All Forum Posts by: Tanner Marsey

I currently self manage but isn’t this stuff discussed before you being hired to manage the property? Ex.... someone contacts you and wants to rent their super average property for well above market rent. You explain to them that it probably is not possible. They don’t want to budge... you politely inform them that you don’t think you’ll be able to work with them...? Also, write into a clause that if unrented for x amount of days asking price will be dropped by x% ...?

10k isn’t worth mixing business and family. I’d consider a hard money loan or some other means of obtaining the money.

Some of you are getting real salty in here. I don’t think anyone is saying money can’t be made in the 30k homes. And, yeah, you might luck out and get a good tenant that is hassle free. And you might not have any necessary repairs for a while but let’s talk about the rules and not there exceptions. Sooner or later it is going to be a job, work, money, time. And there is nothing wrong with that. I have one class a property in a class a neighborhood. Current tenants are going on 2 years there. Only time I’ve ever heard from them is when he’s texted me to tell me he had repaired something on his own. I told him to deduct expenses for product and his time from rent. He told me not to worry about it and paid his rent in full before it was due. I did no rehab/upgrades on this property. All major appliances and systems are good for at least another 15 years and when these tenants move out, the day I list it I will have 5+ rental applications turned in From dual income households that probably average 150k+ a year. 0 time invested. No headaches. I haven’t even seen the place in two years. You won’t find that with a 30k property, generally. But like I said.... there is money to be made there, too.

Not interested in the headaches that come along with the 30k properties. If you can purchase for 30k, rehab and have an ARV of 60k plus, that's a different story. I think in a large number of markets you can up your purchase price and start getting into the 60k range and have decent cash flow, lower expenses, less headaches and more longevity (newer home) but to each their own. If it's working for you then keep on pushing.

Hard to say.... maybe talk with previous owner if possible. There is no penalty on when the rent is paid so maybe he’s been paying the second week of the month for years now and if the previous owner was okay with that, that’s how the tenant has been trained. IMO if him paying late isn’t causing you to lose any money and he pays every month.... put up with it until he decides to leave. Bottom line being you’re getting paid, you don’t have to deal with turn over and hopefully he’s a low maintenance tenant. Just my two cents.

@Oleg Shalumov

Thanks for the reply. I understand that you own a portion of the property but are pretty much at mercy of whatever the syndicator wants to do or be bought out I would assume?

And that’s a really good idea in regards to solo 401k. I actually need to decrease my income for tax purposes.

Thanks again!

Thank you all for the responses. Buying a piece of property every 2-3 years for the next 10 years or so is a piece of my plan. The majority of it, actually. I invest in stock and make contributions to my 457 account as well. Just trying to mitigate risk and increase chances of profit in the future and while stumbling across real estate I realized it’s something that greatly interest me and I enjoy studying, researching and participating in it.

Syndication suggestions.... it sounds appealing. Part of me really enjoys the idea of being 100% hands off. The only hold up I have is that when all said and don’t I don’t actually own anything. I like the idea of getting homes paid off, enjoying the benefits during retirement and then passing them along to my kids when I’m dead and gone or using it to fund their education, help them purchase their first home, etc.... not totally agains it though. Will definitely have to research further.

Thanks again!

Just toss a little extra on there each month. Monthly payment divide by 12 type of deal. Is it the best money you’ll spend....? Nope. I do it because in 20 years I want to have as few personal monthly expenses as possible. That to me is worth more than whatever else I could do with that chunk of money. You can’t monetize everything.... contrary to popular belief on BP.

@Joe Villeneuve

That is kind of what I figured when I thought about it myself. But just thought I’d toss it up here to see if anyone has done anything similar. Thanks again for the response. Seems like it has the ability to get pretty messy real quick.

This is essentially what I am doing right now. While I have considered the Vegas market for multiple reasons, I am focusing on Southern California for the foreseeable future. I was just wondering if I could use the fact that I don’t need immediate returns to benefit a partner and if it were beneficial, how a deal like that may be structured. I appreciate you taking the time to reply!