All Forum Posts by: Kevin Smith

$50,000 max up front investment, for down payment, closing costs, any rehab necessary, etc. I'm not sure I have the patience to deal with tenants in the $50k or less total cost segment.   

These are great tips thank you! I was leaning more towards suburbs, higher quality tenants, and hopefully some appreciation, at the sacrifice of cash flow. I will be staying in Maumee during my visit so will probably start my search in that area.  

Hello everyone. I reside in San Diego but will be visiting Toledo soon and have some free time August 17th and 18th to explore and look at potential single family home investments to hold and rent. I would also be interested in a duplex or fourplex if the right deal came along. Any advice or recommendations for my search/visit is greatly appreciated. Looking for positive cashflow on a total initial outlay of $50k or less. Thank you!

Hello, 

I was wondering if anyone here has experience with alternative fee arrangements for property managers, specifically for a small portfolio of single family home rentals. 

Traditionally, PM's will charge a management fee as a portion of rent plus commissions on various functions such as placing a new tenant, etc. I find these arrangements to have a conflict of interest where the property manager can earn additional profit at the investor's expense, such as frequent turnover. 

I would prefer the management's compensation to be aligned with the performance of the property for the investor. I believe this can be achieved by having the success of the property, measured by line items the management has influence over, determine the management's fee. 

I was thinking the manager could take a percentage cut, say 20%, of the following: 

Rent Collected - (Repairs/make ready costs due to tenant + HOA penalties +eviction/collection fees)

This would incentivize the property manager to place a quality tenant who doesn't break a lease early, and who takes good care of the home. This would minimize the time the manager would have to spend on the property, and minimize unnecessary costs to the investor. 

An example contract would last one year, and the investor could make a mid year payment at 6 months based on current projected performance, and then settle up at year end. 

Thank you for your time. Any thoughts?