All Forum Posts by: Eric Carr

There are a ton of variables and some years you might see 50% and others you might see 25% once you own long enough. 50% is a conservative number. I'd say go into it wanting at least 50% income but don't underwrite your properties with a heavy emphasis on that rule. 

Is the building older or newer? High or low risk tenants? 

Have defined selection criteria that will not only guide YOU, but that you can refer to when an applicant doesn't pass. In some states, a response is required. 

When you respond, keep it simple. You could say that an earlier applicant was approved - Good Luck

You can learn something from every experience, from every teacher. However, you've come to the right place to ask opinions on what would be most efficient given the few things we know about you. 

For me, I would not waste my time or money on a class to be spoon fed something that I already have a feeling is not what I want. Colleges used to hold the knowledge, not anymore. Find a group, a campus club, or start one, listen to podcasts and read. Read everything. PM me if you want to talk about sorting things out and for a list of books. One other thing, real estate investing either takes a lot of money upfront or a ton of knowledge and experience. And if you have the money upfront, you will still need to learn everything you can. You don't need to learn how to become an agent to become an investor.

When people see felony they react and panic. The first thing to do is have this criteria defined, not only for your own sanity but for fair housing laws. Do you accept felons? If so, non violent and not involving theft? How much time should have to pass before the conviction? Are they employed now and do they have good job references and good credit - basically all the usual stuff. Accepting a felon or not is a deep issue to dig into. Develop that criteria and stick with it, never deviate, and defining this will keep you out of trouble in more ways than a risky tenant. 

In this case, the house fire could have happened, but my first reaction would be that it's a story - that in itself is a reason to pass. The last felony was only 4 years ago, and there were 20 years between. Could he have been good at not getting caught? My point is it's part of our wiring to be suspicious, it's a survival mechanism and that's good. It's also in our nature to want to help.

This is why you need to set those guidelines. So you don't have to figure out whether you can be objective and resist that human urge to want to help. Protect yourself with that criteria 

If you are in a stable market and are confident your house will rent soon, maybe now is the time you will consider whether you are going to accept felons and the rules around that. If you are not in a D or F market, if one out of 5 people aren't a felon, stick to the demographic - your place will rent 

In any situation, have the guidelines, and always get all the facts. 

Anthony makes a good point. Class C and D properties are affordable in comparison to A and B properties and when things contract, demand for C and D usually rises.

It's going to happen. We don't know when or how bad it will be. But the warning signs are abundant. 

Start a side business in addition to the W2 job, cut expenses, save cash. And as far as buying real estate in times like these, where it appears we are on the top of a cycle, do your homework, devise a risk profile, and stick with it. 

Should be within a few days, at least how we do it. Are your tenants paying by check or ACH?

 First off , self managing can be an awesome knowledge experience. What other might not want to do themselves, shouldn't dissuade you from trying it out. But get educated on screening, leasing, marketing, and have a solid plan to start. You will make adjustments and learn on the way. 

As far as profit per door, you will have to decide that for yourself. Know your market, know what's out there and what to expect price/rent. That is what you should expect for your own property. The important thing is to get started. Even if you break even on cash flow, you will earn equity, probably appreciation - is your area stable or growing? You will get the tax benefits, and you will get priceless knowledge for next round and growth beyond. I have had properties that cash flowed immediately, and others that broke even but appreciated like crazy - have a strategy going in. PM me if you'd like to chat. 

 Could absolutely be either, call and find out. Don't even worry about being nitpicky, they are there to do a job. And it should be to manage it like their own. 

Absolutely take this up with the management company. Push them, they need to resolve this with you