All Forum Posts by: Reed Rickenbach

@Douglas Skipworth - is the class at UofM? Would love to hear more about it. One of my long-term goals to come back & teach a real estate class there.

I track my net worth & total RE market value monthly. I agree with your point 99.9%. The 0.1% is left because, if someone is addicted to seeing their net worth increase MoM, they may be hesitant to take certain risks. They may be hesitant to invest in education or start a business with upfront marketing costs, etc.

However, tracking your net worth monthly largely outweighs any downside. Shoot, even just witnessing what an expensive vehicle can do to your net worth every month is worth the exercise.

2 Votes

Memphis, Tennessee

Quote from @Alan Asriants:

Quote from @Reed Rickenbach:

Quote from @Mike Dymski:

I set rent based on the market, not based on my costs. We are still increasing to catch up to the massive market increases during 2021 and 2022.

I operate the same as Mike. I also work in multifamily - most operators set a minimum increase of 2-3% regardless of what market rent is. The increase is higher if market rent is further above existing rent.

@Mike Dymski

Thanks for your input. What if the increased rent is not attainable in current market conditions?

Say you increased rents and tenants left and now you can't get it rented at that rate anymore?

2-3% increase regardless. On a one-off basis, if a tenant would like to negotiate, they can. If you can't re-lease the unit at that rent, you'll get a negative trade-out. It's a risk that owners are willing to take to move the rent roll forward.

1 Vote

Philadelphia, Pennsylvania

Quote from @Mike Dymski:

I set rent based on the market, not based on my costs. We are still increasing to catch up to the massive market increases during 2021 and 2022.

1 Vote

Philadelphia, Pennsylvania

Hey Kristen! Find an agent that you trust that knows the area well. I am an investor/agent, and I find that those are the best agents because they can't lie about where their own properties are, ha!

For your own education, I'd recommend Crestcore's annual video below:

Memphis ZIP Code Breakdown 2023 - YouTube

3 Votes

Memphis, Tennessee

Just out of curiosity - how did you structure the raise? Are all of the contributors part of an LLC with split ownership? If so, if they have some sort of active participation, it is my understanding that that would pass as just a partnership. Looking forward to seeing other responses..

0 Votes

Dallas, Texas

Your price range could either get you the best house in a C- or D area, or the worst house in C+ or B area. I would recommend the latter. Make sure you have an agent who knows the difference!

0 Votes

Memphis, Tennessee

Quote from @Vishalkumar Soni:

@Taz Zettergren, zip code is 38109.

Who did you buy this from? Median income in 38109 is $32k. And I'm assuming whoever sold it you gave you the rent proforma. Hopefully all of your main systems are still there and have not been stolen.

0 Votes

Memphis, Tennessee