All Forum Posts by: David S.

@Connor McGinnis

Ditto on what Stephen said. If looking into Jefferson Parish, which is where Metairie is, and the other places you mentioned, you might have a better chance to run 1 or more of the units as an STR. Orleans Parish has some STR rules tied up in the court system right now. Definitely check prices on hazard insurance. Most insurers have pulled out of Louisiana after Hurricane Ida.

@Stephanie P.

I use commercial real estate mortgages from small local community banks and some statewide banks and can finance it on Day 1 of the purchase, well start the process and close about 30 days later. PM me if you want some bank recommendations. I do not have to deal with "seasoning of funds" or navigating the delayed mortgage exemption.

@Nathan G.

Just curious. Were the walls and ceiling sheetrock? I have never heard of steaming them. If so, did it damage the sheetrock. Good advice on how to get odors out. I have have done similar methods with success. I used an enzyme cleaner on the base floor/subfloor as an additional step for pet odors but this one was smoke only and probably wouldn't help.

@Nathan G.

I have the same policy. It would takes days if not weeks for some of us to collect in person if we had to get our rents that way. Everyone has different schedules. She is not respecting your time. Also, I feel it is a safety concern to get rent in person. When you are at the house every month on the 1st as a landlord you may as well paint a target on your back because it is obvious why you are there. Tell her to mail it or pay electronically. If she refuses, file eviction due to non-payment of rent. I am assuming you have the payment method specifically outlined in your lease. I also do upfront damage control when a tenant moves in. I state don't bother renting from me if I am expected to pick up rent on the tenant's schedule.

This topic is highly depending upon if you have available vendors, personal goals, grit, tolerance for BS, and many other things, hence my Q and A format:

Q. Do you have competent property managers in your area?

A. No. Most owners in my area experience an increase of 20 percent vacancies and 100 percent increase in expenses as well as a 900 percent don't give a f**** attitude towards their properties and tenants when they turn properties over to a PM.

SOLUTION: 1. Self manage or 2. grow big enough to hire W-2 PM that you can vet and manage.

Q. What class of property do you have?

A. 

A Class a below average manager can handle

B Class a below average manager can handle

C Class Good F****** Luck

D Class Fo-get-about it. You're toast.

F Class-Call the bank to give back properties.

Me= a mix

Q. Are you in growth mode, comfortable mode, or don't give a F**** mode?

A. If you are in growth mode, you need sweat equity and need to reinvest every cent. Comfortable mode you can go either way. Don't give a f**** mode you can go either way.

Q. What is your personal situation?

A. I have no competent managers in my area. I have to self manage. I can self manage 42 rentals for less than 5 hours a week, which translates to over $200 an hour. With technology, everything can be handled by text or email. I cheat a little bit because I hired a hungry leasing assistant who handles all of my most time consuming task: finding new qualified tenants and placing them.  Result: 100 occupancy and immediate addressing of issues, NOT 3 DAYS OR 5 DAYS. Try telling a tenant in the deep South 90F days that he has to wait 3 days for AC REPAIRs classified as emergencies. My colleagues with property management: 25 percent vacancy and higher maintenance costs and unhappy tenants. My colleagues with hired gun, W-2 employee: 10 to 25 percent vacancy and higher maintenance costs.

MY GOAL: I intend to grow my portfolio to 75 units, which is the minimum number of units needed to support a FULL TIME property manager and maintenance technician. I would actively manage, fire, and hire good quality people.

@Joe G.

This is how it is reporting for me:

This was placed on forbearance without my permission and I had actually requested that they take it off of forbearance but it is still reporting this way. This is considered "neutral" for credit reporting.  However, with my previous point, a banker may ask questions about it and may see  your business as being undercapitalized.

@Reed Meyer

Millionaire Real Estate Investor by Gary Keller

@Ramiro Rodriguez

NOLO's Every Landlord's Legal Guide.

Has laws and rules for all 50 states. Also, comes with forms needed to run your business. I have used these very forms, albeit modified slightly for 17 years.

@Lucas Carl

I give one polite warning. If another text like that comes, as per my lease, I block their number and tell them to contact me solely through email. I can PM the language to you that I have in my lease if you want me to. I also say, "since you are unhappy with me and I am unhappy with you, let's arrange a move out date so that everyone can be happy." One tenant said I was wrong for that but I won't tolerate disrespect. If they don't repsect you, they won't respect your property. I don't care if they pay on time. I give respect so I should get respect back. No amount of money is worth the BS in my opinion. Also, for unnecessary repair requests, I let them know that I can do alot of unnecessary requests but must increase rent to compensate my costs and aggravation. "Ms. Tenant I would be happy to wash the pollen off of the house. I will just need a $50 per month permanent rent increase. Are there any other services or improvements with appropriate rent increases you would like to discuss? " One last thing. 1031 or sell your class D houses and buy a class or two up. Class D is a PITA and pro forma returns on these are fictitious. I did the same early on and do not regret one bit. Just think of the time wasted on Class D issues. Time=$$$$.

@Shane Welch

There will be a learning curve on your 1st or 2nd properties. As for delinquent tenants, I don't hound or chase. After a few texts/calls and there is no payment, post your state legally required 5 day notice or whatever #days in your state then file eviction if payment is not in hand after those 5 days. You can always stop the eviction if they pay all past rent, late fees, and court costs. This is exactly the SOP for large apartment complexes. No games, no emotions, and no excuses just an extremely tight and efficient time line. Turn the apt over, place properly screened tenant, and have eviction procedure ready just in case. I do the same for leases and applications with legacy tenants. If they don't want to cooperate I know they may be trouble later. I never had a problem getting them to fill out an application or sign a new lease although pointed out earlier that it is not legally required. Many question the application part but are comfortable after I explain that it is SOP in my business. Also, for safety reasons, a landlord should have an emergency contact. Some may say they will move in a few months so I would accommodate them with a short term or month to month lease.