All Forum Posts by: Brian Barfoot

Nice work @Will Chamberlin. Glad to hear things are staying steady for you. I'm getting financing for another two or three soon and then we'll probably sit tight for a while too. 

I'd vote cash flow every time. Appreciation is a gamble whereas cash flow helps with later financing (improving your income numbers) and is more of a guarantee even if there's really no such thing. From a morale standpoint, seeing the balance creep up in my account every month just makes me feel good and reminds me that this is building towards a healthy early retirement. Rising assessments just don't do the same for me.

Thanks @Russell Brazil. One caveat: The agent I've been using has been helping with properties exclusively for one LLC. I'd consider using the new agent for properties for my own portfolio separate from the LLC. Still a faux pas?

Thanks for the thoughts everyone. This was actually a more conservative tone than I expected. I'll check with the first agent and see where their rules and comfort level lie. Some of my issue is that my first agent and broker are in their 60s and there is a condescending tone when I talk to them. I think they can't help acting paternalistic but it doesn't feel like they are fully listening to what I want because they have an attitude that they know better. They are also probably close to retirement and I'd like to foster a working relationship with someone who I can grow with. The third, obvious, aspect is that they usually help families so they don't have the investor's eye and I don't know if they have it in them to learn. I know it sounds like I'm being ageist but if I want to keep at this for 20 years I have to be realistic.  

I've been working with an agent for a while and I've had success with them but I'm interested in having other agents help me scout for deals as well. Are there ethical issues with asking several different agents to look for deals within a certain criteria? I would follow through with whichever agent brought me the deal first. Should I let them all know that they aren't the only agent I have on the hunt? 

Sounds like a pretty s#%+¥ experience. I try to make it clear in the lease what different things will cost (50 per door, 120 for a bedroom carpet, etc) but replacement cost minus reasonable depreciation is the best way to go if it wasn't spelled out beforehand.

I've been operating on the old-school mail-the-check system which has worked well enough but I'd like to offer another option to the people who would prefer it. What companies/processes do you all use for this?

This is what I've been wondering for a buy and hold deal. If I find the deal, do all of the legwork, assume the mortgage, and manage the tenants, what should I offer to the potential investor who would cover the down payment and repair cost? If there isn't a cash-out right away (closer to turnkey) would I just give them all of the cash flow until they get their money back? Seems like a long wait for payoff on my part.

I'm looking into a similar strategy. Quite interested to see what folks say.

Christos Philippou has it right. I use battery deadbolts for every unit now and change the combo for each tenant. They cost me $60 initially and maybe $5/yr in batteries after that. Just make sure the lock slides easily. Once I had a tenant lock themselves (and their small children) out because they had adjusted the door a little without telling me and the motor wasn't strong enough to open the lock.