All Forum Posts by: Chris Virgil-Stone

@Keith Jourdan I'd love to hear the numbers, what you expect to get on the sale, holding costs, etc. Looks great! Good luck with the sale.

I think it depends on the lender itself but from what I have experienced banks typically like 2 yrs of tax returns showing the rental income. The lender I'm currently using (local credit union) will allow bank statements showing proof of income from the property. I'm not completely sure but I believe if you open an LLC, which would have no prior income, the lender would look at your personal income statement. Good luck!

@Michael Ablan Yes there is a problem with the landlords and tenants there for sure. That is good for those that take care of their properties though. It will drive all the good tenants your way. It's always nice hearing your rentals are the nicest the prospective tenant has looked at. I had no idea of the bed bug problem there. I just hate seeing the local government trying to overshadow landlords especially those that take care of their properties. I know the city is suppose to mow any lawns that are overgrown and then charge the owner however I often have seen many lawns well over a foot high not be touched by the owner or the city. I think enforcement of  a similar code for all aspects of property presentation would be beneficial. 

The Georgia market is very hot right now. It's very different than the Watertown area. Not very many multi families available. I am in the middle of closing my first deal now and looking to do another as soon as one pops up. Most SFR that are priced well last a week or less before an accepted offer. The area I live in is about the same population as Watertown but just 5 minutes away there is another town with the same population. When I left Watertown my agent said there was about 380 days of inventory, it's about 60 or less in my area. I researched the market and watched it for about 6 months before moving and another 6 when I got here to learn the trends.

Good luck on your investments. I definitely suggest meeting with Brian Murray and picking his brain. He was my marketing professor in college...very smart guy. He's turned around a lot of run down properties to help revitalize Jefferson county.  

You need to analyze which will provide for greater ROI. My company will pay for my MBA without any commitment to them however I choose not to take that route. It does not provide for any significant increase in income anytime soon and will require a great deal of time. Time that could be spent reading real estate investing books, browsing forums, going to local meetups and whatnot. I would be able to spend very little time studying real estate if I was to go back to school. While I do enjoy school, especially business(finance major) I love real estate.

My goal is to get out of the 9-5 or at least be able to choose to do so. Getting an MBA is just allowing me to potentially make more money, probably by putting in longer hours as a manager or director....no thank you. Not to mention the stress to go with that. Remember the greater the risk, the greater possible reward. Sometimes it's best to play it safe and others times not so much.

Time is the most precious resource of all that we can never get back. So choose wisely. The answer is not the same for everyone. 

@Jason Hartley I have been looking at different property management sites to use to help streamline my business. How have prospective tenants responded to using this site for screening and payments? How thorough would you say the tenant screening is? I really like the SMS text feature to remind tenants of rent being due and any maintenance alerts. Have you had any issues?

Hi Michael,

Congrats on your new deals. I moved from Watertown in December where I owned a duplex for 2.5 yrs. I don't watch it real actively but the rental market seems to have taken a dive there so I'm glad to hear you're successful! I want to suggest the book Landlording on Autopilot by Mike Butler. This has been one of the most informative books on rental properties in my opinion.What do you think about the proposition of the landlord registration? 

Personally I think absentee owners/slumlords are an issue in the city but this is not the way to handle it. Code enforcement seems to be a better approach.

I would definitely suggest Criagslist as stated, however  I would also check Trulia and Zillow rentals available in your area. Be sure to note how long the property has been listed ( 30 days ago could mean rent is too high). If you track these at least weekly you can see what the vacancy is for market rate rents and  how long the overpriced ones sit.

Turn key properties are great but it all depends on the individual investor. I just put an offer in on a turnkey investment property because it is well below market value but also because I have a baby, full time job and my wife works as well. So I don't have as much time as I had in the past to put towards updating or fixing things myself. While you  can hire out on properties that need work, I would advise anyone that wants to invest to do a good amount of the work themselves on their first property ( I also suggest it be one where a lot of value can be added i.e. not turnkey). The best way to learn is through action. I don't recommend this for scaling a business but you learn a lot such as things to look for in your next property that might be a common problem, how much materials actually cost for repairs, contacts in your area if something were to go wrong, etc. Just an example, in my first property I had the drain in my basement back up causing all the sewage to spill out onto the floor. After trying to clear the drain myself I had to call a local company. The owner showed up and was able to educate me on how the roots would grow through the pipes and they need to be cut out every couple of years. I was able to watch how he did it and knew I could rent a professional pressure hose so I could do it myself in the future if need be.

Good luck @Jake Gaines

Thank you everyone. Good point @Russell Brazil. I had read this before but it had skipped my mind. @Account Closed That is one thing I was unsure of is the insurance policies and what they would cost for an LLC vs private investor. I'm thinking I will put the properties in my name for now and see about transferring in the future. I put in an offer on one today and will put an offer on another tomorrow. Wish me luck :)

I have recently set up and LLC and am going to be buying 2-3 rentals withing the next 6 months. I currently have none as I have sold the single duplex I had. I am wondering what, if any drawback would be of buying the property in my LLC? I know the benefits but was unsure of any potential downside.