All Forum Posts by: Guy Gemmer

@Jens Nielsen is right. The market on STR and LTR is super strong. We have the same inventory issues with rentals as we do with resale. We have lots of tenants and buyers relocating from places like Long Beach ;) and they are willing to pay a little more than the local guys like @Mark Hughes - Personally, I have pulled out of multi-family (Flipping them only now) and am pulling similar returns on my furnished rentals. I do have several 4 Plex's coming on the market soon if thats the market you're looking to get into. 

Hey Ray! Good questions here. 

Splitting property into multi unit has a couple of barriers but it can certainly be done. Zoning is important and also the cost to convert the property and how well that can be done. 

The other question would be whether it makes more financial sense to, all things considered, keep the properties in tact. Higher end homes don’t usually rent as high as we might hope considering their cost. A general rule of thumb is the 1% rule. If you can purchase a property at $100,000 and get 1% in rent or $1000 per month you have a slam dunk. 

Hey Hanna and @Trey Whaley! Congratulations on your move to NM. You’re going to love it here. 😊 Our real estate market has a crazy low inventory so it’s really competitive out here. I’d be happy to schedule a zoom to do a Q & A and run you through all the specifics. 

here’s the real estate commission website. Just bookmark that thing right now. Lol 
http://www.rld.state.nm.us/boa...

Halfway down the page is the list of approved education providers along with requirements and all that good stuff. 

I’m a big fan of Jack Sheehan at One Stop - he’s a character for sure but he knows his stuff. 

Lots of great advice here. Big things I think separate the good from the bad are:

Do the people in the company own rentals and know why owning rentals matters? - If they do, they get it. If they don't, they push paper. Not always bad but you want knowledgeable representation. 

Do they bill you even when they don't collect rent? - Self explanatory

Do they charge you to evict someone you paid them to place? - There are court fees you're responsible for but as a management company having goals that align with the owner are paramount.

Make sure the buyer's agent you use knows multi-family. You'll be happy you did. @Leslie Villareal is on to something here. If you can get onto them before they hit the market you'll be ready to make an offer before the other guys. I post mine here to give BP folks an opportunity but very few people are looking for deals on this site. So they end up missing them.

How much higher can they go?! @David Torres

I got slapped on the hand for my last post so I followed the rules and posted in the marketplace. Because this information is purposed for a discussion about Buying & Selling Real Estate, I'm hoping that it will be considered as such.  

What I wanted to share with the group is that there has been a beautiful increase and uptick in rental property values. I am not advertising myself in any way just letting the world know what is happening in the market here in Albuquerque. 

@Tim Robinson is on the right track here. I’d also add to that... I can’t tell you how many management contracts we have picked up after another realtor had promised the property would rent 15% higher than market. Find a broker who has a management company and is accountable to the property performance after it closes. 😉 

Good advice here so far. Big things to be aware of are the legal liabilities that come with the sale of a several hundred thousand dollar property, proper disclosure, inspections, etc. Then there's the national stat that property listed with a broker sell for 5% more than for sale by owner. So is it worth keeping 1% to shoulder all the liability and deal with all of it yourself? Always depends on how much free time you have and what that time is worth to you. I know that sounds snarky in text form but if I had a bunch of emoji's to interject you'd know I'm smiling and trying to give you the best info possible so you make the best decisions possible, to get to your desired outcome. Good luck! :)