All Forum Posts by: Josh Jenkins

@Geoffrey Flowers Great!

The Texas 1-4 Family Contract (TREC 20-14) is what agents are required to use. It is 8 pages and may intimidate some sellers. However it covers pretty much everything. In addition to that, you might want to include an addenda for HOA, non-real property (refrigerator, washer, dryer, boat, trailer, etc), or seller lease-back if these apply. It is in your best interest to use a Realtor if buying off MLS since seller pays for it. Lots of investors prefer shorter contracts (1-2 pages) when dealing directly with seller. Just be sure it's state specific (and you should have it reviewed by attorney)

See if utility company has an "Auto Leave-On" form for Landlords. This is probably an easy question for your property manager to answer (but I'd call utility company to check also). We have that here in Texas. It's great because you avoid connection fees and have water for carpet cleaning (and electricity for everything but yours may be separate company). They also charge just for usage instead of all the "extras" you normally get. Just have to be sure to schedule disconnect or verify that tenants have switched bill over. I have to admit I've been burned once or twice for $100. Not the best way to start out with new tenants.

@Shane Hughes I always regret telling the tenants that I am the owner. Things are much easier when I am the property manager. Being conflict-averse is not necessarily bad as long as you find a way to stand your ground. Having a “bad guy” to blame really comes in handy. To focus on where you are now: if tenants move out, you would like to do improvements. Is it possible to do some of those improvements now? That way you aren’t eating the vacancy. Then you can point to improvements when asking for rent increase. If they don’t go for it, then your unit is better positioned for next lease.

@Leanne Rich if you haven’t already done so, call as many similar properties in your market as you can. Find out about rent, amenities, and policies. You can see from this thread that different parts of the country have different expectations. I could never rent my properties without them but I am constantly replacing one. I found a local appliance guy who will swap out broken machine and haul off the old one for about $185. Most of mine are at the top of a flight of stairs so it’s well worth it to me to save the time

@Tip Lee I like Rentec Direct for software. It has all the abilities of the big software packages but costs much less. Unlimited tech support. Help with advertising, applications, website. I pay around $40 a month for 25 units. I’ve tried just about every method for online rent collection. I really like Zelle (directly through Chase, Wells Fargo, Bank of America) and Venmo. Sometimes when tenants pay through PayPal, I get hit with huge fees. Cozy takes a couple of extra days but I’m sure it’s fine. DependIng on your bank and accoubt type, ACH transfers may not be aorth the hassle amd expense. I’m going to start offering a “discount” for online payment (really a fee for checks and money orders) to encourage it.

@Chris Ha Are you set on the Houston market? Are you looking to pay cash? If you are planning to finance, you might be able to get a pack of 4-plexes with more attractive terms. I know that in my market (about 90 miles from Houston), you can get four 4-plexes with same C-class building as shown in the LoopNet listing for around same price. I would be happy to send you a few listings.

@Connor Heim Why did you go straight to the listing agent? That does not get a better deal. That agent gets all 6% (or whatever Listing Agreement says) AND doesn't represent your interest. A good agent knows how to skew the contract in favor of their client. However, you know several talented agents who would be happy to represent you at no cost to you. The potential for savings is on the sell side. A history of transactions should get you a discount when signing a Listing Agreement if you ever sell the property. Hopefully you straightened this agent out.

@Tim Foster I met you and your wife over the summer at a BRIC Happy Hour. I have been wondering if you guys ended up finding an investment. Hopefully I'll run into you and we can talk about it.

Houston is in Harris county. There are nearly 2000 square miles and over 4.5 million people in Harris county. Do you have a specific region where you will be living/working? I think it is going to be likely to be competent in all that space immediately. I'd start within a 30-40 minute radius of home if I were you.