All Forum Posts by: Dave Chapa

Kyle,

Buildium is a great management software once you learn how to use the program. It can be setup for remote access by whomever you decide to use for your data entry. Anyone that has basic accounting can learn to use the accounting portion of the software. You will need to direct them to how to code each entry. They can also call the tech support anytime they have a question.

I'm set up with my wife running the day to day paperwork, includes end of year 1099s, and my CPA taking care of the tax returns.  It's very easy and does not require QB. 

I run all my properties off my budget vs actual. It's a powerful tool once you learn how to set it up. 

So, find someone you can trust with basic accounting and pay them to keep up with the books.

I always rub the tenants nose in it and say "bad tenant, bad tenant"! It seems to work :-p

If I was you I would sell.

A septic tank can become a PITA and costly because a tenant does not care what they flush.... Do you have a water well also? 

Too much equity sitting. You could take the equity and buy 2 to 3 rent houses. Or a small 5 unit. 

I try to stick around 70k to 150k max for rental. That's the sweet spot in my neck of the woods.

$1,495.00 for a 1564SF House

I rented to a person that was separating after 20+ years of marriage. This person had great credit and income. Part way thou the lease they wanted out because they were getting back together with their spouse. So, I let them out of the lease if they paid a re-letting fee and paid up to the date of the next tenant's move in. They honored the written agreement.

We now take that into consideration for potential tenant.

Note: The following year they called me back and asked if I had another unit available because they were separating again, I said "NO, sorry".

My LLC is with my wife and I so it's basic.We filed our self and the cost to set it up was around $250 to $300. No recursing cost.

I paid money for mentoring before I bought my first apartment. It was the best money I ever spent.  Also, the money I spent on mentoring was peanuts compared to the money I was investing. So, I wanted the expert next to me walking me through my first big deal. They were with me through the whole process and now my portfolio has more than tripled. 

If you are limited of funds I would recommend learning from BP and others and use the money for your first deal. If you have the money and you are going to invest 6 figures, I would recommend finding a credible mentor or mentoring group.

Yes, great point. 

There's a saying in real estate "it's not if you get sued, it when you get sued". I have been sued.

I have an LLC for our apartment complex (needed). However, my rent houses are just under my name. If I buy more houses I'll look at adding it to my LLC.

I have a 2mil umbrella policy that covers all properties. It's inexpensive for peace of mind. 

 Yes, net cash flow (after expenses and capital reserves)

January 2014: My wife and I bought a 8 unit apartment in a very desirable location and spent a 100k+ in renovations. NCF 30k

June 2015: refinanced the 8 unit and pulled out 100K (I could have pulled 150k). It appraised 40% higher.

April 2016: rehabbed (12k) one of our SF home that was paying $625, way under market rents, now its leased for $1,040. Value increased 35+%. NCF 6k

September 2016: Bought and renovated a 1955 house in a very desirable location, it was in very bad shape, renovation 55k. Leased for $1,495. Appraised 29% higher. NCF 7.5k

January 2017: So, my biggest challenge this year is to focus on saving for a larger apartment complex to buy, looking in the 1mil+ range. Very slim pickings here in Texas. Also, I think my wife will kill me if I buy another property to renovate this year, so another challenge is to say alive 2017 :-).