All Forum Posts by: Kevin Coco-Senyszyn

Self-managing your rental property from out of state can be a difficult and challenging task. It is important to understand that self-managing your property is not a simple task that can be done without much effort or experience. For those who have tried self-managing from a distance, many have found it to be a poor use of their time, as it requires a significant amount of effort and a strong network of support in the local area.

In order to be successful in self-managing your property, it is essential to have a robust network of support and a clear understanding of the responsibilities involved. This network can include local contractors, maintenance workers, and property management professionals. Building this network can be challenging, especially if you are located in a different state and are unable to visit the property regularly.

If your goal is to keep costs low, self-managing may not be the best option for you. A property manager can help you save money in the long run by taking care of problems before they become expensive. Property managers are professionals who are experienced in managing properties and are equipped to handle the day-to-day responsibilities of property management. They can provide valuable expertise and knowledge, ensuring that your property is well-maintained and your tenants are happy.

Many of our investors are people who tried to self-manage from out of state but found it wasn't worth their time. You need to have a strong network of people built where you will be managing in order to be successful, and doing that over the phone is difficult unless it is your full time job. I agree with some of the other people who said you should only be self managing if you make less than $15 an hour. If your goal is to keep the cost down, having a property manager who will take care of problems before they become expensive will be cheaper for you in the long run than trying to manage yourself.

The BRRRR method is a great strategy for building a portfolio, but as you've noted, it can be challenging when it comes to lending caps based on debt-to-income. One option to consider is reaching out to hard money lenders, who may have more flexibility in their lending requirements. If you're interested in investing in Texas, I recommend reaching out to Paul Starnes with Investmark Mortgage who is an experienced hard money lender and could provide more information on this option. He can connect you with experienced realtors, traditional lenders, and other real estate professionals you may need to help you invest from out of state.

Congratulations on signing the contract for your first off-market property! Now that the contract is signed, it's important to focus on the next steps in the purchasing process. The first step is to secure financing. I recommend reaching out to a lender who is experienced with investors, such as @Andrew Postell who can help guide you through the process.

Once you have secured financing, you should have a home inspection done to ensure the property is in good condition and to identify any potential issues that may need to be addressed. After the inspection, you'll want to review the results with your contractor and make any necessary repairs or renovations.

When it comes to the BRRRR process, the first step (after BUY) is to renovate the property to increase its value. This will help you to refinance the property at a higher value and pull out some of your initial cash investment. It's important to focus on the property's rental income and its potential for appreciation, as these will be key factors in determining the property's value.

Once the property is renovated and rented out, you can then refinance the property and pull out some of your initial cash investment. This process will allow you to repeat the cycle and continue to grow your portfolio. Also, don't neglect your tax strategy in making plans for this property. Consider tax-saving and exit strategies such as cash-out refinancing, 1031 exchanges,  cost-segregation schedules for depreciation, and more. It's always a good idea to consult with a tax professional to ensure you're taking advantage of all the available tax benefits. Lastly, consider reaching out to other real estate professionals, such as property managers, contractors, and attorneys, to ensure you have a solid team in place to help you execute your strategy.

Best of luck!

When it comes to tenant screening, there are certain red flags that you should be aware of during the application process. One of the most important things to pay attention to is dishonesty on the application. For example, if an applicant says that they do not have any pets but their pet screening report shows that they have purchased $300 worth of pet food in the last three months, this could be a red flag that they are trying to deceive you.

Another issue that you should be aware of is fraud. With the rise of technology and the internet, it has become easier for people to create fake documents and falsify information. Therefore, it's important to know what legitimate documents look like and to verify the information provided by the tenant.

When checking an applicant's background, it's crucial to reach out to previous landlords. However, it's important to keep in mind that the current landlord may be biased and may say that a bad tenant is "great" just so they can remove them from their property and send them to you. Therefore, it's important to get a well-rounded understanding of the applicant's rental history.

Unpaid debts are also something to take into consideration when screening tenants. However, it's important to keep in mind that certain debts, such as health or tuition bills, may not necessarily be a red flag. It's important to consider the applicant's overall financial situation and ability to pay rent.

Also, I would recommend checking other people's recommended criteria like credit score ranges and X multiples of rent. I've just listed some things most people might not think about unless you do this every day. Best of luck!

Yes, not having proper insurance and managing without the proper licenses can definitely be major issues for property management companies. I highly recommend reaching out to @Cameron Moore, he is a great insurance broker and can help ensure that you have the coverage you need to protect yourself and your business.

Yes, there are rental analysis tools available for a situation like yours where you will be renting out rooms in your own home. Some popular options include Airbnb rental analysis software or calculators. These tools can help you determine a fair rental rate for your rooms based on factors such as location, size, and amenities.

One popular software for this type of situation is Airbnb's own "Rental Income Calculator". This tool allows you to input information about your property, such as location, number of rooms, and amenities, and it will estimate how much you can expect to earn by renting out the rooms on Airbnb. It also takes into account factors such as occupancy rate, cleaning fees, and other costs.

Another tool you could use is "Beyond Pricing" this software is designed specifically for short-term rentals and takes into account the demand for your location, the pricing of comparable listings, and historical occupancy rates.

Additionally, you can also use "Smartbnb" which is a comprehensive platform that includes a pricing tool, an automated messaging system, and a calendar sync with Airbnb, Booking.com, and other platforms.

It's important to note that when using these tools, you should always verify the information they provide with your own research and local market data, as well as legal and financial considerations.

Overall, these software's can be a helpful guide in determining a fair rental rate for your rooms and maximizing your rental income.

As a landlord, it's important to handle this situation with care and follow the laws and regulations in your state.

First, it's important to note that the lease agreement is a legally binding contract between the landlord and all tenants listed on the lease. Removing one tenant from the lease without their consent or going through the proper legal channels could put you at risk of a lawsuit.

In most cases, the tenant will need to go to court to obtain a legal order to remove the other person from the lease. Once they have obtained a court order, you will be able to remove the other tenant from the lease.

If the tenant is unable to obtain a court order, you may consider working with the tenant to amend the lease agreement to remove the other person's name. However, it is important to consult with a lawyer to ensure that you are following the laws and regulations in your state and to avoid any potential legal issues.

It is also important to remember that if the tenant wants to remove the other person from the lease, it is the tenant's responsibility to find a new tenant and ensure that the new tenant meets your qualifications for a tenant.

In summary, it's important to work with a lawyer and follow the legal steps to remove a tenant from the lease, you also need to be aware of the laws and regulations in your state, and ensure that you are following all the necessary steps to protect yourself and your property.

Welcome to BiggerPockets, Tim! It sounds like you're in a great position as an accidental landlord with multiple rental properties, but are looking to take a closer look at your current portfolio to see if it makes sense to add more properties or potentially cut some out. A great way to start analyzing your current properties is by looking at your cash flow and return on investment (ROI). This will give you a clear picture of which properties are performing well and which may not be as profitable.

You can also use a tool like the 1% rule, which states that a rental property should generate at least 1% of the purchase price in monthly rent. For example, if a property costs $100,000, it should generate at least $1,000 in monthly rent. This can be a quick way to gauge if a property is a good investment.

Another important factor to consider is the occupancy rate of your properties. A high occupancy rate means that your properties are in high demand, which is a good sign. A low occupancy rate, on the other hand, may indicate that the property is not in a desirable location or is not priced competitively.

It's always a good idea to consult with a local real estate professional or a property management company to get a better understanding of the local market and what types of properties are in demand. This can help you make more informed decisions when it comes to buying or selling properties.

Another important aspect to consider when analyzing your current portfolio is the condition of the properties. Are they well-maintained and in good condition? Are there any major repairs or updates needed? The cost of repairs and maintenance can greatly impact your cash flow and ROI, so it's important to take this into account.

Additionally, you may want to consider hiring a property management company to help you with the day-to-day tasks of managing your properties. A property management company can handle tasks such as tenant screening, rent collection, and maintenance issues, which can save you a lot of time and hassle. They can also help you with marketing and advertising your properties to ensure they stay occupied and increase the occupancy rate.

It's also important to understand the legal requirements of being a landlord in your area, such as fair housing laws, eviction procedures, and rental agreements. If you're not familiar with these laws, a property management company can help you navigate them and ensure you are in compliance.

Finally, consider the location of your properties. Are they located in an area that is in high demand and has a strong rental market? Are they in areas that are experiencing growth and development? A strong network of real estate professionals can also help you understand the local market trends and help you identify the areas with the most potential.

Good luck with your journey as a landlord, and feel free to reach out to the community if you have any more questions!

Howdy!

I am an intern currently working for a property management firm in the DFW area and I have been seeing a trend that people are much more reluctant to rent high-end homes. Even for very nice homes that are in high demand, we have received few applications. We have done many showings with few to no follow-ups for each, and it seems like people don't want to pay for premium housing at this time. I am curious to know if this is just a market trend or if other real estate professionals are experiencing similar difficulties.

How are you marketing your properties and is it working? What have you tried, what have you changed, and what has worked? What am I missing? How can I go the extra mile or think outside the box to get these homes rented?