All Forum Posts by: Max Reynolds

Managing a rental property in CA can be a part-time job so if you are up for that, you can increase your monthly income. Responding to tenant requests, leasing, coordinating maintenance, paying bills, and the accounting is only part of the job. Thanks to CA, educating yourself on all of the new laws in place or coming into effect to make sure you are in compliance is another part of the job that most people don't realize. Make sure you understand Fair Housing laws before listing a property for rent yourself. 

You can use Zillow for applications, leases, and collecting rent. For marketing, I would say 95% of our converted leads come from Zillow. Complete a rent survey for comparable properties in the area and call to see if they have been rented or what the activity has been at the current price listed. I would opt for a 12 month lease, shorter term leads to more vacancy and vacancy is one of your biggest expenses. You need to determine how you will do showings from afar, so hiring an agent or manager to do the leasing may at least be a minimum duty to outsource. Not all management companies offer lease only services and most agents are not good or motivated to do this as the pay is little for how much work it is, so it may take some time to find the right person. We use or property management software that partners with Transunion for screening tenants so I can not verify, but have heard from others Zillow's screening is not the best. 

If you don't want the part-time job, a good property management company not only saves you time and stress but also secures preferred pricing with vendors, which helps offset management fees. While self-managing from afar is possible, you really need to spend the time to dial in your processes and list of vendors. If you decide to go the management route, I am happy to connect you with a group in that area as we only service SD at the moment.

Hi Renee,

You’ve built an impressive portfolio, managing 100 units in San Diego is no small feat. Below is some guidance as both a property manager and real estate investor myself:

1. Assess Your Goals and Current Structure: Beyond replacing your handyman team, it’s important to evaluate your portfolio’s current management framework and clarify your long-term objectives.

• How are responsibilities currently divided among you and any co-owners or family members?
• Are you being compensated to do the management if there are partners/family members involved?
• What are your real estate and lifestyle goals over the next 5, 10, and 20 years?

2. Property Management Recommendations: Palm Tree Properties is a small boutique property management company. We pride ourselves on managing our client properties as if they were our own because that is how our company was founded. I would recommend interviewing 3 different companies though and seeing who you align with best.

3. Hiring a Handyman: Posting ads on platforms Craigslist or Facebook Marketplace and conducting a multi-step interview process:

• Start with a phone screen to assess experience, availability, and resources.
• Follow up with an in-person meeting to determine compatibility and trustworthiness.

4. Handyman Contractor Insights: These will best come from interviews or referrals from social media (friends/friends of friends) that are retired contractors or tradesmen. In our experience, working with a "company" is not going to provide the best service or pricing. You want to be working directly with the handyman, not the "GC" who is delegating and not doing any of the work. Be prepared for trial runs with several different candidates if you choose to hire a handyman to make sure they turn out to be qualified and dependable.

Making the right decision upfront is important to avoid the challenges of switching management or service providers down the line. It would be best to schedule a call so that these items could be discussed in more detail and provide answers to any additional questions you might have. Let me know if you are interested in doing so.

- Max

Amy - To confirm, the tenant has given you notice that he will be moving out but you also want to send him a move-out notice? 

Hey BP Community - I am an active real estate investor in San Diego and looking to connect with new wholesalers. If you are a wholesaler in San Diego, reach out to me and I can fill you in on my buy-box!

Look forward to connecting.

Hey BP Community - I am an active real estate investor in San Diego and looking to connect with new wholesalers. If you are a wholesaler in San Diego, reach out to me and I can fill you in on my buy-box!

Look forward to connecting.

Hey BP Community - I am an active real estate investor in San Diego and looking to connect with new wholesalers. If you are a wholesaler in San Diego, reach out to me and I can fill you in on my buy-box!

Look forward to connecting,

Max Reynolds

Any recommendations for practice test books/courses to prep for the licensing test following completion of the course? Thanks!

For an out-of-state owner, hiring a PM is essential. Especially in CA where there are so many new laws and regulations to keep up with. If I were interviewing PM's, my main questions would be:

1 - Do they owner rental property themselves? Without owning rental property personally, it is difficult to truly understand how to minimize costs and maximize your investment.

2 - Who do you deal with? Is the individual you meet the BD salesman who passes you off to some inexperienced PM that just started working there or are they involved in the day to day?

3 - What do all of their fees consist of? More often PM's will charge a lower monthly fee which looks attractive but have a bunch of "junk fees" for renewals, property inspections, maintenance mark ups, etc.

If your property is in San Diego, happy to connect.

Hi Audrey - you purchased at a ripe time and are starting to see the fruits of your investment! I would want to better understand the current condition of your condo and what work you plan to do before selling. Completing some renovations does not always make sense economically (price you put in not worth the price you get out). There are two steps you should take here:

1 - Speak with an investor friendly agent/property manager who can help you complete a property analysis to determine current value, recommend renovations (if any), and if renovated the after repair value (ARV).

2 - Speak with a lender to discuss loan options. You could potentially take out a 2nd loan to pay for renovations and would want to make sure you will qualify for the loan on the new property/what that loan would look like.

Happy to connect you with the above!

Hey Lauren - love to hear that you guys have the gears spinning and are ready to embark on your real estate journey! Your return on equity is very low based on those numbers provided so yes, some action needs to take place whether it be adding square footage, new construction, or 1031ing. My recommendation would be speaking with a local agent/property manager who has personal experience with investing in San Diego real estate and can complete a property analysis for you to determine current value, highest and best-use, and what your options are. If necessary, then connect you with an architect, builder, lender, or your CPA to discuss tax implications. Something else to consider is your current financial position as construction/renovations requires capital.