All Forum Posts by: Michael Nichols

Background - Currently own a home. It's a starter home that we have lived in for 2 years ~100k purchase price. We will be moving out in a few years and I started wondering about renting it out. As a highly entrepreneurial type of person, I began thinking about the possibility of opening a property management company. A quick Google search of management companies in my area yielded no results (in the single family home market). 

Idea - When we build our home and move out, have my current home become the first asset of the property management group. Form the company around that and taking in new clients in my area for a small % of the rent, and scale from there. 

Question - Is it a normal starting procedure? Will it be extremely difficult to convince new clients to come on board if the company only has a single property? What types of books would you guys suggest on this topic to kind of build a game plan? How much does it cost to start? 'This would entail things like starting the LLC only/obviously the marketing and other things vary to greatly to put a number on'. Anything else you can think of that might be helpful.

Thanks

You pay cash, that simple.

So I'm currently in my first house for just over a year and we have poured a decent amount of money into it. Replacing things like carpet with hardwood, painting, about to remodel the bathroom and things of that nature. We had initially planned to sell in about 5-7 yrs and roll that equity into our new home, and purchase rentals after that. However it seems the amount I'm likely to throw at this house with the rest of the renovations won't be realized when I sell(Over building the neighborhood). 

So basically we have switched gears to prepping this house for rental space when we move, and was wondering what I should focus on as far as renovations are concerned. 

This is an older house, knob & tube wiring, which will obviously need updated for their safety. Do you guys have any other feedback in terms of sustainability of the rental for an older home?

No & low money down is AKA for bankruptcy. Everybody's brilliant in a bull run, when the bears come out and your leveraged with insufficient capital you risk losing your shirt. Is risking your shirt something you'd be willing to put your family through because your not patient enough to enter the investment world the 'safe' way?

Good luck sir