All Forum Posts by: Patrick Senas

Oh wow @Filipe Pereira, I'm definitely not hitting those numbers as far as inquiries go. So in my area all utilities are typically paid for by the tenants. In my case, I would be paying for water, sewer, and trash. Hence why I listed the unit for more.

Would it be perfectly fine to lower my listing price and add a flat fee for water and offload the sewer and trash as part of the utilities they are in responsible for? The units aren't individually metered so I can't pass that off just yet. I may implement RUBS if it's too costly to individually meter them. I think that will get me to generate more leads.

Hi @Kenneth Garrett and thank you. I'm actually from Wauekgan, IL! Not too far from you. For all the people that wanted a showing, I set a time and I told them to confirm their appointment with me an hour before the viewing. I learned that from a BP book actually. So far they've done just that. I've done the same steps that other PM's have done with me when I was shopping for a rental. They did the showing, let me walk around, explained some generic things and that was that. They never went over the rental agreement, rules and guidelines during the showing. They usually did that during the signing date. Should I start doing that from now on? Is there a benefit in doing it beforehand?

Also what is a sure way to know if I'm overpriced? If I don't have any applicants within the first week? Should I be expecting 100s of inquiries within the first few days?

Hi @Thomas S., I wouldn't say I'm winging it exactly. I have done my research and read the applicable books. I've established my criteria and have those outlined in the listing as well. My concern wasn't in the screening process but in getting the prospective tenants to screen in the first place. Mostly with learning how to properly appraise the market value of each unit. But again, I'm new to all of this so there is definitely a learning curve. Reading about being a landlord is one thing; but applying what I've learned is a completely different beast.

@Dan H. To clarify, when I say condo's I'm speaking of large complexes with 1/1 units. The other 2-4 MF units in the area range from 2/1 - 3/2 configurations. It seems that the duplex I'm referencing is the only one of its kind (at least from what's posted online). I haven't seen any 1/1 duplexes in any listing in San Diego to compare it to. There are many 1/1 "cottages" that people have added onto their homes. Which in certain areas is very common. The locations of the properties isn't anything to write home about though.

I do understand the need to create a larger funnel that will eventually lead to a tenant; and I've discussed this with my agent who has been helping me navigate the realm of landlording. He's a landlord himself with multiple properties. We agreed that since there isn't a rush to get a tenant in place immediately we can test the market to see what I can generate as far as leads with a smaller/higher priced funnel. We didn't want to set the bar too low and regret it later.

From our own comp analysis, we think market rent for this particular unit is closer to $1900. In the vicinity of the property the other homes offload all of the utilities to the tenants. They can list it for a lower price because they have less monthly expenses. Unlike my units where the water isn't individually metered, I would have to take on that expense for both units until I can get that set up with SD Water. I was thinking of using that tactic, list it for a lower price, and have a fixed price for water utilities paid directly to me as part of their expense.

Bettina F. I'm actually planning to use an online application & screening service called Cozy. I've heard great reviews from users on BP and other web forums. I really like the option of receiving rent payments online. Free for ACH transactions. With that I already have the property listed and they just click the Apply button, create an account, and apply. At least that's what I think, I'll find out soon enough.

Welcome! It's great that you're using the knowledge from your job for your own personal gains!! Wish you the best!

@Michael Noto That's sound advice. I'll do that tomorrow when I meet with him. Thanks!

@Michael Noto Well actually I did not. Unless my agent talked it over with the sellers agent. I'll have to confirm. My agent was the one that recommended I do it, so I just chalked it up as "market research". I did wait until I removed all contingencies though. If that matters. 

Is it against the law? I was just hoping to have tenants lined up and on a lease the same day I close escrow.

Hi @Mindy Jensen, that's the difficult part. The only other 1/1 units are apartments and condos. The average 1/1 condo in my area is priced on average at $1400. That's for a unit with laminate flooring, updated kitchen & bath. When I use comps the difference is that my unit has hardwood floors, ~300 sq ft covered patio, W/D, private yard and water bill is covered by me. Realistically, how much more can I demand for those differences.

Hi @Ryan Budil, I have the same fears you do. When it comes down to it, an investment is an investment. There's always inherent risks. The same risks are present when you invest in a 401k or other stock investment, which you most likely invest in as well. So why should you treat RE any different? 

The way I look at it is if the property cash flows now after everything is accounted for, then why wouldn't it cash flow if the market has a correction? Rental value doesn't necessarily coincide with home value. Things were just a **** show back then because there was a lot more forces at play than just home values decreasing. People were losing jobs, banks were over leveraging, etc. So even if my home value drops by 100k tomorrow, I wouldn't lower my rent price because of it. The current rental market dictates the price. So nothing really changes.