All Forum Posts by: John Kunick

Depending on how much you want done, I use a handyman who takes care of all of my day-to-day maintenance needs.  He also helps me with significant maintenance/remodels.   He is outstanding and is one of the keys to our success.  Fortunately, he has built up quite a network of sub-contractors (plumbers, HVAC, electrical) for those projects that need to be farmed out.  These sub-contractors are the ones that we found that do an incredible job and provide discounts for the volume we provide.  We have gone through a lot of contractors to finally find these.  His name is David Dietrich (Mr. Fix It) .  Send me an email request if you want his cell #

Hi Dylan, I have had the same situation and have read through the responses here and agree with them all - except the need (like in NY) to have an attorney.  In OK, you really don't need an attorney, but it might be prudent should any problems start to arise.

Here is what I have done to avoid issues:

• Put your "lease requirements" in the purchase contract.  All current leases must be provided and security deposits must be transferred prior to or at closing.
• Meet with all tenants prior to closing to communicate what is taking place and review the leases with them.  This will also help you get a "feel" for the tenants.  Make sure to communicate that you/they are legally obligated to the lease terms.  Ownership changes do not terminate leases UNLESS that is strictly spelled out in the lease agreement.
• Constantly communicate with the seller any concerns you have.  Ask them to provide all documentation of check-in lists, rent payments, etc..
• Once you close, communicate again to the tenants to make sure they understand who/how to make rent payments.
• As time goes on, you can then decide what steps to take should you choose to not extend or renew leases.

Hope that helps.

Please allow me to weigh in on this:  You don't take % ROI to the bank, you take cash.. So, it all depends on your situation and your goals. I'm an investor in my mid-50's who is looking to retire at 59. Therefore, I built a portfolio of high quality rental properties using 25% down so that I was always cash flow positive - which is very important if a market downturn should happen. Once I got to the desired # of rentals (that would produce the desired amount of cash flow should I not have any debt) then I stopped buying additional properties and started taking all that positive cash flow and paying down the mortgages in a systematic and targeted fashion. So, you may look at my ROI and say I'm making less than I could had I just taken that cash and continued to buy more houses, but in reality, I'm making a lot more CASH - which is what I can take to the bank and also what I will use in retirement. I don't pay bills with ROI!!! Please allow me to reiterate: It all depends on your situation and your goals!!!

Best of luck!

BTW, most of my SFH's I've bought for far less than $120k. Some I've had to do some rehab (less than $5k), but I put a clause in the purchase contract that I can market two weeks before closing. So, most of the time, I've had the house rented before we've even closed. In the last five houses, I literally had the house rented before I even purchased the house as there is such a demand for quality rentals that I found the house, then had the long list of prospective tenants tell me they would rent the house if I put an offer on it. It's almost too easy!

Tyler, not sure what you are looking at so it is difficult for me to opine. But, I can buy a SFH in Tulsa for $110-120k and put 20-25% down and still make 15% ROI just based on cash flow. That doesn't count appreciation nor build up of equity - which would put the total ROI north of 20%.. So, for example, I buy a $120k house and put 20% down plus closing costs. That is roughly $26k (closing costs included). If I rent that house for $1200 per month that is $14,400 per annum income. Now, we can do all kinds of #'s, but I get at least 15-20% positive cash flow. And, I've done this many, many times for far less than $120k.. So, again, not sure what you are looking at nor what you are considering, but all I know is I can do this all day long.

Tyler and Jonathan, I am a buy and hold investor in Tulsa. I own/manage 21 SFH and all of my projections when I buy are basically cash-flow intensive without considering appreciation. My thinking is if I can show that it makes sense purely from a CF perspective (I average 15.8% ROI), then appreciation and equity accumulation are just "frosting on the cake". Historically, my properties have been in middle class neighborhoods with high school district ranks. But, recently bought a duplex in a lower class neighborhood just to do what Jonathan is talking about. So far so good. I am now looking at a triplex(s). Feel free to ping me back and we can talk more.

Tulsa is also very good market for turnkey

In South Tulsa, I can keep SFH rented almost 100% of time at premium rent. I have tenants coming out of MFH that can rent from us for almost the same amount as MF, but we provide them with SFH at not much more. They are so much more willing to rent from us and keep the properties as their own (less turnover and longer leases = higher ROI). So, what is your objective? Do you want more turnover? Invest in MFH. Do you want higher ROI? Invest in SFH. A lot of it is how you manage it.

Totally disagree with MFH vs. SFH based on capital you have to invest. I can make mutltiple SFH w/ 20-25% down and turn that into 15-20% ROI.. There are definite pros/cons.. We have far less hassles w/ SFH vs. MFH..