All Forum Posts by: Devin Duval

@Drew Sygit I believe that is the policy of the property management company to only raise rents for current tenants 2%-5%. I don't think the area is good for an STR. And the rents could be increased now if my property management company would do it. Maybe I should call other property management companies?

Hello BiggerPockets Family,

I recently purchased my first rental around 6 months ago and it didn't turn out to be the best rental purchase. It cash flows currently around $150. I put 25% down on $188,000 duplex. So I wrapped up a good bit of capital in the purchase. After all expenses the COCROI is around 3.6%. The markets rents are around $1000 on each side, but since I bought it the rents were $893 and $950. My management company can increase those rents by 2% - 5% each year negotiable with the tenants. If a new tenant comes in them I can start out with the $1000 rent payment. Even if I get them both at $1000 each side my COCROI is 6.4%. The market rents could be pushed to $1100 I believe in the future, but with this being my first rental I am not sure what that will look like.

So the questions are: Do I try to sell the property and get out? Do I change property management companies? Try to mange myself? What advice do you guys have on what to do in this situation? What would you do if you were in this situation?

Thanks for any and all responses!!!

Hello Bigger Pockets Family!

I recently purchased a duplex and had a foundation inspection. There is a wrap around porch that is a slab. The foundation specialist said the roots of a pine tree about five feet was the culprit of a crack on the corner. This pine tree also leaves a lot of pinestraw on the roof as well. I was debating removing the tree to prevent further damage to porch and to prevent maintenance periodically. The porch could use some piers installed which were quoted at $4500. I figured since that it is just the porch and not affecting the actual foundation I would just hold off on the porch work and just remove the tree so the roots won't further damage anything. I got a couple quotes for the removal. $2300, $1900, $1900, and $1250. I figured I should remove it, but does anyone think this should be done sooner rather than later? I thought $1250 was high, but it turned out to be the lowest price.

Any input on this situation would be great! Thanks!

@Erik W. Thanks for your input. I believe I can increase the rents on both sides to $1000. Also my goals are to just buy and hold. I currently put $1200 a month away for investing in real estate and my plan is to just add the cash flow to this and keep grinding.

@Jonathan Greene Roof is new, HVAC is a year old, Water Heaters are both new, and there isn't any foreseen issues. The area is really good. It is close the the lake we have here and close to the major mall we have. I do expect the area to appreciate and the tenants both seem to be paying under market rent which would be around $1000. And the property is in Irmo, SC.

Hello everyone,

I am finally under contract for my first Duplex. It is $185,000 and I am putting 25% down since I already have a primary residence. I am also paying closing cost. No repairs are needed and tenants are in place. Property management is 9% of rent and one side rents for $850, and the other for $950. HOA is $30 a month, Taxes are $325, and Insurance is $80. Tenants pay water/sewer/yard maintenance/trash/electrical. So after putting $100 for vacancy and $150 for CapEx/Repairs, I will be looking at a $250 cash flow. I know this isn't the greatest deal, but it is in a great area and I really wanted to get started. When I calculate COCROI it doesn't seem to be the percentage the experts say you should shoot for so I am a little worried, but at the same time excited for the experience.

Would you consider this an okay/average deal or at least not a terrible deal? I appreciate any and all input! Thanks!

@Nathan G. Thanks! Deal fell through, but I appreciate your input!

@Dave Spooner It was in an area that appreciates, bit I didn't get the property. Someone came with a cash offer. Come to find out the seller's agent was the owner and owned the property management company. But thanks for the advice/input!

I just put in an offer on a rental that got accepted. The purchase price is $112,000 with no closing cost. There is a tenant in the property until Feb. 2022 paying $1200 a month.

Looks like I will cash flow right around $200 if my numbers are correct. $400 for mortgage, $150 taxes, $100 insurance, $120 property management fee, $100 future repairs, $100 vacancies.

Property doesn't need any repairs and is one side of a townhome in a popular area. Would you guys consider this a good first deal? Just trying to get some feedback from other investors. Thanks!

@Robb Almy Thanks for the input! I have located an agent and a lender. I have been set up on email alerts for my criteria, which is based on the best elementary schools in the surrounding area. The only problem is that my market (as well as others I am sure) is full of buyers trying to get low rates due to the pandemic. So deals are very hard to come by.