All Forum Posts by: Robert Flores

Robert,

I would first check on your existing agent.  How many companies do they represent.  If they represent multiple carriers, have them quote it.  Then, you can seek out additional agents.  If you belong to any local investor groups you could seek referrals.  Same goes for neighbors or business partner referrals.
 

Robert,

I would suggest contacting a couple of Independent Agents (represent multiple insurance companies) that write business in the state(s) where your properties are located.  The reason I make that suggestion is that the company with the best coverage/price for the Homeowners may not be the same for the Rental (Dwelling Fire policy).  By working with an Independent Agent, they can split the policies if that is to your benefit.

Data.rabuu

It usually comes in low 

@Robert Flores Are you wanting to research projected rental rates for STRs in your target areas? If so, check out AirDNA, PriceLabs, or Mashvisor. They're all somewhat similar but can help you get a gauge on your target areas. They're certainly not perfect and not to be fully trusted without other due diligence, but they're generally a good place to start.

@Robert Flores

We think the Midwest is a GREAT place for OOS investors to consider!

YES, we may be a little biased, but check out our blog here on BP comparing Detroit to other cities and Deep Dives on Metro Detroit cities & neighborhoods: https://www.biggerpockets.com/...

Your biggest question shouldn't be WHERE to invest, but HOW you will invest!

Many OOS investors set themselves up for failure because they don't truly take the time to understand:

1) The Class of the NEIGHBORHOOD they are buying in - which is relative to the overall area.

2) The Class of the PROPERTY they are buying - which is relative to the overall area.

3) The Class of the TENANT POOL the Neighborhood & Property will attract - which is relative to the overall area.

4) The Class of the CONTRACTORS that will work on their Property, given the Neighborhood location - which is relative to the overall area.

5) The Class of the PROPERTY MANAGEMENT COMPANIES (PMC) that will manage their Property, given the Neighborhood location and the Tenants it will attract - which is relative to the overall area.

6) That a Class X NEIGHBORHOOD will have mostly Class X PROPERTIES, which will only attract Class X TENANTS, CONTRACTORS AND PMCs and deliver Class X RESULTS.

7) That OOS property Class rankings are often different than the Class ranking of the local market they live.

8) Class A is relatively easy to manage, can even be DIY remote managed from another state. Can usually allot 5-10% vacancy factor and same for maintenance.

9) Class B usually also okay, but needs more attention from owner and/or PMC. Vacancy and maintenance factors should be higher than for Class A as homes will be older, have more deferred maintenance and tenants will be harder on them.

10) Class C can be relatively successful with a great PMC (do NOT hire the cheapest!), but very difficult to DIY remote manage. Vacancy and maintenance factors should be higher than for Class A or B. Homes will have even more deferred maintenance and tenants will be even harder on them.

11) Class D pretty much requires an OWNER to be on location and at the property 3-4 times/week. Most quality PMCs will not manage these properties as they understand most owners won’t pay them enough for the time required and even then it’s too difficult successfully manage them.
***Only exception is if an owner has plan & funds to reposition Class D to Class C or higher.

https://www.biggerpockets.com/forums/776/topics/960183-what-they-dont-tell-you-about-cheap-rental-properties?highlight_post=5562799&page=3#p5562799

Also, SERIOUSLY consider - do you really have the time to be a DIY landlord or should you hire a PMC?

Good luck with whatever you decide😊

Happy to chat through the KC market. I have some good videos on the market, sub market etc...that I can share with you. 

@Robert Flores Hey Robert! I was in your shoes about a year and a half ago. I had an open book on where to invest and what the 'best' place to do so would be. The short answer is: It depends and/or there isn't a specific location. We are all unique and different for why we want to invest in RE. We have our own goals and criteria for wanting to do one thing or another. Based on your question, I feel as though our investment criteria are pretty similar(at least at a high-level) since you specifically mentioned CF, long-term, and conservative. Therefore, I would recommend looking into steady CF markets, instead of being solely State focused. The state does have relevance when it comes to how particular you are about the tenancy laws and if they will be landlord friendly, but I would position your focus more toward specific markets, in specific states, to at least get rolling. Traditionally, the midwest portion of the country is known to be a conservative CF region so maybe start by analyzing places like Kansas City, Little Rock, OKC, Birmingham, etc. 

There are PLENTY of areas not mentioned here so don't just focus on what I listed. Do the research and let that answer come to you.

All duplexes in Cleveland look great on paper, but in my experiences the single family homes all perform much better. The turnover rate is higher with duplexes and the costs of the turnover quickly eat up whatever COC advantage duplexes appear to have.