All Forum Posts by: Scott Allen

@William Silva Miami is a fun/diverse city but expensive for starting out. If it's possible to buy a house hack there that can make sense with your lifestyle, it's worth looking into. You'll learn more quickly about ownership and management since you'd be able to self manage it. 

If short term rentals excite you, make sure it can still work as a long term rental as well. 

1. I'm in Ohio - it can seem boring sometimes but I look at it like a base, the weather can be bipolar in the winter and spring but no natural disasters happen here that don't let me sleep like a dog at night, I travel south a lot too during the winter months here. I focus on BRRRR's and only do longterm rentals. I've been to Charleston SC and would consider something there if it made sense/wanted to relocate.

2. Longterm/1year+. Typically from the months of April-October, I can get my units filled within 1-2 weeks if priced competitively and in turnkey condition to get market rents. You can still get units filled during November-March, it's just colder so traction seems slower with tenants - during those months, I personally think you have to be more competitive with what you're going to ask for in rent versus what's nearby that's available/better if not same condition. 

3. I think it's good that you've researched at least 3-5 markets so far. Pin point one that you want zone in on and get after it.

@Stuart Udis - LOCATION, LOCATION, LOCATION. Want to deal in section 8, get a property manager that breathes it.

"I got on Zillow and saw some houses that looked nice one night so decided to connect with an agent at 2am on a Sunday morning. The agent contacted me several hours later and agreed to potentially waste their time and energy with me on Sunday so I could get into some houses that me and my hunny thought were cute. I signed a buyer's agent exclusive with some dweeb that I barely knew nothing about in hopes to get me and hunny into one of these homes on Sunday. Our agent showed me a bunch of houses this past weekend that hunny and I wanted to look at and I don't want to have to pay them or let them be paid by the builder or seller because I just want to buy a house for the very best deal possible. Hunny agrees and we feel our money could be used else where on maybe a hot tub or adding on a deck on the back of the house." 

At the least, check if the builder is paying the agent's commission before acting like you don't have any money. It's procuring cause, you wasted the agent's time and maybe some other agents time in the past when they could have been with family, friends, or probably selling a different house to someone who can afford it. When you go out to eat and have a nice meal and great service, do you stiff your waiter/waitress too? 

Spare the agent, spoil the builder, break your wallet. Best of luck to you in buying a home!

@Becca F. You should visit Columbus if you're interested in the market (you should visit any market first prior to investing there if you can make a weekend for it). I always recommend clients to come here first and see neighborhoods in person if they can prior to making offers. You get a better sense of where you're investing and what all is going on in the city in general. A main thing that everyone should always do during their inspection period on a property is connect with at least 2-3 different property managers so they can get a better rent range/run numbers more other than listening to an agent that might not be as conservative in their numbers on projected rents. 

In Columbus, C Class properties are typically the 1% Rule and can cashflow more but it's highly recommended to not try and self manage them - use a property manager that is well versed in getting those units filled or kept on tract, post notice if necessary to prep for an eviction. In a gentrifying area, you can also find BRRRR's and flips - if the value is there, it can be worth pursuing. A Class properties - you usually don't need a property manager, you just need a leasing agent and contacts to call if something needs fixed/as well as the ability to be cashflow negative for 2-5 years. B Class properties - they usually can breakeven on paper, don't necessarily need a PM but if the deal can still work with them, then they're beneficial to keep on.

Are you self managing a C Class property in Indianapolis or did you need to find a property manager/leasing agent afterwards? Prior to investing where you did in Indianapolis, were you able to visit the market first or did you go based off of neighborhood graded maps and opinions from agents/property managers. I've heard it's a really good market for cashflow but don't personally own anything there. All the best!

@Nicholas Williams if you're doing a condo, just make sure to do your due diligence with the HOA that they allow the type of rental you are planning to do and that they are at capacity still to allow more.

@Jared Fracker Depending on your situation and what you're looking to get out of the property - you have many options. 

Talk with agents so you have an idea of what it is worth. It doesn't necessarily need to be listed on the MLS immediately if an agent can bring you an offer on it prior to then that works for you. Having some agents work it off market can be beneficial to you prior to listing. If all you're thinking about is saving money versus making money then be careful not to get completely wholesaled by an "investor". Are they actually the buyer.

If you want way too much - it probably won't be moved off market. If you list it on the MLS and it's sitting for more than 30-60 days - you're probably asking too much and it hurts the marketability of the property until it will go for what someone is willing to pay for it.

Best of luck!

@Tanya Maslach it sounds like you have experience in ownership and management at this point. There are many markets that you can look into that are cashflow specific and there are many markets that you can look into that have both a mix of cashflow and appreciation. 

Don't be afraid to fail when your goal is to be more successful in what you're doing. Understand that there are always risk when you are doing something but risk can always be calculated. Partners come in time and time comes with work. If you're going to be a leading partner - you'll need to be a decision maker. 

Sub-to and seller financing deals are very far and between. BRRRR deals, buying properties that cashflow and appreciate and simply partnering on a easy. Partnerships are like marriages though - choose them wisely. Ask yourself what you bring to the table and how you're a valid piece in the partnership. Are you finding the deal, are you managing the deal (filling the units, taking care of the maintenance calls, making sure rent is collected), are you funding the deal or going 50/50 on profits and losses.

Avoid the naysayers. 

@Alma Erice-Taganas 

Not really sure who owns the padlock or the gate but it sounds like Karen doesn't take to kindly to you. Consider having a nice cook out at the property (like a house warming party in a sense - try to get all neighbors to come to it so you can get to know them and they can get to know you. Humans are social creatures at the end of the day and I personally like to know who I might be dealing with if they can either be a friendly neighbor, a nuisance, or beneficial in maybe keeping an eye out for you).

Is it possible to update the gate so that it can open and close by itself and have 4 different codes to it for each neighbor to enter/exit? Getting into legalities can be costly, time consuming, and incredibly annoying. I'm sure a much nicer/updated gate with a programable codes that all four neighbors like would go a long way. 

If Karen wants to continue playing games, might be best to file suit.

@Nicholas Williams Scottsdale sure is a fun city to visit. Fun scene and great weather but can get very hot in the summers to where it feels like you're in an oven when you go outside. If your goal is to get into short term rentals - analyze the deal to a point where it can still work as a longterm or midterm rental if short term doesn't perform as expected.