All Forum Posts by: Michael Olmstead

That is good to know! Totally forgot that the big players do have their yearly investor presentations-great resource to gain insight and see their data points. Taking a look now....

I have been calculating cap rates for long term investors and comparing the info provided in MLS listings vs what seems to be the cap rate avg in North Texas. Does anyone have a realistic cap rate number for long term rentals in DFW? Over 10% seems unlikely, but that is of course always the goal. Curious for local agent's feedback, thanks!

I agree with Remington. Profits are obviously the reason anyone invests in real estate. Service and communication are what get you there. I am constantly hearing from folks whose management companies do not communicate or stay on top of there responsibilities. That is a huge red flag if you get no response from your property manager immediately after signing the agreement and getting onboarded. A good PM is communicative and responsive and should always be just a text away. Otherwise, the profits will not materialize.

Does anyone have any advice on how to acquire HOA management contracts in the North Texas area? We currently manage single family and multi-family properties in the Fort Worth area and are looking to possibly expand into HOA management. Not sure where to look or how to advertise in that field of property management.

I suppose you could set up an LLC or a DBA to handle the rentals. Would keep the finances separate from your personal accounts. Might provide more legal protections from your personal assets, also. Would recommend speaking with an attorney or CPA to discuss the legal and tax ramifications.

It sounds like the PM got lazy and that the lease auto renewed on a month-to-month basis. MTM is fine at a higher rate, in certain instances. The kicker here is that the owner lost out on the prime leasing months over the summer and is now heading into the fall with a vacancy. Demand definitely drops off of a cliff after school starts in late August early September. Seems very negligent on the part of the PM and this is all too common with some PM companies. It really still ultimately falls on the owner to be aware of the timing and keep the PM's feet to the fire.