All Forum Posts by: John Morgan

I'm in Texas and keep seeing my expenses go up between $150-$225/month from year to year. It's hard to pass on a $200 increase to my tenants every year who can barely afford their rent as is and living paycheck to paycheck. So I eat at least half the cost usually because market rent is only going up around only $100- $50/month year to year in the cheap areas I invest in. So yes, a lot of landlords are having to pay out of pocket these increases every year or risk having a vacancy. And so many investors jumped in the game the last 5 years so there is currently an over supply of rentals in many areas with a lot rentals on the market sitting vacant. I can absorb these high insurance and property tax increases in my portfolio because I have 29 SFR. My profits are still good enough. But those who only have a handful of rentals that are only making $300/month or whatever are getting crushed and probably wonder if they'd be better off investing their $ in something else.

I'd put 3% down and get an FHA loan and live in it for a year while house hacking. Rent out rooms to others to make it affordable or profitable. Save up $ and repeat this every year and keep scaling.

I started with only 25k in savings exactly 10 years ago and now have 29 SFR with 3.2 million in equity cash flowing 19k/month profit. Give yourself a decade or so and you'll be set for life. Good luck!

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Quote from @Sam Andrews:

Quote from @John Morgan:

I self manage 10 SFR out of state and it's easy. I also self manage 19 SFR within a 30 min driving distance to me.

@John Morgan How or what techniques are you using to self-manage 10 SFR OOS? Please do tell.

I just wing it. I do my leases and some payments for free with apartments.com. I asked locals for references for handymen. I use Zillow or word of mouth when I have vacancies. I’ve only had 4 vacancies, but found 3 great tenants from my current tenants asking if they knew of anyone needing a place. And listed one house on Zillow. I found a new renter within 4 hours. I cash app my handymen and it’s worked out great. Don’t over think it. Oh, and I keep people in all my rentals under market rent so I rarely have turnovers. I’ve got 29 SFR and this has been my strategy along with investing in C to C+ class hoods. Most of my tenants stay for many years. Turnovers crush profits. Be a good landlord and your tenants will take care of you is what I’ve found. 

I self manage 10 SFR out of state and it's easy. I also self manage 19 SFR within a 30 min driving distance to me.

I would wait until you have more equity and do a cash out refi when the interest rates lower at least 1% or more. Might be a few years but consider doing a cash out refi while you refi and pull some equity out to use as a down payment on another rental or two. That’s what I do and how I’ve grown my portfolio with no out of pocket $.

If I can’t find anyone within a week or two I lower the rent $100. And I’m usually $150 or more below market rent when I first list them. I want my properties rented out right away vs sitting vacant for a month or two. We currently have an over supply of multi family in most areas. But building permits are WAY down so we’ll have a shortage of housing in a couple years. Just plan on rents softening for the next couple years, especially MF. But it’ll pick up in a couple years and you’ll see market rent come way up and continue to rise 2-5%/year starting around 2027.

@Sejin Kim

I’ve bought my last 30 properties with the listing agents. It’s so much easier to negotiate and buy the properties dealing directly with the listing agents. The seller only pays a 3% commission so my offer looks more attractive to them. I’m usually low balling anyway, but I like using the listing agents because almost all of them give me a lot of good intel about the sellers which I leverage when I make my offers. All my properties worked out great and I have no regrets. But realtors will tell you to get a buyer’s agent. lol

I would say my property taxes and insurance on your unit went up $84/month this year from last year, so I will need to bring your rent up $75. When I phrase it like this, people understand I’m not a greedy landlord and have higher costs too not including labor and materials going way up every year.

Not many of us are selling with rates sub 4%. Find money other ways. Thats what I’ve been doing.