All Forum Posts by: Nathan S.

@Bret Ehlers Thanks for the info. I am not entirely too worried about job loss, but was curious about the options. So a HELOC isn't an option on one my my rental homes, but only my personal residence? If so, I have one of those too in which we've put down 20%, paid monthly interest and principal payments (albeit, not much on the principal side in the early days of the loan!) for the last three years and the property has appreciated quite nicely.

Thanks again!

Hi BP world, if my wife and I are diligently saving around 1/2 of our paycheck for 20% down SFH deals (total of seven is the goal- two down, five to go), we may find ourselves low on personal reserves from time to time. Has anyone gotten a HELOC on their investment properties as a way to protect them from a rainy day in their personal lives (job loss, unexpected medical costs)??

@Natalie Schanne Though it isn't required for me to maintain my current position, it will certainly help me in my current position as well as advancement in the PM career field.  As an extra bonus, it will assist in my own personal investment decisions and operations.  Therefore, I feel like I have a fair basis for the deduction on both of those grounds. Thanks for your time!

@Account Closed I have been in PM for almost 9 years.  After a little over three years as a Leasing Consultant was I able to tackle my first Property Manager role in a 58 unit lease up building.  Three years there and I moved on to 158 units.  Obviously everyone learns at their own pace.  However, not having any industry experience, the employer may find you under-qualified for the position.

The PM company would supply you the proper management/accounting software which certainly can make your job easier, but not easy by any means.  I say this not to discourage you from entering the industry, but managing 100 units with no prior experience would be a difficult sink or swim scenario, in my opinion.  

Student housing is not my forte, but I have heard it is more challenging than general market rate P

Starting with a house hack or any "first deal" situation in REI would give you an advantage that would help you tackle this position because you would have some real world experience to compliment your REI education.

For me, the processes and general concept of PM came fairly easy.  What challenges me is the one-off, "what-if" scenarios where practically any education you receive cannot prepare you to properly handle.

I don't fully understand your question, "I was also wondering if this is a position that would put me on the owners payroll and so I wouldn't need to start my own property management business."  Managing 100 units in the Twin Cities of MN near Minneapolis or St. Paul would pay around $40,000-$50,000, depending the asset class.  Cannot speak for Mesa, but check out Salary.com.  To start your own PM company, you definitely need experience and/or other experienced people around you to be taken seriously in your community.

Hope this helps!  Let me know if you have any questions.

In MN, we have an organization called MMHA (Minnesota Multi Housing Association) that has a lease generally accepted and respected by many judges.  At a cost of $2-$4, you can purchase a lease from them that will cover you in most instances of a lease disagreement.

Whatever service or resources you use, make sure they are state specific since laws do vary from state to state.

I use a company called Utility Management Solutions (UMS) on 290 unit community that I manage.  Prior to me taking over, the previous PM billed a flat rate to each tenant based on number of occupants.  Ironically, using UMS for our RUB's, the bill is almost the same for the tenants as when they paid the flat rate.

I have been considering getting my CPM (Certified Property Manager) designation both since my day job is in Property Management and I moonlight managing my own property investments. The program is approx $6000 to complete and usually takes a couple of years depending on class availability. Would this expense be tax deductible? Also, if travel is required to attend a class, I would assume that those expenses are deductible since I am considered "in business". Nolo books agree. Any CPA's out there that are comfortable giving advice here?

Thanks perfect @Amy Ranae I used Bell Mortgage on my last purchase but made the mistake of putting down 25% to get the lower interest rate.  Now it is going to take my wife and I longer to save up the down payment on our next purchase!  Do you know much about the SW Metro market?  If so, I'd love to chat some time about the Shakopee/Chaska/Prior Lake/Savage areas.

@Amy Ranae Could you share with me the details behind your comment about only having to put 15% down on townhomes? My portfolio is now only two TH's, but I plan on diversifying into SFH's in the future.

@Kyle L. I go to Zillow.com, find the address for the target property and find the "tax history" section.  Then click on county website to go to Hennepin County's page to see this specific property's 2016 assessment.  Not sure how to find the 2017 assessment.