All Forum Posts by: Daniel Windingstad

Quote from @Obed Calixte:

Some people have the personality, processes and systems & time to self manage, some do not. It is good to know which camp you are in. 

It sounds like a prudent choice to bring in a property manager. Assuming they are professional and skilled in the craft - alot of the issues you have faced, they will remediate and mitigate moving forward. That will help you garner a better picture on if holding this property longer is a fit for you. 

Yes, I'm learning this exactly. I do bot believe i have the personality or systems for it! Best to hire it out, even though it hurts the margins, it saves my time and stress substantially. And any risk of messing up due to ignorance.

Quote from @Benjamin Aaker:

Sounds like a problem with setting expectations. What do you have in your lease about repair requests? You should have a system for how the tenant puts in a request and what may be requested. A light bulb replacement, for instance, might be the responsibility of the tenant. If there is something going on that is making you fearful then you may want to get law enforcement involved. Threatening each others' safety is never allowed.

Looks like you made a good decision with property management. You'll have to look at the income and expenses to predict whether your cash flow will improve. It probably will with good management in place. Feel confident turning over management. If it doesn't work, put it up for sale when the lease ends. 

Thank you for the advice! Yes I'm hoping gamagement will help, I think I've learned that I don't have the skillset to self-manage. When I say fearful, I should say I've never been threatened, except for threat of lawsuit, which, scares me... and it's hard because I truly feel like the property is great and that I'm doing OK on my promises. I hope management can save the day for me!

I have a confession: my only duplex, which I gave owned now for 2 years and recently moved out of from a house hack, has proven to cost me more to maintain/pay taxes/repair/fix etc to the point where my cash flow is close to zero. Reason being, I hired a property management company (just now) and they're wonderful, they start officially in a couple days.  But is this going to be worth it? I've had so much emotional and financial stress from this house after I moved out (mostly from a mean and very demanding tenant). They take decent care of the property, but I would get texts all the time telling me to fix many things (some valid, some completely unnecessary) and would get upset if I ever denied any of the requests. Well, we are getting into the cold months and without going into too much detail, it's become extremely scary to talk with them and try and amicably handle requests. The house is in very good shape, but not perfect, it was built in 1959. 

I guess my question is this: is the very low cash flow (due to my low down-payment and high interest) going to improve? Or when is the time to throw in the towel? I've dealt with so much stress. Am I not cut out for this? I'm trying to do the right thing each time and feel like I'm being abused. I hope management works, but taxes are flying, insurance is flying, and I just wonder if I made a mistake with this property. 

anyway, sorry for the rant...

Wow I am getting tons of great info, thank you to everyone for sharing. It sounds like Columbus OH is pretty hot, Memphis TN, and some areas in the southern Midwest as well. 

Its scary for me, being a smaller investor, but I am eager to grow my business, and with the inflated costs here in Minnesota, I find it hard to keep growing, especially, since i am trying to start a family now. 

I came from doing everything self motivated and always had a battle with all the things i do in life, and continue to try and cultivate positive self-belief. It is refreshing to be surrounded by supportive people eager to help. Though, my Naivete has gotten me into trouble before. I am rambling, but i appreciate the help and am happy to connect with people if you want to send a DM. 

Cheers,

Dan  

Quote from @Jackson Ebersole:

Hi Daniel,

I hope you’re doing well! It sounds like you’re ready to dive into some out-of-state investment opportunities, and I’m excited to share some thoughts that could help you boost your cash flow.Here are a few markets that might catch your interest:

• Florida: Cities like Orlando and Tampa are booming with tourism and have no state income tax, which can really enhance your rental income.
• Texas: Austin and Dallas are hot right now. With their job growth and vibrant culture, they attract a steady stream of renters.
• North Carolina: Charlotte and Raleigh are on the rise! They offer a fantastic quality of life and affordable housing, making them appealing to families and young professionals.
• Georgia: Atlanta is a thriving city with a strong economy. The diverse rental market here means there are great opportunities for consistent cash flow.
• Arizona: Phoenix and Tucson are seeing an influx of new residents, especially from California. The warm climate and affordable housing make these cities prime for rental investments.
• Ohio: Columbus and Cleveland offer affordable properties and stable job markets, providing solid cash flow and appreciation potential.
• Tennessee: Nashville and Memphis are experiencing rapid growth. Nashville’s vibrant culture and Memphis’s affordability make them attractive for investors.

Investing out of state can lead to higher returns, especially since many of these markets offer better opportunities compared to Minnesota. Diversifying your investments across different states can also help reduce risk and protect your portfolio. Plus, tapping into markets with strong job growth can enhance your overall returns.

As you consider these options, I recommend connecting with a reliable real estate agent, property manager, and contractors in your target area. Using property management software and virtual tours can also help you manage your investments effectively from afar. Starting with just one property is a great way to get a feel for the market before expanding.

I can assist you with funding for your rental properties! Whether you’re looking for traditional financing or creative funding solutions, I’m here to help you turn your investment dreams into reality.

If you have any questions or want to dive deeper into specific markets, just let me know. I’m here to support you.

Best,

Jackson

This is great information! allow me some time to review and I would love to connect and learn. 

Quote from @Bob Stevens:

Quote from @Daniel Windingstad:

Hello,

I own 2 properties (1 sf, 1 duplex) in Minnesota, and find that the rules, fees, tenant laws, taxes, etc. In Minneapolis are making it very hard to be profitable. The best thing i seem to have going is appreciation, which is nice, but cashflow is struggling a bit. 

What are the best out of state markets, and who has invested out of state? What are the major pros and cons, and tips to making it successful out of state? Open to all shared knowledge. 

cheers, 

Dan

 I have been buying along with 100s of others in the Cleveland markets for 10 years. We used to buy all in 30k, with 1k in rent. Prices have tripled, quadrupled or more on top of the 25-30% net caps. I am still getting 15- 20% NET per year. based on cash purchase. I am not aware of any other market were so many from around the word invest. We are closing on two more this /next week, 15- 20% NET per year

 Sounds like a great market. But why do you think it is that way, vs, minnesota? Happy to connect and learn, I have heard of many successful investments in the OH areas 

Hello,

I own 2 properties (1 sf, 1 duplex) in Minnesota, and find that the rules, fees, tenant laws, taxes, etc. In Minneapolis are making it very hard to be profitable. The best thing i seem to have going is appreciation, which is nice, but cashflow is struggling a bit. 

What are the best out of state markets, and who has invested out of state? What are the major pros and cons, and tips to making it successful out of state? Open to all shared knowledge. 

cheers, 

Dan

Hello, hope this isn't too long of a read, but I was curious what everyone thought about this situation: 

During turnover, rather late, I noticed the tile of the shower was cracking along the grout lines, and I noticed it had some give when I pressed the walls. Long story short, the shower surround needed replacing, and this was days before a new tenant move in. I spoke with the tenant and said the shower will be needing new tile so while the toilet will be operable, the shower won't. This is a 2 bed 1 bath with a single tenant, btw. Well, the crew is finishing up now, a week after her moving in, and I understand it has been inconvenient for her, but the only thing not usable was the shower. She was OK with it being a few days (I was quoted a 3 day time frame for work), but found out that didn't include weekend, and now its been a full week and they are just finishing tonight. 

I didn't see any requirement for compensation in this regard, so I don't think I technically owe her anything, but offered $50 for the inconvenience, since it was longer than she initially was ok with. I didn't know this prior, but the tenant does not drive, and told me she had to Uber to/from her old place to shower and wants $200 for this. Before considering this, I do not want to set up the precedent that I will just bend whenever people ask for handouts. but I also want to be fair and am looking for unbiased advice on how to respond to this request. The repair was a big hit for me, and I am now tight on cash, as I just literally moved and my wife and I are expecting our first baby so I am doing what I can here. 

Her choosing Uber is not my problem, right? that isn't fair that she should expect me to pay for all her Ubers, right? maybe I am over thinking this and her asking 200 isn't bad, but I really don't want her to see me as someone who will just give credit all the time, because my margins are thin already on the property and I typically invest a lot into making a place nice for people. 

If I am being greedy, you can tell me, but be gentle, I only own two properties lol

Hey everyone, I am going to try to be as sensitive as possible on this! I have a property in an area where a lot of applicants do not have a SSN, or speak much english. I know a little spanish so we do ok on communication, but I don't know how to handle this in a way that is non discriminatory. I'm worried that if I ever need to involve law or courts for anything like eviction or collections, if/how that would work. And I also want to be as fair as possible. What do you do in those cases? 

Quote from @Joe Vesey:

I assume you are in the Metro?  If you are, you should connect with Jadde Rowe.  Great agent and even better person. 

Haha! Funny enough, we are FB friends as we both went to UST. Yeah ill try reaching out to him. 

Jadde Rowe Team Steady | Realtor
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