All Forum Posts by: Alex K.

You really have to figure out the zip codes yourself...their rent #'s are accurate as when you close on the property there will already be a tenant in there.  

Once again you really have to run the #'s yourself (going to be impacted by the rate you get) - make sure to include the PM charge when you use their worksheet - should be fairly close.

Spoke with multiple credit unions and they mentioned a rental property needs to show at least two years of rental income in order for that income to be counted into the DTI ratio. Not an uncommon underwriting term I guess.

Hi I am looking for HELOC on a primary SFH...speaking with some lenders I've run into two issues....(1) some won't give you credit for rental income if you haven't owned the property for two years (show two years of stable rental income) which can skew your DTI unfavorably (2) one lender said they don't give a HELOC if a borrower is carrying more than 6 mortgages.

Would anyone have any leads for a potential lender?

I would go on zillow and just look at the rentals in the area to see how many days they are typically sitting and where they are renting.  At the same time if you are searching for a PM, call them and ask them about the market and the specific area, speak to a few and you will have a good idea.  SA has performed really well for many years and is now naturally easing, albeit there may be some more neighborhood/area specific nuances.  In the long term may still be a great investment, but hard to see a lot upside in the short term.  Texas also tends to have higher real estate taxes, which do go up every year.  At this point if you begin the purchase process you probably closing towards the end of the year, which would put you in the slowest time for rentals.  I would budget 3 months of vacancy at least.

Each PM does it differently I've had this situation before and in prior case the full deposit was applied to damages vs rent.  I think you hit the nail on the head here, PM will make $ on the placement fee and in this case, they provided the work for the turn which wasn't minimal, so they made $ there as well.  I have another PM which charges 15% on any work when using their services but because they get such great deals I still benefit.  To the broader point there are many avenues for a PM to make $.  Nickle and diming on questionable charges such as late fees for funds that were never paid, but rather taking out of funds that you had possession of the entire time just leaves a bad taste.  Easily the difference between getting referrals for new clients and getting unfavorable reviews.

I also do respectfully disagree with the idea which many here echo'd that there's 0 benefit to a PM when owners property appreciates....when properties are worth more they rent for more, and PM's will earn higher mgmt fees and higher placement fees all while providing the same exact service.  Many PM's provide traditional realtor services so when an owner is looking to sell they would earn higher commission as well, and can easily double end the deal as they have huge rolodex of investors for the area.  So there is that.

@Drew Sygit that's a good point re: the PMC. and fairness, was curious what others thought, especially those that are significantly more knowledgeable.  Typical assumption is that security deposit would 100% go to cover property damages - that's the whole nature of the deposit IMO.  It's a learning experience to find out it may not be the case - and a good question to ask in the future.

From an owners point of view I feel interest should be aligned and PM's get paid parallel to owners.  Thats at least how most PM's pitch their business' - owners have bills to pay as well, in the case here the PM failed to secure the rent payment but still took their fees out of the security deposit.  While yes they spent time on something they were unsuccessful and still got paid, while me as the owner is out thousands of dollars due to tenant not paying rent and causing quite a bit of damage.  

I will be asking them to credit me back any fees they took for themselves out of the security deposit - well see where we land.

Hi,

I have property with a PM....as part of the agreement any late fees go 100% to the property manager.......my tenant moved out without paying last month's rent and the property also had a bit of damage and repair expense (3-4x monthly rent.)  The security deposit was about 1.5x monthly rent..... the PM attempted to collect the final rent payment but was unsuccessful.....Now according to the property management company they need to technically apply the security deposit to the rent (according to them is part of some sort of fair housing law or something etc.) vs applying it to the damage caused by the tenant.  It's the same thing from a dollar perspective as it's just the accounting classification of funds, but since they applied the security deposit to the rent they also took part of the security deposit as late fees for themselves which just feels wrong since they didn't actually get the rent, but just applied the security deposit.  The late fees are only 100-$200, but just feels wrong.

What do you guys think, does this seem reasonable?

I have transacted with them as well; by far the best out of the turnkey companies IMO.

Hi,

I have a turnover for a property in Memphis TN, and there's a bit of extra work that needs to be done in addition to standard wear and tear, some bedroom doors need to be replaced, blinds, patching, painting, some floor tiles etc....I got an estimate, and I know everything is costing more these days but it feels a bit aggressive.  Can anyone recommend someone in the area that may be able to help out or if you have a good pulse on how much things should cost?