All Forum Posts by: Michael Beeman

@Colleen F.   Thank You for the advice. I am not worried about the number of words used because it is a Craigslist ad. But highlighting the updates inside and the work on the outside seems like a good idea.   

Hi BP,

I've been listening to all the old podcasts about land lording and property management since I am a new land lord. I recently heard one where a property manager discussed the idea that he had all of his properties under an Appliance Insurance company. Then the tenant would just contact the company and the company would handle all issues 24/7.  This sounds like an awesome deal; but is it worth it?  If it is; does anyone use one of these companies and/or know which company is the best one for the cost?

@Greg Barbre  Thank You,   It probably won't get a great response rate, but it really should help weed through the applicants before they even apply. lol

@Dave Visaya,

Thank you!!  I'm a relatively new member and trying to learn as fast as i can. 

@Greg Barbre,

Thank you!  I am working on a Craigslist ad and reviewing Tenant requirements right now. How does this look to you? 

Apartment features

-Available on May1st

-Low utilities cost. (aprox $125/month)

-onsite Coin operated laundry service.

-Free Wifi internet service.

-$50 discount for auto draw on-time monthly pay (Rent is $525 after discount)

-Low Utility deposit. ($150)

-Pets allowed for $200 non-refundable Pet Deposit; $25/month extra per pet.

-Smokers welcome, but any stains on paint that need painted over come out of the security deposit.

Tenant screening requirements

-Landlord references required

-At least 1800/month in verifiable household income.

-90 days work history required.

-No Filed Evictions in last 5 years

-One Month Rent and $600 Household Security Deposit.

-12 month lease required.

-$25 tenant application process to be refunded towards Security deposit as long as the Background check reveals Above requirements are met.

-If above requirements are not met; Apartment can still be rented with a lease Co-Signer that has a Credit score of 680 or higher.

NOTE Please respond via email if you meet these requirements and would like a tenant application. We will begin showing the unit in April. 

Hello BP, I'm Michael Beeman.

I recently purchased a large older home with a garage that I am turning into a 3 plex, and in May I'm closing on a 6 unit apartment.  I got some really great deals on these units.. But, as a First time landlord to be I have been listening to every podcast on landlording and reading but i still have a few questions....\

Tenant Screening.. There is a lot of good information on here about Tenant Screening .. What products have you had the best luck with for background checks?  What specialized questions should be on an apartment rental application? What have you had luck with accepting/not accepting when it comes to rental applications?

What land lording tips do you have?  I'm quite nervous about this area of the business, What little tidbits have you found that seem to work well. 

I live in a Rural area and I'm brand new to this so Josh and Brandon and the 100 or so older podcasts I've listend to have made them my de facto mentors that have never met me lol; I have searched bigger pockets and I can't find anyone from my SouthEast Rural Illinois area that is active in Bigger Pockets; Do you have any tips on finding someone that could Mentor or just help me along in this area?  From the few landlords (none are on BP) that I have found in my area.. I haven't talked to a single one that does any kind of background check, it's kind of a headache..

I know that I will have units to fill come mid April/early May. How soon do you start advertising locally for tenants to apply?  

I apologize, I know that there are a lot of questions here.. I am just new and have a lot of questions..

@Ryan Scott Isacksen  Thank You, I'm listening to all 216 podcasts about 2 or 3 a day and listening to the ABC's of Real Estate Investing as well. I've already read a few books, and I knew this is what I've wanted to do for awhile. So, I'm neck deep in it now.. lol

My first purchase was a local single family home owned by a company out of state that had used it for their migrant workers 5 years ago and had forgotten about it.  List was 30k, I offered 15k and settled at 17500. It is a large 2 story older home and needs about 2500 dollars in roof repairs, due to gutters not being cleaned out and Facer boards rotting away.  I have spoken with contractors and I can turn the home and the attached garage into 3 seperate 2br units that rent for 500 a piece. The cost of that renovation is an additional 22500.  My total cost would be about 45k. Because of the local pipeline company in this town the vacancy rates are very low.  

My second purchase was signed this week, a friend had heard of my first purchase and believed I must be serious, so he told me of a mutual friend of our's boss that had purchased a 6 unit apartment building 2 years ago and he is in the oil business, he put it on the back burner and has only rented 1 unit. He had no financials on the place, but after an inspection and realizing i needed to put about 3k a unit into 3 units to improve their "showing appeal" I will be able to rent the 6 units for about 3600 total. Vacancy rates in this town are around 5-8% due to the large volume of workers at the local refinery. I purchased this property after closing costs for 61k.  I think I've done well, and now I have to keep reading and learning how to manage property. Does anyone else have any opinions.

Hi and Welcom @Dylan Grabowski

I am from Rural Southeastern Illinois. I am also a new Investor.  I have also been interested in multi family units. I have recently signed purchase agreements on 2 properties that total 9 units. So, I have a lot on my plate when we close here in the next few weeks. I am hear to learn. 

@John Van Uytven. 

I completely agree. I am signing a purchase agreement on a 6 unit apartment today in Robinson. I also have a large older house in Casey that I just started converting into a 3 unit apartment. My strategy is to stay away from Charleston, but to look for some of the "better deals" on houses and especially multifamily units in the little towns that are thriving because of the local businesses. I am finding there are great opportunities there. Based on my research my target towns are Robinson (because of the Refinery), Casey (Bolin's, and a revitalized downtown area due to the "Big things Little Town"), Greenup (Evapco and the Trucking Company there), Effingham (has seen solid job growth for a decade), and Mattoon (if it's the right deal). Because of the low cost of houses in these areas, the Cap Rates are excellent. I'm looking at a 20-25 Cap on my apartment building and an 18-20 Cap on my house that I'm converting into a 3 unit apartment. I feel like there is some opportunity here locally. But, not inside of Charleston itself. Once I have some things more established, my hope in a few years is to gobble up a deal or 2 in Charleston in hopes the school rebounds with the next Governor likely being a Democrat and education funding and state government spending will go back to it's previous sky high levels.