All Forum Posts by: Dave Chapa

We were set up for electronic pay with our management software, it worked great when we were managing our properties. Now we use a PM and they only take electronic payments.

Pros: No running around collecting checks. No lost in mail checks or MO. Easy system to see what tenant posted payment. Small fees. Processed in 2 to 3 business days.

Cons: Don’t get to hold the money in my hands. :-) 

1. A retired woman talked to my wife about renting one of our apartments. My wife “per-checked” her over the phone and had a feeling she was not qualified. The woman insisted on filling out an application and giving a deposit. So, I met her at the apartment to pick up the app, deposit and app fee. After looking over the app and seeing how much she was getting from social security I question her. How are you going to pay $975 a month when you only receive $1,200 a month? She said “I don’t eat much, and I don’t have a car” that’s when I realized she was driving a rental! We gave her back both the deposit and app fee.

2. A person called and asked if we would take someone with a old felony, we said it depends, what was the felony? After this long story it boiled down to kidnapping and assault! We were like: Sorry, we are not available to meet, got to go, I think my mother is calling on the other line! 

Deep soaking/garden tub would be my suggestion.

I'm the type of person that want's to hurry and find a deal, (the A type personality in me) and I am also the type of person that will wait until I find the right deal (that comes from years of experience). 

Don't get in a hurry and don't NOT get in a hurry :-) ! Oxymoron, right? What I'm trying to say is find a healthy balance. 

You are just starting out, keep looking and keep checking on deals. In the meantime, keep building your contacts, net worth and liquidity. The worst thing that could happen is, not being ready to pull the trigger when you find the right deal. 

The one thing you have on your side IS time!

I have a full-recourse loan and it does not show up on my credit.

@Brandon L. Good blog post, thanks for re-posting!

When I see the words "Investor Friendly" I think of a RE that knows and understands investors and investment properties. Usually, they themselves have rental properties and understand what you are looking for in investment properties. I don't use those words when I reach out to REA, I always tell them, if you bring me a deal that works, I'll buy. 

I have a real estate agent I have used over the years to sell and buy my personal homes. I have bought 3 and sold 2 over the years with her. However, I would not use her for investment properties because it's not one of her strong points. Nor does she have time. She is selling and buying high $$ homes. 

The owner of the management company I use is my go to when chasing rentals, they work with a large numbers of investors and can bring me deals or chase down potential deals. They can also quickly sell any of my properties if I want to 1031 to a larger one. However, I will work with anyone that can bring me the deal.

@Sanjoy V.

My wife and I solo own our portfolio, that also consist of an 8 unit apartment in a high-end area. We use a PM to run all our properties. We just manage the PM and our assets while continuing to search for the next deal. It’s been great because I work full-time.

As for value added properties, yes, it takes a lot of time. I was on my properties just about every day and spend hrs and hrs coordinating and ordering materials. If it was not for the fact that my office was within 5 mins from both properties, it would have been very difficult. I don’t know if I could have achieved the same results. However, moving forward I will have my PM or a contractor handle the renovations for any future value-added properties.

What MF listing brokers are looking for are: Can this person close and do they have any experience in MF? The ability to close is High, and the experience comes in with the lender. They don't want to take the property off market for someone they feel that can't close.

If I try to buy a large MF (50+) property, the listing broker will question my ability to close because all I have is a small MF (SFH don't count). Now, if I try to buy a 15 to 30 unit. Because I own a smaller apartment, they would be more open to deal, knowing I do have experience with closing a small MF deal. To go from a small MF to a large MF has its challenges. However, going from 0 to a large MF is even harder. Not impossible, but harder.

In my apartment all the unit ceiling fans are wired to the light switch, when the light is on the fan is on. 

When I had one unit with a "mildew issue", I found out that the ceiling fan was blocked with dust. Poor ventilation can causes what you have shown in the pics. Especially if you have had it checked out for leaks. 

1. Wire the ceiling fan to the light switch. As others stated. 

2. Make sure it's no clogged. 

3. Make sure it's the correct sized for the bathroom. Depending on the bathroom size, you may need one larger. 

4. Use an anti mildew or mold cleaner. We use Siamons International 025/326 concrobium mold control.

I used Patten law firm on several of my buys, they have been a great title co to work with.