All Forum Posts by: Joe P.

08 Honda Accord. I have a car payment on it, and will have a car payment for another year and a half, sadly. But I plan to run this thing into the ground -- I live in the city and utilize street parking, so having the cheapest thing to get me from point A to point B is totally fine by me.

If your concern is only rent payment, most of the younger tenants have PayPal or Venmo, or are at least familiar with them. There is no fee as far as I know, at least for Venmo, and it has worked well for me and others. This avoids the "lost in the mail" nonsense you might get. Its so easy to use so unless your tenants are completely afraid of technology, it shouldn't take much to help them do it. You could certainly use a rent collector for it, e.g. a friend or family member, but I don't know if I would want someone to do that for me for a variety of reasons, including safety, honesty, path to retrieve, etc.

I'd be more concerned about your vacation/relocation and how that would affect your business far beyond your rent receipts. Are you still available to your tenants while you are on vacation? What happens if something catastrophic happens? Have you adequately planned for that? I am a strong believer that while our main goal may be profits, retrieving rent, and paying down our debt service(s), we can only do this if our tenants are happy and holding up their end of the bargain. If you are only focusing on half of the equation, you are only 50% covered in my opinion.

Hi all, I'm Joe and I live in Philadelphia. I've recently made the leap to starting making my dream a reality -- leaving the rat race, building wealth through careful procurement of BRRRR properties, and doing my best to providing quality units at a price my tenants and I can be happy with.

Some background on me -- I work in IT Consulting and I like it, but I'm looking to stop working for others and start working for myself. I purchased a SFH in Philadelphia back in 2010 and moved out in 2014, and have been renting it ever since. I've dealt with all kinds of fun stuff with the property, but none of it has deterred me -- it's only made my fire burn stronger for this dream.

I recently was chatting with a new realtor friend of mine (mutual interest was soccer) and he was very helpful in opening my eyes to what I might be able to do. My SFH is breaking-even and I'm not building tremendous equity in it (FHA loan) -- it's time to sell it and cash out to buy a property or two. So, I'd say I'm about 50% done my business plan and hoping to finish it soon; the clarity I've gained from putting together a business plan based on what I am seeing on BP is astounding.

Anyway, I plan to lurk, ask questions, try and help folks, and seek help from those who are more experienced than me. I can pay people in beer or free night/weekend labor. :)

I check Craigslist and Apartments.com to try and set a price for my units. Look for comparables based on location, # of bedrooms, # of bathrooms, and any amenities that would increase value (or negatives that could reduce it). You don't and shouldn't aim to take someone's shorts -- just provide a good, clean, safe unit at a reasonable price you can both be happy with. If your price is unreasonable, you'll know right away. All this being said, I would start on the higher end (note I didn't say highEST, its always easier to come down in price then try to negotiate up) and let the market dictate whether or not its attainable.

For screening, I would use a tenant application form to evaluate at a high-level if these tenants would be a good fit. I use ezlandlordforms.com for most of what I need including a screening form, move-in document, etc. I go back and forth for charging an application fee, but lean on the side of doing so. Many prospective tenants will automatically put in an application if there is no cost to them; then when push comes to shove and you want them to commit, they suddenly become a ghost. So, if someone is serious about the property, have them put some of their skin in the game (e.g. $25) to get a serious applicant. You can always refund them that cost if you choose them as your tenant.

I have had success with TransUnion's SmartMove program -- they charge the applicant directly and its a trusted company. You'll get a financial profile, criminal report, and eviction report for your tenants, along with a recommendation from the company. I always check with the previous landlords (in a references section) as a primary go-to. If they don't provide any, simply ask. A falling out with their landlord will become apparent very quickly and help you to glimmer more information about your applicant.

House hacking makes sense but keep in mind you need to live with these people too -- something too formal may scare people away, but at the same time, I'd want to know if the person I'm living with is in bankruptcy, can't pay their bills, has a criminal record, etc. You should find the right mix for what you're trying to do AND consider personalities on top of everything, since you'll be seeing these tenants more often than not.

Hey all, sorry I wanted to ask again (not to be a pest, I'm just having trouble finding the answer...)

If I were to become a realtor and seek out my own deal on MLS, and look to buy the property -- technically I could be the buying realtor/agent, correct? If so, does that mean the seller pays my 3% commission, or is that illegal?

The flip side -- if I own a property and wish to sell it, I am excluded from paying the 3% to the selling agent -- because its me? Or do I essentially note I am paying myself?

I'm sorry if this is a silly question, I've just always wondered and can't seem to find the answer on google...perhaps not asking the right question :)

Stupid question -- if you are licensed and selling a home, wouldn't that negate half of the commission fee? Since you are half of the 6%?