All Forum Posts by: Nate Burgher

Hey @Eva Morel, that's exciting! $2300 / month rent on a $235000 listing price gets you 97% of the way to that 1% rule of thumb that a lot of people talk about on bigger pockets, which is a good thing! I don't know your area much, so I'd hop on Trulia and find the address, then look at the crime maps. I'd also want to know what the job situation is like, and what types of jobs my tenants may have. The more variety, the better. Brandon Turner has said a couple of times that he won't rent to roofers or landscapers because they're always dirty when they get home, not necessarily dirty people, but dirty jobs. 

All in all, assuming you've accounted for repairs and maintenance, capex, management and vacancy (I typically do 10%, 10%, 10% & 8%, respectively, on those numbers), $203 / month is a decent number!

Not trying to sound rude, but can't you drive through Rhode Island in about in hour in any direction? If that's the case, I would suggest doing some driving and find some cities / towns / neighborhoods that have potential and fit your budget. Do some data research on home values in RI before you start driving so you're not wandering aimlessly. Once you find 6-10 towns, go visit a couple of them each weekend and see what they're all about. Chat with the locals at the hardware store and find out what the jobs are in the area, if the population has grown much, what the mayor has been up to, etc.

Hey @Reynald Jean, congratulations, that's exciting stuff! 

Are you working with a realtor? If so, I'd ask him/her for suggestions on a GC. You can also use sites like Yelp, Houzz, etc. to at the very least look at reviews.

As for budget on a complete remodel of a 1203 sq ft home, I can't help you much there in terms of specific numbers because every region has different materials and labor costs. I find that where I live, flooring ranges from $1.50-$4.00 / sq. ft depending on if I have tile, carpet, or vinyl. Cabinets are $100-$175 per linear foot. Siding is $30-$100 per 8x4 sheet in my area. All of this doesn't include labor, so you have to add that. 

Honestly what you should be doing is shopping around and finding the best stores for certain materials. For example, in my area I'd buy my windows, doors and cabinets from one store and my flooring and appliances from another store, because the prices between the two vary so greatly.

Your realtor is going to be one of your best resources for this info, assuming they've worked with investors before and assuming they're good at what they do and have been around awhile.

Hopefully this helps! Best of luck to you!

Hey @Aaron Coday, great thoughts and research! I've done similar research in the past, and it definitely helps to know the Price/Rent Ratio. I'd suggest taking this data, and then marking 2-3 cities you really like the idea of investing in, and furthering the research in those areas. Ultimately, the price / rent ratio is a great start, but there's too many variables that can positively or negatively effect why the price / rent ratio is what it is. Use this data more as a way to find your target market.

Hey @Juan Rosado, I recommend using Hotpads.com for rental prices. Hotpads aggregates data from multiple rental sites. 

As for how to price things out, it really depends on relative location to a property you're looking at, as well as condition and amenities. So if you have a 1Bed/1Bath single family home, you can't use an apartment complex with a pool and a gym as a direct comp. You can still use it as a comp, but you have to consider a certain amount of valuation for those amenities. 

Hopefully this helps!

That's a great price. I'm not too familiar with the Tacoma neighborhoods, but I do know that east of the Tacoma Mall and especially on the east side of I-5, you're getting in that C to D neighborhood.

I personally require the security deposit and first + last months rent at signing of the lease, assuming they're moving in within 28 days. Tough for them to back out at that point.

Hey @Joshua Cetnar, I second what @Jacob A. is suggesting. Talk to people you trust and get referrals. There are a lot of agents out there that are absolutely amazing at what they do and have your best interests in mind, but there are some out there that do the bare minimum. The bare minimum agents won't be getting the best referrals from your friends and family, but the ones that truly care about their reputation and their clients interests will be highly spoken of by your friends and family. If you get a bunch of those solid referrals, then narrow it down to someone who has experience in not only your current real estate goals, but your future investment goals as well. I also feel like it's important to find someone you can relate to one way or another, someone you might end up hanging out with in the future and can chat real estate with. My agent for the past three years has been invaluable to me in that remark, as we've built a solid friendship and now I have access to any and all of the people he knows, which is everyone in the county. 

I had the full paid account with Mashvisor for a couple of months, hoping it had good long-term rental info as well, which it didn't. I found the short-term rental info to be pretty solid in the markets I was looking at, I liked what I saw, but just wasn't interested in short-term. Cancelled Mashvisor shortly thereafter, and shared my feedback with Nathan Miller through a few email exchanges. It's a cool idea and a decent system, and I'm not aware of anything comparable on that level. 

I personally like to speak to someone face-to-face so I can read their facial expressions and body language when talking to them. I can also see how they dress, their method of transportation, etc. Although these aren't fail-safe "tells", they at least help. 

So to answer your question, I don't ask them much over the phone. My listing says it all and has some tough requirements to meet financially for many renters regarding security deposit and amount of first payment due. I ask them if they've read through the entire listing, and ensure they know the financial dues on the first payment, the fact there's no pets allowed, etc. If they understand and agree to that portion, I set aside a half day in my calendar and break my appointments into 20-30 minute windows, and will meet with 8-10 candidates within that timeframe. If they're still interested at the end of it, I say here's the application (Cozy.com), to send it to me by the end of the day including background and credit check (facilitated by Cozy), and go from there.

Hopefully this helps!