All Forum Posts by: Leo Koonan

@Jerry Holt add rental comps to it and let me know the price.

@Patrick Phillips sure

@Jason D. Didn't think of that... Lol

Jason is correct... One thing you don't want to mess with is anything to do with fair housing and other discrimination laws.... So simply take the same approach to everyone. Trust me if your tenant cant afford renters insurance that should be a huge red flag for his ability to pay cover his rent in general.

@Jason Obviously.... Why wouldn't you require any tenant to do so? Its pocket change for them and keeps you from sweating. Also tenants that carry re insurance know not to f* with your property because they might lose their insurance or get higher premium next time as more and more landlords require it nowdays.

@Cameron Riley one word - renter insurance....

They destroy anything .... Their insurance covers for it. If insurance declined them you can decline them without discrimination as you have that as a clause in your contract.

@Ali Boone is correct.

Now just an fyi... I am not trying to rip into PM companies ( although i do enjoy trolling @jameswise from time to time on his YouTube channel).

Chicago ( or any other landlord unfriendly state) falls out of the 1% rule even as a rule of thumb. In places with high taxes and drowning in corruption the only rule that will ensure you staying afloat ( afloat.... Not making millions) is the 50%+ NOI...

That said - make your laundromat as paid service. Hire a different PM company cuz if what you are saying is true.... They are ripping you off ( or what is known as .... Skimming off the top) . Now any big PM will yell at me saying they got their own expenses, blah blah blah... The truth of the matter is this.... MFRs will always have more expenses, they will always have high turnover and they will always have more headache than sfrs ( especially in blue states and /or C- areas). PM companies know that... Thats why they charge fees for vacancies for turnovers, for screening... And god knows what else... So its not like they scamming you.... They're a simple warning to any real estate investor to " read the small letters" before you buy a property. Know what you're getting yourself into ( like paying $170 bucks for landscaping lol thats just a ripoff). Ok James..am ready lay it on me lol ( btw from many PM companies that i know James @HW is actually pretty good and probably more transparent than 90% of the rest on the market when it comes to fees and overall expense. The only thing that bugs me is when James says that a furnace in Cleveland apparently can live up to 40 years ( what kind of black magic is this?!?)).

cash flow is kinda low for 6 units... usually, you want to cash flow about $200 per door.

The way i see it is just like everything its a cycle... I agree that the market is strong and the "bubble" is not going to blow up as badly as it was during the 08'. I do think it is going to crash though once the newbies run out of fume and will start over leveraging ( because cmone, the big lenders are greedy and they will allow that until its too late). Once the newbies are all out of wedge room, the panic will install...slowly at first with them dumping all those "cash cows" in 44102 areas to pay off other, more premium real estate they took on 4%- CAP. Once inflation kicks in in bigger cities people will do what they always do and begin exoudus to smaller areas (check Cali, NY,Seattle that losing up to 3% of tax paying population every year... because of over regulations, stupid taxes, and dumb local governments). Once the real estate shortage balanced the premium RE will tank and once that happens overall market panic will insue (because it always does), and then its going to be an all-you-can-eat.... Now i am not saying you will be getting 200k houses for 50k at first but if you look at data, you will see that within a year after panic, land lords will stop investing in to "fixing" their premiums as well and they will go for lower prices (30-40% off the corrected values, which would be up to 50% off of what they are now). Just my 2Cents

@Tracy Z. Rewey whats the property pics, condition , area, additional positions involved?

@Kenneth White lets talk what kind of investors are you looking for? Cash ( what zip codes, types, scenarios you are interested in)? Brrrs flips, buy n holds?