All Forum Posts by: Justin Herrema

My opinion is stay away!! Most property managers won't even take properties under management in these areas.
I buy in areas that are not the best but the higher crime and drug areas are hard to rent and harder to sell. Even if you do rent them you are dealing with tenants that are willing to live in those areas which 9 times out of 10 they are doing or dealing drugs.
I made the mistake of buying some of those because they where super cheap and fortunately don't own anymore. 2 of them where shot up (one person died) because tenants where dealing drugs. There are a ton of homes that I would not take if someone gave them to me free.
I am not saying only buy in perfect areas but make sure they are half way stable.

Also check local police reports or areas in detail.

I currently use a local Michigan auction co but starting to with Ebay as well.

One avenue I forgot to mention that has worked well is auctioning off last minute vacancies. I may get $800 for something that would go for $2,000 but it's better than nothing plus it brings in many more inquiries for other weeks.

Thank you house 21.
1. I agree on screening. I have my plate full so trying to figure out an easier system. I had employees handling bookings before and that didn't go well.
2. That's kind of what I figured
3. I have to make sure I am on VRBO. I know I am on the others. I have used Craigslist also but that doesn't get near the response.

Currently the main one I rent for $2,000-$3,000 per week. It's around 75% oc rate which is down from what it used to be. I am thinking of picking up some in other areas that would be more like $800-$1000 per week.

One other questions: Do you think Condos are a decent way to go to eliminate maintenance etc?

@ Bryan, Yeah and it was probably a relative to property management co....I found out the last guy I was using had all kinds of side deals (kick backs) going with contractors he used.

I agree with Ryan except make sure you ask for itemized quotes breaking out everything in detail. Some contractors are somewhat vague.
I still can't swing a hammer but I now know my costs to a T.
I agree with Ryan in that finding the best deal is more important as it allows some room for error the cheaper you buy.

Does anyone do this as their primary investments focus?
I am looking to do more of these and have a few questions for someone a little more seasoned on this topic.
1. Have you been able to create an automated system for booking?
2. Do you use a management company and if so what do they charge?
3. Do you advertise aside form VRBO.com, Homeaway.com & vacationrentals.com?

I use google voice and ring central. Ring central is a phone and fax service you can use from you smart phone. I think I paid like $7 per month??
Ring central offers the same features and a little more than google voice.

I have had tenants move out because I listed rentals even though listing it as rental property and for a potential buyer. The seller does have ligit concerns.
However if the tenant knows you would want to keep them then it shouldn't matter. The tenant probably would start looking to move if they didn't know you what your plans are.

I agree on the contract subject to insp. This is better anyway because it gives you more time for potential contingencies and negotiations. Walking through the house quick once you may miss something.

8% of collected rent not the contract amount.
50% of first months rent for placement.
The norm in West Michigan is 10-12%. obviously volume talks. You are asking about apartments....my guess is 6% on an apartment that size.
Usually 0 markup on repairs for apt complexes. Single family 10-15% add on for service call is normal.