All Forum Posts by: Andrew Kubik

Should You Hire a Property Manager or Self-Manage?

Hi Ayyoub,

Since your rental is in a nice area near universities and plazas, you may attract stable tenants, but that doesn’t mean managing will be hassle-free. Here’s what to consider:

1. What Value Does a PM Add?

✔ Tenant Screening & Leasing – PMs handle background checks, marketing, and lease signing, reducing the risk of bad tenants.
✔ Rent Collection & Legal Compliance – They enforce leases, handle late payments, and navigate local landlord-tenant laws (like KCMO’s Tenant Bill of Rights) to keep you compliant.
✔ Maintenance & Repairs – PMs coordinate repairs with vetted vendors, avoiding late-night emergencies.
✔ Time & Stress Savings – If you don’t want to handle calls, disputes, or turnovers, a PM is worth it.

2. Should You Self-Manage?

✅ If you live nearby, understand local laws, and have the time, self-managing can save you money.
⚠ But screening tenants, handling repairs, and enforcing leases takes effort—especially if you have no experience.

3. Finding a Good Property Manager

✔ Ask for referrals from local investors or real estate agents.
✔ Check BiggerPockets & Google reviews for highly rated PMs.
✔ Interview multiple companies – Ask about fees, eviction processes, maintenance handling, and communication.
✔ Avoid “set and forget” managers – A good PM should be proactive and transparent with reporting and tenant relations.

4. KCMO Tenant Bill of Rights – Should It Affect Your Decision?

Yes, Kansas City has tenant-friendly laws, including:

• Stricter eviction processes
• Landlords required to meet certain habitability standards
• More tenant protections against retaliation

If you’re unfamiliar with local laws, a PM can help navigate compliance and avoid costly mistakes.

Final Thought:

If you prefer a hands-off investment, a good PM is worth the cost—just vet them carefully. If you enjoy direct involvement and have time to manage, self-management can work.

Hi Jeff,

It’s good that the applicant provided an offer letter, background check, LinkedIn profile, and pay stubs, but their reluctance to let you verify employment is a red flag. Here’s what could be going on:

✔ Legitimate Concern – Some tenants worry that HR inquiries might raise red flags with their employer, especially if they’re still in a probationary period.
⚠ Fabricated Offer Letter or Pay Stubs – Unfortunately, fake employment documents are common, and verification through HR is one of the best ways to confirm legitimacy.
⚠ Unstable Employment – They may have lost the job or never actually started, making verification impossible.
⚠ Other Issues – They could be hiding something (evictions, unpaid rent history, or other financial instability).

What You Can Do:

✔ Ask for the official employment verification letter – Many HR departments provide standard verification letters upon request.
✔ Verify pay stubs – Cross-check them with bank statements to confirm deposits match.
✔ Call the employer directly – If HR is off-limits, ask for a manager’s contact instead.
✔ Stick to a Consistent Screening Process – Fair Housing laws require uniform screening criteria, so making an exception for one applicant could lead to discrimination claims. Treat all applicants the same to stay compliant and avoid legal risk.
✔ Trust Your Screening Process – If they refuse all verification methods, consider it a dealbreaker. Employment is a key factor in tenant approval, and a good tenant should understand that.

🔹 Final Thought: If a tenant is already pushing back on basic screening, it’s often a sign of future issues. Stick to your standard screening policies and don’t feel pressured to bend your criteria.

Since your goal is appreciation, keeping it vacant for months just to wait for spring may not be the best move. Here’s what to consider:

✔ Adjust pricing and incentives – If it’s sitting too long, consider a small rent reduction, flexible lease terms, or a move-in incentive instead of delisting.
✔ Keeping it listed = More Exposure – Removing and relisting resets listing views on some platforms but may not improve visibility. Keeping it up allows more potential tenants to find it over time.
✔ Consider a Shorter Lease – Offering a 6 month or 18 month month lease can align the renewal with the peak spring/summer rental season.
✔ Hire a Professional Property Manager – An experienced property manager can market the listing more effectively, screen tenants, and minimize vacancy, which is especially useful for a new investor.
✔ Invest in Professional Photos – High-quality photos and a well-written listing can significantly improve interest, especially in a slower rental season.
✔ Ensure All Basic Maintenance Issues Are Addressed – A rental sitting on the market is a great time to check for leaks, HVAC performance, paint touch-ups, and deep cleaning to make sure it’s move-in ready.

Since you already have monthly pest control and provided a pest kit, you’ve more than fulfilled your landlord duties (in most states). Here are some things you can do:

✔ Request photos/videos to confirm the issue.
✔ Schedule an extra extermination visit to document findings.
✔ Remind the tenant about sanitation steps to prevent infestations.

If the complaint is more about the rent increase, stay firm but professional:
✔ “I understand your concerns and value you as a tenant. We’ve taken proactive pest control steps, and I’ll schedule another inspection to ensure everything is in order.”

If the issue persists without real proof, stand by your decision or explore replacing the tenant at market rent ($1,700). Hope this helps!

How to Structure a Deal with a VA Loan Assumption & Mortgage Arrears

Hi Dani,

This is an interesting deal, and you’re right to be cautious. Here’s how you can navigate it:

1. Can a VA Loan Be Assumed If the Seller is Behind on Payments?

Yes, but only after the loan is brought current. Most lenders require the delinquent balance to be paid before approving a VA loan assumption. Since the seller is behind $20K+, you’d need to clear that debt first before proceeding with the assumption.

2. How to Structure the Deal to Protect Your $20K

If you’re willing to cover the $20K arrears, here’s how to protect yourself:

• Use an escrow account: Deposit the $20K into escrow with clear terms—if the assumption is denied, the funds return to you.
• Record a promissory note & lien: If the deal falls through, this would give you a legal claim against the property to recover your funds.

• Subject-to deal: Take over the existing loan payments before assumption approval, securing control.
• Escrowed deed transfer: The seller signs the deed into escrow only to be recorded after assumption approval, ensuring they can’t back out.
• Lease option fallback: If the assumption is denied, consider a lease option agreement until another solution is found.

• Ask the seller to carry a small second note for the $60K equity gap at favorable terms.
• Use your $20K as a down payment, structured as a secured loan against the property.

3. Additional Considerations

✅ Confirm assumption eligibility – Contact the lender directly before paying the arrears.
✅ Get everything in writing – Work with a real estate attorney to draft a contract protecting your funds.
✅ VA entitlement impact – If you assume the loan, check whether the seller's VA entitlement is released.

Final Thoughts

This deal has potential, but structuring it correctly is key. Ensure lender approval before bringing the mortgage current, and use escrow or a lien to protect your money. If assumption doesn’t work, consider a subject-to or seller-financed hybrid deal.

Would love to hear more details once you clarify the lender’s stance—keep us posted!

Welcome, David! It’s great that you and your wife are planning ahead. Here’s a breakdown of your questions:

1. Should You Invest Out of State for Your First Property?

✅ Pros: Lower costs, better cash flow, diversification, scalability
⚠ Cons: Harder management, reliance on local teams, financing challenges

Tips:

• Visit the market first and build a trusted team (agent, PM, contractor).
• Choose landlord-friendly states with strong rental demand.
• Consider a low-maintenance property for your first deal.

If staying local, you gain hands-on experience, but out-of-state investing can work with proper due diligence.

2. Best Websites to Analyze Markets for Cash Flow

• BiggerPockets Rent Estimator – Rent projections
• Roofstock – Market insights and turnkey options
• Zillow, Redfin – Home prices & trends
• Rentometer – Rent comparisons
• NeighborhoodScout, City-Data – Crime rates, job growth, demographics

Look for affordable home prices, population/job growth, low taxes, landlord-friendly laws, and strong rent-to-price ratios (aim for 0.8%-1%).

3. Should You Use a HELOC for Your Down Payment?

HELOC Basics:

• A revolving credit line secured by your home’s equity
• Low interest rates, but often variable
• Draw period (5-10 years) → Repayment period (10-20 years)

✅ Pros: Lower interest than other loans, flexible access to funds, potential tax benefits
⚠ Cons: Home is collateral, payments may increase, short repayment term

When It Makes Sense:

• The rental property cash flows enough to cover HELOC payments
• You borrow conservatively (avoid over-leveraging)
• You have a backup plan in case of market shifts

Safer Alternatives:

• Save a larger down payment
• Consider seller financing
• Partner with another investor

Final Thoughts

With your timeline set for November 2025, take time to research markets, build connections, and plan financing wisely.

📌 Key Takeaways:

• Out-of-state investing can work but requires a solid local team.
• Use online tools like BiggerPockets, Rentometer, and Roofstock for analysis.
• A HELOC can help, but be mindful of risks and repayment terms.

First off, welcome to BiggerPockets Pro! It’s great that you have a clear goal—finding a rental property that cash flows at least $100/month after accounting for all expenses (PM, taxes, insurance, CapEx, etc.). That's a solid foundation for long-term investing.

Market Considerations for Cash Flow:

• Affordable Entry Price – Lower purchase prices relative to rents
• Strong Rent-to-Price Ratios (1% Rule or Close to It) – The closer a property gets to the 1% rule (monthly rent = 1% of purchase price), the better the chance for solid cash flow.
• Stable or Growing Economy – Look for areas with job growth, population stability, and diversified employment.
• Landlord-Friendly Laws – Avoid overly tenant-friendly states or cities with restrictive eviction processes.

Markets to Consider

1. Columbus/Springfield, OH – A great choice! Columbus has strong job growth, a diverse economy, and affordable homes. Springfield offers even cheaper entry prices while still benefiting from Columbus’s economy. The 1% rule is achievable, and property taxes are reasonable.
2. Indianapolis, IN – Strong economy, landlord-friendly laws, and low property taxes make this a top pick for cash flow. It has a steady rental market and relatively affordable prices.
3. Pittsburgh, PA – A strong rental market with stable job growth. While property taxes can be higher, you can still find duplexes and triplexes that cash flow well.
4. Cleveland, OH – Known for affordable homes and strong cash flow, but neighborhood selection is critical. Stick to areas with tenant demand and avoid declining neighborhoods.
5. Kansas City, MO – A growing market with solid rent-to-price ratios. Certain suburbs have great cash flow, and the cost of living is low.
6. Birmingham, AL – A lesser-known market but offers low-cost properties with decent cash flow potential. Low taxes and landlord-friendly laws make it attractive.

Tips for Finding a Cash-Flowing Property

• Run Your Numbers – Use the BiggerPockets Rental Property Calculator to stress test your deal.
• Check Local Taxes & Insurance – Property taxes can kill cash flow in some markets (e.g., Texas vs. Alabama).
• Look for Off-Market Deals – MLS deals might be tight, but wholesalers and direct mail marketing can open up opportunities.
• Consider Small Multifamily – Duplexes and triplexes tend to cash flow better than single-family homes.

Final Thoughts

Columbus/Springfield, OH is a strong market, but also consider Indy, KC, or even Pittsburgh. Do your due diligence, network with local investors, and analyze multiple deals before making a move.

According to Zillow, average rents are $2,185 in the Nashville area. This is down $45 year-over-year. When do y'all think this trend will reverse? 

Hi, I'm Drew, the owner of your local PMI franchise, PMI Two Rivers, here in Nashville. We're more than just a property management company—we're your trusted real estate partners.

I’m originally from Chicago and a big Chicago sports fan (even though the last few years have been rough for us). In my free time, you’ll usually find me working out at the Y or hiking with my dog, on one of Nashville’s many trails and greenways.

As a CPA with over a decade of experience in corporate finance in the insurance industry, I understand the financial side of real estate inside and out. I’ve personally gutted and rehabbed three of my own houses, and for the last three years, I’ve been hands-on managing my own rental properties. I understand the pain points you face as an owner.

With the national PMI brand's technology and my local expertise, I take the stress out of property management—protecting your assets, optimizing cash flow, and handling everything from tenant screening to maintenance.

Please visit my website at PMITwoRivers.com

If really depends on your goals. There will be different areas that are better or worse depending on whether you're in search of cash flow or appreciation.