All Forum Posts by: Christopher Schmidt

@Anthony L. If you break even each month, it will be difficult to build 'wealth' or have income until that property is paid off (and you won't be able to pay off early without extra cash).  There are many properties in Rochester that offer positive cash flow so don't rush into it.  I've purchased a house that had 'everything replaced' but I've been hit with big bills unexpectedly...so if you feel the urge still without cash reserves (or the ability to build one) I hope you have some credit you can tap into (which it doesn't sound like do).  There are always deals, if it were me I would sit this one out.  What neighborhood/zip code you looking in?

Chris

@Peter Grosso I also use the following to do research on a property:

https://gov.propertyinfo.com/NY-Monroe/

@Bob R. welcome to the forums.  I spent some time too reading before jumping in.  I lived 14 years in Brevard, left for two and planning to return in Jan-Feb to make real estate more of a career focus.  I have 1 rental in Viera (wish I bought more 2-3 years ago) and my parents have 2, 1 in Melbourne and 1 in Palm Bay.

Looking around it still seems like Palm Bay has opportunities for lower cost buy and holds, though its hard from South Carolina for me to tell.  I think Port St John is pretty similar too.

Good luck and hope to meet up next year :)

Chris

Thanks, it's a journey lol...but I'm hoping to realize the dream.

@Larry Turowski and @Dustin Kester  I'm fortunate with my current PM, he's actually scaled down but used to operate under a company named Safe Harbor Management.  He's a friend of my in-laws (I wish they told me that before I signed up with the bad PM) but I keep trying to convince him to partner up and scale up again =)

@Shannon Sadik best of luck, once I got a rhythm, I've been fortunate.  Now if I can just scale it up some =)

Chris

I think this a good time to reflect as 3 years ago this month (August 2011), I purchased my first rental.  It was an out of state duplex, in a not so nice section of Rochester NY.

At the time, the rental was 1 of 4 properties another out of state investor owned and was looking to unload them all.  I originally visited this property in February, made the offer within 30 days, but it was contingent on certain repairs and a new Certificate of Occupancy (hence the 6 months between offer and closing).  The repairs weren't too bad, and the property was overall in good shape (roof, HVAC good) but a bunch of little maintenance things and exterior paint.

Each unit was 3 bedrooms, 1 bath, about 1200-1300 square feet each and were very clean.  When I took ownership in the property grossed monthly $450/unit or $900.00 and was 'professionally' managed by a company up there.  Issues started within the first 90 days, but mostly with the management company.  I was begging for my money, not getting communications, repairs were being made without consent or communication, each statement (if I received it) was a surprise.  I wanted out...didn't want to hassle or the risk.  As a few more months went on, I felt like I was never going to get a head. I almost quit!

Then, I was fortunate.  Through some networking (and prior to knowing about this site) I transferred management to another company.  I was looking for someone who would over-communicate until I could get that trust built and know that my interests are being protected.

Fast forward to now (and the reason I put this in the Success Stories section) is I hardly need to talk to my PM anymore.  More importantly, this month not only marks 3 years for me, but also a month where a tenant turnover situation allowed me the opportunity to increase the rent an additional $75 a month.  Working with a good PM (as well as a good market) has allowed me to effectively increase the rents of each unit, that my gross is now $1175 combined, or $275.00 / month increase from 3 years ago.

I hadn't actually sat down and thought about the big picture growth until this new tenant moved in on the 1st of August.  I thought it could be motivational for some ;)

Chris

@Anil Samuel I had similar issues with Wells Fargo (Also a customer of buyout chain since 1996) and when I applied for a HELOC on a rental, it was totally disorganized and there was no communication. In fact, after complaining twice, I let the application lapse and took alternative measures.

Where in Central Florida do you invest (did I miss it)?  I had been there about 14 years, will be back in January/February time frame?  I'm still cautious on the market where I am from (Melbourne).

@Walt Payne Are you hitting 2% in Sebastian area?  That's not too far from where I was/will be (and a nice place to take the jet ski's too).

Chris

@Scott Carre Welcome to the forum. Are all your SFR's in the Florida area as well?

Chris

Any Brevard folks out there know who has "good" deals on insurance for landlord policies?  One of my parent's townhomes in Palm Bay, a wood frame property, was recently re-quoted at $3,000 / year...yikes.

Thanks

Chris

@Shannon Sadik he's actually a friend of my in-laws (who live up there) and only has a few properties.  He scaled back years ago, due to the stress lol...but if interested I can pass your name along. 

His rate is typical for what it seems up there, 100% first month, 10% subsequent on what is collected (not what is due).  6 month guarantee, which I think is important in lower income areas.

Chris

@Tou V. I've had good luck in the Rochester area as an out of state investor.  Two duplexes in some of the rougher neighborhoods, but with good management in place, I've had little issues.  I'm working on my third property, another duplex in a (nicer) area of the city...

I admit, I had poor management before and almost threw in the towel.  For me, that's made all the difference.

Good luck!

Chris