All Forum Posts by: J Newman

Thanks for that! Yeah, "very tough" rehabs don't sound like where I would like to start. I'm new to this as well, but kinda not. My family has alot of property and all of it's paid for, but I've been now pushed abruptly into managing it after years of my family keeping me out of it. My goals are different than what it had been - yes, we want cash flow but I want to cut expenses and earn future income and equity for my children. Rental income paid for my college, and now it's my Dad's retirement. So, I have to preserve some of that cash flow, but given the equity we have, I'm trying to figure out how to manage these goals. I'm completely buried right now in getting the finances straightened out, but I don't know how best to start with that.

 Hi Brandon, I think my we'd like to start with someone closer. My Dad is pretty skeptical about PMs in general, so he believes that we need someone closer. Although that "belief" might not be helpful, I'm going to indulge it first go around and then I'd have some data anyway to see how it goes without self-managing. In the end, I want to go with the PM who is going to be the best for us and also a great resource. We want to shift to some investing and having that relationship is very important. So I will definitely keep you on my list! Thanks again!

 I second @Kaitlyn Aragon's comment - what's the best way to do this? Is there an equivalent of fantasy football in real estate?

Hi Stuart! I thought your reply was interesting. After reading Dave Green's BRRRR book and having lived through a disastrous renovation of my own home (so there's some contractor trauma), taking on a major rehab upfront and missing out on cashflow felt really stressful. So, are you suggesting focusing more on getting a good deal, so really making sure your numbers are rock solid, and then putting in the best offer and going from there? When you read Dave Green's book from 2018, he's batting around numbers under $100k, which feels pretty unrealistic for something that's not in shambles.

We're investigating NC property management companies in the Triad for properties located in Winston-Salem, Lexington, Thomasville NC. We have mostly SFH but do have a 20-unit MF complex and then a few mom and pop commercial properties. Properties have been self-managed for a long time, so we're just exploring options. We've got many tenants who have been with us for a long time, so we're looking for some REALLY good options.

Hi,@Luke Gilbert I saw your post. How did things go with Acorn and Oak? I'm looking for a PM in the area just to get some info to see if we want to go that route with our properties. Thanks!

Any website templates you recommend for leasing properties - preferably Squarespace but Word Press could work. Thanks!

I am probably 6 months - a year out from looking there. We owned a property several years ago, but we sold it when the HOA asked us to pay $25k for a roof.

Here's some background that might be helpful: My mom died last year unexpectedly. She managed the real estate properties that my parents hold. My Dad has been investing in real estate since he was 21, but he has been more operational/capital investments side. My dad and I are now co-managing, and I'm the legal and financial side. Yay, I'm a lawyer so I figured. We haven't had a chance to grieve because we have to get the financials straightened out, cut expenses, scramble to fund and save capital repairs, and manage her estate (properties weren't in that). This will take is going to take a few months to start to breathe. We are definitely going to change the way the business was being managed.

So here's my question: what's the best way to change the rent given our situation (Below)?

One of the main changes that shocked us both is how low the rent was on some of the properties. For the market it's probably 50-60% or more below market for 2 bedroom brick duplexes, for example. 

We've got to raise it, but we don't want alot of moveouts all at once, have to make a lot of repairs to rent given some of the capital demands we've just had (more surprises), so we're going to evaluate the properties and to check on those factors. It will affect alot of very long term tenants - 10+ years. Many of which are on a fixed income, and Dad is concerned about people moving in the winter when it's cold. Most are now on automatic renewal MTM leases. We've batted around ideas by raising gradually - in two parts, 1 soon and 1 6-9 months later, and letting them know that and starting with increases soon on some people and in March on others. Some people we're likely going to pull the bandaid on because we feel good about not having to do much to re-rent it. We're doing that analysis right now.

Sorry this post was so long.