All Forum Posts by: David Moore

@Josh Collins

While the State of MN implies that you need to be a realtor or have a property management company, there are legal means possible on a local level.  The city that licenses the rental may have rules that permit a friend to be the emergency contact.  Seriously, your friend can manage the property himself.  
He can hire a realtor to place tenants and show the place, who will then charge the placement fee (usually one month of rent).  Your friend can have a payment site (PM me for the one I use).  I have a city I invest in where the municipal government knows that I manage them from afar, and the emergency contract they have is one of my contractors, who has agreed to be the emergency contact.

Your friend could give you a nominal fee for being the emergency contact.  Not that anyone will ever call.  But, truly, your friend can manage this himself.  

@Joshua D.

You answered your own question in the post.  You said your wife was on board when you suggested going RE full time.  She is no longer on board.  Your relationship is way more important than the numbers, then what the numbers even say.  The market could go bust tomorrow, for all we know, and the value of those properties and the rents can plummet.  I say, listen to your wife and go get a job.  Have peace with your spouse.  

We have scheduled the next meetup.  Go to meetup to look up the details.  It is on September 18th, from 7:00 pm to 8:30 pm at Golden Valley Davannis.

@Preston Zimny

Greetings.  I started out investing in Albert Lea, MN, and I still have four properties there.  Out state can be good, but it is important to learn your backyard.  Prices on multi's are out of this world, and it is amazing here in the cities that quad's with gross revenue of less than 10% of the price these are going for.  I know of two in Blaine recently sold for about $410K each.  

I applaud your idea of going right to multi.  What is your game plan?

@Greg Pratt

First of all, don't conclude you need to hand this over to Renters Wearhouse.  Property Management companies don't necessarily have your best interest in mind.  They are in the game to make $$, and in taking your $$, they may well be taking all your profits from your property.

Second, I think your move out clause is a little unreasonable.  My leases say only they have to be out by the last day of the lease, and any overage, they will be billed for.  It really isn't your tenants problem that you need to clean the unit.  

Third, don't bill them for anything that is normal wear and tear.  The leaving tenant did not set the terms for your new tenant.  You did.  You could have asked the new tenant if they minded delaying moving in one day, or if they minded if you did not patch walls and paint.  

Finally, make sure your lease is prepared or reviewed by an attorney.  One $800.00 or $1000.00 investment is worth it.  Our leases have huge penalties for holdover status.  

You could also have given the leaving tenant an incentive to be out fully one day early.  A $100.00 gift card could have worked wonders.

I got a great deal for my four plex from 'A Pane in the Glass'.  The owner is a landlord as well.  He gets the cost issue.  One of my tenants kids broke a window, and they replaced it at zero cost to me.  

@David S.

How much is enough is an excellent question.  Each of us has been given something by God that is amazing...the ability to choose.  We have free will, and in that amazing gift, we all have the opportunity to pursue x,y,z.  Life is an amazing gift.  How much is enough?  I have long believed if you can take a hot shower each day, your are a rich person.   So, even before I earned one dime in real estate, I was already rich.  Continue to struggle with this, David.  There is wisdom in your question.

We recently bought a Park RV in a small RV Park in the Brainerd area.  I love the area.  

Sorry for the lack of follow up, everyone.  We had one early in the year, but I've been attending to personal matters.  Not sure if this group will be continued, at this  point.  Glad to see one started in Eden Prairie.

@Max Peterson

I think the 50% rule is a good tool for analysis, but it is a bit on the unrealistic side.  I don't invest in properties that only get a 1% return.  There is not enough there, there.