All Forum Posts by: Joseph Sherer

Hey @Michael Hooper. Good to see your posts here, it's been a while. Ran into the same thing recently and received some sage advice from an old head in the industry. He said two considerations you'll want to make here are using Internal Rate of Return and Return on Equity. As you gain equity in the property, your ROE typically decreases (unless rents are rocketing up year after year) which means, if you're goal is to maximize returns, it will be worth 1031ing into a property whose leverage is better optimized. Often, finding something to 1031 into takes time which results in you collecting that $15k per year. Agreed, McDonalds is a rough comparison but also agreed 1031ing into something larger will be far more financially beneficial to you in the long run. Your IRR will stay highest if you can purchase, renovate, raise rents and 1031 into a new property as fast as possible. Looking forward to hearing from you

Hi @Sam Elder

 I like where you're heads at.  Several others have made great observations about non-relatives under one roof and increased expenses when renting to college students.  As an off campus college rental investor, I've seen the difficulties finding larger groups interested in living together at a distance from campus.  The younger crowds seem to be more likely to live together and also seem to want to be closer to all the action.  As students mature, they seem to live with less people possibly due to wanting to put up with less from their peers.  I say this not to deter you from adding the rooms but to make you aware that you are possibly targeting a more niche market.  Best of luck

@Bill Zepeda

 I agree with @Max T., include each student athlete on the lease with the coach as a guarantor.  This way you make sure the student athlete realizes he (or she when you expand to the womens' teams) is also on the hook for damages.  You'll do this knowing the coaches pockets are the ones to reach into if damages do occur.  Could be a very profitable relationship.  

@Jennifer L.

Great input.  If you could pay less for only the maintenance issues, would you be interested in that since you enjoy showing the property?

@Colleen F. Thanks for the input.  By the sounds of your elf request, you have quite a few units to oversee. If you don't mind, can you give us a ballpark on how many units?

@Cheryl Daniels

I like it but why stop there.  Might as well have the elf vet deals and secure financing.  Although at this point we should change the name from elf to @Jay Hinrichs.

@Kenneth LaVoie

Interesting.  Are you scaled to a point that it would be worth paying a company to handle this for you? Or is it frustrating but below the "pay someone else to do it" threshold? 

@Kyle Hipp

I know a couple people willing to sign up for a day job elf. I assume you already have vendor relationships and the time consuming part is following up on their progress?

@Jean G.

Check out ShowMojo.com and Rently.com.  Thanks for sharing.

@Eric Smith

How many properties are you overseeing?  Would you pay for a service that showed your properties and fielded your maintenance calls?

Same questions, @Jennifer L., but regarding maintenance.