All Forum Posts by: Richard Schubert

Quote from @Michael Wentzel:

We went from zero to over fifty rental properties in about 10 years. Overall real estate investing has been a very good business for us in the form of cash flow and equity. But it is time to scale back to give us more time to focus on our family and some other projects.

The portfolio is 7 properties including a fourplex, two triplexes, three duplexes and one single-family properties. We have a good property manager and the units are partially occupied. The properties are in and around the Akron-Canton area. If you're interested in some or all of the properties, reach out to us and we will put you in touch with our realtor.

Mike

Hello, I would like to see what you have . Could you forward me your realtor’s contact info?

Thank you!

I use CRPM and I am happy with them. On line portal, tenant login for payment and maintenance request, electronic ledger and reports, vendor pool for everything from turn over to sidewalk shoveling. Great communication via email if there is an issue that requires my attention. Most of my questions are answered in hours. They have a network of lenders, title companies also. 

Quote from @Joe Derobertis:

Quote from @Richard Schubert:

I had 2 student rentals near the University of Akron in the past. Each was a 4 bed 1 bath SFH. I had 4 students in each that got together to have a place off campus together. Everyone signed the lease and there was only one lease. I required one payment, not each person paying their own. Since everyone was on the lease, everyone was responsible for the lease. If someone left, the 3 remaining still owed me full rent. Everyone was on the hook for damages also. Much safer this way.

Thanks @Richard Schubert, that makes a lot of sense!

 One of the earlier podcast talked about student rental in detail. I don’t remember which one or the guest, but I want to say it was in the show number 90’s to 100 area. Worth a listen.

Quote from @Jay Hinrichs:

Quote from @Richard Schubert:

Interest rates, insurance rates, property taxes. Lower all these and housing cost could go down. Our rent rates are a reflection of our cost plus reasonable profit. Lower my cost and I could lower my rent and still make the same profit. My local city could offer to lower my taxes if I offer to lower my rent dollar for dollar in lower income areas and I would. 

municipal tax's are a tough one. interest  and bank fees and insurance are all private for profit those can be addressed.

I think if tax abatements can be given to businesses as an incentive to move to the area, then the cities could also do the same to promote more local ownership of rental homes. If they can lower my tax, I could lower my rent the same annual deviation as an abatement. Then the rent money earned also stays local, helping offset their abatement. Not sure how other states was during the election, but one of the candidates running for senator here in Ohio ran on his campaign of cracking down on “predatory landlords”. Funny thing is I doubt he had a clue as to what drives market rent.

Interest rates, insurance rates, property taxes. Lower all these and housing cost could go down. Our rent rates are a reflection of our cost plus reasonable profit. Lower my cost and I could lower my rent and still make the same profit. My local city could offer to lower my taxes if I offer to lower my rent dollar for dollar in lower income areas and I would. 

Quote from @Chris Seveney:

Quote from @Richard Schubert:

I have offered sellers the chance to sell to me with owner financing many times and can say it’s pretty unsuccessful for me so far. I lay out the offer terms I am comfortable with right up front. I also have put a spread sheet together showing the totals for both owner financing and bank loan. I always thought that if I can show them on paper the difference and how much more money they can make that it will be enticing. Listen to the BP pod cast show number 77 and there is some good info on approaching sellers.

 There has been an increase in gurus selling seller financing training programs because interest rates have risen. As you mention the reality is there are very few sellers who will do seller financing and my guess is its probably around 1%. So for every 100 properties sold maybe 1 is done via seller finance. 

The best opportunities to get seller financing is those properties that require repairs and traditional financing may not be an option. On top of the the borrower most likely owns it outright or has a small balance left on the loan.

Also, you tend to have to offer a premium in the selling price with seller financing. The last offer I made on a house was about 15% under asking for a cash offer and asking price if they carried the note. I offered 20% down, amortization for 30y, 7 percent interest and balloon out in 36 months. Cash won.

I had 2 student rentals near the University of Akron in the past. Each was a 4 bed 1 bath SFH. I had 4 students in each that got together to have a place off campus together. Everyone signed the lease and there was only one lease. I required one payment, not each person paying their own. Since everyone was on the lease, everyone was responsible for the lease. If someone left, the 3 remaining still owed me full rent. Everyone was on the hook for damages also. Much safer this way.

Hello, Hudson or peninsula is going to be tight on getting cash return with rents. House prices are very high. Alternatives near you would be Stow, Cuyahoga falls, Silver lake, Monroe Falls, Richfield, twinsburg, Solon, bainbridge, Beachwood . South of us would be green and Jackson township. All of those mention would be very desirable towns with great to good schools.

I have offered sellers the chance to sell to me with owner financing many times and can say it’s pretty unsuccessful for me so far. I lay out the offer terms I am comfortable with right up front. I also have put a spread sheet together showing the totals for both owner financing and bank loan. I always thought that if I can show them on paper the difference and how much more money they can make that it will be enticing. Listen to the BP pod cast show number 77 and there is some good info on approaching sellers.

Quote from @Kevin Hilton:

Quote from @Richard Schubert:

Quote from @Kevin Hilton:

Thanks for the response Richard. That is a concern I share, giving up the low interest rate and some cash flow on the LTR's. That is a reason I would consider selling one, because the STR is in a market that is likely to have more appreciation. It is hard to give up the strong cash flow though. Appreciate your thoughts!

Myself, I would stay with the numbers in front of me that have proven to be profitable. The STR, if purely an appreciation play, is speculation to me.

The STR is in the same neighborhood but is in a slightly better location, beach block vs 2nd block. I would anticipate about 40k gross per year based on what we get from the other STR, so I don’t think it will be strictly an appreciation play. It should cash flow as well, not quite as well as the LTR’s though.

Curious if your near Virginia Beach? I have a home in OBX but I don’t rent it out. I would say 90 percent of all homes in the outer banks are in a str program of some sort. Many are private owners just subsidizing their mortgage or they would not be able to afford the house without renting it out much of the season. Problem with many of them I see this far north is November thru March they kinda sit or you have to discount the daily rate so much that you only might break even. Of course OBX is 100% vacation destination only being no industry or jobs outside hospitality. Just curious how Virginia does during the Winter.