All Forum Posts by: Bryan Bagge

@Justin Repp I have thought about getting a property to owner occupy, however if I do it will need to be closer to Boston where I work. For work it makes most sense to do so, but I am willing to continue my commute from Berkley to continue investing in more properties that I can afford south of where I live and that is my dilemma. I am trying to balance wise investing with practicality so that I do not get in over my head in either real estate or my full time job.

@Lee L.I agree. In my opinion, these cheaper areas are economically improving. Over 1,000 jobs will be created in the next year in Fall River and they are investing in a lot of construction for the community. However, violent crime rates continue to rise and that scares me as an investor.

HI all,

I own a multifamily home in a nice section of town with a short walk to downtown in Newport, RI. This area is an hour away from home, expensive, but it offers great return and appreciation.

For my next purchase(s) I am looking at areas closer to my current residence in Southeastern Massachusetts for ease of maintenance and also extremely cheap properties. Multifamily homes are consistently listed for $100-200k and its very tempting to want to jump right in. The economics of the area is drastically different, however at that price properties can still cash flow.

An experienced family member told me that just because the numbers make sense, doesn't necessarily make it a good investment. In lower income areas, the biggest concerns brought up were quality of tenants (how they will treat the property and ability to pay rent on time), and also the limit of potential value. His opinion was that its better to own the worst house on the nicest area, than the best house in the worst area. I agree with that philosophy, however I am eager to jump on a deal and continue to build my portfolio. With the money I have saved, my options seem limited to the lower income areas. Do I continue to save and buy a building in a more stable city? Do I act now and invest in a cheap city?

I am 23 years old and willing to work hard to continue to purchase the right properties. I am looking for advice on peoples experience/thoughts/recommendations for a young investor with about 20k in savings. 

I have a tenant that I have a similar problem with. In the beginning, we had bigger problems to worry about, and we let him off not paying late fees because we were the new owners and as that, we wanted to start out by offering some kindness and was just happy about getting the money as long as it was all there. Fast forward over a year later and rent is consistently late, and paid in small increments rather that the full payment.

He has had medical expenses and again, we decided to try and work with him instead of being stern as our lease states about late payments. For the future, I will not be lenient about this because I feel that by offering slack that first time, I set a precedent that my tenants needs come first and that paying rent comes second. 

He is currently on a month to month contract and has stated that he intends to move out when his son ( a senior) graduates high school. We have decided to just ride this one out a few more months and start fresh by sticking to the policies we have in place for future tenants.

I am only 23 so I call it a valuable lesson about being too nice while handling business.

I own a property that is a little over an hour away from home, and even that can be a burden for little things such as a leaky sink, changing a bulb, collecting coins from laundry, etc. A simple task can eat up much of my free time. I have however been able to network with a handyman that works for a nearby University and he has been a huge help for us on minor repairs. Having someone I trust fixing and reporting to me has made things easier.

For future investments, I am looking into areas closer to home so that I can have more of a consistent presence on my properties. In the end, although my handyman has been a big help, it still costs money for things I could easily do myself if my property was in my own neighborhood and my schedule allowed me to do so. At this stage in my investment career, added expenses hurt.

I reccomend asking to see track records of their work, following up with other investors they work for and driving by some of the units they currently manage so that you can be assured your property is in good hands. If you decide you need a property manager, it is a must that you can get value out of the deal.

Best of luck.

Awesome, looking forward to it.

Welcome. 

I would definitely start with the podcasts. No matter what you know, each property is going to be a new experience with new lessons. The podcasts are a good way to hear about all kinds of scenarios and models to plan your business around.

Do your research, and don't be afraid to jump in if you think you can do it.

Best of luck.

@Mike Henkel,

My real estate passion started with paying extreme rental prices in college. I couldn't stand to watch my landlord double up (probably more) every month with my rental payments.

My first purchase is near a college and I know that I can get significantly higher rent from students...

However, I know first hand the damage a college student can bring to an apartment/ house/ neighborhood. 

Have you had any issues with damage not being worth the higher return? What have you done to limit this risk?

I have used my Realtor to help me with leasing new tenants. I trust them with financial screenings and background checks. It is in their best interest to supply good tenants so we will continue to use them. 

I understand it costs a percentage, however, in my experience with both good and bad tenants it has been well worth the price. 

 I am new, my advice should be taken lightly.

However, I can say that it really depends on your learning style and how you can adapt. I tend to over analyze and plan so far ahead that I never actually take step one, and by the time I do all other steps have changed.

I learn better under pressure, in the moment. I can adapt and react because I have at least a base knowledge, and excellent resources around me to fall back on when I can't make a confident decision. Throughout my ownership of this property I have learned far more than I did when I got started.

Write down everything. What problems may come up, how you can fix those problems, and is it worth your time to do so. If you can answer those questions with confidence, I say go for it and begin your journey. If you are determined to make it happen, you will be able to adapt to problems along the way.

The podcast has taught me that not everyone knows much when they first get started. Even these millionaires on here wake up in the morning and put their pants on one leg at a time like you and me, the only difference is that they took the leap and learned from their mistakes.

Have goals and don't be afraid to challenge yourself.

My first experience is a success in progress as circumstances around it continue to change.

My first real estate purchase was a four family home in Newport, Rhode Island. I was fortunate to have my parents with me to co-invest as it was beneficial for all of us to be involved. 

In the past year I have learned a lot about what it takes to be a landlord. I have had great tenants, awful tenants and few with only minor complaints. Newport is a great area for a landlord because we are able to provide housing for the nearby Naval base and with that come generally accountable, respectable and reliable tenants. 

I have had the experience of being called at midnight because the heat is not working. I have had to call out of work to deal with leaks in my basement. I have had to develop payment plans with a tenant with unexpected medical expenses that came before rent. I have had to evict a tenant for not paying rent, and refusing any cooperation from us. 

That tenant was just evicted last week, and now my dedication is being tested as I need to clean/ fix up the 3-bedroom unit in addition to my working two jobs and trying to be social at 23 years old. I can't afford any delay because every day it is empty is potential money lost. 

We purchased the home with all units initially occupied. Our screening of new tenants has had great success, our problems came from the ones we had inherited with the purchase of the home. Moving forward, I am comfortable with our decision making as it has so far lead to well qualified tenants that care for our property as much as we do. 

All of these experiences, and what lies in the future, is a success to me because good or bad it was a learning experience. I continue to read, listen to the BP podcast and have just started to engage in forums to learn from other investors. I have personal experience to apply to lessons I learn along the way and am more well equipped for my future real estate goals which include more rental properties. I am eager to start investing in more properties soon.