All Forum Posts by: Ryan Murdock

@Justin Wotring I think this answer depends a lot on your situation. Do you have the time, ambition, and skill-set to tackle some value add renovations? If so, maybe go that route and BRRRR a few properties to build some reasonably fast equity.

Or.... do you have no time or desire to work on and/or manage your own properties? Either because you just have no interest or maybe you work a 60hr/week day job that you love and pays you well. In that case I'd look at a much more passive route like investing in syndication deals or maybe just do some private lending. 

Either way, I'd diversify in multiple property acquisitions or multiple investment deals so as to spread things out a bit. You'd hate to lose your entire $200k if something went sideways on one project.

You could offer cash for keys as it is sometimes easier and cheaper than evicting: 

"You're going to be out of this apartment one way or the other. If you and all your stuff are out by the end of the weekend I'll give you $500 cash. That deal is off the table Monday morning and you'll be evicted and out with no cash...your choice"

Regardless, don't take your foot off the gas of the eviction process until they are out one way or the other.

This is definitely a viable strategy and I've seen others have great success with it. 

Your biggest asset here is going to be the park owners and managers themselves. Some parks may tell you they prohibit 3rd part rental entirely. Either way, you want them to realize you are providing value to them. Assure the owners that you will be paying the lot rent even if your tenant doesn't pay you their rent. If you can show a track record of solid lot rental history and taking old beat up homes and improving them it won't take long before those park owners are feeding you deals on other problem homes in their parks. 

On the flip side, if you burn the park owners they will run out out of their communities as fast as they can.

I'm not sure what the going labor rates in your market are but sending what is likely a payrolled employee in an insured company vehicle isn't exactly "doing nothing". Yes, maybe they should have better prepped the unit and waived the service call charge so that's a discussion you'll have to have with them. Otherwise, I think you'll have to suck it up and pay for the time involved. 

This type of stuff is the downside of not self managing - those 30 sec fixes now become 2 hour minimums for many PM and maintenance companies. What else would they do? They have to cover their costs. 

This may also vary by market but I'd never expect a tenant to check on a boiler let alone light the pilot. 

@William Wironen

I'd strongly suggest you include at least some heating fuel, electricity, lawn care and snow removal expenses in your analysis. Even if the utilities are separated per unit and the tenants pay them you'll be on the hook for all of them if you have a vacancy in the winter, which you eventually will. 

You might also want to throw something in there for attorney fees when a tenant needs to be evicted.

...and $480/yr for insurance? Sounds very low. Did you get an actual quote? I would have guessed at least double that amount.

Who wants to hang in Detroit tonight? 

Surprise! 

Brandon Turner and I will be at Detroit Shipping Co from 7-10pm tonight! Stop in and let's and talk about real estate! 

474 Peterboro St, Detroit, MI 48201.

Nice job dude!!

Yes, they are free for everybody.

@Kevin Martin

I've done this before with a Builder's Risk policy. I forget the details but I know I was offered different premium choices with various increments of refunds if I cancelled/changed the coverage before the end of the term. The cheapest option was non refundable under any circumstances, there was a slightly higher premium that was refundable after the first 3 or 4 months were paid, and so on.

I realize this doesn't give you the exact answer but there definitely are options available if you call around.  

@Brian Shinkle Find the real estate meetups in your area and go to as many as you can.  I've seen several newbie investors fast track their progress (both educational and finding great off-market deals) by connections made at local meetups. 

I just checked the events page here and see one scheduled in Reno for July 17.