All Forum Posts by: Jarrod Kohl

Hi 👋, My family and I live in the Bay Area of California. We own a rental property in Colorado Springs that we purchased back in 2019 and are looking to purchase another before the end of this year. Colorado Springs has been great since it's close to military bases and we've been able to find great tenants and make solid returns. We're researching quite a few different markets outside of CA, especially in Ohio, but was interested in hearing where others are focusing right now?

Are you having trouble finding more properties by the first one? You may be able to save some costs if you can get some in the same area, certainly would be easier to check on your properties occasionally, and less markets to keep track of.

1 Vote

San Francisco, California

Also a dog person!

The problem with a 2 family is that if they share a backyard, having pets can be a CONSTANT issue with neighbors and renters not getting along.

Usually instead of restricting breeds I tend to get "references" for pets, though I don't know that it ever really helps as people can have a Kujo and think hes fine. So to answer your question, think about the 2 family set up, even if its a friendly non-barker, are they going to be good about breaking out the pooper scooper daily?

0 Votes

Quote from @Jay Hinrichs:

U asked about risk.

BRRR risks:

1. you underestimate rehab

2. you pay too much for a fixer

3. contractor steals your money ( far more common than you can imagine) it happens to most of us at some point.

4. property does not appraise and you cant get out of the HM loaner loan and you get killed with carrying costs.

5. Contractor does crappy job and your stuck with it or have to redo .

those are a few of the risks that you will need to know about and mitigate to be successful plus all the other sage advice your getting.

Yeah even the "honest ones" I have had steal from me. Nice enough guy, but Terrible at tracking expenses. For the most part his "stealing" was just not tracking all his stuff and not doing a great job keeping jobs separate. The occasional new tool I bought him too when he finally showed some receipts was a nightmare. So yeah, even if you like the guy and have good reviews on them, try to hold them accountable and make sure to properly track expenses and have them send any invoices to you the day they buy the stuff.

0 Votes

Denver, Colorado

Quote from @Alyssa Patterson:

I have been self employed for 10 years have proof of income and pay I’m up taxes. I am trying to buy a house with a hard money loan I already got an offer with 15k down for single family property for going less than 30% market value. I have the offer for a loan to buy the house and for renovations, he said if I found the property he will wire me the money immediately. Should I do this? It was the first person I inquired about the loan. Should I wait for more options?

This throws up some red flags....do you know this person??? There is a lot of wire fraud in the world. Please be careful.

0 Votes

Denver, Colorado

Quote from @Bruce Woodruff:

In wonderful California, I guess I'd have to take the deal like you did. It just irks me rewarding bad behavior.....

But like I always say, this is a business, run it like one.

After he is out, find some way to stick it to him though.....

After he is out the best way to "stick it to him" is to never think about him again, and if you are in any landlord groups make sure they know his name. No need to waste thoughts on the person.

0 Votes

Quote from @Account Closed:

Quote from @Chris John:

@Account Closed

You made the correct call. I would've walked when she had you negotiating against yourself. Gain the ability to look forward and never back (unless it's in fondness). It'll make your life a lot easier. There's something better out there and you dodged a bullet.

Best wishes

Thanks so much!! Seller was only willing to sell property at 30K OVER her listed asking price (so she rejected my full asking price offer).
I was also the ONLY offer on this property. It was listed at 490K 3 months ago... then entire month later she lowered it to 471K then entire month later she lowered asking price to 465K (that's when I made offer for 465K). She rejected full asking price offer and wanted 30K more.

I know that property was extremely overpriced at 495K, especially in current condition (it did need lots of work... mostly cosmetic updates... at least 20k worth). Highly doubt that I will find anything with good views again but I'm OK with that now. I can get my views at a later time.... it will be many years from now unfortunately but at least I will have not thrown a TON of money out the window on a severely overpriced property that isn't even my dream home.

IF I had bought this townhouse at 30K OVER asking price... I don't think I would dare admit this to anyone... especially since NO other offers took place as I was not outbidding anyone but myself... it made me feel stupid. So I am glad that I am NOT doing that anymore!

I told my 80 year old aunt about this situation... in Hungarian she told me to tell the seller to go you know what herself.... followed by NEXT!!! LOL... haha. She said "this no way to do business!!".

If it does not sell in the next month and the "Headlines" get worse. Go in and offer $450ish and tell her its final.

But really, I think you need to work on your planning a bit too. You are trying to buy with too many competing goals. You want to buy it as a primary residence but also as a LTR in 30 years for a tenant who will be retiring 30 years from now..... are you working with a good buyers agent? Sometimes I find that can be a great way to talk these things out. What is your honest expectation of the property. Are you going to be holding it for 30 years plus and then renting it out? Or are you more likely to be moving again and then selling it in 5-6 years. Work out some of those details and worry less about that specific house. There are always places to buy and sell. Figure out your goals and buy based on that, realizing that we all would love to have a few more houses in our portfolio from 30 years ago.

0 Votes

Quote from @Jonathan Bombaci:

Hi @Jarrod Kohl congratulations on deciding to hire a PM normally it’s a good sign and means you’re ready to grow. We manage a few hundred units in the area but typically only do it for clients or past clients. That said I’m happy to connect and make rec commendations. We’re a very active investor focused team. We ask host a 6 FREE monthly meetups under the name Pints & Properties. You can find the event info under the “Events” tab here on BP. We host one meetup right in Worcester and it’s a great place to meet other local investors and property managers. If you’re interested, and have trouble finding it, please message me.

Anyways best of luck and let us know if there is anything we can do to help,

Pints and Properties! I am in!

I will have to check it out and maybe we can work together to organize a Boston one as well.

0 Votes

Boston, Massachusetts

Quote from @Drew Sygit:

@Jarrod Kohl

In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.

our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.

It's often a case of not doing enough research, as they don't know what they don't know!

Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator.

So, the first question they usually ask a PMC is about fees - instead of asking about services and HOW those services are executed.

EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean? What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.? You’d be shocked by how little actual screening many PMC’s do!

This also leads owners to ASSUME simpler is better when it comes to management contracts.

The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!

We have a 14-page management contract that we've added our real experiences to over the years, with the intent of protecting both us AND the landlord. Beyond the Monthly Management, Placement & Maintenance fees, all other fees in our contract are IF EVENT -> THEN fees.

We don’t know any PMCs to recommend in the area mentioned, but since selecting the wrong PMC is usually more harmful than selecting a bad tenant, you might want to read our series about “How to Screen a PMC Better than a Tenant”:

https://www.biggerpockets.com/member-blogs/3094/91877-how-to-screen-a-pmc-better-than-a-tenant-part-1-services-and-processes

We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.

EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

P.S. If you just hire the cheapest or first PMC you speak with and it turns into a bad experience, please don’t assume ALL PMC’s are bad and start trashing PMC’s in general. Take ownership of your mistake and learn to do the proper due diligence recommended above😊

Thank you, I agree with this all the way!

I actually used to work for a property management company here in Boston and then ran my own for a little while before deciding to focus more on buying/selling as an agent. I was just hoping for a nice jump start to start doing some DD on Worcester managers. That being said, I will have to connect with everyone here as I move forward! Thanks for the insights!

0 Votes

Boston, Massachusetts

Quote from @Account Closed:

If you want to look at a successful implementation of large scale public housing I suggest you look at Singapore. Over 80% of the population lives in high quality, highly subsidized housing that is impeccably maintained. I live in one such apartment myself. If you actually have a non corrupt system where the government is not bought by vested interests and is willing to spend money on social benefits you most certainly can provide decent public benefits. And before you tell me I am living in some commie hell hole, let me tell you that the max income tax rate here is 15%, there are no capital gains taxes and no minimum wage. Singapore is one of the most business friendly places in the world. Now go wrap your head around that for a moment.

Thats great! And just to be clear, there are plenty of well run and even profitable government housing programs in the US, but it really depends on the location and often the local government, which is IMO way easier to be "corrupt" than the bigger governments. Usually, it happens over small things (aka giving a buddy all your landscaping contracts) and in a small town or city it is easier to do some of these things than at a federal level, but it is also easier to run a profitable one if done right.

So while the Singapore example IS a great example of how things can be done, it is tough to compare when talking about the US on a national level.

1 Vote

Quote from @Ryan Williams:

Hi @Alyssa Patterson, BRRRR is a great strategy, but as Randall mentioned, hard money would probably be the only option, it is tough in todays market, and can be even tougher in Denver, and having only 20K would make your margins extremely thin, and would create a lot of risk if something went wrong (rehab costing more, appraisal not coming in at ARV you were hoping for etc). What are your goals for doing a BRRRR? IF you are simply trying to add properties to your portfolio, I would recommend that you buy a home that would be a great rental or short term rental, living in it for a year and do repairs you can while living there, and then move out and rent it as soon as you have the funds for the next down payment, but that totally depends on what your goals are, I hope that is helpful!

Yeah with 20k, I would say you are better off as Ryan suggests, finding a live in flip or something you can add value too. You could also do a house hack, either option would give you a little more wiggle room and room for mistakes. The only way I would consider a BRRR (or a true flip) is if you are a good contractor/builder and can provide the labor 'free' which makes it easier to do rehab on a small budget.

0 Votes

Denver, Colorado

All Forum Posts by: Jarrod Kohl

Jarrod Kohl has started 8 posts and replied 206 times.

Post: Where to buy next property?

Post: pets allowed or not allowed in multi-family rental?

Post: Is the brrrr method worth the risk?

Post: Is the brrrr method worth the risk?

Post: Would like input on this eviction in California

Post: Am I CRAZY to buy 2br townhouse when I could buy a 3br house?

Post: Looking for a property manager in Worcester, MA

Post: Looking for a property manager in Worcester, MA

Post: When someone tells you "the government should provide housing"

Post: Is the brrrr method worth the risk?