All Forum Posts by: Pat Alford

I used Windows and More in Cabot. No problems with the installation or customer service.

Next Tuesday I am meeting with an owner of 2 small 6-plex units. They are 1/1 with one of the 12 units being a 2/2, and are all currently rented. The average monthly rental is around $350 (I think, I’ll know more info after meeting with the owner.) I’ve had a few self-managed properties a few years ago, but currently don’t have any investment property. From talking to other investors, I’ve heard that most PMs charge about 10% of the monthly rents, plus 1/2 of the first month rent. My main question is, do property managers typically charge a higher percentage on units that have lower rents? This is in rural Arkansas. Secondly is the profit per door the most important? If I can get numbers to $50/door ($600/month), that will equate to a 15% cash on cash return.

I’m curious as to what a 3/1 rents for in that area. I’m just outside of Cabot and I’m looking at houses and small multi-family units right now.

I think there may be some implied liability if you say in the lease, that you have WiFi connected smoke detectors. That could imply that YOU are “monitoring” for fire. Then 3 years later, while you are in the Islands on vacation, the house burns down and you don’t call the fire department. The tenant may be able to claim you did not uphold your end of the lease agreement. I know that is very far fetched, but I owned an alarm (burglar and fire) company for years and now I am an insurance adjuster. So potential for liability is bigger in my mind than in most.

I doubt this would work in Arkansas where I live, because electricity is very cheap. But I was thinking you could use the top of the storage buildings for solar panels. I’ve looked into them in Arkansas and the cost of installation and equipment would take 15-17 years to recoup. However Arkansas is one of only a few states (I think) that requires the electric company to purchase your excess electricity at the same rate they sell it back to you at. Some states buy from you for say $.50 and sell it back to you for $1.

Jared Lillard welcome to the forum. I new myself and I live in Austin (near Cabot). I see you enjoy woodworking, and I do as well, which means I have a garage full of tools that gather more dust than sawdust. I am currently working in Florida, but hope to make in back to AR in the next few weeks. Maybe we can grab lunch and get to know each other.

We are considering a double wide mobile home on several acres that is currently bank owned. We “think” we can get it at a price equal to slightly less than the average land cost. We know that if we get it, most people cannot get financing on a MH, so we will offer it as for sale by owner with owner financing. We think we can get a large chunk of our money back as a down payment and then the 15 year note will be close to what we could rent it for. But the best benefit is that the new owners feel a sense of ownership and they are responsible for maintenance. If they pay it for 15 years, we would feel like we hit a home run for sure.

@Kramer Stewart I live near Cabot, and I am looking at getting rental property in and around Little Rock. I hope you are able to find someone to help with managing this property. If you don’t mind, I will check with you from time to time and see if you are satisfied with the company you use. Good luck.

Hi Philip, welcome to the forum. I am new to investing as well and I’m in Central Arkansas.

They could sell the property to me for $100,000, which would be below the remaining depreciation, and I’ll sell it to you for 2.9million. They can avoid taxes, you get a better deal, and I will NOT complain about the capital gains tax at all That’s a Win-Win-Win, if ever there was such a thing. Actually I don’t have a clue, but I did have a joke, so I contribute whatever I can.