All Forum Posts by: Steve Tse

Crazy story Jake and thank you for sharing it with the community. I hope things will eventually work out for you and your next deal will be a killer. 

What part of Killeen is your house located in ? 

Hi BP, 

What insurance carriers can you recommend in Texas, as I am shopping around to replace my landlords policy that I currently have with Travelers ? Does anyone know of any good insurance brokers as well ?

Thanks
  

I am out Out of state investor so don't want to give you wrong information, my best advise is to find a local agent who knows the area and can help you better than me.

Killeen is a good cash flow market, but you have to buy in the right area and also time your tenant turnover to the Permanent Change of Station (PCS) season since it is predominately military town

@Lien Vuong you can't infinitely continue increasing rent just because your expenses are going up. This will make your property overpriced and you will eventually lose all of the tenants. I try to find out what expenses can be eliminated, decreased or offloaded to the tenant instead of just rely on rent hikes 

@Gregory Schwartz I have a unique case here so let me explain. I have a long term tenant that has been renting my condo for the last 18 years. The tenant is good, pays on time and rarely asks for anything. As a landlord, I've great respect this individual and have treated him very well. I have not raised any rent for the first 10 years. Then I realized that the rent was about $700 below market rent and my expenses were getting out of control (taxes, insurance, mortgage, repairs) so for the past 8 years I was slowly increasing the rent every year.  
This brings us to the end of 2024 and with all of the rent hikes, the rent is still $320 bellow market. Compared to other parts of the county, the rental market in Boston is doing well but as everyone knows insurance and taxes are on the rise. 

To make it a win-win situation, I was planning one more 6% rent increase and bridge the rental gap to about $225...
  

@Chris Grenzig thanks for the advise, could you clarify what you mean by loss to lease ?

" How much loss to lease is there? If it's 3% then the discount to market might only be 1-3%, if it's 30% then our discount to market might be 10-20%. "

Hi BP of Boston,

When you consider rent increase, what factors do you base your decision on ? Do you increase the rent by strictly calculating the increases in your insurance, taxes and etc ? or do you try to not go over a certain percentage like 5-6% of your tenant's current rent ?

Thanks

@Jim Pfeifer Great suggestion ! Are you referring to a community of LP investors on BP or somewhere else like Facebook groups ? I figured seeking advise on this BP forum would give me an opportunity to consult with like minded investors...

@Evan Polaski Thank you, I messaged directly. I am looking to review the subscription doc to get a better understanding on the profit share calculation after 100% of my initial investment capital is returned