All Forum Posts by: Brian H.

Those of you that are landlords... what do you use for phone communication with tenants?

Do you use your own personal number? Get an entire other phone and line? Use something online?  About to become a landlord and want to figure the best method for this.  

@Andrew B.

Appreciate the response and that is noted.  The units/properties are all together on two side-by-side parcels.  I have the time, when needed, to be there so I do want to at least try to self-manage but have contacts with two highly recommended property management companies if I need them.\

Any other advice/help with regards to my questions?  

Thank you!

@Joe P.

Based on all the positives in regards to the information on the tenants from employers and past landlords... and everything checking out financially with them to live there... I would step back and see what happens.  Also, be careful to have anyone else's back 100% in regards to saying who did not take anything. I am not saying anyone stole the watch... but you can never say 100% that someone else (contractor) did not.  You'd be amazed at the people who get caught stealing. A lot of times it is about the high and not the item itself. It's a problem, not a need.  Hopefully, it is lost under a couch or something.... and found. But just be careful to vouch for people when you didn't have eyes on them the ENTIRE time. You just never know.  

I hope this all resolves quickly. I would not start thinking of having them move. Sound like decent tenants on paper.  Maybe this is a very sentimental object to the mother and she lashed out because she is scared and worried.

Originally posted by @Joe P.:

@Tom Arnold welcome, and good luck!

As someone who like @Brian H. is a newbie but loves crunching numbers, what have you factored in for all of the other expenses of this property?

@Anthony Wick is a cash flow guy and I would agree. Depreciation, future equity, etc....those are nice to have but not my strategy. I want my asset to put cash in my pocket every month.

So I think you need to further find/extrapolate the following expenses, and dump it into a spreadsheet. The 1% rule is helpful, but only a guideline. If you hit the 1% rule and your mortgage, taxes, insurance, capex, maintenance, etc. is only $300 a year, then it's a slamdunk! But that never works out like that...so find out what these are and put pen to paper:

• Income - call it $2350 per month
• Expenses
  • Mortgage? $202,500 @ 5.5 will be $1,150 per month
  • Taxes?
  • Insurance?
  • Flood insurance/hurricane insurance?
  • Property management or self manage?
  • CAPEX (I use 10% of gross rent)
  • Maintenance (I use 8% of gross rent)
  • Vacancy (I use 8% of gross rent)
  • Any common electric, gas, sewer, or water account?
  • Garbage / Fire / Police dues?
  • License / inspections / business dues?

And if you don't think any of this applies...you're wrong or you need to confirm you're right. Get to the bottom of every red cent you need to spend. All check conditions of the big ticket items -- the roof is the biggest right now, but also check heating systems, appliances, plumbing, electrical, structure, etc. 

I'm all about cash flow as well.  I personally wouldn't have a great feeling about this property at this point. Just seems like the cash flow will be non-existent or very minimal out the gate. That stresses me out when I'm looking at potential deals.

Hey everyone,

So I am about to close on my fist rentals.  It's insane. I completed my first flip, it went through three potential buyers that all ended up with lending issues, and finally is just now selling a year later. Made of nicely though.  Very grateful.  I had had my goal to sell that flip and start another before 2019... but had finally just accepted that the property may not sell until 2019, but it sold! So yay!  

My new 2019 goal was going to be getting ONE rental property under my belt and another flip as well. Well, the stars aligned in some odd fashion and now on 12/28/18, I close on a 5 property rental package. 1 quadplex, 3 duplexes, 1 1br/1ba little blockhouse. So, 2018 is ending in a much grander fashion than I ever expected. I thought maybe this time next year I would have a duplex or something. So, yay! :)

Anyways, to the issue at hand.  I am going to be a brand new landlord. The units (11 total between the 5 buildings) have a really decent rental history. 8/11 are rented out. One tenant there 12 years, another 7, two others 4 years, two others 2 years, one 1 year, one new.

These are C-class - B-class.  Good history of on-time payments too.  So. I need advice.  Would love some people to just talk to and go over my rental application, lease, etc.

Any general advice anyone can lend here for multi-family rentals or just rentals, in general, is so very appreciated.

A couple specific questions (though I would love any and all advice):

• How do you handle communication? Did you get a separate phone for your tenants to contact you? Do you have that phone number on all the time (as in do you have the ringer on and at the ready all night and what not or just have it available during "business hours")? I was thinking Google Voice. Any ideas?
• How do you handle payments?  Most of the current tenants are older folks and when I walked through I did not see a single computer. So, I know a lot of people use things like cozy.co...but what are your other best options if now that? They are about 45 minutes from me so I can always drive down once a month to collect... or give them all a bunch of self-addressed, self-stamped envelopes?  
• What are your favorite addendums for your lease? Any that have really saved you before? Any that you now have that you REALLY wish you had had before?
• Any tips for starting/maintaining good tenant relationships? I know, through my agent, that the tenants are a little anxious. They are worried I am coming in and flipping everything upside down, which I totally understand and do not plan to do. Even without my doing that, I still want to really get off on the right foot. I want to be approachable and friendly, while still treating it all as a business.

Thank you all!!

Ok. First. Disclaimer. I'm a bit of a newbie myself. But I love crunching the numbers.

So, first off, for me, even though it is by no means set in stone, I really love the 1% rule. It helps me weed through potential properties very quickly.

For me, this property would not work.  Current rents collected are $2,350 per month.  After you raise rents, they will be a total of $2,600 - $2,650 per month. We will say $2,600 to be conservative.  Though, personally, I think I would probably do my analysis at the current "guaranteed" rental rates. You know those rates are being paid for sure... so if you make it work at those rates... then if you can get the rent raised... even better!!

First, do you know you can definitely raise rents to those numbers?

Second, with the 1% rule, I see paying $260k max.  But that is if you can get the rents where you listed.  Now, maybe I am not approaching it right but since it is just a quadplex, it is not really commercial... that is why I do the 1% rule.   Not sure if you can use that as a basic rule of thumb for commercial as well... 

I would say start at $260k, but that is based on very limited info from you in this post. What about property taxes, insurance, etc.? Have you put all this into an analysis calculator to look at the numbers in that fashion?  Either a BP calculator or some other one?

Hello folks!

I am closing on my first package of multi-family properties here in less than a month.

I will end up with 1 quadplex, 3 duplexes, and one 1br/1ba little block house.

My question is how to handle my insurance.

Up to this point, I have only flipped.  The properties will be under my LLC. I assume umbrella insurance is still smart? If so, any recommendations on where to look for that? Am I looking for anything different since this is a commercial loan? Also, what sort of "homeowners" insurance is used in this instance? Any recommendations here as well? Assuming something different than the sort of home owners insurance I use with flips since these are with a commercial loan and multiple buildings? I am in NC. Just didn't know if there were any real specific issues I need to know about or anything. I am completely clueless on this specific piece.

Thank you all for any help and/or advice!!

@Charles Wilkes

Have you read much on the forum/blog here? Have you learned about BRRRR?? Good way to keep your money working for you. Also, I feel like the main issue you will run into is a lack of income. From my experience that is a pretty big deal for the lenders.

Originally posted by @Deangelo Purnell:

Hello,  i am new to podio i downloaded the application and i know that i need to set a system to manage my leads in the future.  right now it's just me i have a few cold callers that help me out a bit but they are paid by deals closed.  I want to build my business as if i am already making 50K monthly right now i don't even make $1k a month) with that being said.  Can you point me in the right direction to get started with correctly setting up podio.  i am a real estate investor focused on all things real estate.    i rehab, wholesale and manage residential properties.   I feel as though i need to be able to visualize my business and take that visualization and move it into podio.  however, i am having a difficult time doing that since i don't understand podio.  i wondering is there an investor template or something out there to help me get started. 

Thanks, 

 Deangelo,

Just want to make sure you are also using Podio on your desktop/laptop browser as it is MUCH more useful that way, I have found, than through the App. At least for really customizing and setting it all up.

@Jean Haisch Raising the rent and then providing the discount actually worked? Lol! That's kind of hilarious honestly. I close on 12/28 on my first buy and holds. Pack of 5 properties totalling 11 units. Very exited, incredible cash flow, but very nervous as I am inherriting 8 tenants on my first by and hold deal.