All Forum Posts by: Cameron Jarrett

Thank you so much for the great advice and kind replies! I think this will become a bigger trend, or an opportunity for persons to take advantage of waiving fees. Not saying everyone will, but some may. I will update this topic after I meet with my attorney. This should help other investors as well. Cameron

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Hey Everyone! Hope all had a great holidays! I have not posted in a long time, mostly because Everything has been pretty smooth Land lording. I have currently invested for 6 years and acquired several rental units.

I have used the same screening process and policies this entire time with good excess. I have started to change one of my policies, which would be animals. I have noticed the trends of higher % tenants owning pets. So I have started changing my policies for this reason.

Recently I have had two different tenants tell me they are getting Service/Assitance/Therapy animal, and tell me they do not have any restrictions or fees to pay. These tenants are both on a 6 month old lease that requires no pets. I have asked for their Doctor's Documentation and will be seeking my local Lawyer for advice.

Here are the items that make me uneasy. They signed a no pet policy lease and have been living there for 6 months. Both tenants asked me for pets, then I stated the most generic requirements for allowing pets in my rentals. Then this was their next statement, about how I can not give them any requirements. Anyone had the same things happen? How did you all go about it?

Thanks

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Getting through the learning curves, while making a predictable systems for someone else to follow. I would also say waiting patiently for the day I can be self employed.

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Originally posted by @Josiah Halverson:

@Gary Parker Thank you very much for sharing my friend! Good to know. I'll have to look into Blackbook Data.

Hey Josiah! Did you ever find this blackbook data site on the internet? I seem to have trouble finding which URL this information is under.

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Originally posted by @Gary Parker:

I tested marketing to 30, 60 and 90 day lates a few years ago, but I didnt go through list source. I went with a company called Blackbook Data. When I was testing, I tested maybe 4 zip codes in areas that might be prone to late payments. For 30 day lates I would get hundreds for just a few zip codes and the numbers went down as I moved to 90 day late.

One of the things I was trying to determine is if I got a 60 day lead how long did it take in real time to turn into a NOD (notice of default). I wanted to know the same thing for 90 day lates. Just because someone is 90 days late doesnt mean they will gt a NOD right away. I tracked things for 6 to 8 months and found something very odd. None, not one, of the 60 or 90 days lates ever turned into a NOD. I was actually checking my purchased leads against the new NOD's that were recorded daily.

Im guessing there are about 50 to 60 new NODs a week in SL County.

Hey Gary! I know this post Is close to a year old, but this was the best result from my excessive searching. What is the URL for blackbook data? Is this company under nextmark.com?

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Originally posted by @Michael Quarles:

It happens.... And not illegal. I explain my intent which is to buy a house and ask the officer if they need to or know anyone who needs to sell their home.

Hahaha.... Love this response!

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Thats awesome! When I first started direct mail, I actually answered an incoming call with a very similar homeowner on the other line. Had no idea what I was doing, and he said he could hear the fear in my voice!! He was right. lol

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Originally posted by William Bannister:

I know in more expensive markets this would not work but I never pay more then 36 months rent for an income property. I might deviate a little if it was ocean front property and has a nice harbor nearby.
Its just easier for me to compete against reits that are flush with capital when I dont pay more then them for rental units.
It has driven me to more average neighborhoods. But what do I care? Im not trying to flip to make a 100k over night I just want each building to bring home 400 dollars and up profit every month. Im an optimist saying that and understand those that argue with me.
I have tried 200k duplexes and I have tried 35k duplexes. When the 2 rents coming off a 200k duplex are 1200x2=2400 per mo and the rents coming off a 35k duplex are 450x2=900 per mo.. I am inclined to take the 35k duplex for returns. Even if i knock off an extra 100 for maintenance on a smaller building its better deal to buy 35k duplex in an older neighborhood.
There are some that might argue you have to consider the older 35k duplex will cost more to replace roof and all that other stuff thats aged.
I will say I have seen 35k duplexes that have a better roof on them then 200k duplexes that are only 10 years old. If you know a 35k duplex has a shorter life expectancy then take a little bit more off every month for maintenance. Eventually when you get some good cash saved up and decide to buy a larger income property like a 50 unit apt building then I would be inclined to pay an extra 5k per unit and buy in a better neighborhood. That part of Tenn is a relatively reasonably priced market and I think you could probably find some great returns in the 20k to 40k range and ratchet up your returns a bit especially if your first starting out.
When I was first cutting my teeth in this business 20 years ago I focused on 30k duplexes that pulled rent of 400 rents from each side. I bought em from banks and when I would get them fixed up a bit and occupied and for some reason the appraisers always thought they were worth almost 2 times what I paid for them. Today, in that market those same 60k duplexes are selling for 90k to 100k. I no longer live up there but you get the idea.
They didnt really appreciate much but they were stable cash flow. Stable cash flow can get you through good economic and bad economic times. As long as you manage your units tight and are able to save money along the way adding value to your business some how. Once your business is going and you can afford it then to hunt for a nicer property that will appreciate is a good idea if it cash flows. Just my 2 cents.

Thanks for taking some time and helping a fellow investor. Yes, the market here was not hit as bad as the rest. I will use your advice! Thank You!

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Originally posted by Brandon Turner:

Thank you Cameron Jarrett! Glad to hear you are utilizing all the great stuff on BiggerPockets!

Looks like you are on the right path. I have not heard of the "90-180" rule. I just use "Cap Rates" to figure out value on multifamily properties, and Comparable Sales to determine price on properties 4-units or less.

Don't forget to add a photo!

Brandon,

I am truly honored you replied to my post! I actually read "make $150-200 per unit per month" from your seven year plan to make one million dollars. I am actually in the process of listening to the new podcast! Great advice you can not find anywhere else!!

I actually switched this topic to a better fit forum.

https://www.biggerpockets.com/forums/12/topics/82452-my-first-deal-and-future-plans?page=1#p498394

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Will,

I have not thought of it this way. That said, I need to leave emotions at the door when it comes to deals.

Kurt,

Sounds like you hit a good deal! Congrats! I am going to research the .10% method you are talking about. From what I am grasping, it makes more sense than the method I mentioned above.

Steve,

Thanks for the great advice. At least the property I landed will break even and live payment free. At least I can look at this as a lesson learned.

When trying to figure an offer for a rental, should the property tax assessment appraisal be studied as much as comps? I seem to have trouble dealing with the comps around the college because of the variances between the housing. One house may be the same size and condition but zoned as a SFH. Should this comp be over looked when comparing to rental housing?

Thanks in advance,

Cameron

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All Forum Posts by: Cameron Jarrett

Cameron Jarrett has started 3 posts and replied 12 times.

Post: Tenant Waiving Pet Fees

Post: Tenant Waiving Pet Fees

Post: What is your biggest problem in your real estate business right now?

Post: What search criteria do I select in Listsource to filter for 30, 60, and 90 days late mortgage payment (pre-foreclosure)?

Post: What search criteria do I select in Listsource to filter for 30, 60, and 90 days late mortgage payment (pre-foreclosure)?

Post: Police are getting complaints on my Yellow Letters

Post: Another Strange Caller

Post: My future plans and how to calculate the price of a rental.

Post: My future plans and how to calculate the price of a rental.

Post: My First Deal and Future Plans