All Forum Posts by: Michael Boyer

I have not read all the responses (someone may have covered this) but good news: no one who has ever looked at my rentals in 13 years has inquired about my real estate savvy or REI IQ..

That is, they care more about the place--how it looks, fits their needs, the price, the product, etc. 

Sure, management is important, too, but once nice thing about real estate is that primarily the property does the work (not me). Or at least it should do the work (it would be creepy, in fact, if I hung around all day like a lost landlord bellhop)...

I am more an added bonus. But still an afterthought in the overall transaction (I know, it hurts to know I am not the primary reason they sign the deal, to be under the glow of my real estate wisdom, and I do like to think I add an edge as a responsive manager but I know the score). 

But bottom line is product (the unit) and price.. 

So you just need to know enough to follow the general rules (landlord tenant) and have some basic forms and best practices (such as you might find on BP, in any of the BP books or similar titles). Genius not required (why I like real estate!).

Offer a nice place in a good location--super clean, well maintained, at or even just slightly below market--and you will beat out members of the real estate mensa club, or at least snag all the good tenants you need. 

It can be intimidating to see all the candle power on BP (but this is like the national all star team). And it is not a race or zero sum game where you have to beat out everyone on bigger pockets in an test of smarts to win tenants. Just meet their needs and fill a role on the market and you will succeed.

Best of luck!

There is a past forum on oddest things left behind that is noteworthy.

Agree, an empty, clean, undamaged unit is the best... but more interesting oddities abound.

I had a partially furnished condo with a very sharp machete left under a mattress (guy told me to keep it)...

Somehow I once got a string of artificial Christmas trees in a series of turnovers. No fun in summer though.

For a couple of years about every turn over had a bottle opener/can opener in a kitchen drawer. Set for life on those.

Loose change pops up when you de-lint a dryer or pull up old carpets.

Oddest: a window to a jeep was behind a door.....

Not sure from the facts, but if you lived there as a primary residence, I would check if you qualify for a home sale tax exclusion see e.g.:

https://www.nolo.com/legal-encyclopedia/the-250000...

Why not tap the equity free of capital gain tax while you can--if you can (though with some selling transaction costs).

Or if it was a rental or you want to keep the place and it cash flows well (distance rental, though) I like  exploring a cash out refinance and have done that with rentals before to tap the equity.

Best of luck!

I don't have any names per se.... but I would do is use our great courtview site in Alaska to get a lead(s). 

For example, try searching it under the major property management firms names in Anchorage (like Weidner)... not because we are looking for a management firm or think them the wisest or best managers--but because they have a huge volume of evictions and (the big ones) can afford the best, most experience and efficient firm or person working in this space. 

Click on some recent cases. See who they are using for evictions and see the attorney names working for the management firms. Presto, you have some leads. Even if they will only work for major players, find out who they recommend.Doing some of this will get you a list of the people doing the volume of landlord tenant work in your area.

Best of luck...

Can you do both?

 You are really close--3 semesters. And the degree may open some options and be a nice credential you have for life. Going back gets really costly too (lost credits, changed programs, life changes, etc). Now is an ideal time.

Maybe seek the once or twice a week courses (maybe even some online if Temple does them). Then you could squeeze in both some real estate and traditional college.

And does your school have summer sessions with classes you need? If so, you may be able to wrap up this summer (Fall, Spring, Summer). 

I would probably only do  the degree switch (to real estate) if it did not add much time/costs. Much of that learning can be done on your own as you indicate (universities are churning out real estate investors for example).

Have you college books on one shelf and your REI books on another, switch back and forth. Maybe see if the developed can make the gig a paid internship (which lots of students do) and try half days and weekends or 3 days a week to mesh...

Best of luck!

Hi,

I actually use the same lease on my condo rental that I use on my fourplex units and just fill in a few blanks differently (like what the rent covers, for example).

The key difference for me is that I have an addendum of condo association rules and policies that is incorporated by reference in the lease. 

That way the tenant knows all the ins and outs from quiet hours, bbq restrictions, parking, pets, and more...

But check with a professional or your NY rules if you have specific questions about your situation.

Best of luck!

I like to start with 1 year lease (sometimes, though rarer, a six month). 

Why? 

It gets those tenants with a longer term orientation in my opinion.

I am no vacation rental and turnovers are the bulk of the work and cost as a small time landlord. Longer term the better. I used to so more seasonal tenants (like just for summer) but it wore me out.

That said, after someone has settled in and renewed a few times, I will be open to the option of letting it go to month to month. In fact, my longest term tenant (coming up on nine years) is month to month (quit doing lease renewals at about 5 years). 

The renewal is a good time to look at the market rates, however. Month to month gives flexibility (for them and me) and much may depend on your larger strategy, scale, and market.

 For example, if all other rentals on the market are only doing one year, I might offer a six month option just as a competitive advantage (FYI about 80% of my 6 months folks renew it at least once). Some folks just like and value flexibility. 

Or if I was doing a seasonal rental again, I would elevate the rates and go for the 4 month tourist season. So the point being the term may merge with your niche or strategy.

Today, I focus more on the landlord tenant relationship and getting good people (superb payment and little or no problem behaviors) and the exact term seems to take care of itself. I renew some folks or go month to month with others and it rides with attention as needed.

On exception, the one condo I still have rented has a six month minimum rental term. That is required by the association. And I think if I had alot of rentals (50+), I would be very careful to avoid too many month to month (for risk of mass vacancies at one time) and try and stagger terms more.

Best of luck!

I like the "do both" posts best. 

For example, you have to live and work someplace, so look for options like

1.  An apartment where they will let you live for free to manage the place or be on call (great experience for owning your own);
2. An owner finance property you can buy and live in and rent out other rooms or units to others (like other students!); 
3. Work for a local property management firm this summer showing rentals or turning around units; 
4. A final option might even be to live/work in student housing, either as an RA or even better would be in maintenance; both let you handle some people and property problems (real ones, not just the ones in your textbook), problems like the ones you will face in REI (i.e., getting tenants to follow rules, fixing broken items, painting, keeping up the lawn, etc).

Also, read up on REI on your own (I'd start with all the landlording and real estate books in your library) and see if a house hack, or other strategy might work, even getting a parent or partner to help with financing.

You might be able to graduate with a degree and a few years of property experience (maybe even be an owner!)...

Indeed, it is a whole different dimension to investing when you get into HOA's. It adds a layer of complexity and investors should understand it and participate.

I was rather like Linda in my first decade or so with 4 condos at one time--getting on the board! I was on 3 boards at one point...

The quality of the board and participation really does add value. At minimum folks should turn in the proxies. That is the floor. The ceiling is much higher--like put in some time on the board... I find it gives you credibility to have served. 

As a real estate investor, you are actually super valuable on boards (first convince them you are not villian but have similar interests). Almost guaranteed, no one will know about Capex. Start to show them a schedule or idea and they will be impressed...

I have seen some situations work better than others... At its worst, one board member had his tires slashed. At its best, owners (and landlords!) have a clean-up and barbecue and sing Kumbaya....

One other point I advise investors or condo buyers to probe is fuzzy but important: organizational culture. Some HOA's really are dysfunctional and as an investor you are problem solver (fixing the running toilet, the loose doorknob, and solving the late rent issue) but these human relations problems on boards can be another matter altogether.

Sometimes you just can't get stuff through...It is not like owning your own duplex where you are the boss, leader, and supreme ruler (with your spouse or partner if you have one)....

I struggled with one board in like early 2000's hoping to get some of like 1/4- 1/2 million into some higher returning investments until we needed it   (with plenty of operating cash) but the best I could get them to go for was CD's. Today, run the SP 500 returns and  I see had they gone index funds, it would be millions and they'd be set, more than enough for all the new decks, windows, doors, and more... so you shoot for the stars and maybe get the moon or a couple of percentage points in a ladder CD...

One thing boards can try is some incentive (a couple have done one month free dues for meeting attendance, which can boost it big time!). Or even get your name in the box for a month of free dues just for doing the proxy.

Also, don't forget if you are an active board member you get a front row seat on the costs, contractors, and issues running a 50, 100, or more unit complex. So it is not altruism. I would be more likely to buy a large apartment (if the price were right) based on past board membership.

Thanks for the mention Steve! I am even pondering a follow up book on condos (maybe even reporting from the inside on a board). I sold some condos but still have one (where I was once President). 

I am glad to see this top. Many of the HOA's face, as outlined above, enormous property and people challenges yet in major cities 1 in 3 or 4 home sales is a condo or co-op...

Best of Luck!

To keep it short.. two words: DAVE RAMSEY.

Rather than go on about every debt and saving tips, you might just  follow a popular plan for debt elimination and budgeting that is out there and has worked for many.

It is also a top ranked podcast and radio show..there is a set program (Financial Peace University) and groups around the country doing this together.

An added bonus, Dave loves real estate (but he likes it paid for and you can find some BP discussions on different views on that topic).  He also delves into relationship issues and many callers and topics are on getting couples both on board.

But first things first. Get your own personal finance situation in order and then move on to look at investing and see if the dream can be dusted off and acted on. 

Debt reduction can be done is a surprising little time on the right plan with the right motivation. Start listening when you are in the car, exercising, working on the house. I would not try and make a spouse listen but see if she begins to pick up on the ideas and your own enthusiasm.

It would offer a better example than the bank of people across the US saving (and not spending) where the paid off mortgage replaces the BMW as the status symbol choice (DR catchphrase)....

Best of luck!