All Forum Posts by: David Cook

@Amber Glus I think the neighborhoods around U of M Lambuth, The Lift, and JMC General Hospital have continued to improve over the last few years.  There are still some streets that are a little rougher than others, I would definitely visit in person before you make offers on anything.  There are places on a map that might appear to be immediately adjacent to downtown that wouldn't necessarily feel that way if you were standing in front of them.  

As far as desirability goes, I wouldn't have any reservations about investing in property in the downtown area.  It's gotten harder to find properties that meet the 1% rule, but if you had a good deal lined up I wouldn't say the neighborhood should necessarily deter you as long as you feel you have good property management lined up.  Feel free to send me a direct message if you have more questions or want to talk about a more specific area, I'm happy to help if I can.

Thanks,  David Cook

Thanks for the information.  I've sold to hotels before, but it's generally to owner operators.  Most larger hotel organizations are wary of the liability if they take on responsibility for treatment themselves, especially if they want to use a pesticide as a residual.  

Thanks @Ravi P.

It's a patented technology and we have relationships with some of the companies you mention.  This is primarily a value add service for my customers.  I'm mostly trying to get a handle of the kind of KPI's that might be related to lost revenue due to maintenance.

I'm a real estate investor, but this question is actually related to another business I'm in.  We sell a green pest control product that, among other things, kills bed bugs.  Since it's non-toxic there is no restriction on the time between the treatment and reentry for staff or guests, the treatment itself is also fast compared to other treatment methods.  I want to create a website or app with form fills and a calculator that allows my pest control customers to show the financial impact of using their service vs. a competitor using alternative methods.  Is there a standard metric that measures lost revenue due to a room being down for maintenance?  I feel like there should be, but I can't seem to find one on Google.  

From what I have found I would think it might be something like:

Average TrevPOR x Overbookings that took place while a room could not be occupied due to a pest control treatment.

Any feedback or input would be greatly appreciated.  Thanks!

@Heather Horton I'll PM you the name and number of a guy I use.

Have a reputable pest control professional inspect the home for bed bugs prior to the inspection.  One with a bed bug dog would be ideal, if there is one in the area.

I'd be careful.  TSPs are probably the most efficient way to hold stocks.  I wouldn't risk it unless you had a very good deal you were considering and felt very confident about it.  If you are a newbie or even a novice I think the risk could outweigh the reward.  Also, I could be wrong but the fact that you are considering doing this indicates to me that your finances might be tight.  I'd rather take a very hard look at my spending and lifestyle than dip into my retirement accounts.

Congratulations and good luck! 

@Crystal Perezis right on the life cycle and hardiness of the bug.  It shouldn't be necessary to scrap the carpet or furniture, your flooring choice is really a separate issue.  If this is a C+ area I think you are going to have to hire a professional.  Bed bug treatments are expensive and it's unlikely anyone in a low rent area is going to be able to afford to hire anyone who is capable of handling the problem.  I would do this as soon as possible with a reputable company.  Bed bug litigation is a new cash cow in the legal industry and the problem is unlikely to get better on it's own.

I think it depends on the circumstances.  Is he breaking the lease just because he wants to, or did he lose a job etc.?  Personally, I'm happy if my tenant voluntarily leaves if they lose the ability to pay.  I wouldn't give him back his full deposit, but you still want their to be an incentive for the tenant to leave the place in nice shape.  I'd deduct anything you will loose in rent or repairs before the new tenant moves in for sure.