All Forum Posts by: Taylor Hudgins

@Shannon Vinson

Of course!  Always happy to help a fellow real estate entrepreneur! 

A good property manager price for a single family probably depends on your experience and what other local property managers are charging.  Most managers that I've met have a consistent charge rate (such as 10% of the monthly rent or a flat fee) which would help with any immediate answers on calls.  As an investor, I want to ensure that I'm still cash flowing from my property so I would still need to make sure that hiring a property manager would fit with my numbers.

Lack of experience is definitely something that can be worked around (it just may take a little longer to plant your seeds without a track record).

1. I'm not sure of Florida's law, but you need a property manager license to manage rentals for other people here in Virginia.  You may totally be fine - make sure to check around.

2.  I've found the most luck by going to local investor networking meetups.  You'll meet tons of other investors who may need exactly what you offer.  You may also find other property managers who can assist with questions you have about starting up your business as well!

3. Build relationships with these folks, add value to them for free (such as sending them lease agreement templates or articles that might help them), and they will begin to trust you.  The more value you add, the more they'll begin to associate you with being the "go-to" property manager in the area for all of their questions and eventually their business.

Congrats on starting a new business Shannon!  I think you're going to really find a great need for it in your area!  

Everyone will have different priorities based on what they value most. This is a general list I found that may help as common points investors look for:
https://www.biggerpockets.com/blog/2014-03-12-questions-for-hiring-property-management

From personal experience, the most common pieces we look at first are:

1. How much you charge. 

2. How many rentals you currently manage. 

3. How many evictions you've handled.

For me to pick a particular property manager, I want to know that you care about my asset.  My future stability is held in this asset.  My retirement income is held in this asset.  A lot of my time and effort has been placed in this asset.  Everyone is different but I would 100% choose someone who shows that they care about my property over a large commercial property management company any day.

I've met a lot of local property managers here in my area through meetups and I feel much more comfortable handing my property over to them (depending on their stats) than a stranger on a website.  

The full services package is also a WONDERFUL idea!  I definitely would love to work with a property manager who had that as an extra perk if it can help me save some money down the road.

Cheers to your success!

OMG Jarrett!  Congrats on starting your investing journey!  You are going to absolutely love it!

Acquiring the first rental property is different for everyone depending on knowledge level, financing options, etc.  

For us personally, we started learning about real estate investing with podcasts, meetups, and books in August 2018.  We had to take a little while to save up some money where we were then able to start putting in offers in January 2019 - Woo wee was that scary for us as a first time buyers (but our excitement definitely outweighed the fear)!

We had to put in 4 - 5 offers before we landed on our first property which closed on in March 2019.  

The biggest thing is DO NOT GIVE UP.  No matter how many lenders you talk to. No matter how many deals you run numbers on.  No matter how many offers get rejected.  

Keep going and you will be at your first rental in no time.

Congrats on getting your general contracting licenses, Moises!  I'm not in Tampa, but I highly suggest going to a few local meetups with other investors in your area.  We have a shortage of general contractors and all of our investors are constantly trying to meet new contractors to help with their projects.  Try going to BiggerPockets.com > Network > Events and typing in your zip code.  

My life has completely changed from local meetups here in my area because I was able to meet other awesome investors who have helped guide me to landing my first rental property.  

You'll meet so many great people by meeting in your local groups and potentially find life-long customers for your GC business!

Thank you so much everyone!

Welcome to Virginia Shaquan!  So great to meet other newbies that live here too!

We just signed a tenant in August for our very first investment property here in Hampton Roads.  We have tons of meetups in the area as well that are great for not only learning about investing, but also meeting other great folks that invest locally.  Feel free to message me if you'd like the details for the next October group!  

You're going to love the area!

Hi Amy - 

You may find some great recommendations here!  We've also found that we were able to meet great property managers through a few other avenues as well that may help in your search.

1. Local Real Estate Meetups - If you go to BiggerPockets.com>Network>Events, you'll be able to see all the local meetups going on in your area.  We've met some great property managers in our community through these groups.

2. Other Local Investors - If you have a crew of great investors you know of in you area, always feel free to ask around to see who they currently use or who they have worked with in the past.  This is a FABULOUS way to figure out who is awesome and who isn't as awesome in your area.

3. Current Rental Postings - If you go to any websites with places listed for rent and scour through the postings to see which ones you like.  Always feel free to give that person a call to see if they would have time to chat with you on potentially partnering up with your portfolio.

Investment Info:

Single-family residence buy & hold investment in Portsmouth.

Purchase price: $59,000
Cash invested: $6,000

Our small (698 square feet to be exact), but mighty first rental property! We actually got engaged in this kitchen right after we closed, with it's true in-diar-need-of-a-renovation charm. Cabinets falling off the wall, plaster chipping onto the floor, and water heater on the brink of explosion. All the characteristics needed for investing success of course!

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

Our ultimate goal is financial freedom with passive income through rentals, so this deal was the perfect start for us . Our goal is to be able to have our money create more money for many years to come, rather than us working for our entire lives.

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

We found this deal with the help of our amazing investor-friendly real estate agents on the MLS. We placed multiple offers on homes throughout our area, but competing with cash buyers in a hot market can create quite a large bit of competition. We placed an offer the same day it was placed on the market for the full asking price with a 10-day inspection contingency. We then asked the seller to take on the larger ticket items (plumbing, electrical, etc.) after the inspection. He agreed!

How did you finance this deal?

Our first rental was financed through a conventional loan with a local bank here in our market. We were required to put down 20% plus closing costs.

How did you add value to the deal?

Wooo-wee! Great question! We didn't complete any structural changes to the home, but we did update a lot of the cosmetic needs such as refinishing the cabinets, installing a new water heater, paint, carpet, and a new back porch.

What was the outcome?

We are cash-flowing $475/month! Woo-wee! We're hoping to keep this property for at least another 10 years and complete a BRRRR to acquire more homes.

Lessons learned? Challenges?

Bite the bullet and hire contractors, my friend. Our contractors were able to complete projects MUCH MUCH MUCH faster than we were. Our renovation time could have been cut in half (along with our holding costs) if we had started there. All lessons learned.

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

Ohh yesss!!! Having a great team has made a world of difference. Feel free to message me if you're looking for lenders, agents, contractors, or any other awesome real estate ninjas in the Hampton Roads, Virginia area. I'd be happy to pass along their contact information.

Hi Une -

That is so exciting!  Joining with other local real estate investors has made a huge difference for us in our journey.  

The easiest way to find people near you, would be to go to BiggerPockets.com>Network>Events and then type in your zip code.  Anyone hosting a local investor event should pop up there.  

Hi Michael -

It really all depends on the town home! Neighbors (or at least having them close in a town home setting) would probably make the biggest difference especially without an HOA.

Do they take care of their lawn? exterior of their home?  Is their roof in shape or could it use a little TLC?

You can always change tenants but you can never get rid of neighbors which could sway what kind of tenants you attract or how attractive the property would be if you decide to sell it.