All Forum Posts by: Henry Hsieh

@Henry Hsieh typical penny-wise, dollar-foolish approach.

Investors make more money finding deals than they do pinching pennies doing DIY management.

Or, is your time not worth much?

Henry, if you are still looking to learn more about property management here in Arizona, I'm available, feel free to reach out. I can share the systems we use in case you want to manage yourself, or at least see how we manage properties for out of state owners like yourself.

Hi Henry - I’d love to connect.  I am a newer investor and live in Gilbert, AZ.  I currently have one long term rental that I am managing myself in the Arcadia area.  I’m looking to buy my next property in about a year, but in the meantime I was hoping to find a mentor.  In exchange, I’d be able to be sort of an intern or someone to help with boots on the ground here in AZ.  I don’t know the exact legality of what you need but maybe we can work something out.  I do have a background in real estate- residential sales, new home construction, and short term property management. I am looking for someone who can teach me/be a resource for estimating and conducting rehabs, partnerships, and evaluating deals in this market.  Feel free to connect if you’d like chat more! 

For me combination of 1 and 2 works out.
I let my PM handle the tenant placement, rent collection and, if needed, evictions. 

While on the other hand, I try to be hands-on on the maintenance - for the following reasons:

1. As an OOS investors I simply cannot manage by myself.

2. I have found that PM's contractors charge way more than the market rate.

3. PM's contractors have zero accountability with me. They'd simply keep sending me invoices for every visit instead of admitting their fault for not being able to fix something on the first visit.

4. As much as I need feedback on my tenants, I need feedback on my PM as well. At the end of the day if a tenant is not satisfied by the PMs services, they'd not renew the lease. Tenant turnovers eat cash flow.

YMMV. Whatever works for you.

@Henry Hsieh I have done 1 or 2.   Just giving you my experience on trying 3.   

@Henry Hsieh if you advertise for #3 you will have them coming out of the woodwork. You will get offers for this kind of person all the time even if you don't look for them.  In general they aren't/shouldn't be doing the money side of things because many states require licensing for that. 

@Henry Hsieh if you choose #3, have tenant sign lease MTM at full rent amount. 

For payment, pay them separately NOT via rent credit. If you part ways with them, they get to stay at the lower rent amount:(

With MTM lease, you can then give them 30-Day Notice if you part ways.

5% with a 5 year maturity is in line with CRE norms. If you were to call me, I'd likely be able to offer a choice of 3, 5, or 7 year maturity, maybe 10, but couldn't touch the 5% as of Feb 2024.

Find out if there's a PPP, also common in commercial. 

We don't know enough to comment on the 'sticker price' of the property, but the financing offered is great. Offering great seller financing is fair and good and useful if it's to get a buyer (you) off the fence or sell the property faster, but ensure you don't overpay.