All Forum Posts by: Scott Stephens

PS: I am only signed up for the basic account for a DIY landlord. I manage a few of my own properties as well as three for my Dad.

Hi Garrett,

I've been using tenant cloud for sometime now. I agree with you. There is a lot to like with this software. My favorite being that it is cloud based and mobile friendly. It has made rent collection easier than ever.

That said I have had similar displeasure with the accounting platform. I haven't been using it like you have with a separate accounting page for management vs. the income/expenses of each property. All my management fees end up on the property accounting and associated reports. Maybe I should start doing it like you are. Make sense to separate it.

My only thoughts are it has something to do with who is selected as payer/payee. Another possibility is if the income/expense is categorized as management fee will that separate it from the owners statements? Im kinda grasping at straws here.

My recent struggle has been that owner distributions which go out around the 5th of the month show up as an expense on the proceeding months property owner statement. This fouls up my numbers and makes it harder to calculate the distribution. I spoke with their support team and the only solution I got was to back date the distribution so it would be hidden. Yes a work around but not ideal.

It is comforting knowing I'm not the only one running into some issues. I do get the sense that TC is continuing to grow and do take user input seriously. They are always quick to respond to my online ticket requests. 

Best of Luck Garrett!

Hi @Laura Dawson,

It has been about 8 years for me. I've got all the one way streets down by now :) I spent a few years doing foundation and concrete work, picked up property management when my back started to hurt and have just gotten into sales. I too am waiting to build capital for my next investment. BP has been so helpful for me in learning strategies for leveraging your assets and continuing to grow. I am curious how your experience was owning a rental property out of state? 

Hi Laura, looks like I am catching you at the tail end of your time behind the redwood curtain. I am new to BP in the Eureka area. I agree that the reward of knowledge and skill is equally as important as a good return. The way the market has been this seems like a great time to be selling in our area. Best of luck to you!

Investment Info:

Retail private money loan investment.

Purchase price: $95,000
Cash invested: $79,000

Commercial building now being used for my wife's Skin Care business.

What made you interested in investing in this type of deal?

Location, Location, Location

How did you find this deal and how did you negotiate it?

This property wasn't on the active market. The building had sat vacant for 10 years. I decided to call the owner one day to see if they were interested in selling. They said they were. Location and square footage of building on a flat useable lot was perfect for our intended use.

How did you finance this deal?

Private money loan. Had access to hard money at a decent rate, Wanted to employ myself to fix up the building. Focused on finding a cash only purchase.

How did you add value to the deal?

The deal took two years to complete. Stuck with it and celebrated in the end by proposing to my wife by spray painting "Will You Marry Me," on the front of the building.

What was the outcome?

2 year escrow, 1 year re-model, doors open and business is good.

Lessons learned? Challenges?

This property was not zoned for commercial use when I went under contract. A General Plan update would allow for a conditional use permit but it was unclear when that would happen. I was persistent and recieved a letter of good faith from the city. In the end I had to buy the property in a leap of faith. In the end the city worked with me and granted me legal non conforming use and allowed the project to go forward. No one ever said real estate was without risks.

Investment Info:

Small multi-family (2-4 units) private money loan investment in Eureka.

Purchase price: $205,000
Cash invested: $82,000

Purchased 4 plex with tenants in place. Have re-modeled each unit one at a time when tenants have vacated. Maintained positive cash flow while improving property.

What made you interested in investing in this type of deal?

Property met the 1% rule, was in an area I liked and was convienent for getting to after work/weekends.

How did you find this deal and how did you negotiate it?

MLS through realtor.

How did you finance this deal?

Private Money Loan - down payment was part savings, part gift. Wanted to hold 20% equity even though this was not a requirement of the loan.

How did you add value to the deal?

Recieved $16,000 credit on sale for partial sewer line replacement (bid for $21,000), cost me $400 to do myself.
Recieved $3,000 credit for handling tenant eviction (tenant was 6 months behind on rent). Hired third party to do eviction,cost me $2100.

What was the outcome?

This property has allowed me to gain an invaluable amount of experience in renovation and property management and the cash flow has allowed me to fund improvements to the property.

Lessons learned? Challenges?

For small multifamily properties, being able to maintain cash flow while working on separate units can be very effective. Also very challenging when you are doing electrical and plumbing.