All Forum Posts by: Josiah Kay

It quickly becomes addicting!  

A few recommendations:

- "E-Myth Revisited" by Michael Gerber (this will have you working on your business instead of in your business)

- "Rich Dad, Poor Dad" by Robert Kiyosaki and Sharon Lechter (this provides a more foundational perspective on money)

- "Cashflow Quadrant" by Robert Kiyosaki (further builds on the "Rich Dad, Poor Dad" foundation)

- "Set for Life" by Scott Trench

- "Long-Distance Real Estate Investing" by David Greene

- "The Book on Managing Rental Properties' by Brandon Turner and Heather Turner

- "The Miracle Morning" by Hal Elrod

-"HOLD" by Gary Keller (geared toward SFR)

-"The ABCs of Real Estate Investing" by Ken McElroy (geared toward commercial investing)

"Multi-Family Millions" by David Lyndahl (This is on my list of "To-Reads". I've personally been recommended it and have seen it recommend on the forums as well).

One more day until the meet up - If you are in the Milwaukee / Wauwatosa area, come join us at Big Head Brewing tomorrow.

I review the market to determine the current market rate for my rental. If I can justify a rent increase, I will increase the rent and offer another one-year lease at the increased rent amount. 

I would recommend looking through Craigslist and Zillow/Trulia/HotPad for small-multi rentals and see what is the common theme throughout the listings. When I was deciding on whether to bill back water/sewer for my first rental, that tactic really helped me get an idea of what the norm was in my area. 

@Fernando Lama Welcome to BP! 

You'll want to look at your local housing ordinances because they may have limitations on the number of non-related tenants that can occupy one household. 

@Karen Lynne Taylor Look forward to meeting you!

@Sergio Perez At this point, we are just a group of real estate investors coming together to discuss our experiences, knowledge, and questions. We don't have a specific agenda to cover in the meeting, but feel free to come and share your knowledge/questions. I can tell you that I have walked away from each meet up with something new (whether it be knowledge, a tactic, or a contact). 

The first question that pops into my head is what class property is this? A 5 bedroom SFR that is renting for $690 with a value of around $30K sounds like a war zone. If so, that will affect the numbers quite a bit (especially vacancy and repairs) and it could affect whether you can get a PM company to actually manage it for you.

The main thing I see missing from your numbers is water/sewer (assuming the tenant isn't paying for that). Also, using percentages for repairs/CAPEX on these lower class properties might get you in trouble. A water heater or furnace in a $690/month rental would cost you the same as a water heater or furnace in a $1,300/month rental, yet the amount allocated for reserves using percentages will be significantly different.

As a side note - if you do pursue this property, make sure to do your due diligence on what the actual lease terms are for the current

Do you have a minimum ROI and monthly cashflow that you look for? If so, you'll want the financing strategy that allows you to meet those requirements for you. If not, I would suggest defining those requirements so you can use them when analyzing properties and financing strategies.

For example, you likely don't want a property that cashflows $20/month, but has a 400% ROI. You also probably wouldn't be excited about a property that cashflows $500/month, but has a 1.2% ROI. The key is picking the strategy that meets your minimum cashflow requirement (say $200/month per door) and your minimum ROI requirement (say 12%).

First, Rentometer is great for a ball-park figure, but it doesn't take into account a lot of information on the house (type [SF vs. duplex], square footage, condition, finishings, etc.)I would recommend reviewing rental listings on Zillow/Craigslist that are comparable to your in-laws house so you can get a better idea of what rents would be. 

Second, I'd remember that cashflow isn't just Rent - PITI. You should also be factoring in maintenance, capital expenditures, vacancy, applicable utilities, and typically property management. After you look at Zillow/Craigslist, I would recommend running the numbers on the BP Rental Property calculator to see what kind of profit/ROI they would be getting on the property.