All Forum Posts by: Jay Dean

@William Glass

I like ***********.com which is the same price as what @Peter Mckernan is using.  I am guessing they all offer about the same service for the same price.

With ***********, my prospective tenant pays the $35 fee.

In some cases the mere mention of a background and credit check has scared off some people presumably because they had something to hide.

As long as you get your money what difference does it make?  It is however twice as many payments for you to receive and process.  Depending on how you receive payments and make deposits that isn't a big deal.

Most importantly, put the terms for payment in writing with specific deadlines, late fees, etc.  Hold their feet to the fire.  If they are late hit them with the late fee.

Set clear expectations up front and follow through.

@Account Closed

Start networking now to meet the people that you will need to know to be successful.  For example, you are likely to need a plumber at some point in time.  Build your network and have those contacts ready in your phone so you are well equipped to deal with issues quickly as they come up.

Also, I question how someone came up with the 10 hours per week.  Remember you are basically on call 24 / 7.  I am guessing most of your calls will be in the evening and on weekends.

@Jason Zidek

I think you have a pretty good handle on the pros and cons of each.  For the small town, give some consideration to whether or not the area is potentially going to grow or stay about the same.  The icing on the cake comes from deals bought in areas that ultimately grow or improve which creates growth in the property value over time.  The deal still has to make sense on paper without the value growth.

Also, remember that this is an investment and you are seeking return on your investment.  Buying cheap does not necessarily translate into a larger return.

I suggest you run the numbers on some Houston deals and compare those to some numbers on small town deals.  In the case of the small town deals, you might through a little extra in for property management since that is a more likely possibility.  You should have property management in your estimates no matter how likely you are to go that route.

Welcome to BP.

@Rosy Bruno  Don't forget to use classes (I think that is was they call it) to separate your different properties.  Using this you can see how each property is performing.  As far as growing out of QuickBooks I don't think you have anything to worry about.

@Rosy Bruno

In my situation it only makes sense to have a bookkeeper set you up on a software like QuickBooks.  Once things are initially setup, the software typically learns from your past entries and auto fills for you on a go forward basis.  I am 1) not an expert and 2) don't have the time to become one.

I think a lot of people skimp here and miss out on opportunities to claim legitimate expenses.  This is advantageous for tax purposes.  You should also consult with a Tax Accountant occasionally to see what opportunities your are missing out on to legally record expenses.  

Remember - A dollar spent pre-tax is effectively the same as 1.3 dollars (more or less) after taxes.

I would not partner unless I could maintain control of the deal.  This typically means that you need to have 50.0001% of the ownership or more.  Be careful and consult with an attorney.

@Timothy Winfield - Check out @Brandon Turner book on rental property investing.  Based upon your posts, you will get a much clearer picture of how this works by reading this book.

If the. It's is $900 per month it won't cash flow what you say it will. You haven't accounted for any expenses. Be conservative in estimating expenses BEFORE you buy. There is a lot more to this than collecting rent and making a mortgage payment.

@Shelly Doris Milburn  Thank you.  Anyone else have a specific favorite?