All Forum Posts by: Terrell Garren

Quote from @Brooklyn McCarty:

Sometimes you have to look beyond the COC. People invest for other reasons too. While COC is one of the major metrics used to look at STRS, it's not the only one

Insightful and rarely mentioned. Diversification and asset appreciation factor into my REI. I'll take 9% as long as the expenses are inclusive of everything - opex and capex. An investor has to find somewhere to put money to work.

Quote from @Bob Stevens:

Quote from @David M.:

@Bob Stevens.

Liability is primary a legal issue, not an accounting issut

Talk with your accountant, 

Sure. And your dentist if the accountant is unavailable. 

Yep, and the last ABNB I stayed at had me remove all the bed linens and put them in the bathtub.  What's next, patch the roof and paint a bedroom before I get my $1,500 deposit back? Hotels are looking better and better. 

What @Luka Milicevic said.  $200 bucks a year in NC for an extra layer of protection.  Yeah, I may never need it but then again, I've never filed an insurance claim in 14 years of rental business. Someone falls down the stairs, claims they can never work again, insurance company says handrails were 2 inches short of code and they are not paying out.  Jackie Chiles smiles when he sees unprotected wealth. 

I changed my rental acquisition strategy from renovating SFHs to new construction a couple years ago due to competition/price. The only way I could make the #s work was to get my GC and remove that cost from the equation. It will be difficult for you to purchase MLS new construction and make the numbers work because you are competing with owner occupant buyers. Good luck.

I don't find the 'cash is king' to be a thing in my purchases.  It's always cash at closing and the sellers do not care where the money came from. I do find that - big earnest/due diligence money, no contingencies, close in 10 days, offer good for 34 hours - makes the seller take notice. 

Regarding primary home vs investment. IMO, I stopped renting 40 years ago and would not change that. I did put too much equity into a series of primary homes and a vacation home (non-rental) vs living smaller and investing. REI allowed me to retire early, have a great part time job, and cash flow life. It would have happened even sooner if I changed the things I mentioned. Good luck.

My "tech stack" is a laptop, excel, word, cell phone, and apartments.com.  More important to me are things like comp knowledge, market rents, contractor relationships, PM skills, construction estimating, new construction, renovations, and sweat equity.  Tech stack does sound cooler than fixing a wet crawl space though. 

Quote from @Kaiston Terry:

I have a 3bed 2.5ba home that is for rent and had 2 sisters and their boyfriends apply to live there. 

Hard pass. Too much downside.  "Thank you for applying; however, I have selected another applicant.
One of the reasons I do not charge an application fee. 

M2M rental agreements all day long. You can deal with misbehaving tenants immediately, and they know it. 

Agree with @Don Konipol.  However, I've read of tenants doing so many quirky things, my lease would be 20+ pages trying to cover all the nuances.  I find a simpler M2M rental agreement much better.  A quick remedy to a misbehaving tenant that refuses to comply.