All Forum Posts by: Bryen Blankenship

Hello BP 

I'm trying decide if I want to do PM myself or have a PM company help me. I'm buying a duplex and one side of the duplex has an existing tenant with a lease already in place. If I were to do the PM what steps do I need to take to transition the current tenant over? 

Thanks in advance for all the help!

Bryen

I've been analyzing deals in the Austin & San Antonio Metros for some time. The craziness we are experiencing right now started in January of this year. I know the craziness has been happening for a bit in the city of Austin, but it's spread to every sub market.

I can't wait to see what happens to the housing market when the dams the federal and local governments created are dismantled. The big unknown right now is what is the vaccine going to do for people's confidence? If prices start to fall even the slightest bit will this trigger a wave of people listing their house in fear they might miss out?

It appears to me we are still not in a normal housing market with covid still effecting peoples confidence in feeling safe from the virus and the moratoriums still in place. The government can give away all the money in the world, but if the people don't feel safe to spend it then it doesn't matter. Let's see what happens when people start to believe covid is behind us. This will give us a better gauge of what the future holds.

P.S - Still grinding to land my first deal of the year. Trying to find something on the MLS that makes sense just never pencils out. If there is anyone who is doing direct mail marketing and would like help let me know. I'd love to learn the processes someone uses to find deals.

Has anyone used an escrow company to collect payments they would recommend?

@Joe Splitrock @Bob Norton - Thanks for the insights.

To be fully transparent I haven't talked with the tenant personally so I'm not sure what the hang up might be. I'm trying to fully understand the this process before I speak the tenant about any of this. It seems like this would be a win win situation for the both of us. I'd actually be able to increase my take home cash and have zero headaches of operating the property. That is as long as they continue to make payments. 

@Joe Splitrock - You mentioned I need to make sure there's enough meat on the bone to cover added risk. Can you give me an example of what this would look like to you in a hypothetical situation?

Thanks again for the help. 

I have a fully paid off rental property with a solid tenant in place, but it's in a state with high property taxes (IL). The current tenant wants to purchase a home, but doesn't have a down payment larger enough to qualify for a loan. I'm thinking about doing owner financing and carrying the note. By doing this I can avoid a few things:

1. Paying increasing property taxes

2. Paying property management 

3. Paying for property insurance

Because the property has increased in value I believe I can increase my monthly profit by a couple of hundred dollars and avoid the headaches of managing the property. My question(s) the BP community is what are the steps I need to take in order to make this happen?

This is what I believe I need to do:

1. Create a promissory note 

2. Collect a down payment (10-20%) of purchase price

3. Transfer title

Thanks in advance for the help!

Hey @Ryan Copeland, I looked through my notes but I don't think I kept the details on this specific property since I didn't make an offer on it. Sorry

@Johnny Wolff

Thanks for the feedback! I can't wait to see what Austin looks like. I was there in 2013. So I'm sure it has changed. I'm from the Bay Area and the growth I've seen over the last few years is amazing. Do you have property in Austin?

@Craig Curelop thanks for the reply. Investing out of state does have it's challenges. I have a couple of properties in Chicago that are doing well now but definitely had a couple of bumps in the road along the way. Finding the right PM company is key for out of state investing success.

I'm looking to purchase a small multi-family property (2-6 units) in either Denver or Austin metro. Overall cost of living in Austin is cheaper, but the property taxes are much higher than Denver. Both markets seems to be very hot and a lot of people are moving to both locations. I'd like to find a cap rate of 7 or higher in a C+/B neighborhood. I'm in Denver now and cannot believe the amount of construction going on especially in south Denver specifically in the city of Parker. Unemployment in Denver is currently higher than Austin. 

Thanks in advance for your input!

Bryen

@Jaylan Bailey

Well not great because the taxes cut into profits, but it cash flows well enough. I'm exploring selling my priorities and moving to a different market due to the high taxes & decreasing population.