something to think about. Once again I am curious about what your thoughts of HOA cost is to high? Trust me I feel the same way about paying a HOA for full ownership of a investment.

Welcome to BP,

You came to the right place.  

Just curious,  what size of multifamily units are you looking for?  Are you interested in commercial size or residential size building?   

@Kedian Jimenez I am in fact reading Money Master the Game by Tony Robbins. It is very insightful. I started reading it because one I am a huge fan of Tony R and I just rolled over my 401K to a IRA and was trying to get some tips. Great book!!!

Sorry for Hi jacking this thread to promote book reading. lol

 Investing is great if you have extra income to prepare for the future and to possible increase your wealth.  It is also slow for the most part.  

I think your main focus is to generate enough income to save and be comfortable.  I always treat my life like a business.  So my goal is to try and save 20% NET of my income every month.  I live on the rest.  If you ever read "The Richest Man In Babylon".  It explains save 10%,  well times have changed and in my opinion it is now 20%.  Once you can easily save 20% and you are living the way you feel good about.  Than take the 20% that you have saved over years and buy a investment. 

I also have read many books on RE investing.  Often the books explain in minor detail what goes on behind the curtains. Owning a investment property takes cash to operate.  You need to have set aside a good $5000 or more cash just for emergency money if something goes wrong. I am saying a $5000.00 and my thought are you would buy a property under $80,000. 

Maybe for starting try buying promissory notes or delinquent tax liens.  This can be a cheaper form of passive income.  Passive income is what you and everyone here is wanting.  Join a investors group.  Often these groups have trading day and you can get into these deals.

Good luck and I hope this helps