All Forum Posts by: John McLaughlin

Does anyone know if there are restrictions to doing a 2nd on an owner occupied property? Are there any specific rules with the new lending laws?

Thanks

@Colin Smith  I understand that it is a vague question I am asking concerning doors managed relative to earning potential given the variable in rents in communities.   Just trying to set an expectations on how many units would translate to what type of income.  if one door averages $2000/year in gross than 50 doors would equal $100,000 in revenue.  Can one person manage 50 doors?   What kind kind of expenses could I expect with no employees 

And yes, I would need to be licensed which would take me 3 months.  

Thanks for the reply

Hi,

I am considering starting a property management company.  I have much experience managing my own properties.  I also have other streams of income so can be patient to build the business.  

My questions to anyone in the business are,

• How many doors can one person manage before adding staff?  
• What kind of income potential is available for a portfolio of 250 doors?  
• Is is a 7/24 business or if you are a good time manager can you run the business as a 5 day a week business?
• And, feel free to add whatever pros or cons about the business.  

The more I read in post about how many "bad" property managers there are My though was that someone with service focus and good business and management experience could create a good business.  

Thanks for your input.

John

@Erik Nowacki I have 4 SFR's but want to sell and get into units. Keep me in mind if you want to do something.

Anyone know if this is a go?

@Chris L. @Steve Rozenberg Thanks for the replies.  Thanks for the tips and the offers.  I may have to look outside of High priced CA.  I will keep you in mind if I venture into your neighborhoods.  

Thank your for your input. Yes, other than paper profits, I have seen any real cash-flow on this property. I am inclined to sell but the next question would be into what and where? Lease is up in July so I have time to shop.

Best!

John

@John Hostetler 

@John Hostetler  Thank your for your input. Yes, other than paper profits, I have seen any real cash-flow on this property. I am inclined to sell but the next question would be into what and where? Lease is up in July so I have time to shop.

Best!

John

I own a rental in the outskirts if San Diego City.  I would consider it a B location.  Due to location its been easy to rent over the years but the quality of the tenant lends itself to a larger turnover expense when they tenant leaves.  But they do tend to stay for at least 2 years.  Here are the details.  Looking for advice on whether I should sell or continue to hold this property.  

Paid $300,000 in 2003

20% down $60,000

Loan Balance  $210,000 (approx) I hate not getting monthly statements anymore

Current value $500,000

Curent PITI and fixed monthly expenses $1800

Current Rent.  $2300

Improvements/repairs $30,000 total

expected expenses in next 10 years.  $20,000 (roof, HVAC, etc)

Current and expected appreciation rate 3-4%

I think I covered everything but let me know if I missed any pertinent info.  

The next question would be…….What do I replace it with?  I was thinking a commercial or 5+ unit property ether local or out of area.  My self employment status does not offer many residential financing opportunities so I was think commercial loans would be more readily available.  (Thank you Dodd Frank)

Any input would be appreciated.  

@Scott Williams Thanks for the info Scott.  I am in the beginning stages.  I will get back to you when I get deeper into this.  Understood in the risk aspect.  

John