All Forum Posts by: Erin Church

@Gregory Robinson

Still happy to chat if you’d like. :) Feel free to send me a direct message if you’d like. :)

Hey @Gregory Robinson - I agree that selling is likely the way to go. It could also be less of a rehab than you think (which could turn into your first cosmetic flip). If you happen to be in the Augusta, GA area, I'd be happy to swing by and take a look at the property. If you're somewhere else, I'm happy to hop on the phone with you and chat through some options. :)

 Shhhhh... don't tell 'em about Augusta ;-) 

I've got to say I'm also having mixed feelings about how much more properties are costing compared to a year ago. I mean, whoo hoo for equity on the ones I bought, but I also am helping investors (and myself) continue to purchase in the area and it was lovely when it took less cash. :) 

Ask him for the names of 3+ attorneys he has used (or title companies depending on state) and talk to them about him. Confirm that he's been either double closing or getting an assignment fee. If he's double closing, it shouldn't be that hard to find a trail of his LLC.

Ask for students he's had from 3 or 5 years ago. Chat with them. Find out what attorney they used and what the addresses were. Call and confirm with the attorney/title company that they handled that address and then see if they can confirm the student and mentor if it was one of the "split" deals (if it was one of their first deals).

@Jenna Cawlfield

I’m with @Steve K. And @Bruce Woodruff on this one. If you’re “just” doing a few deals a year, it isn’t worth the fees, continuing education, the much higher standard for knowing the law, being forthright (letting everyone you deal with in RE know you’re an agent). I love the comparison to getting a plumbers license to pull permits and do the plumbing. :)

I originally got my license because I wasn’t having luck finding a good agent (literally losing money and deals because of them). If I was only motivated to get my license because of commissions, I wouldn’t have. That being said, I really enjoy being an agent now. I’m still selective in who I work with (but really like the ones I do work with) and have no ambition to do 100+ closings a year… I make sure I’m giving my clients the time/education/info they need, and I’m too busy also being an investor to want to do that kind of volume consistently :) (I should also mention that while money is a factor, it isn’t the primary driving force in my life - time autonomy is.)

Also, I would like to mention that agents aren’t good because their licensed. They’re usually good because of their experiences and “general” knowledge. You can learn a lot of important bits when working with a great agent, and it isn’t taught in any continuing ed that I’ve seen.

@Jeremy Anan

You’ve got some great tips! I’d also add cameras - at least in the laundry area. If you need wifi, get a wireless hotspot. I’d leave a note under the (very obvious) camera by the laundry that stealing electricity is a crime and will be reported to the police. There is a chance they feel this is a “victimless crime”.

The goal is to get them to quit stealing and to get out of your property, not get them arrested. I suspect they’re fairly poor at the moment (I realize that everyone makes their own choices in life), but adding a criminal record if it can be avoided seems unnecessary. All that being said, if they continue to steal, report it to police with the recordings. Once the tenant is out, leave the camera. Knowing what’s going on in your laundry room seems like a good idea.

I’ve done the note and camera for people stealing water. They quit. I hope that you have the same outcome: :)

Hey Mitch - Yes on Augusta! I live in North Augusta and the scenario you're describing happens frequently in Augusta! I literally moved to the area a few years ago because of the real estate! :)

@Bill B. - Great point on rents increasing! I look like a genius for properties I bought several years ago :)

I'm going to echo what the rest are saying. You'll want to shop, but hit up a broker or two (or three or four). I have a buyer with a quad under contract right now and while there are 20% down DSCR (and conventional) options, he ended up going with 25% down on a conventional. While wanting to keep as much money in the bank as possible, it just made the most sense. The points and rate were significantly higher to go with 20% (to where the out-of-pocket wasn't much less than just putting down the extra 5%). I will say that this is an "inexpensive" property being well under $250k. A higher loan amount may have helped get better terms.

If you find a good lender with 15% options, please pop back in to share! Also, congrats on potentially getting a quad! :)

Congrats!! I hope this is the first of many! :)

I would start listening to landlord-focused podcasts, read or listen to the BP books on managing property, and join some FB groups that are landlord focused (see if there are some for your area). 

As a side note, the BP audio books are 50% off today :)

Also, as @Tatum Littleton mentioned - screen your tenants well! I'm going to say, write down your criteria. Don't listen to stories, just look at facts. This helps get you great tenants and helps prevent discrimination. :)

Some feedback from another post:

The article Brandon wrote [https://www.biggerpockets.com/...] that @Nathan Gesner mentions is great! I would say that because the article is old, I suggest looking for a higher credit score than 600. There was an adjustment to the way things were calculated several years ago: https://www.cnbc.com/2018/08/2...

I personally look for 650+. There is some flexibility depending on the overall picture of the credit. (Things like medical debt don't concern me as they likely didn't "choose" to get sick.) Also, on background, you'd want to make sure that your area allows judgment calls based on their criminal background. Some areas consider it discrimination.

If you do decide to start finding your own tenants, I highly recommend listing your criteria in the ad, list what utilitites they will be paying, and use a google doc to prescreen. I have a google questionnaire to collect basic info - many folks won't fill this out, and many will rule themselves out with it. https://docs.google.com/forms/...

So, when someone requests more info/showing, I sent a copy and pasted email back with a link to my Google form letting them know that this is the first step in the process. I only deviate with the c/p of the email if they asked a specific question that I want to address (so, just extra info put into the email).

This allows me to quickly see who meets the criteria. I then copy and paste the same email to each person that qualifies to line up a showing and let them know the next steps in the process.

I suggest as much copy/paste correspondence as possible to minimize the possibility of perceived discrimination.

Good luck with your first rental!! :)

I'd like to mention that it's a great idea to run the numbers a LTR also. This is often easier to determine. If it works for a LTR, then usually going MTR or STR is just icing on the cake (sometimes a lot of icing!). :)

Are you planning on self-managing or hiring a company? If you're going to hire a company, I'd ask them what they think the income would be also. Buyer beware though - I've had a client that picked a very bad STR company and they've made a shamefully small return because of mismanagement.