All Forum Posts by: Chris Virgil-Stone

I've been looking into smaller multi-family properties (up to ~15 units) and am wondering what kind of financing/terms are you seeing and what you consider favorable? Do you have a preferred lender or do you repeatedly shop for the best current rates? Depending on terms I'm looking at purchases up to $500k. 

Thank you for the feedback! I have analyzed the market and am intimately familiar with it so while I would ask the agents/PM opinion on rates, I would set them myself and hold myself accountable. I take anything agents say regarding investments (unless they have a sizable portfolio) with a grain of salt, but I do consider it. Obviously giving more weight to the agents opinion in a market I'm not as familiar with. Note: I have not invested in an area I have not lived.

I thought it might work in my favor to use the same company for PM and representation in the purchase. If the same company that represents me in the purchase also manages my properties, I feel they would be incentivized to take better care of the properties. Otherwise they would lose the PM fees and the commissions on future purchases and sales.

I've been looking at Rome, GA as an opportunity to invest. I was curious if anyone has any experience in the area? Good areas, bad areas? Anything to watch out for? I appreciate any feedback.

I've been looking into investing out of state lately as the Atlanta market is becoming very saturated with buyers. I've located a market I'm familiar with where price to rent ratios are favorable and plan to invest. Up until now I have always self managed. While it was not always the case, I actually enjoy it. I'm very hands off and have automated most process. My property management style and lease are very strict, however I also provide high quality housing slightly below market rates. In order to invest out of state and scale I realize this is not my comparative advantage. Obviously there's many things to consider when choosing a PM company. What I'm wondering is - what benefits/disadvantages have you experienced when using the same real estate company for PM and purchasing vs. separate companies?

If I'm investing in condos & townhouses I'm looking for more cash flow than SFR (less appreciation with condos and townhouses). Although I'd never invest for appreciation, you are less likely to get it with a condo- risk vs reward.

Hi Kevin,

I'm originally from the area and have invested there before (managed myself). For the most part there are few reputable management companies. I am looking at possibly investing there again as the Atlanta market is saturated. So far NNY Homes has stood out as the best available option. Let us know who you decide to go with and what the experience is.

Not a CPA but I believe the s corp acts as a pass through entity. You would likely be paying more for tax filings and the same amount of tax. Instead of trying to reduce passive income, maximize deductions and expenses ie Depreciation. New tax laws allow for first 20% of passive income to be tax free and you can always segregate for depreciation purposes. 

If it were me, I would (if possible):

-Learn my local market (or market where you plan to begin your career)

-Manage myself

-Offload after 2-3 years. This way you have experience yourself and can better qualify property managers.

You can be successful never managing yourself. Not always the case but typically I have seen a significant difference in management quality of those that have outsourced PM since day 1 vs those that have been in the weeds themselves and outsourced down the road. 

You should have a security deposit from when you closed so you could always keep that. If he receives his checks on the 3rd and can be out within a week after I would not go after rent or keep any security. If he waits the full 30 days to move out I'd keep security. 

As long as they don't tie up the unit for too long it's sometimes easier to wash your hands and start fresh. I wouldn't give any meaning to the time of the year...rent is rent whether a holiday is close or not. My family doesn't eat or require less during the holidays.

Also consider-

1. would you have bought the property with both units vacant? 

2.Would you be able to reno both simultaneously? 

If you answer 1. Yes and 2. No, then the 1 month of rent doesn't really matter, especially in the long term. Don't waste too much time over it.

Good thing is it's easy to remove-assuming you were going to replace flooring and paint anyway. Most other buyers or homeowners are probably turned off by the smell so it's your gain. I stipulate in my lease no smoking and a $50 fine for each cigarette butt found on the property.