All Forum Posts by: Chris LumLee

@Jasmine C. this one's for you also...

The one I have now (MDPM) isn't that great. The staff is unresponsive so I always have to go to their Office Manager...and to be honest I think she's getting tired of me emailing her with problems (hahaha). When I first started I set up a call with someone there so I could ask questions about the lease, payments, etc. So when I called, no answer. So when I emailed "what's up" she said "was with the owner" and no attempt to follow-up.

Another time they sent me a notice saying that I had to provide an official copy of the warranty deed so they could transfer the water bill payment to the tenant otherwise they'd charge me a $25 fee for them to pull the record so I gave them what I had. They didn't tell me that what I had was insufficient so they charged me the fee without telling me.

Then another time they said they needed to do some repairs so I said okay. I emailed asking if they'll be taking the cost out of the rent and no response. Then I said let me know when the work was completed and no response. I eventually had to chase him down through the Office Manager.

The only reason I'm still with them is because I don't want to rock the boat and have the tenant go through any hassle in the course of transitioning out to a new manager. Once the tenant leaves then I'll revisit getting a new manager.

I have a separate sub-savings account where I direct some of the income from my rental into specifically for CapEx/maintenance. When I first started with my property small amounts were taken out of the rent but bigger amounts I paid on my credit card and then paid for out of pocket.

I'm new to real estate investing. I have one rental unit and was looking for more but not long ago a friend recommended that I pursue fix-and-flip versus buy-and-hold because if done well it would get me "cash in the pocket". So the question is...and I know this will sound stupid...is there room to do this anymore or is it already overcrowded?

Thanks for the insight! I'll be sure to check it out!

I have a savings sub-account at my credit union where I park leftovers for house stuff. I figure I'd want to keep that handy for when the time comes that something goes out...and it's easier to access.

Gentlemen, @Jack Inman and @Rashard Alomari ! Thank you for your replies and insight!

Hi!

It depends what your investment strategy is. For example, if you want to buy and hold to rent out the properties, no matter because it'll produce cash flow.

Like everything...it depends.

I would have factored in other items in my budget calculations. Instead of the usual property taxes, insurance, property management fees, and loan payment, I would have also added in CapEx and a minimum cash cushion in case a need such as vacancy or other repair needs to be made.

When I bought my rental I went all in just to buy. Luckily I have three jobs so I could eat the initial vacancy and expenses that came up. But definitely hold some back when you're getting into it.

I was in a similar situation. The tenant was paying closer to the middle of the month. The property manager (PM) put a clause in the lease agreement that if they're late three times then the lease can be revoked. After the second time I reached out to the PM to see if some kind of arrangement can be made to accommodate the tenant's late payment- whether that be move the due date to later in the month of whatever. The PM later emailed me back saying that the tenant's work pays in the middle of the month, which is why they've been late. At least they've been paying. So they worked with the tenant to move the due date to the middle of the month.

The PM also told me that the tenant was thankful for that. I suppose depending on when you 'need' the rent money, you may or may not be so lenient. I try to be accommodating because I would love for the place to have a renter once the lease is over.