All Forum Posts by: Grey Stone

It definitely sucks and I know because I have been there. I agree with you that he should have just told you, but lick your wounds and move on. You will find something, just focus on the next deal and learn from this. I try not to do a happy dance til keys are in my hand. 

I would buy a slightly larger home and turn your current home into a rental. I have really liked this strategy, as owner occupied loans get the best terms and can get a nicer portfolio with less cash down and lower interest rates.

Write down a detailed criteria that clearly states your screening criteria. Of course, you can't discriminate against a protected class, however if an applicant lies on their application I automatically deny them. I also don't allow subleasing, anyone over the age of 18 must be on the lease and pass my screening criteria. Anything you do for one, you must do for all. I document every conversation with notes or have them text me. I use Google Voice and it records and transcribes voicemails and texts to my email. Also, the higher your rent the more likely you are to experience this. The higher your rent, you are limiting your rental pool. If you had more qualified applicants this wouldn't be an issue, just a thought. Good luck!

It would be nice to like your agent, but it would be best for them to help you make good money, so you can keep buying. I absolutely feel RE is going up, but I do not know that with complete certainty. So, I would not recommend you buy something going in with a loss especially if you're new AND you intend to keep buying. In my area, I'm having to invest $60-120k per property. I don't focus on profit per door, more so cash on cash returns. My husband and I make good money, but I still hate the idea of buying something where I saved that much cash to get a negative return. The lowest I will go is 9% cash on cash, comfortably 15-20%. Also, check in your area if you are using those duplexes to their highest and best use. You might get higher profit via airbnb or being creative.

When I first started my number was 10. 10 is an easy, round, reachable number. My criteria was atleast $500/mo cash flow per door. As time has passed and we kept buying more my target keeps moving. I really love real estate, it clicks and I am good at it. The way my mind works, having a number and clear goal to look to made it much easier to feel more confident when I first started and is a good way to stay motivated. Your goals will change, your cash flow will change, that is a given, but having a clear goal that you are reaching towards will make it much easier to accomplish in my opinion. So keep going! Good luck! 

I'm a bit more introverted and prefer not to go out of my way to talk to neighbors. I will say hello, but have noticed trying to really build relationships with neighbors can be tricky because it makes them feel more comfortable to do things you may not want,  i.e. move your trash bins. In your situation I would try the two bins and if you notice a problem, upgrade then. In my area if we put a big bin it would invite other people to dump there. I can see how a neighbor could be upset with the larger bins if it smells, in which case I would think the smell would bother you and your other tenants seeing that the bin is on your property. Either way do what makes the most sense. Good luck!

Look at other homes for rent in your area. If you see that they all have it, tenants in your area may expect it. So you should probably offer it. In my area some do and others don't. I take out ceiling fans, washers, dryers and garbage disposals because I do not like allowing the opportunity for tenants to call or have disagreements regarding things that are highly likely to break. And realistically in my area I don't feel those items pay much more. My husband calls me the grinch, but I manage these properties and I like them to be as easy as possible. I don't think either is right or wrong though. Maybe try leaving them in and see if you feel it's a hassle or not. I have been burned and I would not add unless I absolutely had to.

Trust your numbers and buy more!

Yeah, I literally don't tell people in my real life what I do, unless they need to know or if I meet them while networking. I'm a big fan of move in silence because I don't seek most people's approval, nor do I need most people's advice. I've learned the hard way, sometimes when you tell people what you have it makes them treat you differently and can make you a target....and worse it can make you doubt your instincts and research. I would focus on info you get from people that are where you want to be and info you get from doing your own research. Good luck!

Why not just do rent to own? You get a large down payment and can charge them a bit extra on top of the rent with an agreement they will be purchasing the property at a specified date and if they don't, you keep their down payment. This agreement usually says the tenant is responsible for certain repairs. In my rental agreement, I make sure to go over if there are any repair requests made, there is an automatic $50 fee to the tenant. This has stopped a lot of unnecessary complaints. You can also have incentives, of their rent won't increase if they pay in full and on time. I hate the original idea, not because it's unkind, but because this is a business. The equity in that property belongs to me and hubby and when we die, it will go to our kids. And realistically, it never makes sense to give anyone the most valuable aspect of your asset/business.