All Forum Posts by: John Powers

@Steve Maginnis   Landlords will most likely begin their search with queries such as "Property management companies Charlotte NC", or "Best Property management companies near me" so its always a good idea to have a presence there. However, since those are expensive/competitive keywords, you can piggyback of your competitor's other advertising efforts and try to intercept those higher funnel shoppers who haven't yet made a decision. Users searching for your competitor either already have an account with them, or they are conducting research, and comparing pricing/services between property management companies they are considering. You're right, you'll always get at least a small portion of users who click through to your ad on accident without reading the ad copy. However, it's a great opportunity to get in front of those customers who shopping around and comparing pricing and services.

If you include your 4% management fee in the headline of your ads, you will definitely catch the attention of the in-market landlords who are shopping around for property managers. It will come down to your ad copy and spend time building a quality landing page since that will be the largest factor in their decision (let me know if you want some help there). 

This works great for Automotive since customers are always looking for a better price. I've seen CTRs nearly triple after updating ad copy with headlines such as "Looking For A Lower Price? - Best Price Guaranteed", and these customers are converting on-site. With the Real Estate account, we generated phone calls and website visits, but it's was difficult for us to track on-site conversions since we didn't have our AdWords linked to their Analytics account.

Regardless, you will be generating clicks at a small fraction of the cost, and there's a good chance a portion of those clicks are landlords who are shopping around. 

Hi @Steve Maginnis,

Have you thought about a competitor campaign?  Instead of targeting keywords like "Property Management Company", try targeting the names of your larger competitors in the area who have higher advertising budgets. There is far less competition for their branded keywords, and you can get low funnel visitors at a fraction of the cost.   

I would use competitive ad copy and drive traffic to a landing page that features your main selling points front and center, with call now and contact us buttons below. Not sure how large your budget is, but it could be worth picking 5-10 competitors each with their own ad group and trying this out with a $100/mo budget to see what kind of results you generate. If you link your AdWords account to your Analytics you can see how each competitor's traffic performs and make adjustments from there. 

Personally, I haven't ran this type of campaign for the Property Management industry, however, I have seen great results in Automotive and Real Estate. 

Let me know what you think!

-John

Hi Biggerpockets,

I am reaching out here to further validate my house hacking plan in the current Boston market, and seeking feedback/criticism from experienced individuals who have more insight and knowledge than myself. My goals involve building long-term wealth through buying and holding rental properties, however, my largest barrier to entry is obtaining down payment a such a hot market.

Since graduating in 2016, I have been working as a digital marketing consultant and paying $850/mo in rent living with 3 others. I fully understand rent is a cost of living, and it may not be the best time to jump into a hot market. However, I feel house hacking would be the perfect entry into real estate, and holding off would only delay my long-term goals.

Why do I feel house hacking would be a good fit for me? I am a single, 24-year-old, creative individual with previous handyman experience. My like-minded roommate that I would be house hacking with also works as a property manager. I understand it’s difficult to house hack a cash flowing property, however, my intention here is to reduce my monthly living costs and get my first deal under my belt.

Below, you can find my initial house hacking analysis for a property in the Boston area. Please note, I am not an expert investment property analyzer (yet), nor have I settled on a specific location/property. Don’t be afraid to rip apart my analysis and provide as much criticism as you’d like, as I am here to learn!

House Hacking Analysis:

Financing: FHA or FHA 203K (depending on the condition of the property and the deal)

• Due to the flexible qualifying guidelines and low down payment requirements, I feel a 30 year FHA or FHA 203K loan would make the most sense in my situation.
• My partner and I would split the 3.5% down payment and would have both of our names on the loan. We both have 700+ credit and will have worked at our W2 jobs for 2+ years.

Location: Lynn, MA, or North Shore Boston. I am considering Lynn, MA for the following reasons:

• I am interested in the North Shore community since prices are fairly reasonable and it would be ideal for my commute to work.
• Lynn also has a solid price-to-rent ratio and is considered an upcoming area by many.
• I am open to any recommendations in the greater Boston area!

Property: 2 or 3 unit Multi-Family Property

• Ideally, we are looking to find an off-market property that requires work. I understand finding off-market deals is difficult however were willing to put in the work. Our price range is $250,000 - $300,000.
• My analysis is based off a property that is currently listed in Lynn, MA for $270,000. 

• Purchase Price: $270,000
  • Property Taxes: $270,000 x 1.218% = $3,288 Annually
  • Purchase Closing Costs: 2%, ~$5,400 (Credit Scores 700+)
  • Property Details: 2 Units, 5 Beds, 2,086 sq ft

• FHA Loan: 3.5% Down. $9,450.
  • 30-year fixed, Interest Rate: 5%

• Rental Income: $3,900
  • We will be living in one of the units, but for the sake of the analysis I am going to calculate both units as rental income and factor in my costs at the end.
  • 2 Unit: $1,600 + 3 Unit: $2,300 = $3,900/mo
• Total Expenses: $2,832
  • Operating Expenses: $1,434/mo
  • Mortgage Expenses: $1,398/mo

Results

• Monthly Cash Flow: $1,067/mo
• My Unit’s Rent: - $1,600/mo
• Our Cost of Living: -$533 / 2 house hackers = $266/mo

.

Biggerpockets Property Rental Analysis

In conclusion, if this house hacking plan is accurate and realistic, I would cut my monthly living costs from $850/mo to $233 (excluding utilities), and would have purchased my first rental property. Please provide feedback on any part of my analysis or overall plan. If anyone is interested in chatting, please reach out. Looking forward to the feedback!

Thanks,

John