All Forum Posts by: Mark Caiazza

@Walter Boyd welcome to the site! I'm an active duty member as well and I'm glad to see the growing popularity of real estate investing among military members. Like @Elizabeth Colegrove, I have purchased homes at each of my duty locations; it really is a good strategy. However, there are obstacles to overcome as you learn the ropes so don't hesitate to drop me a line if you have any questions.

-Mark Caiazza

@Trevor Ewen

 It is definitely possible to manage properties remotely and you are right, having that "rare kind of tenant" is the key. I manage my properties from Montana (one in Las Vegas and one in Northern California). It is good to have a friend, family member, or handyman in the local area to help with those quick fixes or just drive by when you need it.

@Trevor Ewen I own 2 investment properties near Air Force bases and all but one of my 6 different tenants were military families. The only one I had to evict was the non-military one. I have never had any issues with rent payments from the military members. In fact, all of my military tenants are more than happy to setup direct deposit so I get paid like clockwork every month. I agree with the comments above about getting the command involved (they can be very persuasive) if payment becomes an issue, but I think you will find that payment is not a big issue with military folks. They have always left the house in good shape with no damage and there is typically very little interaction between us; they don't ask for much and don't cause any problems. Keep in mind my experience is with military couples with one or more children. You may find some of the junior military members to be a bit more challenging (similar to college students). However, a young military member can be tamed with a simple phone call to his/her supervisor (plus, unlike some college students, you typically won't have drug or legal problems with young military members). In my experience there is only one downside to military tenants and that is the constant turnover. You won't find a long term 5, 10, or 15 year tenant. You will most likely be turning it over every 1-4 years. Let me know if you have any other specific questions, I'm glad to help. -Mark

@Alexis Pierre-Louis

 Listen to the BP podcasts (especially the one's pertaining to wholesaling) while doing your artwork in your spare time... you will gain a ton of knowledge, tips, and techniques to prevent those mistakes. Welcome to BP!

-Mark

John Monroe JD, glad to hear the mail campaign has some early success! Get a good seller questionnaire template so you are gathering the same information from each of your phone calls. Sorry I can't be much help with contract/wholesale process, but give me a call if you need any help while you are out in the field/stuck at work.

I read a similar article that Forbes put out a few days ago "The best places to retire in 2015". It was a top 25 list which had Great Falls, MT at number 12...

http://www.forbes.com/sites/williampbarrett/2015/03/17/the-best-places-to-retire-in-2015-2/

PROS: Strong economy and low unemployment on the banks of the Missouri River. Cost of living 2% below national average, average home $172,000, good tax climate. Above average air quality. High number of doctors per capita, high Milken aging rank, low serious crime rate.

CON: Cold winters. NOTED: Average walkability. Population 60,000. Newcomer to list.

@Mark Mosch Great Falls seems to have very few rentals available when compared to other markets, which should be a good thing for buy-and-hold investors (not much competition). However, my initial uneducated assumption is that because of the older age of the real estate in Great Falls and the tough weather environment, extensive repairs and upkeep expenses would greatly cut into cash flows.

Do you find this to be true in your Great Falls investments and if so, how do you counteract or avoid those expenses?

I ask this question because my two investment properties were built post 2005 in mild climate areas. Therefore, I have zero experience with how to mitigate extensive repair and upkeep costs, which worries me in this market.

Thanks for the welcome!

@John Monroe @John Payne

There is definitely a lack of REI groups in Great Falls; there are some in the surrounding areas (Missoula, Kalispell, Billings). Maybe with the help of this BP community we can get a group formed here in Great Falls.

I am by no means an expert, but here are a few broad tips/techniques that I used as you both prepare your owner occupied homes for rent...

Take Pictures: get plenty of shots of the house while you occupy it, there will never be an easier time. We are a visually driven society and the more quality pictures you can show a potential renter/buyer; the easier it will be to fill.

Build a website: It may be overkill, but when you only own two properties... why not. I used Weebly or Wix to create a free website with pictures and descriptions of the house and neighborhood. It also contains an application and a description of the rental terms. When I am ready to advertise, I just post the link to Zillow/AHRN so the prospective tenant has additional info

Check the housing office: The housing office on base may have some sample lease contracts and other paperwork specific to your area.

Set the right rent/credit requirement combination for your situation: A slightly higher rent with slightly relaxed credit requirements may be okay if you are a local landlord with the ability to quickly deal with a bad tenant. However, this won’t be possible when you are land lording remotely... I found this out the hard way. A desperate tenant (one with sub-par credit or unstable income) is willing to pay higher rent (because they probably won’t pay you anyways). I found that if I price the rent slightly below market with the stipulation of higher credit scores, I attract better tenants, which saves me time and money in the long run.

Hello BP community,

My name is Mark Caiazza, I'm originally from Rochester, NY and joined the US Air Force in 2001. I purchased single family homes at my last two duty stations (Las Vegas, NV and Fairfield, CA). I am now stationed in Great Falls, MT and hope to expand my buy-and-hold portfolio. However, this market is extremely different from California and Vegas, so I am hesitant to jump in... which is how I stumbled upon BiggerPockets. I found BP while searching for different ways to analyze a real estate market.

Beyond the goal of improving my market analysis, I am interested in getting educated on flips and commercial real estate. Also, I hope to pass on some of my experience as a long distance landlord to other out-of-state investors/military members.

Thanks for all the great tools and information!

-Mark