Hi BP community,
I just closed on my first single family home in Lansing, MI today! Woo! It's already been a long process to get here (short sale) and now all the real work of getting it rented out is about to begin. I've held back from joining this forum until this point because I wanted to have a first purchase under my belt, but I want to start by thanking all of you who contribute to this site. Your articles, especially those about financially analyzing deals, were instrumental in helping me get to this point.
A bit about me: My name is Joseph. I'm from Michigan and I'm a Michigan State graduate, but I actually live in Chicago. I know many first-time investors are discouraged from buying outside of their immediate market (5 hours away), but my full-time job involves editing for a start-up company and it doesn't bring in much bacon. I had to invest where I could afford with my meager savings and I know Lansing / believe it's a strong market given its proximity to MSU and the capital. Plus, my family is based in Michigan and they are supporting me in this process.
A bit about my property: It's a two-story, three-bedroom/one-bath, built in 1922, 1040 square feet situated on Lansing's east side, very close to MSU if I decide to go with student renters. I bought it on short sale with conventional financing. It's a nice home with hardwood floors and floorboard heating that was owned by an older woman who seemingly did a good job of maintaining it. The property abuts a nice park and I don't foresee having much trouble getting it rented out.
Questions for the community:
1. I'm going to do the majority of the property management myself, but plan to hire an "agent" to do small things for me like checking in on the property and taking care of stuff I couldn't do without being there. I was actually inspired by an article I read on BP by a guy who set up a similar arragantment, but can't seem to find it now.
My question is how might you structure the pay for such a relationship and what would you pay? This is going to be an ad-hoc, per-interaction job. Like, say I need them to go pick up and put out a new recycling bin, they'd get paid for going to do that small errand. I was thinking something like $15-20 per interaction and a small quarterly or annual payment just to make it worth their while. Thoughts? Think in Michigan terms of pay.
2. Anyone have recommendations for handymen, electricians, locksmiths, and lawn services? I'll be needing all of these very soon.
3. Although I already have some of these, I'm looking for templates for leases, tenant application forms, move-in condition report checklists, and deposit to hold agreement if anyone has good ones they're willing to share.
4. Any other advice or guidance you might have for someone just starting out...
I'll leave it there for now. I'm heading out now to an engagement and then a home-buying celebration dinner with my GF, but I'll try to check back later for responses. Thanks in advance for any advice or guidance you have to give. I really think this site is the best resource and hope I can become a valuable part of the community.
Thanks,
Joseph