All Forum Posts by: Shane Benner

I started around 38. It has been very good.  Recommendation, have a plan on where you want to get to, by when and what it is going to take to get there.  Doesn't have to be exact, but I found myself buying a property a year as a goal.  I did so for the first 4 years, then all of the sudden I was flipping a property, then wholesaling for a few properties, etc.  At the end of the year I looked up and had not added to my buy and hold portfolio, which is why I invested in the first place.  I learned to say No to deals that did not align with my goals and am back on track! I'd be happy to talk to you anytime.

I am considering starting a property management company and was interested in your feedback.  More specifically, do you use a property manager and if so what are the qualities that make them valuable to you and your business?  What could they do better? Any thoughts, names and contact info. of property management that you feel like are doing it well and adding value would be much appreciated for me to learn from as I gain insight - thanks for any help, much appreciated.

Shane

Need some advice.  I have the opportunity to purchase a four-plex in an 'A' area for $290k.  The property needs $200k - $300k in renovation to make it rent ready (so in it for $500k - $600k).  There are 2 (2bd/1ba) units and 2 (1bd/1ba) units.  Once rehabbed the 2 bd units will rent for $1,800 each and the 1 bd units will rent for $1,200 each, for a total of $6k a month in rents.

I currently own four condos in a very good area (also 'A' rated) in the same town.  I am considering offering 2 of the condos, which are each 2 bd / 1 ba that rent for $1k a month each as a real estate exchange + $50k cash to purchase the four-plex. The comps on the condos are at $120k each.

My reasoning is that the condos have a $160/month HOA with each of them so I am taking a hit on my income every month, which I would not be on the four-plex. The HOA will also most likely go up over time, not to mention special assessments. The negatives are the condos are in a great area and are appreciating at a minimum of 3-5% a year, with a re-sell market as SFR where the four-plex would only appeal to investors (mostly). My intent is to keep the four-plex for the long haul for the appreciation and resale aren't big factors for me right now.

To do the rehab work I would have to sell the remaining 2 condos and invest the $200+ in revenue into the rehab. Total project time would be 6-9 months as well. The net net is exchanging 4 condos with HOAs and a monthly income of $3,200 (after HOA and prop mgmt) for a four-plex with $5,800 a month income (after property mgmt). Please reply with thoughts and other things I should be considering - all insight is appreciated, thanks.

Thank you to each for your feedback.  After receiving, the course of action seems very obvious and consistent when dealing with mold or similar type issues.  I have notified the tenant that there is no early termination fee or timeframe to cancel per chance they decide to do so.  Thank you to each again for your comments and Merry Christmas! 

I recently bought a triplex. One of the units had mold growing on the wooden window sill in the bathroom. I negotiated the cost of the repair at closing knowing the whole bathroom needed renovating.  The unit has a tenant in place, 6 months into a yr long lease.  The tenant signed the lease with the current conditions in place with no documentation for repair (even though claiming a verbal from previous property mgmt company to repair, I am checking with them). I have agreed to repair the bathroom and prorate the rent for the time the tenant is out of the property. The tenant has asked to terminate their lease because of the conditions, stating they are unhealthy for her and her pet.  

Understanding the conditions were in place when lease was signed do I allow an early termination with or without penalty? The penalty is one month's rent.  Also, I agreed to prorate the rent while removed from the property, am I a responsible for anything else (i.e., temporary housing)?  There is nothing in the lease suggesting this, just covering my bases.

Anything else I should be thinking of? Thanks.  

Thanks for the comments and the link to a similar thread - both are helpful. Also, I failed to mention the back yard is fenced in, so kids would have to climb the fence to get near the tracks. Also, there is a neighborhood park with swings, basketball courts, etc. about 500 yeards from the home as well.

I have been very pleased with www.dwolla.com. There is a 25 cents charge for each transaction, but that is cheaper than a stamp so the tenant is usually fine with the additional charge. If you call dwolla as well they can help you set up a page for all your rental properties (at no charge) so your tenants have a direct link for payment - it has been great!

I have a question that I would love feedback on. I have found a property (3 bed / 2 ba SFR) that I have the opportunity to purchase for $150k and it will rent (great school district and highly sought after area) for about $1,300 / mo. The property is in a neighborhood with the avg price per sq ft this year of sales of about $121 / sq ft. If I purchase this home it would be roughly / $91 sq ft. The property needs about $4k to make rent ready.

So that's the background, here is my question. The property has railroad tracks that run behind the back fence, about 150 yards away from the back of the house. The train runs several times a day, even though it is not too loud. The tracks are the reason the home has been on the market as long as it has.  I will plan on using as a rental and wanted to get thoughts on any experience anyone has with property with railroad tracks nearby.  Thoughts? Things to consider? etc. Thanks.

Thanks Troy. I was unfamiliar with Xero before your post but did some search afterwards and they do have a US option that looks interesting - thanks for sharing.

Thank you Jeremy. With rent manager I would need at a minimum 5 properties for their small business offerings. Great advice and outlook on Quick Books as well.