All Forum Posts by: Shanice Waller

Investment Info:

Single-family residence buy & hold investment.

Cash invested: $6,000

Inherited SFH 2bd/1bth monthly rent $700. Property required modest cosmetic updates (fresh paint, vinyl plank flooring), new electric stove, gas line repair, and HVAC condenser replaced.

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

I am an accidental landlord; this home was passed down from my late mother. Initially overwhelmed with the previous tenant, I decided to learn and take this as an opportunity to begin my REI career.

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

No deal; inherited home.

How did you finance this deal?

Repair was financed by rent of former tenant and my personal savings.

How did you add value to the deal?

With the updates to the property I added equity and was able to increase the rent $200 to help cash flow with the needed reserves (vacancy, capEX, taxes, and insurance)

What was the outcome?

Overall the tenant has been punctual with payment each month and with the high demand  in 2021 (low inventory) rental rates in the market are increasing to $900 now

Lessons learned? Challenges?

Tenant selection was a bit rushed and virtual as I decided to self manage long distance. I have had numerous headaches (lawn and trash not kept up to my standards) and unfortunately a subletting breach to the lease agreement. I will definitely work with a property manager in the future and believe the old saying if its too good to be true it probably is.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

N/A

@Troy DeLong very valid points this is a seller’s market. Thank you for all your advice

@AJ H. Thank you for all the advice

What are some of the best questions to ask a seller with a tenant occupied unit? I know multifamily units are hard to come. However with cash flow it has to be a reason the owner is selling. Any advice for a newbie to help assess the deal better?

@Will Gaston thank you. I fully agree and will be interviewing other property management companies. Maybe this was a good sign of their customer service which is also important to me for tenant retention.

A property management company recently advised me to remove the washer and dryer in my rental stating this is more of a liability. If any damage is done to the washer/dryer or damage to property from washer/dryer, I as the owner would be responsible. Thoughts? The home currently has an Amana washer/dryer combo purchased in 2016.

GA doesn’t specific a minimum or maximum for tenants. As I’m preparing to turn a property that was damaged from the tenant (broken windows and damaged screen doors). Any recommendations on an amount for the future. Class C property renting for $800

@Nathan Faucett thank you. Nothing new acquired per say. Challenging my sister to explore renting per room as she transitions to a new city.

@Mike Reynolds thanks for your feedback. I think I am accepting more experience and time will help me foster the right relationships in future projects

@Bruce Woodruff I agree there can be benefits in using veteran contractors