All Forum Posts by: Garrett Christensen

Stessa is a great option for managing the finances of rentals as well as other things. It's also free which is incredible. 

It depends on the terms of the lien and the specific laws in your jurisdiction. In general, if a lien holder has a valid lien on a property, they have the right to collect on the lien if the property is sold or the debt is otherwise satisfied. A "sub 2" financing arrangement, where you take over the payments on a property, may or may not trigger the lien holder's ability to collect on the lien depending on the terms of the lien and state laws. It would be best to consult with a real estate attorney or a lien specialist in your area to determine the specific implications of this arrangement in your case. Sorry for the fairly vague answer, hope it still helps.

Those are all good, I would also do Rentler.com and honestly Facebook Marketplace. That's where I get the most traction for my listings by far. You will have to weed out a lot of people that aren't qualified, but there are still great applicants there.

A few things to note here, and I'm not sure of your local laws so make sure you check. Where I'm located we can't rent a property out to more than 3 individuals unless there's an exception (near universities). With this regulation in place, the rent for each room vs renting the entire house to one party comes out to about the same, maybe the individual rooms win by a bit. So I'd say check the laws and run the numbers.

The second and more important thing is how you'll manage the rental. My wife and I manage over 150 units and it is SIGNIFICANTLY easier to manage 1 or 2 parties vs 4 or 5 individuals. I prefer Single Family rentals over apartments because you can have the tenants be responsible for the yard, snow removal, general maintenance, etc. I basically tell my tenants, to treat it like it's their house. Leasing up is also the most time-consuming and headache-causing part of the process and you'll have to do it much less. Families tend to move less than individuals and it's just fewer leases. 

Overall, you may get more rent with the individuals, but make sure that extra cash is worth the extra hassle, and also make sure you know the local regulations.

The 1% rule is typically used to see if a deal will cash flow well. It's not used to determine what rents will be. The best way to do that is to find recent rental comparables. You can also call other landlords and see how much they rent their properties or how much interest they are getting on a current listing. 

Rents have gone up, but I wouldn't say it's because home prices have gone up. Everything is driven by supply and demand. Because we've seen mortgage rates go up and buying a home is much more difficult now for the typical person, that is driving more renters into the marketplace and thus driving up demand and rental prices. 

I also want to note that the 1% rule is just a guideline, it differs from place to place, I'm stoked if I can get a 0.75% in my market for example. Hope this all helps. Feel free to message me if you have more questions.

I agree with Taylor, the MLS is your best bet. It's important to note that most lenders can only take 75% of the rental income towards your DTI (Debt to Income Ratio). If there are no contracts in place they can usually just use what they predict market rents to be.

It's generally not advisable to use retirement savings, such as 401(k) plans, to fund a business venture. These types of accounts are intended to provide income during retirement, and taking money out of them early can have serious consequences, including incurring a 10% penalty on the amount withdrawn. 

That being said, every situation is different and it's important to carefully consider all of your options before making a decision. One thing to consider is the return you'll make on the franchise and just count the 10% penalty as an additional expense. If it's still a solid return then it might be a good option.

I'd say it definitely matters still. I don't ever plan on selling my investments, but purchase price does affect a number of metrics that I look at including the ROI, Cap Rate, and DSCR. A rule of thumb is that you should never pay over market value or what someone would spend if buying the place as a primary residence. This is because most Primary Residence buyers have an emotional aspect of their decision, making them pay a bit more. As investors, we can be much more systematic and thus shouldn't buy properties over market value.

This is just my opinion obviously, and I understand why someone might pay over if they have sufficient cash flow. I just don't think I would do it.

If you're considering borrowing money from a family member, it's important to treat the arrangement as a formal loan. This means that you should put the terms of the loan in writing and agree on a repayment schedule, interest rate, and any other details before proceeding. It's important to do this to avoid misunderstandings and to protect both you and the person lending you the money.

One way to determine the terms of a private money loan is to look at the terms of a similar loan from a traditional lender. This can give you an idea of what is standard in the market. For example, you could look at the terms of a traditional mortgage loan and use that as a starting point for your private loan. Then you could look at the terms of a hard money lender.

Another thing to consider is the relationship between you and the person lending you the money. If you're dealing with a family member or friend, you may want to be more flexible with the terms of the loan to avoid causing any tension in the relationship. However, it's still important to have a clear understanding of the terms of the loan so that both parties are protected.

Every market seems to have its own norms, so take my response for what it's worth. Two hours is quite long, even for a large home in my opinion. If your clients truly need that time then I think it's fine. With that being said, it's common for listing agents to schedule overlapping appointments if they're getting a lot of interest in a house or if it's difficult for the sellers to vacate the property. 

Ultimately I think it's up to the listing agent and what they want to do. When in this situation I never rush my clients, we just try to stay out of other people's way and always be respectful.