All Forum Posts by: Brad Morgan

As if you couldn't tell, I'm very much a rookie, so I appreciate the thoughtful feedback. What you're all saying rings true and answers my question. Love having a forum with people smarter and more experienced than me. Thanks to each of you!

Many tenants would like to stay long-term in the home they rent because moving sucks, kids are in local schools, friendships are made with neighbors, etc. Most landlords would like their good tenants to stay long-term as well because vacancy sucks and finding new high-quality tenants can be a challenge.

In this case both the tenant and the landlord have a similar objective, which is to make a longer-term agreement. We’ve all heard of 2-year leases, and of course longer term agreements, but these are not always ideal.

Here’s the idea: sign a typical lease agreement with an evergreen clause and the following included:

Each month where the payment is received on time, a part of the rent (perhaps $25-50) goes into a separate “incentive account.” This money grows over time and the longer the tenant is there, the larger the sum becomes. If the tenant decides to move, the landlord keeps the money. If the landlord decides to sell the house or boot out the tenant, then the tenant gets the money.

For this to work certain stipulations like on-time rent payments, not damaging the property, etc must be part of the agreement. Also an agreement to peg rent increases to an inflation index would be necessary.

What are your thoughts? What are the major holes in this idea that perhaps I’m not seeing?

Originally posted by @Lori Greene:

I'm in Huntsville but I invest mostly near Ogden. It's a great market. I do mostly Single Families but have done the occasional Multi-Family. I will add you to my Buyers List.

 Are there many B class single family homes in the Ogden area that meet or exceed the 1% rule? I guess I was assuming (probably incorrectly) that there weren't many good buy and hold opportunities in Utah... I'm very new to this.

@Jeff Rappaport

Thanks for that info! I'm still in the learning and saving stage, but we'll be in touch.

Thanks, @Jeff Rappaport, from your experience is it pretty challenging to achieve the 1% rule target in Idaho with single family homes? I would imagine a few years ago during the downturn and first few years of recovery it was probably possible, but is it still?

Thanks, Jack! Just curious- where did you get that vacancy stat? I've seen vacancy statistics for apartment buildings but not including single family homes. If I get serious about purchasing in TF, I'll get in touch with you.

Originally posted by @Bill Hamilton:

There are far more experienced people on this forum than I and maybe they will jump in here, but looking at basic numbers I don't see that $1,100 per month in rent on a $200k property makes a reasonable profit.

I agree with that. I am of the opinion that monthly rent needs to be close to 1% of purchase price. That said, if the purchase price were closer to $150k and rents were around $1,100, I might be interested in that when considering other factors (proximity to me, market conditions, etc)  and knowing rents tend to increase over time. 

Does anyone know how the Twin Falls, Idaho market is for rental properties? I recall my brother telling me once that it was "really hard" to find a place to rent in Twin Falls, and since it isn't all that far from where I live (Utah), I thought it may be an intriguing place to check out for "buy and hold" opportunities. 

All I know is that the homes seem to be a lot less expensive there with prices well under $200k for 3b/2b, and rents seem to be around $1100/mo for a 3b/2b (per zillow).

More than anything, I'm looking for someone to talk me out of this market :).

@Account Closed

I would love more information highlighting the similarities and differences between the two from an investor's perspective. My understanding is that HU is much more passive, hence the fees, while Jason Hartman's network is more about connecting you to properties and helping you through the process while you do it yourself. If deciding between the two, one would have to decide how involved they want to be with their investment and understand that their returns will likely be impacted by that decision.

Again, I'm new to this, so please fill in the gaps and correct me if I'm wrong. Thanks!

(I wanted to tag @Jason Hartman as well since I've seen him on this forum but can't figure the tagging out...)

Thanks you guys!