All Forum Posts by: David Zheng

if youre investing out of state for obvious reasons its better to get a property manager or at least a responsive handyman who you can trust.

for myself I am over 30 units but I still self manage everything. Luckily all my properties are within 2 miles of me. I still self manage because I think the cost of a property manager are insane especially since i'm in yearly tenants.

10% just to sign on is over 6k a month for me
yearly tenants means I lose a whole month of rental income out of 12
property managers usually don't care to negotiate or screen large fixes. so you could get hit with a 10k HVAC replacement when you could have found something for 4k
even their handymen will charge $50/hour plus materials.
I saw a guy replace one of my garbage disposals in 20 minutes and charge me $175. So yeah...I started changing them in 20 minutes myself.

sure you can always negotiate terms and rates but in general, you'll stand to lose a lot of money at least in my business strat

I'd rather grow super large and just hire and train my own people.

man reading this has got me so worked up over all the shi*ty people in this world. I hope you get this figured out asap. I'd sooner be taken to court knowing I at least took care of someone that tries to take advantage of others than to let the scum run circles around me and other innocent and hardworking people.

Hey Brian,

Glad I ran across your profile. I'm a younger dude whos always on social media so it makes sense that what I do and have is flaunted  a little.

I do have a rapidly growing portfolio and would like to cover all my tracks. I currently have an umbrella policy along with an LLC but would like a couple more layers of protection if possible.

Hope you don't mind my PM!

Thanks!

@Jon B.


will have an update story shortly :)

@John Andrew mulcahy
O look a jealous hater!

 Back in the day, I thought if a property could legally hold 5 people, because a house has 5 bedrooms, I would let 5 people live in there. so every tenant was always on the formal lease. I never hid anybody. I also never let anyone live in an illegal place? nice try

Then my first notice came in from the city of st.Louis about an outdated law that says you cannot house more than three unrelated people in any one property. Yes that means even in a mansion that can hold 100 people, you cannot legally let more than 3 unrelated people live there. the dumbest thing I've ever encountered. I went to court, I did appeals, I had to shift tenants around, but I made it work.

and when I said I get 35-40% above market rents, I still do. The fact that you created an account just to mess with me over a year old problem that was mediated is so petty. You must be a very sad old man

o wow...I was getting rates around 5.75 to 6.25 for 20 year commercials too.

Didn't know conventionals were so bad nowadays

This is an awesome story! congrats on the success.

If you don't mind sharing, could you kind of go over what you offered your investors? Were they all equity partners or were some private loan sharks? What kind of return over what period did you offer?

I've done something similar with around half a million but for the life of me, I always refuse to give equity away so its always a loan type agreement for me

65k is my monthly rental revenue not including any debt coverage or expenses.

Im basically leveraged up the wahoo currently but that's the price for expanding quickly  (32 units in 2.5 years)

over $4 million in properties and 75% leveraged. only have $120k in reserves haha...

rental income is at 65k/month so that does help mitigate some risk

If it's your first property, I would avoid the headaches and just keep searching for something in a better neighborhood with less maintenance. usually properties in C places or worse are reserved for those that know how to handle those markets well, not for a first timer.