All Forum Posts by: Ron Flatt

you will not need near 100K.  The key is to not over leverage, but you do have to take a chance.  Find a property, sometimes with a partner and get started.  You should be able to do well.  Mistakes will be made, but just as you pointed out, you do not know what you do not know until you are in the water.  Good luck, you are always to reach out individually and I will give you my two cents worth.

Depends on your area.  In the NE and Coastal regions, the prices will be higher, but in other communities, 100-200k is the upper end, for the masses. 

None of my rentals are 100k, but they cash flow, they stay rented, and they are appreciating.  The key is return on investment.  My flips are in between the 100=200ks but my rentals are usually under $50K.  I was at the 2% rule up until last year.  I rolled it back to 1.5% for my purchases. 

Depending on the next few months, I may go back to the 2% rule on my new purchases.  It makes properties cash flow, as well gives room for appreciation. 

You may not be able to find it in your town, but usually within a 15-20 mile radius you can find what you want.  My radius is 30 miles, and I have took out one city in that  area because properties I have owned there were hard to keep rented. 

The Main thing is get started and adjust as your finances and the economy dictates.  This little scare will cause some to over analyze and never do anything.  Others will jump in the deep end without knowing how to swim.  Find a deal, analyze it, if unsure run it past someone else you trust (in the business).  Remember it is your investment and your choice.  If someone gives you the go ahead and you do it, it is still on you.  

I had 3 vacancies and all were snatched up quickly by great qualified tenants.  I probably had the best pool of candidates than I have ever had.  
On one unit, I had two qualified tenants that I wanted both, but only had one unit available.  Went with the one you brought the deposit first.  The other unit I turned down a man who was willing to pay 3 months up front.  The key was, I was able to get a young tenant that was better qualified and I believe will be a great renter.  The final was a one bedroom unit, that is lower end.  Several wanted but was able to get a single dad that only gets his child every other weekend, 3 years of on the job.  So yes if I have a vacancy, there are good tenant prospects.  Wish I could finish the eviction I started at the first of March, I would put in a paying tenant.  Yes, I have tenants that are behind, because of this, but they contacted me, and I am working with them.  I do not want to lose them over a temporary set back.  We Will Get Through this, stay calm and if you need to contact your lenders.  

Folks,

Lets look at this from a broader perspective.  Yes, they hurt a lot of us by canceling evictions.  They will come back.  They could not, and should not be so aware of each of our business to make it fit us.  Some of us were prepared and of us were not.  I feel I am in the middle of the pack, because I have used a lot of my reserves for upgrades and improving my properties, but I did keep a small cushion.   

Once this is over, we will have seen the true colors of some of our renters.  We will weed out the ones that took advantage of the situation, work with others that were trying and were truly affected to catch up in a humane fashion. 

They are some bad tenants out there, just like some there are some bad landlords.  The key is not to panic,  those folks who sold their stocks 2 weeks ago are kicking themselves.  Some landlords will want out, others will see a chance to build the portfolio and some of us wish we would have kept a little more in reserve so we could have been buying now for those who want out. 

People will have to have a place to live, so landlords are needed.  Most banks are going to stay with their loyal customers.  Warm weather is going to slow this virus down, at least until next year.  I am not saying this is a bad virus, but I do think it is being overblown.  If you are sick, stay home. Practice good hygiene.  Do not mingle with other people than what is necessary to conduct business, but do not forget about those individuals who cannot get out and are starving for human connection. 

The key, to this is that the only fair that is right is at the County level with all the kids and their animals, (question the fairness there sometimes).  Life isnt always fair, but we will work with the cards we are dealt.  Come on guys and gals, we are all adults, yes, our income and livelihoods are at risk, but we plow on.  Lets just take care of business as we can.  

@drew holland
Thanks, I will put on my list.  I am happy with my bookkeeper, but I never know when she may decide she is done, of course she could out last me.  

Jay Hinrichs is right, April was actually a non event.  I cut the rent in half for one tenant, (a commercial tenant who was shut down).  I have one that has not paid at all waiting for unemployment, been with me 2 years.  One that was short 50 dollars but promised when unemployment came in.  and finally the one that the courts will not let me evict that I started March 1st.  Next month will be the one that counts, but I am working with my tenants.  I am only about the one that I had planned on evicting anyway. 

Yes it is unfair to blanket, no evictions. But no one life is unfair, that is why I have told individuals not to over leverage.  In Texas, it will return to normal, and we will be available to evict soon, in some of the blue states, it might be a little tougher.  We need to weather this storm, some may need to talk to there banks.  If you have been a good customer and responsible most will work with you.  (Again, say this because I work with 2 local banks, not the huge conglomerates).  I know my bankers, they know me, we are going through this.  

Josh
1st)  Educate yourself,  You can a learn alot on here, ask questions etc.  I would not recommend a a high priced class. 
2nd)  Decide which type of investing you would prefer.  I am mainly a long term SFH landlord, but I do one or two flips a year.  
3rd) pay off as much debt as you can.  (most people get in trouble getting overleveraged)  
4th)  Keep an open mind, maybe even partner on your first or second deal.  
5th)  Do not get analysis paralysis.  Many people research, research and research but never move, they are only dreaming of investing in Real Estate, not investors.  

https://www.biggerpockets.com/...well put Craig 

I do my own books and then send them to my bookkeeper, who organizes and keeps it ready for accountant.  This takes care of two items,  1st)  she makes sure I have everything accounted for. example cash outlays, which house, was it a rental or a flip, etc.  2nd)  She will give me totals quarterly on what I have spent where.  Example:  I got a little carried away with some upgrades, while I was working and not needing the cash to support myself.  Made several properties not cash flow, for this year. 
Depending on who you use, I am using a retired ministers wife and she is awesome, I would think you would need at least 10 rentals, but some may have a better cash flow or less.  It will depend on what you want them to do.  My bookkeeper is awesome and truly is looking out for me.  She ask questions, wants the receipts, wants to know which projects, catches mistakes in deposits, etc.  

First off, did you have permission to put up a storage building?  I do not allow tenants to install storage buildings.  I had one buy and put one up.  I gave him notice and gave him 60 days to move it or face eviction, (it was a large storage building).  He bought the lot next door and moved it there, which I could do nothing about.  That was about two years ago.  He moved last year and contacted me last week about buying the lot and the storage building.  If we can come to terms, I will remove the storage building and probably put in another rental on the lot.  

Usually there is more to a story than what was told.  I am unsure what you mean by harassing.  I give notice to my tenants when i am coming in and if we are in a problem relationship (behind on rent or lease violations), I usually speak to them once in person and the rest by letter.