All Forum Posts by: William R.

Kelly, The paint is in decent shape, so I do not plan to pain that unit this year. I'll talk about it with the new resident and see if they are interested in having it painted. In the past I have bought supplies and allowed residents to paint their own units with my approved color. I no longer do this for several reasons.

Bill, That is an interesting strategy. Have you had any issues with problematic tenants, who pays the rent, evections etc. I like to vet each tenant and have a clear lease with everyone authorized to occupy the unit. I have some new larger units that this strategy may work well for.

That's awesome! At some point you have to take calculated risks. I wish you the best! Makes me as bit jealous...

I understand your concern, I also own MF close to campus. I had a vacancy in January that was difficult to fill, but two weeks ago I had an open house for an effeciency apartment and had over 40 people show up to look at it. To answer your question, if you have quality paying tenents, keep them in place. I hope in the previous owners lease there is a 30 day notice to be given before they intend to move out. My thing is 0% vancancy and no lost potential rent. I have someone moving out on the 11th of this month and another person moving in that afternoon. I scheduled an apointment with the current resident to inspect the property at noon, followed by an apointment with the new resident.
I think you have to deal with each situation as it comes up, but would not force someone to move out if the are paying rent and not disturbing other residents. I try to have my leases end during the summer, I do not try to hard to schedule it around the school schedule. I feel like if I tried to make it to specific I would alway be changing it and worried if I picked the right end date. Wouldn't want it to accidentally end the week after school has already started!

Buying a multifamily with an FHA loan is a fantastic way of starting out. You are only required to put down 3.5%, making it very doable for most people. You really need to be particular and find a property that has good margins, otherwise it will be difficult to cash flow putting such a small amount down. My first property was an FHA triplex. FHA is very particular about property condition, so you will need a seller who is willing to do minor repairs to get the deal to close. The only downside of this type of financing is that they now make you carry the PMI thru the life of the loan. In the old days you had to carry it for at least 5 years and until you had 25% equity.

http://www.nytimes.com/2013/04/28/business/housing-markets-future-has-many-variables.html?ref=todayspaper&_r=1&

Interesting article, nothing to unexpected. I've had several of these theories I'm my personal REI strategy

I would also be interested such a list.

I think location is more important than condition. Doesn't matter how nice the place is if its not in a decent part of town. Yes, folks with more income can be more selective in where they choose to live. As far as renovation goes, I've found that I can ask a bit more rent, get much more intrest, and it makes a place easier to rent overall.
I think you may want to recieve your Trent screening process. What are your minimum requirements? Credit score, income/rent, work history, criminal record, previous evictions. You should have a written minimum standard, and not accept an applicant who doesn't meet it. You are turning over a huge asset to a stranger, do your due diligence!

Quick search on Amazon and found this: Dictionary of Real Estate Terms (Barron's Business Guides) by Jack P. Friedman
But I think if you read enough general real estate books you will pick up on the terminology.

I had the same mentality on a large multifamily property that I am renovating down to the studs. I wish I would have gotten a GC from day 1. I own the property free and clear, so thought to myself that it really doesn't matter how long it takes. I calculated a few days ago that dragging my feet has cost me $40,000 in lost rent. I would recommend hiring a general contractor for your first project and doing what you are skilled at, but getting as many bids as possible for things you need hired out and learn as much as possibe from the contractor. The next house you can run the job if you think you are capable.
The considerations are: Time, Cost, and Quality; pick two and go for it!

I really appreciate all of the suggestions. I think I need to read several of these. I think I would be a much better investor if I could stay motivated and eager. With my buy and hold strategy I feel like there are very long periods of nothing followed by short periods of activity.