All Forum Posts by: Chris Sellers

Christopher,

Congratulations on the duplex!  This is how I got started too, great experience.  I switched over to professional management a few years ago, but used to manage my own up until I acquired too many to manage and work full time.

1) Search the common ones in your area / price range and use the most popular.  Hotpads and Homes.com are good here.  I'd be weary of Craigslist, a lot of traffic but less quality.  Don't forget a yard sign.

2)  Be clear for which day the rent is late, how the rent will be paid and the late charges.  Use your state's maximum in your lease and stick to it (e.g. late of the 5th of month, late fee of $70).  Also, be specific on pets (e.g. no pets, pet charges or size limits) and number of cars allowed.  I like to not allow any alterations, including paint, unless getting written permission from landlord.  Also like requiring maintenance requests in writing.  This way it's clear if you keep a deposit for them painting a wall purple that you didn't give verbal permission and if they complain in eviction court you never repaired anything, there will be a paper trail (or lack thereof).  

3) I signed up with a credit agency to check their credit, looked them up in the police websites for towns they lived it.  I called ex landlords to verify behavior and current employer to verify income.  Be sure to get them to sign a release for the credit and employer checks.    

Most important is the interview.  Good renters have situations and stories without holes that make sense.  Trust your gut.  If you hear inconsistencies or outrageous situations, pass on them.

Work on finding the right balance between providing value to your customer and being a firm landlord.  When in doubt, sticking to the lease is better than being a nice guy.

Good Luck!

Andy,

Congratulations on  your flips.  I was in a similar situation a few years back and talked to a few banks.  Two that seemed promising at first got really complex through the process.  The third bank (where I had my personal checking account) qualified me for a $60k personal loan on the spot.  Was something like 6% interest for 10 year term. 

Good Luck!

Matthew, 

I feel  your frustration and remember being in  your shoes.  Most realtors don't want to spend time with new investors.

First deals are mostly about the learning experience and getting things rolling.  Until you get a system down, expect to look at 500 houses online, drive by 150, walk the perimeter of 50, look inside 25, offer 20 and get 1.  This time isn't wasted.  You'll meet some pros during this adventure, grow your network and hopefully find that great realtor partner.   Most important thing is to have your $ lined up before you involve others and buy it right. 

Good Luck! 

Alec,  I've had success buying cheap 2-1s or 3-1s that were empty, rehabbing, renting them as high as possible, then selling to other investors for 85-100 x the monthly rent.  Also can be good to group 5 or 6 together for a portfolio to sell to bigger investors for more.  Most important thing is to buy them right.  Be ready to make a lot of offers.  Good Luck!