All Forum Posts by: Brian Simmons

How did the tenants react to the first rent raise? How is your relationship with them? By now, you probably know them at least a bit and have a good feeling if they'd move or not over another $200...especially when it'd still be a great deal. I think you could run you plans by them now, well before the rent raise. Explain to them (and even show them) comparable rentals and how much more they cost even after your rent raise. They can see the numbers for themselves. If they move, wish them well. It sounds like a nice place that you won't have trouble renting out. And don't go too crazy on fixing it up if it does become vacant because it sounds like it's already in pretty great shape. Sometimes landlords put too much money into their rentals.

I agree with Nicole.. But there is something to be said about keeping really good long term tenants, even if the rent is a tad under market.. An extra $200 per month doesn't go very far if you end up with turnover every year or two.

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Originally posted by @Ray Hespen:

Software is the big mover in the industry. The ability to automate more mundane tasks as well as make current tasks less burdensome.

There are new systems that will do the pre-screening for your residents - tenantturner.com

Also, the ability to have software coordinate and follow-up on repairs for you and your vendors/maintenance - propertymeld.com

Software systems that allow for investment properties to roll into your accounting - smartpropertysystems.com

All these tools allow investors and property managers to handle more properties without bringing on additional overhead.

I hope this helps!

As much as I would really, REALLY love to have a robot painter, Ray Hespen is right. We invest primarily in rural areas, and software has made that a very profitable niche. We collect rent online, receive maintenance requests online, etc.. It automates the majority of the process so the tenants don't even remember your office happens to be 150 miles away.

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Originally posted by @Derek Gendig:

Thank you @Sam Valme & @Jason Hartley for your response. We are currently using Propertyware but are making the switch to Appfolio for a number of reasons. The only feature that kept us holding on to Propertyware for so long was the ability to use what they call Task Templates. Within Propertyware, we created a series of task associated with an occurrence such as a new lease being signed. Of course when a new lease is signed, there are no less than 18 tasks that need to be completed from creating a folder to sending welcome emails, coordinating move in inspections and more. With Task Templates, we were able to create a list of all the tasks that needed to be completed, assign them to members of our due with due dates, all relative to the creation date, and distribute with the click of a button. This gave us the ability to move as a unit while focusing on our individual task. So we are looking for the same functionality with the added ability to populate directly to everyone's calendar, send notification when new tasks are created and integrate with all devices we use...and of course give our portfolio managers ability to run reports to ensure timeliness and thoroughness. We really like Wrike but its too expensive. I have found similar software for free but I was hoping to cut down on the research and trial hours by asking you guys!

Derek,

We have been using appfolio for a year and a half and LOVE it! The only down side is some of the communication - task oriented projects don't flow as well as we liked, so we supplement certain tasks with asana. The combination of the two programs has saved us a rediculous amount of time. One thing I have been extremely pleased about with appfolio is ther constant improvement and upgrading to the system. In the last six months they included a text to tenant feature that was of course included with no upgrade fees. Good luck!

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Robots that replace my maintenance workers.... I can't wait!

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Originally posted by @Karla Talancon:

Hey guys I am new to real estate investing. I am a recent graduate went to school for urban and regional planning. I've been doing some research and have decided to invest in Chicago, Indianapolis, Kansas City, Atlanta, and Jacksonville. Any tips or suggestions? Are people that are looking to invest in out of state for high cash flow also looking at these areas ?

My reasoning behind these cities and with the help of US Census data I looked at population growth, rental vacancy rate, diversified economic drivers, judicial states (where the foreclosures take longer), landlord friendly states, affordability, percentage of renters vs owners, median house value, median income.

Karla,

I actually moved after college from San Diego to Missouri to invest for exactly the same reasons you mentioned. If your goal is cash flow, your definitely on the right path.

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Originally posted by @Zach Quick:

@Tzvi Balsam I think your definition of sucker is probably different than most. By and large people aren't going to overpay for what the market thinks something is going to cost. Sure there will be some blue moon purchases but different investors have different goals with their money like you stated above.

LOL... You must not have invested 2004-2007...

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Watch out with cap rates when talking to brokers. They rarely give a true cap rate... They like to use "pro-forma" cap rates (what the cap rate COULD be), but convenetly forget to leave those words off the listing... That could be where some of the confusion lies.

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I hear a lot of talk about how 2% is near unobtainable unless it is a c class or in an undesirable neighborhood.. In many areas of the country that may be correct, but in other areas, you can obtain 2% or higher with solid b to b- properties. (Or at a minimum, c class you can turn into a b) It just depends on your market, and more importantly how good you are at finding good deals!

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So the rules seam to change monthly when it comes to fha loans, but I know as of a few years ago you couldn't have more than 10 properties to qualify for fha.. (Actually it was 6 for a bit, then 8, now 10) So if you refinanced any number of your houses to commercial, it wouldn't matter... You still have 10 properties, you don't qualify. Double check with your lender on this because like I said, things change often.

As for moving beyond 10 properties, I love using small local banks. With a good credit score and a good DSCR (debt service coverage ratio). They tend to be much more flexible then the big banks. EVERY bank is different and looks for different loans at different times, so if your rejected by one DON'T GIVE UP! Last year I was flat out rejected by one bank I have done a ton of business with on a project, and had another give me zero down terms for the same project.

Finally, the best way to buy properties if you can swing it is using the BRRRR method blogged about on bigger pockets..

Good Luck!

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Anyone ever deal with HUD 515 apartment complexes? I have an opportunity to pick one up for cheap, but am afraid of paperwork requirements! It is not your standard section 8 vouchers...

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All Forum Posts by: Brian Simmons

Brian Simmons has started 4 posts and replied 41 times.

Post: Long term tenants

Post: Next Big Thing

Post: Property Managers....What Process & Procedure Software...?

Post: Next Big Thing

Post: High Cash Flow Markets

Post: Are there alot of stupid investors out there ?

Post: When an agent gives a range for an area's Cap Rate

Post: The 2% Rule

Post: Hit 10 Mortages - How Do I Continue From Here?

Post: Anyone ever deal with HUD 515 apartment complexes?