All Forum Posts by: Christopher Schmidt

Thanks, I was curious. I know that the state aid (DSS) does direct deposit too but it is the difference that the PM is collecting. Now he only has a small business, but as both he and myself scale our respective businesses, it seems that it would benefit him to get tenants for my property (and his other clients) to be a little more self-sufficient in making payments, but I suppose I don't mind being the 'biggest' client should he chose not to scale...as long as the rents are paid. Thanks for the input!

Chris

This goes out to the property managers out there. Most property managers I've dealt with have as part of the rent agreement included a mailing address for rent collection. My current PM (in Rochester) though actually goes out and collects the rent (he doesn't charge) because he believes they won't typically pay otherwise. I'm curious, for those who have tenants in Section 8 or State Aid Programs, do you find it similar experiences. My previous leases, with other PMs always included mailing addresses for rent collection. I can't say I'm upset he's willing to put forth the extra effort =) but I'm always curious how he'll ever expand (should he choose to).

Just curious...

Chris

@Carl Gryska - That's how I got started in Rochester, my in-laws are all in the area and we found that we frequently visited and saw that the properties offered good cash flow. So now we kill two-birds with 1 plane ticket...

Property Management was important though, my first PM was horrible and almost ruined the experience. Second time around was much better.

Good luck!

@Shawn O'Shea - You and me both...I've been in information security for a few years now and have the same plan. I'm actually up in Rochester this weekend checking out properties, though I invest in the area from out of state. Welcome and Good Luck!

Chris

@Mark Updegraff - Thanks...PM sent.

Those are some of the ones that seemed likely candidates...do you have any experience with them?

So after listening to Podcast 55, I'm curious if anyone has any experiences with more RE investor friendly banks or credit unions in the Rochester NY area? I think it provided some excellent insight and I'm looking to try and take advantage of it...

I currently have 2 duplexes (~60-80k in value) as collateral in the area (I am out of state which I am sure complicates things)...but have a good income as an IS (InfoSec) Manager...if anyone's had luck with any 2 regional banks or credit unions, I'd be interesting hopefully following your results. I'm itching for a few more properties up there...

Thanks

Chris

@Douglas B. I currently have 2 duplexes, each cost 30k and the cash flow numbers do generally look good. I purchased them because it was the easiest for me to get into given the low prices.

I admit, I've been lucky compared to other folks, but the cash flow does catch up with you. Just today I was informed that my tenant had a small kitchen fire, almost every month one of the apartments has a water leak, electric outlet issue or something minor. Fortunately I don't deal with it, that's what my property manager is for. Thus far the cash flow is still positive, but it certainly feels like a drama at times.

I've had tenants come and go, complain about drugs in the neighborhood (knock on wood no murders yet)...I was offered crack once driving through the nearby neighborhood to check on the properties...

I hope it's a transition, build experience with a limited investment, then move on to advanced opportunities for me. It really was my 'piss or get off the pot' move.

Good property management helps a lot...I'm fortunate at the moment to have that now.

My first property was a duplex in a different state. While I had some ties to the city (Rochester NY), I didn't realize:

1 - Multi-Unit Properties required the owner to pay the water bill.

2 - Taxes in Rochester are not straight-forward like what I was used to Florida.

3 - Not all property managers have your best interests, I felt like I was ripped off by my first company.

All those affected my cash flow projections negatively, but a better understanding or 1 & 2 combined with raising the rents to more marketable rates and getting rid of the company in 3 helped me become a little more comfortable with my next 1.5 purchases. (The .5 was a primary residence to rental conversion).

@Jessica G. I left a property management and paid the termination fee because I had similar experiences and I dreaded dealing with them (so much that I wanted to give up altogether). I got tired of them not paying me on time, doing repairs without informing me and renting under market value.

Since finding a better property management company and building up the trust I wanted...I don't worry about being involved. As for the fee, I agree it's worth a little more for the service you want...in fact, I find ways to reward my property management company...our long-term success is co-dependent.

Best of luck.

Chris