All Forum Posts by: Tara Kinney

 I signed up and payed the $15K about 5-6 years ago.  My tax situation is VERY different than what it was at that time.  Do I have to pay another $15K to do this again or is there any other kind of fee structure for returning clients?

I ABSOLUTELY must refute this post.  I met Cory and Victoria nearly 5 years ago at some real estate meetups, and they are literally the most honest and trustworthy people in the industry.  They have strong morals and ethics and do not cut corners.  If you are the kind of property owner that doesn't want to spend the money to fix something appropriately, then they are not for you.  They run a tight ship, they will respect your time and they expect you to respect theirs.  

They took my properties over last year and my cashflow has skyrocketed since then.  We got rid of a few "bad" tenants and they have been replaced with good quality tenants that pay on time and follow the rules.  Anytime there is an issue, they are prompt with informing me and handling it appropriately!  When things are broke, they fix it correctly the first time to avoid coming back, and they take time to teach tenants common expectations so we don't get needless requests....(ie: how to light a pilot light, turning off and on breakers, ect.).  All my tenants are super happy since we have started using them.

I would put a warning on to any property managers to not take YOU on.  You sound like a nightmare to work with and I was actually quite impressed with how long they tolerated you.  

You expected Victoria to go pick up a GIFT CARD for your tenant to thank her for making a "LATE" payment!  Seriously?!!!  Why would you incentivize someone for paying rent LATE?!!   That was RED FLAG #1 for me one who they were dealing with.

Stop micro-managing and let people do what they know how to do.  I have ZERO problems with my tenants.  All maintenance issues are handled quickly and correctly.  My recent turnover was done quickly and a new tenant placed in less than a week after putting back on the market at a higher monthly rental than it was previously.  

I question your Real estate agent that got someone in there in "one day".  Was a proper background check done?  Did they check references? Did they verify income?  That's a red flag also.  Getting a tenant in there quickly does no good if they can't pay rent on time, or constantly cause problems.  I would rather wait a few weeks for a quality tenant that will stay and respect my property rather than get one in their quickly that is just going to cause me problems!

Last, if you ever talked to me they way you talked to them, I would fire you immediately.  Just because you hire someone to do a job, does not ever give you the right to treat or talk to someone so rudely.   

What's funny is they took you on because another property management company did not WANT your business because of how high maintenance YOU are.  Don't go throwing stones if you live in a glass house.

Investment Info:

Single-family residence other investment.

Purchase price: $429,000
Cash invested: $10,000

Single Family home with pool - to be used as my personal vacation home and as a short term rental. Did a 1031 exchange from my 6 unit property that I sold so put quite a bit down. Conventional financing. Using Evolve vacation rentals to help manage. Just started listing is this month, so yet to see full potential but already has been getting booked up quickly and it's the offseason right now.

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

My 7 year goal (when my kids are all graduated) was to be financially independent and have a vacation home in Arizona so I can snowbird there. 4 years from the start of my journey and two years early, I have my vacation home and am close to F.I. I choose this home although not in a large tourist destination, it is the right size city for me to enjoy when I'm ready to stay there more full time. I choose to get a pool to make it more desirable for STR.

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

Found it on the MLS. Hot market right before the interest rate hikes - I looked at the pics and had my realtor send an offer and then he did a virtual tour with me. Offer them $5K over asking, they took it, assessed value came in lower, so we met in the middle on price and I got it lower than their original asking offer.

How did you finance this deal?

1031 exchange - conventional loan

How did you add value to the deal?

Furnished for STR

What was the outcome?

Using evolve property management - so far I am very pleased with them.

Lessons learned? Challenges?

Be picky on your cleaning person. Communication with my current one has been a bit of a challenge, but getting better.

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

Evolve Property Management - doing good so far! Can't complain.

Investment Info:

Large multi-family (5+ units) buy & hold investment in Davenport.

Purchase price: $232,000
Sale price: $325,000

6 unit apartment building, C class neighborhood. Rehabbed 5 of the 6 units improved rents. After all was said and done, I profited about $100K. I learned a ton from this deal. Location is number one. This was a poor location = poor tenant mix. Harder to raise rents even in nicely rehabbed units. 1031 Exchanged into a property in Arizona which I now do STR with.

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

Interested in scaling

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

MLS- Realtor

How did you finance this deal?

Bank commercial loan

How did you add value to the deal?

Rehabbed 5 out of 6 units. Removed non-paying or problem tenants.

What was the outcome?

After all was said and done, between income, expenses and rehab costs, I profited roughly $100K in just over 2 years. Honestly, just happy to have made a profit.

Lessons learned? Challenges?

A lot of learning and a lot of headaches. Glad to have done it and glad I profited. Now that I have a solid team in place with people I trust, I'd be willing to try it again, but would be much pickier on location. Location, location, location. It's hard to build value in a poor, crime stricken neighborhood. Harder to get rented or raise rents that is known for high crime. Have a good team in place.

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

Cory and Victoria Gamble (CV Investments) are literally the heart and blood of this property making a profit. They are such genuine good people, that want to do right by others and are probably the hardest working people I know. So glad to have met them through Biggerpocket meetups and to joined forces with them!

Investment Info:

Large multi-family (5+ units) buy & hold investment in Davenport.

Purchase price: $232,000
Sale price: $325,000

6 unit apartment building, C class neighborhood. Fully rented, below market rents. Plan to raise rents as leases come due and update apartments as current tenants move out to make units more attractive. Working with other landlords in the area to improve the quality of the neighborhood. Utilites all paid by tenants. After improvements and rents increased, should be able to increase value of the property by roughly $150K

Rehabbed 5 of the 6 units - improved rents. After all was said and done, I profited about $100K. I learned a ton from this deal. Location is number one, poor location = poor tenant mix. Harder to raise rents even in nicely rehabbed units. 1031 Exchanged into a property in Arizona which I now do STR with.

Investment Info:

Large multi-family (5+ units) buy & hold investment in Davenport.

Purchase price: $232,000
Sale price: $325,000

6 unit apartment building, C class neighborhood. Fully rented, below market rents. Plan to raise rents as leases come due and update apartments as current tenants move out to make units more attractive. Working with other landlords in the area to improve the quality of the neighborhood. Utilites all paid by tenants. After improvements and rents increased, should be able to increase value of the property by roughly $150K

Rehabbed 5 of the 6 units - improved rents. After all was said and done, I profited about $100K. I learned a ton from this deal. Location is number one, poor location = poor tenant mix. Harder to raise rents even in nicely rehabbed units. 1031 Exchanged into a property in Arizona which I now do STR with.

Is there anyone that has actively done the development side of Real Estate - ie: Build to Rent??  My partner and I would shift to that to get into building affordable housing, as we see there is quite a need in the area, but would like to talk to some people experienced in the area so we know things to look for and we don't get taken advantage of. 

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $80,000
Cash invested: $3,000

Contributors:
Cory Gamble

SFH - 3bed/1bath home. Purchased this property through a person I met in a BiggerPockets meetup. This was his first property, very nicely rehabbed. He needed to use his money elsewhere and wanted to cash out quickly, and I was able to close on it with cash. Bought sight unseen just buy the pictures and a handshake. It appraised for $134K. Minor tenant issues on transfer and now renting out at $1300/mo.

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

It was brought to by a person I met at a BiggerPockets meetup.

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

Didn't negotiate. Made good repour and I trust the word of the person bringing me the deal. He told me about a place he wanted to unload, I looked it up online, saw the recent pictures and asked him about any problems. Closed the deal, sight unseen, based on his word.

How did you finance this deal?

Closed with Cash with my HELOC, then refinanced for 100% back.

How did you add value to the deal?

Evicted poor tenant and minor fixes.

What was the outcome?

Appraised for $134K and got it rented out $1300 per month.

Lessons learned? Challenges?

NETWORK NETWORK NETWORK. I have gotten two wonderful properties just by attending meeting ups and getting to know other local like minded investors. Generally I wouldn't buy a property sight unseen, but I had gotten to know this investor and trust goes a long way. Challenges - problem tenant. Turn it over to the property manager and nip it in the bud quickly.

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

No realtors involved. Used Blue Grass Savings Bank for financing.

Hi AJ, 

You investing strategy should largely depend on your personal goals/abilities. For example, is your new job high paying? Does it require a lot of your time? Buy and Hold's may be best for you. Do you like to do projects yourself? Will you have low income? Wholesaling, BRRRR or Flips may be the right choice? Find your goals and you will find the right strategy for you. Personally, I have a high paying job and started my own business (outside of real estate) which requires a lot of my time currently, thus my strategy is buy and hold and light BRRRR. I choose to buy in Davenport, for a good combination of cashflow and the benefits of the positive landlord laws. (ie: easy and quick to get bad tenants out).

Good luck and feel free to reach out!  

Tara

I am an investor in the Quad Cities Area.  If you have light rehab or turnkey wholesale deals, please reach out to me.