All Forum Posts by: Gregory Schwartz

That classic case of "it depends." 

My reserve is nearly $90k for 19 units. We have 2-3 large projects coming up so we built up a large reserve. Normally we keep 20-30k.

So, how old is the water heater? Is the roof? Is the siding in good shape? Will you need to upgrade the units to keep up with market demand and market rent? 

Get a job in the industry. It will be the fastest way to go from "too young" to "that kid whos crushing it"

We don't allow people to apply before viewing the property. Because we don't refund application fees. Our process,

1. 4 months renewal notice. 4 months to find a new tenant. 

2. Pre-screening: On 3 different occasions the potential applicant is asked if he/she meets or surpasses our minimum screening criteria. 

3. Show

4. Have them apply with a $50 app fee. If all criteria are not met then deny and move on. 

5. Set a move-in date no more than 2 weeks from the move-out date of the previous tenant (3.8% vacancy for that year. Most tenants stay for 2 years bringing our vacancy rate to 1.9%) 

Give the seller 2 options.

1. Accept a lower price due to the increased risk of the tenant 

2. Extend closing and have the condition of the sale that the seller provides the unit vacant. This gets you an unoccupied home and hedges against the downside of an expensive eviction. Also forces the seller to deal with the deposit reconciliation. 

What are your go-to non-Biggerpockets Youtube channels for REI?

Amazing idea. A few thoughts 

- This will be a house hack correct? Of course, you have to owner occupy the property if you plan on using VA loan

- I assume you used a VA loan on your first home? Have you determined what entitlement you have remaining? This would be a good time to start to build your team.

- Find a Realtor with experience in VA loans then have him/her recommend a great lender. They will help with the entitlements part of this process.

- Get pre-approved early in the process so you know how much you have to work with. 

GOOD LUCK

Are you doing any capital improvements to the park? If you can show / prove to him that the park will be worth more because you are rebuilding the bathhouse, paving the roads and adding a playground then maybe he will feel more comfortable? 

That's not what I read, "I am planning to build a business to replace my income in couple of years". 

Actually, he never mentions passive income. The sharks circling a high-income earner started to force their "passive income" pitch. 

@Roger D Jones if the power goes out and all the food in her fridge spoils. Will you also write a check for $400? The point is you have to have a policy that holds true across all tenants and all situations. 

@Rick Albert maybe @Vhernadette Sasing likes the wheeling and dealing of wholesaling or the feeling of helping a family buy their first home as an agent. The point I'm highlighting is once you learn the skill of marketing for deals you are in a very advantageous position. You can pivot into just about any niche you want. And you'll make money doing it