All Forum Posts by: Erin Church

I don't have any admin fees I charge my tenants, but if you want to, make sure it is in your lease and very, very clear :) Anything involving expectations between you and tenants needs to be in the lease. 

For me, filling out the lease is part of the job. I keep an electronic copy that they can get to very easily (I use apartments.com and upload it there). If they lock themselves out, that can often carry a fee for getting there with a key. (Although, I've found that only having deadbolts that lock and "passage" doorknobs on exterior doors prevents a lot of that.)

I agree with both @Joe Villeneuve and @Cody Z. - Learn about as many strategies as you can, and then start to narrow down what you'll focus on. You could maybe set aside the next month to just read, attend BP Webinars (please do this, they're great!), listen to Podcasts, and ask questions in the forums. Start off trying to learn "a mile wide and an inch deep". Then, figure out which areas are the most interesting. Spend another month (or two weeks or whatever amount of time seems appropriate) learning "a mile deep" on those very few, narrowed-down topics. Then, dive in! :) If it's wholesaling, make/buy a list and start calling, walking neighborhoods, and chatting with folks. If it's BRRRR or Flipping, find some lenders that go on the value of the deal and then start making offers (after running numbers and knowing what makes sense).

Oh, and starting like yesterday, try to find some good meetups in your area! If you're around Augusta, GA, I can recommend several! :) Getting to network with like-minded folks in your area can be so, so helpful.

I hope your next year self looks back and appreciates how far your current self has come :)

@Dan H. - You're spot on for how I "count" my cash flow on a property :) 

I'm pretty sure that @Robin Simon hit the nail on the head. I was chatting with a company last week about a refi - they were about the same fees and .25% higher than a conventional mortgage for a cash out refi :) I thought that was pretty awesome since the conventional mortgage needs 2019, 2020 taxes, all the W-2s, 2021 extension... among other things... Also, doing the loan in an entity's name will keep the loan off my credit report. Feel free to send me a message if you'd like their info. :)

When you say cash flow - do you mean money over the PITI? Or do you mean after setting aside about 8-10% for the vacancy, capex, maintenance, and property management (so, 32-40% of the rent in total)?

Cash flow is the money over PITI plus setting aside money for future needs of the property. I have a feeling that the numbers won't actually work. Also, don't forget about the cash to do the upgrades.

Also, have you been doing this long enough that you can inspect plumbing, check out the electrical panel, look at the roof, hunt for foundation issues, drainage issues, etc? If so, then no problem on skipping the inspection, but if you haven't, don't make an offer blindly. It could potentially bite you pretty hard.

I do love that you're deal hunting though! I'm sure you'll eventually run the numbers and find a winner! If you haven't attended one of the BP webinars on buying rental properties - I highly suggest it. :)

 ^^^ This!

I was going to say that you would need experience with the basics (and beyond) before I would be willing to trust you with my money. The only way to get a track record is to start. I agree that books, podcasts, forums, etc are all great, but go get your hands dirty. Experience what can go wrong and right and how to improve processes and experiences. :) 

 One of the things my CPA has been very clear on is that we should have at least 20 properties before "retiring" and living on cash flow. While we would actually need quite a few less than that to live comfortably, it is a risk thing. He feels that having 5 or 10 properties may be enough money, but if something happens to one or two of those, it's a huge percentage of lost income. So, we are now on the "we have to have 20+ units before trying to live on cash flow" train. It does seem a lot safer :)

I originally thought about DTI (debt to income ratio), but with a multifamily, it seems like a good candidate for a DSCR (debt service coverage ratio) loan. I just got a quote on one yesterday and the rate and points weren't that bad! :)

I would not operate in the negative to keep her happy since she hasn't moved in yet. I would do one of two things:
1. Let her rent the 3rd bedroom at a slightly reduced rate that still gets you well into the black.
2. Let her out of the lease as it won't be worth the headache (or losing money). 

It sounds odd that you're renting out by the room and she thought there would be an empty bedroom though. I'm guessing she would have to share a bathroom and that is what she was unhappy about. As a side note, make sure your posting is clear that full occupancy is 3 individuals (or give more details if you allow couples, kids, pets, etc).

Good luck! :)

Death :) 

But also what @Paul Crosby II mentioned. If laws turned "my states" into very "tenant-friendly" states, I would likely start to change my strategy away from LTR. My thought is that if GA and SC are "protecting" tenants at the expense of landlords, then there are likely not many landlord-friendly states left.