All Forum Posts by: Josh Braun

@Bo S. - it depends on what your goals are.  If part of your goals are to spend less time dealing with day-to-day activities and build more of a passive income stream, then I would say absolutely yes, it is worth it.  Additionally, I will only use a PM for properties 30+ miles away from my primary location.  That's just my opinion though.

Happy to give you my opinion on rental price point if you want to private message me your property address.

Way to go, @Devan Mcclish!  Awesome job laying out the steps involved and providing value to folks looking to do similar projects.

@Bo S.  ~10% and 1/2 to 1 month leasing fee are average for property management of <5 units.  Once you start increasing your number of rentals you can negotiate a lower rate.

@Jonathan Wooten - acceptance ratios very on a multitude of factors, but here are some educated opinions:

• Acceptance is higher when you target your variables to be more towards the type of seller you are looking for, versus blind mass marketing (for example, if you target sellers that have owned a house for more than 15 years, in the zip code you are looking to buy and the type of house you are wanting to buy; compared to sending out mailings to everyone in a zip code)
• I've found driving for dollars to yield more return compared to blanket mailing in an area
• I've found folks who have owned their house for more than 10 years are more willing to sell at my targeted ARV price compared to those who have owned less than 10 years

Its real easy to market to potential sellers:

1. Identify your criteria (type of property you are looking for, neighborhood/zip you are looking for and price range)
2. Identify the owners of those properties
3. Send out mailings
4. Repeat mailings every 30 days
5. When the right seller gets your mailing at the right time (when they are highly motivated to sell), you will find a deal

@Jonathan Wooten - Cleveland/Chattanooga is not tapped out and is a great area in my opinion. You have to spend time searching for the right type of seller. Don't waste your time on mls or for sale by owner properties. Identify the area you want to invest in and start marketing to owners directly. You will find a motivated seller that way.

@Mark Douglas - You could view it that way. Just make sure to base your numbers (cash flow) on the discounted rate.

One small trick I've used and works quite well is to offer a "discount" for paying rent on time.  If tenant makes more than 2 late payments, the discount is removed and full-price is required going forward.  Make sure to check your local/state laws on how this is worded in your lease.  You could advertise the discounted price in your marketing and then explain the rules when you sign the lease.

Welcome @Logan Wilson!  Smyrna/LaVergne is a great place to find a 2-4 multi family at a decent price. I also think it's a great location for renting, given it's access to I24 and employers in the area. Identify all those properties and start marketing to the owners!

Welcome @Josh Johnson!  Another vote for the local REIN meetings. Great place to network.

Find a niche and run with it. Do you have any experience or passion for a certain type of property? For example, you could focus on SFRs <= 1500 sq ft. or multi family units 4 and under in a certain zip code. 

Identify your farm area (I suggest a 10 mile radius), drive down every street, start compiling your own comps and know the area in and out. Whenever a deal pops up in your farm area you will have enough information to make a decision. 

Here is my formula. I buy units in a certain zip code. I have a bed/bath criteria, sq ft criteria, garage, proximity to schools/retail, and property age. I know exactly how much these type of units go for retail and off market. I also know how much I can rent them out for. I can make a buy decision in a matter of 5 minutes because I am well informed. Find your niche and market that farm area. Specialize and avoid being distracted by all the noise.