All Forum Posts by: Chris S.

Hi, and thanks for checking my question out.  I have over 35 rental properties and we always have a hard time getting a handle on the average monthly income we can count on.  It varies because of yearly taxes, maintenance, vacancy, etc.  What is the best software to get a grip on these numbers so we have a number we can count on?  Thanks!

Thanks for all the responses.  I really appreciate it...

Hey Zeona, thanks for the reply!  I appreciate it..

Hi, I haven't posted in a pretty long time, but I figured I'd give this a shot. I'm wondering what the best locations are for AirBNB and VRBO in PA, NJ or NY. I'm looking for weekly rentals that have a good ROI. Any suggestions would be awesome. Thanks!

Hey Robert, I'm in kind of a rush, but quick answers IMO...

Rent Roles - That's fine, as long as they can verify them and they're detailed

Credit Scores - I would def want to know this before moving forward.  A lot of times properties will tell you it's at full capacity, meanwhile 2 months before they drop all criteria and fill the place with horrible tenants

Property Management - it depends on how they charge, I just wanted you to be aware of placement costs and eviction fees.

Area - don't drive around, WALK around for a few hours.  8-9 AM 11-1 AM 4-6 PM, go out to eat nearby possibly, sit in the car and just watch the area, talk to people, etc.  I'd do that on at least a Saturday/Sunday and 1 or 2 weekdays until I felt like I really knew the place/block/area.  That's how I'd handle it if I really cared about the investment in an area I don't know.  It's a small price to pay for an investment you're going to be dealing with for years to come.

Best of luck!

I would get the actual rent roll (not the forecasted).  See what the turnover is.  Also, I'd get the credit score of every tenant.  If they paid late, etc.

For the placement fee, iIf the turnover is 1.5 years and they get paid 1 month's fee for each placement, (to make it easy), just say it's $1,000 per month and after mortgage/expenses you get $300, that's $1,000 fee/(18 * $300) income, so 18.5% of your profit or 5.6% of the entire rent payments $1,000/$18,000.  Also, there are eviction costs and rent loss during the eviction.  Then are they going to charge you another placement fee for the replacement tenant.  Anyway, just things to ask the PM.

And I'm not sure if you're familiar w/ the property, but you should probably take 1 or 2 days to hang out there on the week/weekend (spend some time at the property), meet a few PMs, etc

Best of luck with everything!

Hey Robert, best of luck with it.  One thing I see is that the PM fee is 10% but they normally charge 1 month's rent for each tenant they place, which bumps the cost of the PM significantly.  Who is the PM company?

That's actually pretty significant.. in a lot of cases it's around a 20% hit to profit per door for most landlords..  Thanks for the post Raymond..

Do not go in to a partnership like this if you value your family. Just my opinion, but I've heard horror stories. You're better off going in to it with an experienced rehabber that is NOT family, strictly business. Also the BRRR technique has fierce competition in the Lehigh Valley. Not saying you can't do it, but the investors that get the deals in this area are experienced and have a ton of cash to deal w/ the rehab, or overbid and make bad deals. Anyway, you can get decent at it if you take your lumps (which means $50-$100k inefficiently spent), but it's going to be expensive and you should stay away from a partnership with your brother-in-law especially.. my 2 cents..

Congrats.. Where did you buy in Bethlehem with those numbers?