All Forum Posts by: Brant Richardson

If it rents for $3000 per month, there is no mortgage and the tenatnts pay utilities then it defineitely will cash flow very well. Managing it yourself from across the country will be a little tough. For instance, how will you meet and screen new tenants? If your parents take care of getting new tenants and the house is in good repair then you should do it.

You may be able to use a property management company with cheaper properties and still get a good ROI. One of the big ways property managers ream you is repairs. If your cheaper properties are within a reasonable distance maybe your handyman will take care of them if you pay his driving time. You could stipulate that the property manager is to use your guy for repairs.

There is plenty of cheaper areas not too far from Anne Arbor. But you are making 3800 * 12 / 275,000 = 16.6% ROI which is awesome for nicer places and easy managing. I wouldn't change a thing about your model. Maybe you really scored during the recession and now those deals are all gone?

If your unit is in an area where it is hard to find housing which allows dogs then allowing them is a great way to increase rent. Puppies like to chew on things, dogs scratch doors to get out. I'd say it depends on how nice the place is. If the interior is beautiful then no dogs. If it is kind of funky anyway then a small increase in rent and a decent size increase in the deposit and dogs are allowed. If you don't have the heart to raise the rent on them then no dogs, "sorry its our policy".
It sounds like you are more concerned about a dog bite type problem though. If it is a nice family I wouldn't be worried. If it was a gangster type guy who wanted a pit bull that would worry me.

I'm not sure your even allowed to work on it for free or buy materials for it with non IRA funds.

listen to podcast 39 if you have not already. Sell it on Craigslist at a cheap but profitable price.

Another benefit of getting into REI is building your credit history. Your credit rating improves much more with on time payments for your mortgage and student loans vs. just paying down student loans quickly.

Getting started younger, you don't need that advice though. I would concentrate on education right now. You can take an online realtors course + exam + licensing fees for under $1000, great first step investment. I would start presenting myself as a clean cut professional at an earlier age too. No offense but people won't take you seriously if you present yourself like you do in your avatar. I used to have hair halfway down my back and a Suicidal Tendencies base ball hat on most of the time, it didn't help me get any where.

If a agent showed up at my property asking for a months rent I would tell him to take a hike. I guess it depends how hard it is to find a decent tenant in your market. If you have a decent rental, make a nice advertisement with pictures and put it on craigslist you get flooded with tenants where I live. Paying a months rent would be something I would expect from a property management company that screened dozens of people, picked the best one, explained the rules, took care of the lease, etc. , no time spent what so ever at my end.

Mike - I would like to read your report.

John - Check out podcast 37. The investor is getting positive cash flow in the inland empire. Kind of similar to you doing it in Fresno or something. Positive cash flow can be done in California once you leave the coast but it is harder to find the deals and certainly doesn't cash flow like the mid west does.

Here is a recent post on turnkey out of state investing

http://www.biggerpockets.com/forums/311/topics/103203-turnkey-and-out-of-state-investing

My personal feeling on turnkeys is they are good for somebody who wants to stay focused on their non real estate career but would like to invest in a property or two.