All Forum Posts by: Richard H.

3% of my tenants have signed up for it. I’d be willing to pay for them to sign up as I think it would help with on-time rent payment. But basically no take up. 

Quote from @Stephen G.:

Purchased in a desirable part of Oakland (Glenview area) as an owner occupant in 2019. Put 20% down @ 4.125% and refi'd in 2020 to 3.25% so my PITI is around $7k/month. My gross income is a bit less than $7k (and I'm renting near top of market rates) with minimal repairs ($2k/y), but...

1. Property has appreciated 10-15% since purchase.

2. Principal paydown is now around $2k/month

Tenants are great. No evictions, no turnover, and have not raised rents (honestly feel like I'm near the upper end already). 

Assuming the Oakland rental market continues to remain stagnant/competitive with newer buildings going up, is property appreciation the only way to increasing wealth with my building? In retrospect, did I overpay or make a mistake with the purchase? If I threw the money into SPY, it would be a 104% gain compared to walking away with an 80% gain after fees/commissions. I don't plan on selling; I'm mainly just curious how people make $ in these markets when rental rates are on the decline since COVID.

Is the 7k a month with both sides rented? If it’s in a great part of town, these generally tend to not be the best from a cash flow perspective. 
In terms of your question about appreciation being the only way to gain here, perhaps it is. Your other levers are revenue (which as you mentioned is capped) and expenses (which congrats to you are low). If you want more cash flow and want to walk away with more of the 80%, perhaps identify another market and do a 1031 exchange so as to not pay capital gains taxes. 

The good news is sometimes you don’t need to pay the thousands in attorney fees. Just starting the process is sometimes enough for tenants to understand you’re serious. 

try looking up re investor groups on facebook for the Colombus market. They likely discuss specific handymen  / contractors for types of jobs. That’s what I do in my market. Thumbtack may also work. I use that as well. 

I invest in MA, a very tenant friendly state. There are 2 parts of an eviction process in the state. For part 1 I do it myself. For part 2 I use an attorney.

If the process is straightforward as you say, I’d start the eviction process right away. Do not nag tenants about paying rent. I made this mistake when I took over my first multifamily in 2018. They know the rent is due and they’ll just respect you less and reinforce their believe you’re a weak landlord they can walk over. 

Understand the process and follow the process. 

I think Zoom should work. I've participated in another Zoom REA meeting and thought it went really well.

Hi,

Can anyone recommend a property management company in Allentown, PA?

Thanks,

Rick

Hi,

Does anyone have any experience with Witman Properties or VP Management in MA? Would you recommend either or is there another property management company you'd recommend for Springfield, MA?

Thanks,

Richard

@simon w. That makes sense. Both people who served in that capacity for me were real estate agents who had represented me on transactions.

Right. It just needs to be someone who lives in the area.  That's the only requirement.