All Forum Posts by: Peter Schuyler

Natile, BP book on Managing Real Estate really helped me overcome the fear of managing properties.  Whether you decide to do it yourself or hire out property management, its a great read.

When I made the decision, I looked at this list and said is this amount of work a month worth my time. If you pay a property manager $100 a door, a month, and you consider the work to be valued at $50 an hour, that is only two hours of work a month, but they are providing value if done right that might exceed two hours a month. Im using a PM for my first Duplex, primarily because of my travel schedule, and my house will be an anonymous trust/LLC, so Im letting someone else I trust to represent my "investment" up front.

Basic list of PM duties.

• Handling Phone Calls from tenants
• Scheduling maintenance-related appointments
• Coordinating schedules with tenants
• Issuing late notices
• Keeping records of income and expenses (book keeping)
• Filing evictions if needed
• Advertising vacant units
• Screening applicants based on your set criteria
• Approving tenants and signing leases

The Texas Lease/Broker contract allows them to collect late fees, and they skim off the top for maintenance calls, another source of income.  The cancelation fee and their hourly rate if needing to get involved in evictions is not always clear to me in these contracts.

Here is a link to a good overview of Texas Agreement, TAR-2201 form that you might use for PM's.

https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&ved=0ahUKEwiup6zEvrfQAhXhzFQKHdZWAm8QFggiMAE&url=https%3A%2F%2Fwww.texasrealestate.com%2Fuploads%2Ffiles%2Fpresentations%2FPropMgtAgreement.ppt&usg=AFQjCNEvIaenZVViiEoDFLo3ltm--eJ-mw&sig2=tHCp6mxeWJFe7XrzTt2KaQ

There are so many PM's out there its hard to choose.  If you are willing to do the work, then you will save some money every year.  Its when things go wrong that most revert to PM's.

Good luck with your decision.

Pete

Lots of temp workers, somebody needs to build some apartment buildings or quads with no HOA, the field workers can park all their trucks, etc.

Congrats @Adrian Fernandez, I'm in the process of picking up a Duplex North of 380. I live in Prosper, and this area is growing so fast. Do you use Zillow Zestimate feature or do others recommend just having an agent use the MLS for comps.

This resource was a big help to me when I first thought about doing this with my primary residence recent sell.  I decided not to try the lease option to purchase, I'm in North Dallas area and the headache and timing just seem tricky, but to each his own.  I have seen Craigslist listings adverting these options in my area.

http://www.lonestarlandlaw.com/Lease-Options.html

I just paid 3.53 % on a duplex with a conventional loan.  If your using all cash the percentage should be less since some costs are tagged to having a mortgage or not.

Is your income from Realty Shares taxed at normal income rates similar to REIT's?

@Account Closed

Is this something your willing to respond to in the post?

Im looking at a new construction Duplex unit, will take 6 months to build.

In all the reading and research the 50% rule for all expenses to me seems high for new constrcution.

I'm assuming

• Expense will be Taxes, Repairs, Capex, Vacancy needs to be saved per month for expenses, but 5% for repairs, and another 5% for capex seems a bit high on a new Duplex, I do not want to kid myself, but I plan on holding for 3-5 years, so Im hoping no roof failure, or appliance failure 3-5 years, and first year is builder warranty
• Utils will be picked by owner
• No HOA, PM will be done by myself

Does anyone have an alternate percentage for new construction buy and hold 3-5 years. Roof- A/C units should last 3-5 years I would think, and only minor repairs to window coverings, etc.

Looking for real world expense experience with new construction.

Thanks

Im looking at a new construction Duplex unit, will take 6 months to build.

In all the reading and research the 50% rule for all expenses to me seems high for new constrcution.

I'm assuming 

• Expense will be Taxes, Repairs, Capex, Vacancy needs to be saved per month for expenses, but 5% for repairs, and another 5% for capex seems a bit high on a new Duplex, I do not want to kid myself, but I plan on holding for 3-5 years, so Im hoping no roof failure, or appliance failure 3-5 years, and first year is builder warranty
• Utils will be picked by owner
• No HOA, PM will be done by myself

Does anyone have an alternate percentage for new construction buy and hold 3-5 years.  Roof- A/C units should last 3-5 years I would think, and only minor repairs to window coverings, etc.

Looking for real world expense experience with new construction.

Thanks