All Forum Posts by: Michele Velazquez

@Michele Velazquez Atlanta and Metro Atlanta are large enough that you could invest there for 50 years and still find deals that work. Since you have a solid team I wouldn’t recommend going elsewhere.

I have considered going elsewhere in my state because my cost of entry is high (not compared to California and places in NY and NJ) but then I read all the posts of contractors who steal and bad realtors and horrible property management and I think it’s better if I just get smarter and more creative in my own region.

Atlanta doesn’t have much snow to create huge winter heating bills and there’s likely to be less natural disasters. I think there’s a lot of good money moving there right now that should make for gentrification and growth and development in the next decade where you will be happy you have invested there. Continue to do your research and if possible visit there some to look for up and coming areas where you can get in on the ground level while development is just starting. You’ll make a ton of money.

Best of luck and happy investing!

@Michele Velazquez

If its working stick with it.  No point trying to learn and keep up with new areas.  Also, you need to redevelop your network.

@Michele Velazquez yup, agree with the above. As a 15 year, out-of-state investor my recommendation is to ALWAYS choose whatever city you have the most trustworthy contacts in. Keep in mind that you may never see your asset. That's an ENOURMOUS amount of trust/money to put into a stranger's hands. What I mean here is that if you know someone in a different city...but that city may not have as "good" as numbers as this other city...then stick with the city where you know people. One wrong move, one wrong contractor, one wrong vendor…will erase any "benefit" one city has over another. Your network is the most important piece for any potential returns when you invest out of state.

hi Ali,

I do exactly what you are mentioning. My primary focus is flipping houses but on the side I help investers find and manage rentals. Im a licensed realtor but I'm not a management company.  I'm currently managing about 10 properties so I have room to add a few more.  I've been managing my own rentals for the last 10 years and I've been working with clients for the last three. I'm more than happy to help. Feel free to reach out.

Thanks, Jason 

I self manage four 6-unit buildings. I use Buildium Property Management software but prefer to pay for Zillow premium listings. Usually, the reason to avoid checking Zillow Group in the software (your software looks like Buildium) is that you can't have duplicate listings. Zillow Group will redistribute the listing to its member sites. Perhaps, your management company has a commercial account and prefers to list directly through the website.

I typically work 18-hour days when I have a listing. It's non-stop because I give every prospective my time and attention. My units rent within 24 to 72 hours of listing. My listings get about 60-100 leads. I usually remove the listing and stop showings and accepting applications at the seven day mark. My last listing received 6 applications. Based on the number of leads, your unit seems to be reasonably priced. A better gauge of that is how many leads you receive in the first 3-7 days. I think the distribution is important here. For example, if your unit received 80% of its leads in the first two weeks, you had a good listing that needed attention and an extra push. I know I get my best leads in the first 48 hours - people who are actively searching on a daily basis. I need to be hyper responsive during this time. Listings get cold. There will be 20 leads on Day 1; 3 on Day 7. This is also when prospectives form their first impression.

Responsiveness is where I think your manager is dropping the ball. I am not sure how to access your listing. Some units rent themselves. That's not the case with my Class C buildings. My 1962 builds look tired. I inherited some deferred maintenance and it shows (I don't do virtual tours; meticulous google phone photography only). There also isn't a manager on site. Demonstrating that I am responsive, accessible, hands-on, and hard working is critical. Future residents need to trust they will receive excellent service after move-in. A manager who can't be bothered to attend showings communicates the opposite message...I'm inaccessible and apathetic.

This just happened. My buildings are tract buildings on a street with only tract buildings, and all units are 1B/1B. I had a vacancy in July. Rented on the 1st day of showings at $1850. Building next door has a vacancy in August. The manager finally rented it two weeks ago at $1600. That unit is worth $1800-$1850. The manager just didn't do the work. It's a pretty unit.

I am not equipped to comment on numbers. I think you need to get your unit rented asap. I think you need a hands-on manager. There may be opportunities to get creative here - a trustworthy resident manager CAN be a wonderful option. Obviously, you need to review your existing contract, and start thinking of an exit strategy from this manager and hiring strategy for the next one. Alternatively, you might be able to renegotiate the contract to exclude leasing services and hire an outside agent. In the future, you might want to get some software and head a team from California - all you need is good boots...If you are in this for the long haul, it may be worth your time.

Your blind spot, as an out of state investor, is management. I think reaching out to similar investors and asking about their oversight techniques and management approaches would be helpful. I advise taking the time to visit the property and hire the next manager in person. It's important to know what's going on in your buildings. Are maintenance requests handled in a timely manner? Are your residents comfortable using the software? Is there an alternative reporting method?

 Message me, I have noticed an especially lousy PM who manages quite a few rentals in Conyers. No photos or bad photos, no description or lousy description. They would lower prices rather than post photos or better photos or even add a description. They did not answer when I called on 2 occasions and took 3 days to return my text message. If they are your PM... 

I self manage four 6-unit buildings. I use Buildium Property Management software but prefer to pay for Zillow premium listings. Usually, the reason to avoid checking Zillow Group in the software (your software looks like Buildium) is that you can't have duplicate listings. Zillow Group will redistribute the listing to its member sites. Perhaps, your management company has a commercial account and prefers to list directly through the website.

I typically work 18-hour days when I have a listing. It's non-stop because I give every prospective my time and attention. My units rent within 24 to 72 hours of listing. My listings get about 60-100 leads. I usually remove the listing and stop showings and accepting applications at the seven day mark. My last listing received 6 applications. Based on the number of leads, your unit seems to be reasonably priced. A better gauge of that is how many leads you receive in the first 3-7 days. I think the distribution is important here. For example, if your unit received 80% of its leads in the first two weeks, you had a good listing that needed attention and an extra push. I know I get my best leads in the first 48 hours - people who are actively searching on a daily basis. I need to be hyper responsive during this time. Listings get cold. There will be 20 leads on Day 1; 3 on Day 7. This is also when prospectives form their first impression.

Responsiveness is where I think your manager is dropping the ball. I am not sure how to access your listing. Some units rent themselves. That's not the case with my Class C buildings. My 1962 builds look tired. I inherited some deferred maintenance and it shows (I don't do virtual tours; meticulous google phone photography only). There also isn't a manager on site. Demonstrating that I am responsive, accessible, hands-on, and hard working is critical. Future residents need to trust they will receive excellent service after move-in. A manager who can't be bothered to attend showings communicates the opposite message...I'm inaccessible and apathetic.

This just happened. My buildings are tract buildings on a street with only tract buildings, and all units are 1B/1B. I had a vacancy in July. Rented on the 1st day of showings at $1850. Building next door has a vacancy in August. The manager finally rented it two weeks ago at $1600. That unit is worth $1800-$1850. The manager just didn't do the work. It's a pretty unit.

I am not equipped to comment on numbers. I think you need to get your unit rented asap. I think you need a hands-on manager. There may be opportunities to get creative here - a trustworthy resident manager CAN be a wonderful option. Obviously, you need to review your existing contract, and start thinking of an exit strategy from this manager and hiring strategy for the next one. Alternatively, you might be able to renegotiate the contract to exclude leasing services and hire an outside agent. In the future, you might want to get some software and head a team from California - all you need is good boots...If you are in this for the long haul, it may be worth your time.

Your blind spot, as an out of state investor, is management. I think reaching out to similar investors and asking about their oversight techniques and management approaches would be helpful. I advise taking the time to visit the property and hire the next manager in person. It's important to know what's going on in your buildings. Are maintenance requests handled in a timely manner? Are your residents comfortable using the software? Is there an alternative reporting method?