All Forum Posts by: Justin Rademacher

It looks like you are getting a lot of really good information here. One question I would have is are you planning to manage it yourself or hire a property manager to do it for you?

If you are going to hire a property manager (I would highly suggest this) you will want to contact them first. Get an idea of their lease up fees, operating fees etc. When you hire them, I would also have them walk the property with you. If the company is experienced in apartment rentals, they should have a good idea of the area and have a handle on expenses that you may not be able to account for as of yet. 

From what I can see, everything you have requested thus far seems to be on point. Hope this info helps

This all depends on your goals. Is your ultimate goal to maximize cashflow? If it is, you would obviously need to compare both 8 units to the 43 unit. I am assuming that the 43 unit cashflows quite a bit better than your 2 8 units so with this in mind, here is something to think about.

Can you potentially improve the location of the C class unit by improving it over time? Is there enough value add potential? If so, this could be a great way to cashflow, improve a neighborhood, and also have a fantastic appreciation play in the long run.

If you have your mind set up on only investing in B class or above, then you have to stick to what will excite you to invest. 

You will also want to make sure you have a great property manager for the 43 unit. I would suggest having them walk the property with you prior to the purchase or at the very least...during the due diligence period.

Awesome! Would you be acquiring these properties with partners? 

Syndications can be a great way to grow your portfolio. The cashflow will be a bit lower but so will your initial investment. Syndications can also be a fantastic strategy if you are looking to exit in the next 2 to 3 years.

Looking forward to hearing about your progress!

The first question I always ask the management companies is how many properties do they have that they currently manage? With this, more is not always better. When vetting them I have had them walk potential properties with me and tell me what they think they could rent the place out for. I already have my number in mind. I also then ask them what opportunities there are to increase those rents.

Not all vacation rentals are the same. If a property has "value add" opportunity (turning the garage into a rec room etc) I want a rental management company that goes along with this vision. I try not to give the management company this vision ahead of time as they may simply just tell me what I want to hear.

Hope this helps a little

The greatest leverage you can use is to find a real estate agent that knows the investment side of the business. This will be crucial in helping to find on and off market deals. You will want to make sure that the agent specializes in investments as some agents may not have the knowledge or expertise with what you are looking for.

I do have a questionnaire that I have created that gives you the top 10 questions when interviewing investor specific agents. If you drop your email I would be more than happy to send that to you.

When deciding to invest out of the state you reside in, what has been the one or two key factors that have held you back or projected you forward?

A lot of agents have linkedIn, Facebook, IG etc. I would identify what market you want to get into first. Then I would search social media websites to see who pops up. Do your research and make sure they are a good fit for investors. Not all agents know the investment side of the business. I have a sheet that has 10 questions to ask realtors to see if they are a good fit. I would be more than happy to share if you would like. 

Realtors absolutely understand. I personally have gone through this and ultimately, the really good realtors understand that it is more about building the relationship. To get the absolute best realtor, I would recommend having a list of questions that you use when you interview them. If you don't have one, I certainly can send you a list if that would be helpful. 

Make sure that the agent you are interviewing is proficient in investment properties and knows the area. This is absolutely crucial!

I specifically work with investors and investment properties so here is what I would do. First, if you don't have it listed with an agent, find an agent in your area that specifically works with investment properties. They not only understand the numbers but will have the connections and/or buyer list. 

If you do not or are not planning to list with an agent, I would put it on various Facebook investment groups. I would also reach out to Investor agents in the area to see if they have a buyer for it. Investors are jumping right now for the right opportunity so there should be plenty of interest.

Also, If there is seller financing or assumable loan options available, make sure to highlight that. With rising interest rates, more and more investors are looking for these options

A lot of people who are just getting started in investing do what you are doing which is an awesome start. They owner occupy. There are numerous strategies you can employ so here are some things to look at.

Dont just focus on quick cashflow. Realize you are creating equity by owning and renting it out. Eventually you will more than likely move out and rent out the unit you are living in. From my experience, most people start with a duplex and move their way up however, that doesn't mean its the best strategy for you. 

When I advise my investor clients, I always talk about value add opportunity. Find a property that you can add simple value to over time. Updating carpets, kitchens bathrooms etc. This not only allows you to increase rents later, but you can also cash out refi and get a lot of your initial money back. 

Hope this is helpful!