All Forum Posts by: James Teutschmann

In the range of your market rent, where do you like to fall? In my experience in real estate, I enjoy falling anywhere from the middle to even the low end of what our market/area will allow. I prefer picking from many potential tenants. If a great tenant knows they are getting a good deal they will likely stay longer and take better care of the property. Even thought you will "make less" each month, I imagine the savings of cap ex and maintenance for the lifetime of the tenant as well as the lower turnover rate is much more worth it. Maybe this doesn't matter as much in areas of extremely high demand.. Thoughts?

I would check out some smaller breweries in your area. They typically have some good private areas. Any new restaurant would probably be ecstatic to have you as they are willing to take any business they can. Here in Omaha there is a beercade. They aren't too busy on week nights, but is PACKED on the weekends. I would find a place similar to that where they wouldn't mind having people come in, take up some space and buy some food, or beer.

That is a good idea. I will check to see if there is a cheaper way to get it done. I don't even make any money on the $40/month. With what you do, does it give you verified income, rental history, all of that as well? @karl b.

@Shana Robinson If you use an online app similar to Cozy, I would average out their expected utility use. You would likely keep all of the utilities in your name and charge them a set amount per month. So essentially If rent was $850/month maybe you charge them $1000/month with utilities included. If possible I would make the tenants pay for utilities, it's easier. They will do a better job of shutting of lights, not using as much water when they know they have to pay for all of it.

@Fareed R. Use cozy. I have 4 units, and it works great. It is free, and is ran by the guys at bigger pockets. It is extremely user friendly. You can have people sign documents on there, charge late fees, direct deposits everything. I believe that you are giving yourself extra work! It is a blessing! :) I had some of these issues earlier and I thought to myself, "these are the good problems to have!"

Does anyone have a hard time getting people to fill out an application when a $40 application for background and credit check for those looking for low income housing? Any tips or tricks that you have found when talking to people? Has anyone tried taking that out of the first month's rent or any "deals" to make it less intimidating?

There is always something that you can do! I would look up FB groups or other real estate meet up groups in your areas. Here I have found real estate agents, contractors, and others that I now use. They are great places to continue learning and building a team. If you don't have any money, you could begin looking for an investor who wants to put money into real estate but doesn't know how to/wants to be hands off.

I made some PDFs using the calculators on BP to show what a potential deal would look like. I began talking to people telling them I am looking for an investor to finance the deal. I sat down with one, ran him through it and we made an offer. You can practice analyzing deals, talking to contractors in your area to find if they are investor friendly and learn more about how they charge for different projects. Find what you want YOUR strategy to look like and run after it.

But seriously, If you aren't utilizing meet ups I would start there! Surrounding yourself with like minded people is so valuable. Deals will start falling in your lap if you start looking for them in the right places! :)

There is always something that you can do! I applaud you for getting started and finding creative ways to get going. I would look up FB groups or other real estate meet up groups in your areas. Here I have found real estate agents, contractors, and others that I now use. They are great places to continue learning and building a team. If you don't have any money, you could begin looking for an investor who wants to put money into real estate but doesn't know how to/wants to be hands off.

I made some PDFs using the calculators on BP to show what a potential deal would look like. I began talking to people telling them I am looking for an investor to finance the deal. I sat down with one, ran him through it and we made an offer. You can practice analyzing deals, talking to contractors in your area to find if they are investor friendly and learn more about how they charge for different projects. Find what you want YOUR strategy to look like and run after it. 

But seriously, If you aren't utilizing meet ups I would start there! Surrounding yourself with like minded people is so valuable. Deals will start falling in your lap if you start looking for them in the right places! :)

I looked at doing an FHA Fixer-upper loan as you mentioned. The "gotcha" for us is that you or a family member is not allowed to do any of the work that is needed to get it to be FHA approved. This isn't necessarily a bad thing. If you are on your 3rd rental property, I would imagine you are well into the process of building a solid team. I believe that there are some qualifications on who would qualify to do the work, but I am sure that you can quickly find that information in your area. For example, I live on the south side of Omaha in Papillion. In Bellevue, the next suburb over, they are known to have a lot more laws and scrutinize real estate transactions much more closely.

If you are hoping to get into an FHA 203k loan. The work will have to be finished before you move in, and you have to hire it out professionally. Hope this helps a little. Enjoy the journey!

That seems weird to me. It should be a normal real estate transaction. If you are buying it at market value with 20%, I am unsure of how that could be illegal.