All Forum Posts by: Glen Beringer

Depends on the type of rental.  If you are in Wilmington and want to rent "better" properties - I would go with one of the local property managers that specializes in Trolley sq like Harrison properties. Not sure what their rates are since I manage my own properties- but they have a good chunk of the market.  I know them personally and am using them as a realtor in a deal I am working on. 

I’ve also seen signs around for Pabian properties- I know nothing about them but they have a decent number of properties under management. 

Where in Delaware are you looking?  Within Wilmington, there are a few well-known property managers.

I've been working from home lately so as long as it is in the next few weeks I should be around.

I just bought a house directly from the owner.  You will need a lead disclosure and a few other items.  If you want to PM me your email address I can send you the docs.

I use Roger Truemper.  ( I used to use Ward and Taylor, and they were fine, but I prefer Roger if I had to compare the two)

Hi James,

Welcome to BP! Congrats on the place in Little Italy. One of my rentals is a SFH in Little Italy- I have been happy with the area and the purchase. If you have any questions about the area, feel free to reach out!

All the best,

Glen

 It all depends on your top line rent, tenants etc.  If I am renting a townhome for $1450 and it is only 950 sq ft, has top quality tenants and I have completely gutted the inside and has a new roof, I don't see approximately 10% as wrong.  Especially if you are handy.  Plus my 10% is way different than 10% on a property renting for $850.  (why I said a duplex with 2 units renting for 850 would be more reasonable)

For a B, C or lower level property, I can see that being a much bigger number based on the tenants as well.  

 I've been busy.  Finished my short sale flip to rental and finally got it rented last week.  Took about 3 months start to finish, but is my best deal so far- right in the Triangle.

I now have to turn over a property for Feb 1 in Trolley, but won't be vacant for even a full day between tenants.  Not a bad problem to have!

I am itching to get a new place now but I need to build up the cash reserves again.  Probably won't buy until the fall/winter time unless I miraculously come in to a large sum of money or find an incredible deal.  Let me know if you need help with anything along the way.  I tend to get bored sitting around on weekends :-P

How are things going with you? Are you still planning on using the BRRR strategy? I am a bit more conservative and have just been buying with my own cashfllow and pouring my monthly rental cashflow back in to the business. (paying down some of the loans, etc) PM me if you want to get together for a drink or something one of these days.

All the best,

Glen

@Irwin Haddox -I wouldn't budget for eviction costs.  Also- I do my own property management and also place my own tenants (I actually like doing this part of the work and I feel comfortable with the people I place.)  Therefore, I don't budget for property management either- but that is completely up to you.

What do you consider as "maintenance" vs. "capital expenditures"?  i.e maintenance is lawn care and snow removal or calling a plumber to fix a leak?  If it is lawn care and snow removal I would just build that in to the lease to be handled by the tenant.  Generally, I would lump maintenance (like fixing leaks and calling an electrician) and capital expenditures together and budget around 10%.  I do 99% of my own repairs so it is just the cost of the material for me, which in general is super cheap.

   That all being said, I tend to buy more expensive houses than what you are looking at and rent them for 1300-1450 per mo.  (Purchase price is around 110K-130K so mortgage is in the mid 80's)  My spread between fixed costs and rental income is anywhere between 550-750 per mo, which I am happy with.  There is a bit of a point you need to get to where you get a critical mass and it makes it all a little less stressful.  (You can shift the cashflow between properties to cover big repairs if needed)

I understand that people need to get in to the business and are willing to take a lower monthly rent (and house purchase cost) to get started, but it doesn't seem worth the headache to have a top line of $850 per mo, pay for property management, and hold a mortgage.  If you can spend a little more money and get a duplex and rent each side for $850 per mo, it may be more worth it to you.