All Forum Posts by: Jeff Bridges

They were good for me starting out due to low price point and overall lower barrier to entry, but now shifting to SFRs because they offer the maximum control. Some risks I saw come to reality: increasing condo fee, board threatening to pass rental restrictions on units, including on existing landlords/owners. Luckily landlord advocated against it but it was touch and go at annual meetings. Good luck!

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Originally posted by @Drew Byrd:

I'm a wholesaler who uses cold calling as my one and only marketing method, as I'm operating with little to know money starting out. I use Spokeo to get the phone numbers of my leads, but I've found that the information is only about 50% accurate. Does anyone know of the best skip tracing technology available? I don't want to waste what little time and money I have.

I found an absentee owner using this service. They have folks that gather the stuff for you with quick turnaround. You get a membership or pay for one-off skip traces. If you want quality leads and fresh contact information, you usually have to pay for it. Otherwise you're just gonna get phone book published data.

https://findtheseller.com/

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Originally posted by @Ben M.:

Is there a quick/easy way to get rental comps, history, and vacancy rates?

Is a property manager the best resource for this type of info? I guess they would be preferable compared to a real estate agent?

I use zillow and renometer to get a baseline for area rents based on bedrooms. Then I hone in my estimate by searching live listings so I could view photos and compare like style properties and renovation trim so I can get an apples to apples comparison based on neighborhood and property type. If I'm buying the property with an agent, I ask my agent to run sale comps and also rental comps for the immediate neighborhood for similar properties. That gets me pretty accurate rental comps. Vacancy rates you can do a google search of the city and find area vacancy rates. I generally just estimate 8-10% for my calculations which is conservative for my area.

1 Vote

Originally posted by @Ken Virzi:

My first property (a condo in the Los Angeles area) was purchased when I was local, but by the time I closed I was moved to Miami with my job, so I became a long distance landlord by accident. Little problems happened and my tenant found someone to do the work. It did not cost that much, but it ended up being useless. Then I go with the handyman that the property managers for the complex use. Talk over the phone, develop a good relationship and think I have my go to handyman, I am stoked. I bring in a good plumber from a friend rec who is in the industry to redo a shower. He charges a lot (and gave me a deal) and left the finishing work for the handy man. Then I have a leak in the kitchen and need a plumber so I ask another investor in my complex if she has used anyone and I call this guy who has worked on a lot of the units in my complex. He seems legit and is also not cheap, but not crazy expensive. He has to redo some of the things the handyman had done and all the things the tenant's find did. So I thought I had a good handy man but apparently I didn't. Also this new plumber says the expensive plumber who re-did the shower put in one that was way too low to keep the water in, so the if the drain is slow the water pours over. This seems to never end. How long before you normally find your go to people? With the handy man, is it a matter of figuring out what he can and cannot do, regardless of what he says? Do even the best people regualrly make small mistakes?

Also, when it comes property management, wholesalers, etc. It seems I create relationships, let some go as a result of the interaction and do business with those that check out. Develop even a friendship built on trust, and do several deals together, then you start learning they have not been completely honest. Does it ever end?

I am still in this for the long haul, my place in LA is still cash flowing and appreciating and I am not regretting it all. This is just the one piece of the puzzle I cannot seem to figure out. We all talk about building a team, but this is not easy. Finding a deal is easy (may take time but I can do it), figuring out financing is easy (may take a lot of research, calling, paper work, etc, but I can do that), meeting people and building relationships is easy (I can do that), but building a team of those you can trust to do a good job, not rip you off, and be honest with you seems way too hard.

I had a go-to licensed and investor friendly renovation contractor... Until he picked up his business and moved to florida where renovations happen all year long and not just seasonal. On top of this, every time my farm area for buy and holds expands to another neighborhood, I end up having to interview new guys to do my renovations. So the answer is you might never have a go-to guy and need to go find your reia. I'm a member of one of the baltimore REIA facebook group pages and its a network of investors like me asking for referrals of top investor friendly contractors for every trade. Great resource to find if you could get a local one for your area. Its like virtual networking and I could find multiple referrals very quickly so I could get a set of bids and execute quickly without getting overcharged. Always use guys that are insured and licensed and get proof of each before signing the contract. Use the maintenance guy for low risk tasks like toilets clogs and basic tasks, but not renovations. Another idea is to use thumbtack (download on the app store) and quickly get multiple bids for maintenance and renovation work you plan in future. You list the work and the bids will come in from various contractors that are ready to start when you need them and will share pricing up front. They show reviews and qualifications of the contractor to help you do a better job vetting than just picking out of a hat. You can never be 100% certain but it at least weeds out the sham contractors and guys that will take your deposit and run.

1 Vote

Originally posted by @Ryan K.:

I have a tenant who's lease is up in July. I intend on keeping the tenant, but under a totally new lease. (The prior lease was from the previous owner). Do I "need to" send my tenant a Notice of Non-Renewal? If so, why? Also, would anyone suggest getting certified mail with a return receipt? I've already told my tenant a new lease will becoming if they choose to stay. I need to know the best way to approach this situation, as it will be the first time I've one this.

Thoughts? Suggestions?

I think you intend to send them a notice of lease renewal. A non renewal, would mean you intend for them to vacate and sets the wrong tone. See below sample letter I send my tenants. I would also be sure to get all of their contact info again to include emergency contacts etc. so you can maintain communications with new tenant. When you do your renewal, I think it would be worthwhile to review the important points you want to get across: no pets, no smoking, pay rent on time or consequences would be X, take good care of the house, you will respond in x amount of time for repair requests. When they respond they wish to stay, then you can take the time to prepare a new lease. I wouldnt waste time with a new lease until they confirm they want to stay. Also be sure to inspect prior to lease renewal in case you need to use it as leverage for correcting any issues before agreeing to renew or find something that merits non-renewal.

sample letter:

Tenant,

Thanks for being a valued resident over the past XXXX! We’ve really appreciated having you here this past year and look forward to continuing our relationship with you.

I wanted to let you know that your current lease expires on XXXX, 2018. Please let me know if you will wish to renew your lease for another year. The monthly rental fee will be XXXX.

Please note that I must receive at least 30 days notice from the date of lease expiration if you choose not to renew the lease. Additionally, a new lease must be signed prior to the lease expiration in order to avoid higher month-to-month rental charges.

Please email your decision on whether to renew and I will prepare and email a new lease for you to sign.

I hope that you continue your residency with us, but if you do not wish to renew the lease, we can provide a copy of the move-out instructions.

Finally, I plan to conduct a routine annual safety and maintenance inspection on XXXX. Let me know if it's ok for me to stop by for that inspection.

Let me know if you have any questions!

Good luck!

0 Votes

Originally posted by @Kat P.:

My tenant's lease was up and when he moved, he left a ton of stuff in the basement and garage, too much for the alley, will cost several hundred to have removed. He told me basically, it's not his stuff and he's not coming back. I have photo's, there are literally boxes with his name on the shipping labels. I texted and emailed him, told him to get his stuff, then I sent a notice that I would hold his belongings for 7 days, via certified mail. Illinois law states I must keep it for 7 days. My question is, aside from the junk removal fee, can I deduct storage fees or holdover rent from the deposit?

You have possession of property, so you could pay someone to immediate put all items in a storage locker, Then after expiration of the waiting period, dispose of the items from the storage locker, then deduct costs for initial movers, storage fee, and labor you hire 2nd time to dispose items from storage after. This way you dont have to leave your unit vacant while you hold on to the likely unwanted items. Same advice as above. Inventory and take photos of all of the items. Communicate to tenant what is in inventory and that you will be disposing items on x date if not retrieved. good luck and reduce vacancy ASAP and get it advertised and re-rented. time is money!

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Originally posted by @Tina S.:

I just posted my rental on Zillow (Cheyenne, Wyoming) and got a call from someone in Denver whose husband is being transferred here from Denver. She asked several questions about the property that I think I answered somewhat intelligently. She asked me what the process would be and I told her she would pay an application fee and do a credit/eviction check. Income would have to be 3 times the rent. In this case about $55,000/year. I told her I didn't have pictures of the kitchen and living area online yet because I was in the process of moving out and it's a mess (really?!) Also told her that if she was in town checking out houses to give me a call and I could show her the house. I was trying to remember what I had read here on BP while I was talking to her. But I feel like my mind was blank and I probably sounded like I didn't know what I was talking about. Which I probably didn't. I also don't have a lease prepared. I was going to buy one online. So, for those who are much more experienced-how do I handle phone calls in a simple, professional way? Thanks.

You'll pick it up with practice. The main goal is to weed out tire kickers and those who wont qualify, as well as pre-screen to reduce the amount of time you waste. Some sample questions in the below link should help. If you have them printed out, you can reference them next time you take a call to make sure you dont miss any of your questions. Lastly, I recommend reminding them about the description of the property as many dont read it or get confused and realize they really want 2 bathrooms instead of one, or really need there to be a dishwasher present etc...

https://www.biggerpockets.com/forums/52/topics/522...

Also the bigger pockets infographic on tenant screening is very helpful and easy to follow:

https://www.biggerpockets.com/renewsblog/2013/01/2...

In the meantime, work on getting good well lit photos of the rooms if possible to present best possible advertising.

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Originally posted by @Sal M.:

I have a situation where a prospective tenant applied for one of my rental properties using the TAR(Texas) 'Residential Lease Application' form. I processed the application without collecting any fees upfront, I paid for tenant screening service from my pocket. I thought I will collect it later along with the deposit. But the tenant had a change of mind and went with a different property. And now refuses to pay the $100 application fee( $50 per app, 2 applications). He says that I did not ask him for the fee earlier, so he concludes he does not have to pay . On page 3 of the application form, under FEES, the box 1 is checked which states '$50 to be applied to the security deposit upon execution of a lease or returned to Applicant if a lease is not executed'. Since the applicant withdrew after I had already spent money on his tenant screening, isn't he supposed to pay ?

Any ideas how I could make them pay this fee of $100 ? Could I threaten him with hiring a collection agency who can report to credit bureau ? Thanks much for your advice.

I can only provide advice for future applications: Cozy and smartmove both can be configured to require tenant pay fees for running their credit/background via credit card before any reports are generated for landlord. That takes out the pain of collecting fees or needing to submit any refunds since its a third party service that tenant pays direct, though report will get sent directly to you upon them paying. If they want their application processed, they need to pay the service via my generated link. Otherwise I move on to next applicant.

5 Votes

Originally posted by @Christopher Heras:

Hi I need to switch loans I owe $56k on my rental property I had a tenant evicted and now I AM IN HOT WATER WITH THE MORTGAGE HANDLER! Do you have any advice I can now fill the space with a tenant for at least $800+ but I need to restart my loan or sell the property I need to add 600sqft to raise the value.

I can sell it for $65k as is or put hte $40k into the house and sell it for $175k?

Where can I get a partner with $40k?

First, what do you want to do? Sell it or rent it? We dont know what your cashflow is on the property, but based on the fact you have no reserves and no money to pay the mortgage, I assume it doesnt generate much. The easiest way is to list it and sell it as-is and ASAP before the bank starts adding penalties and legal proceedings. You'll more than likely break even after closing costs, but you'll avoid foreclosure, no longer have to make house payments, and live to find a better deal and learn for next time. You're propoal to at 600 Sqft with 40k seems like an act of desperation, not one based in confidence and the luxury of lots of time. Additions can take many months, and your financial situation might not inspire confidence in other investors to partner.

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Originally posted by @Shane Welch:

This is one duplex, I plan on adding another multifamily every year. I think I will use Quicken for rentals it looks decent. Or if anyone knows a decent program?

I use quicken and have 5 units. Its scalable, inexpensive and easy to setup your properties to you can import and tag transactions by property and then categorize by IRS categories for easy end of year reporting. It already has the IRS categories setup in the dropdowns to make it a breeze. It downloads transactions from all of the major financial institutions related to rentals so all you have to do is tag and categorize once a week/month depending on your preference and add any memos to help you remember the transaction. Be sure to use the home and business version that supports rentals and schedule E reports for end of year to share with your CPA. Right now the best price for a 27 month subscription is on amazon for $95. Totally saves you time at year end tax time and makes sure you maxmize your deductions by not leaving out the little things you would otherwise be too lazy to add if you had to do it all at tax time. Software purchase is also deductible at tax time as a bonus.

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All Forum Posts by: Jeff Bridges

Jeff Bridges has started 33 posts and replied 786 times.

Post: Thoughts on Co-op, condos as a Real Estate Investmant

Post: Reliable Skip Trace technology

Post: Rental comps, history, and vacancy rates

Post: constant learning curve

Post: Tenant's Lease is almost up...Send Notice of Non-Renewal ?

Post: Tenant left tons of garbage and belongings

Post: just took first call inquiring about rental-sounding stupid?

Post: Tenant refuses to pay rental application processing fees

Post: Hi I have a question

Post: Financial Software for Rentals?