All Forum Posts by: Brandon G.

If this is in the wrong forum please advise and I'll move or repost in the appropriate place.

I'd like to explain my plan and see what everyone's opinion is.

I have been researching real estate through bigger pockets for about a year and a half. My wife and I want to start investing in multi-family. Currently, we manage one single family for the owner. It took my wife and I about 1 year to save up 10K and we have 6K in a reserve emergency fund. I was somewhat disappointed in thinking that it isn't even enough to beat the PMI on our first duplex and once we plopped down that savings it would take us a long time, though slightly less time if we have some cash flow to help fun our savings for the next property, to save up for the next. Then I began to consider our situation. We have an acquaintance that is wanting to sell a duplex. It brings in 600 per side and our rough calculations are we may get close to 500 per month cash flow. He wants 68K for the property and it was appraised not long ago for 100K. It currently has good renters and maintenance has recently been done and to our currently knowledge doesn't need anything at the moment.
I began thinking that if we were to go ahead, forsake beating the PMI, and purchase this duplex for 68K with 10K down we would have 40K instant equity, which we could then use as two down payments for two more duplexes.  Because we aren't seasoned, I would want to wait and learn as much as we can from the first duplex before purchasing the second, then own the second long enough to try to learn to streamline managing the 4 units and then move on to purchasing the 3rd.  Hopefully, this could all be done within a year's time.  This seems to me the best way to leverage our 10K.

Thanks,

Brandon

We started using Smartmove and it is awesome.  It takes away an enormous hassle.  Thanks to everyone for the feedback.

Our tenant has passed all of our criteria and seems like the best candidate of all that applied.  They would like to add an above ground pool, which would be OK with us, but I would like to get you guys' opinion on what stipulations to add into the lease.  For example, I'd like to add a provision that it must be removed by the tenant by the move out date.  If not, they will be responsible for the costs.  Also, I'd like to add a liability waiver and that they must follow all local codes and laws.  While I'm on the topic, do you guys add provisions for things like playground equipment like swings or on-ground tree-houses?

Thanks,

Brandon

Thanks everyone for the replies.  Jennifer, that's really awesome advice.  I never knew about Postlets and that's exactly the kind of think I was hoping to learn about.  I have been somewhat of a hybrid between a showing time and working with their schedule, giving them the option between two days and scheduling them 15 minutes apart, which of course causes overlap because of late shows, but I think giving them the option of one day and having them all come at tone time sounds like a better way to streamline and definitely worth the risk of losing a few potential renters versus the enormous amount of work required to meet everyone's needs.  
At times I question myself about being too harsh because my experience is other's in the area don't take this more professional approach, so I'm glad to hear this feedback from others because my experience thus far has shown that much like when I was a substitute teacher, you have to lay down the laws and expect them to act like children.  It's a shame people can't have more integrity, but it seems to also just be a reality of life.

I don't own any rentals yet but I took over the management of a rental.  It is our first one and we just had the rehab finished.  I know that lots and lots of calls are typical and no-shows are expected.  I've listed the home with signs on a well traveled highway as well as craigslist.

I would say my no-show is somewhere in the neighborhood of 80% or a little more.  Is this typical?  I have begun calling on the day of just to verify they still plan to show and that has cut down a lot of my wasted time.  Fortunately I do live near the property.  I also have scheduled many of the viewings on the same day so that I can show the property after work.

What do you guys to to try to cut down on no-shows?  I'm trying to learn (I have been listening to the podcasts for a year and a half now) so all feedback is welcome.  The website and forum have really helped me know who to screen out as bad tenants.  We're still waiting for the first of the applications to come back in.

Thanks,

Thanks to everyone for the responses.

I agree that not showing the house was not optimal but in the situation I didn't have a choice.  

Smartmove sounds like an awesome resource and I will definitely look into it but for now, to do a credit and background check do you look for companies that do specifically that or is there a financial or government building that you go to to have these done?

Princeton, thanks for the encouraging words.

Omar, I thought that a Private Note was perhaps what this website called a private message.  I found another way to send a message but when I tried to enter your name it didn't pull up.  I'll see if I can figure out how to send you a private message.

We took over management of a property this year.  I just put signs out Saturday and have about 10 calls on the property in the last 3 days.  I've been listening to the podcasts for quite a while and this is my first post, other than my introduction, so that's a pretty cool step for me.  It's funny because you can listen and learn forever but when it comes time to do it I feel like it almost all flies out of my head at the last minute.  Anyway, the forums and podcasts have been very helpful.

I'm currently out of town so I had someone show the house for me.  We decided to have a showing on Wednesay between 6 and 6:30 pm, staggering 5 different people that were supposed to show up between those times.  Out of 5 people only two showed up, just as others on the podcasts have explained.  I think having a showing with multiple people showing up is a bit unorthodox for this area but I think it really weeded out a lot of the potential problem tenants.  Those that were serious found a way to make it to the showing and were willing to make the effort.  

I now need to determine the best way for me to do credit and background checks.  I'm not sure why but I have this looming hesitation about this step because it is all completely new to me and I found I have a small amount of dread.  I would prefer to use a local store rather than an internet website and then when I find the credit score, I'm honestly not exactly sure what to do with it.  I've read online that mid 600s is passable credit and 680 and up is good.  

Thanks, Omar.  I sent you a PN.

Hey, thanks Omar.  I've heard The Alchemist referenced several times.  I'll check that out.