All Forum Posts by: Jaryn Pierson

Arn

Love the deal and the talk about net worth increase per month.  I think a lot of people talk about cash flow etc because its 'sexy' and checks the 'financial freedom' box for people. That said, personally investing for net worth growth and to help to support / transform a community a bit, the $$$'s are just the vessel to do it with.  Having a job to support the early on day to day investor seems like a no brainer although the guru's may tell you otherwise.  Love the deal, love the conservative underwriting.

Happy Investing !

Looks like it could be a great buy to me for all the reasons above. Might be worth doing a little due diligence on the company building the property. Do they have other properties within a days drive? Probably a portfolio website where they have their other stuff listed. If it isn't within a days drive, maybe at least a good street view 'drive by' to take a peak at other stuff they're operating. I'd certainly want to know. My gut says it'll help you out and like mentioned above set a clear bar for rent rates but ya never know until you look under the hood a bit.

Happy investing !

Mr Zach

I signed up, looking forward to it. We'll chat. Hope to get some sort of 'study group' going from it maybe, we shall see !

Hey Kevin

Love the post and been in your shoes. My first question would be, how did you get to where you are at now in the deal. 

Were you calling a list and asking people if they want to sell your property ?

Were you knocking on doors?
Did a broker send you the deal?

Did you find the deal on the MLS and called the broker?
Is it a friend or another landlord you met at a local meet up ?

Sellers don't often call random investors and tell them they want to sell you there property for $650k so I"m wondering how you got to where you're at. That may help inform a future response from the BP community on what a solid good next move should be.

Curious as to what you mean by 'is there anything further' that you could do with their deposit? Do you mean as punishment because they were a little slow on communication?

Sounds like they're on their way out. Clean up the unit, get some fresh keys, get them an itemized receipt for repairs if need be and get on with the next resident. If I would be doing anything right now I'd be trying to get an idea of what the units going to need and be lining up a contractor or handyman to get it all done and get it turned as quickly as possible. 

Had a similar thing come up for me not too long ago. Basically had an attic that already had 2 exits (kind of) already in place in a duplex. I wanted to renovate into a 3rd unit soo badly but no matter how hard I asked myself 'Why' I could not come up with a good answer besides 'because'. I think a lot of it was wanting to just 'maximize' every building to the best of its ability but when backing up and looking at a portfolio rather than one building it made literally zero sense. Bought another building instead, with 8 friggen apartments in it, for less down than the renovation would have cost me.

Your ADU above feels like the same thing. Financially, it doesn't seem like it makes ANY sense. That said, some people want an ADU above their garage for whatever reason and if that's you, build that dang ADU !

 Oh that is wonderful. Be sure to read some books to educate yourself a bit, I always recommend the Managing Rentals book by Heather and Brandon Turner to get you started. Be helpful to them and I'm sure it'll take you far.

Duane

Not exactly sure of what your situation is but if you're looking to get more into real estate this is AS GOOD AS IT GETS. An older couple wants some help with the day to day management? Talk about a hands on education. If it was me, I'd do the best job I possibly could while they're gone, and ask to help out more in the future if they were open to it.

For now, because you're not going to be able to predict the upcoming months, just decide on an hourly rate and track your time. Moving forward, work out a solution that works best for both of you. Who knows, maybe some day they'll toss you the keys for real on a seller financed note ?

Happy Investing !
Jaryn

Tom

Great question. Not exactly sure where you are in the purchase process but I would put an emphases on making sure you get estoppel agreements signed by all current residents.  This is a document that will detail tenant name, current rate, whether they have a lease or not, whether or not they are current, if they put a security deposit down, what utilities they pay, etc / etc /etc. They are super useful to know exactly what you're getting into regarding current residents. I would also try and get a hold of a proof of rental funds filled out by the current owner to actually verify that tenants are current and up to date. Landlord may say he's got all three units rented out at $1000 per month, but lets actually see some proof of that. Don't be afraid to ask for this stuff, it's normal due diligence and a landlord that has nothing to hide should have no problem forwarding this along.

How you navigate the conversations from there will vary from landlord to landlord. DM me and I'll send you over my checklist if you want to work off of it for next steps. Personally, I always try to be kind and professional at the same time. Treat people how they want to be treated and expect the same in return. Do everything by the book, but with a smile.

Happy investing !

Jaryn

Hey Summer

Not that crazy to start with a 5 - 10 unit if you've got yourself the right setup going in. Personally I'm happy that I went with a small duplex on my first deal and went into something that size after but anythings possible.  A few things below that I would want locked in before I jumped into something that size on my first deal . . .

- a quality mentor on my side that has done many deals at that size (if you find that, you'll be good)

- 6+ months cash reserves after all closing & renovation costs

 - a management plan (if part of that plan is you being the property manager, then a plan of how you will onboard / manage / offboard tenants should be a big part of that plan)

For me, the duplex was a great place to figure out what I like to do (management, tenant communication, finances) and what I don't like to do (handyman / contractor type stuff) on a small scale. If I had jumped into an 8 unit on first pass, I probably would have been too overwhelmed and the ship mighta sank. I want to be in this game for the long haul so I'm fine with slow steady growth. 

Happy investing

Jaryn