All Forum Posts by: Quincy Lockett

@Jewel Coleman

1) Section 8 (to guarantee the income) &

2) Screen hard (credit, income, previous landlordS, social media, criminal background)

Lower C & D class properties have the most unreliable cash flow if you don’t have efficient systems in place. The good part is that if you can be successful in this space, you can thrive in ANY property investment space. It’s like combat.

@Justin Dragon

In my opinion, it depends on your market and property. If I’m in a market where great tenants are hard to procure, then I’m not raising rents or only doing very small increases. A great tenant in an not so great market is a unicorn.

If I’m in a market where great tenants are easy to come by, the rent raise will be based on my reserves to get the unit refurbished vs. needing that money for more acquisitions.

@Shiloh Lundahl

My goal was $4,000/month cash flow and I’ve achieved a little more than that with 9 units in 20 years and I’m still active. In combination with a work pension I’ll receive in 5 years, that’s more than enough for me. I’d assume if my goal was 10K passive from rental income I’d have a problem. But most people “believe” they need 10k but after accounting for realistic wants and needs they really don’t.

@Owen Dashner

65K for a 2 flat in Dolton, Illinois. Purchased in 2004. Has only appreciated to about $100k in 17 years! (But it’s grossed over $250K). Some areas are strictly for cash flow only.

@Jill F.

I agree with @Jay Hinrichs . There is no affordable housing crisis at least in the Midwest. There is a shortage of $250K homes that sell for $150K. There are PLENTY of affordable decent rentals and homes, lower income buyers just believe it’s “beneath” them to live there. So they’ve opted to overspend on rentals and homes which cramp their ability to save and KEEP those homes. In my experience, buyers and renters who earn middle and lower middle class incomes expect luxury living on their marginal incomes. I operate rentals in mainly lower C and C Class areas. The showings I give to prospective tenants who “should” rent from me (based on their incomes) NEVER rent from me. Social media and HGTV has warped perceptions of how far your 50K a year takes you.

@Alex Ballesteros

For exactly the same reason @R.J. Lange mentioned. Some landlords are tricked by tenants with checks that bounce or counterfeit cashiers check upon move in. Once their in you have to go through the evictions process. This doesn’t seem like fraud. Just a landlord that’s been burned once. What I would ask is if I could make the initial payment electronically before signing the lease agreement. Zelle, PayPal etc is as good as cash and provides proof for you.

@Monica Morff

In these situations I repeat the refrain. “We’ve decided not to renew.” You don’t have to say anything else. Don’t lie either. Just repeat. I wouldn’t feel compelled to respond to anything else except where to leave the keys.

@Tristan Scott Zell

I have sloping in 2 of my 100 plus year old 2 flats. I use vinyl plank flooring. It has the wood flooring aesthetic plus it adjusts for the slanting. Plus, it’s waterproof and only needs mopping on turn-overs, unlike carpet.

@Wilson Hunter

In my opinion (and most courts), verbal agreements are inconsequential. I’m sure this situation won’t affect his reputation. The realtor is basically a capitalist just as you plan to be. The lesson IMO is to get a written agreement in the future.

@Nate Ferrari

Not a problem. Just put up 2 mailboxes and label one Unit 1 and the other Unit 2. I’ve typically put up a 3rd mailbox with my name on it on 2 flats to receive personal mail and guess what….I get mail!